Research Methodology: Primary Data

RESEARCH METHODOLOGY
The plan of the study of portfolio management of life insurance

corporation. is described as follows. The information has gathered from
the two main sources of data collection. They are-
1. Primary Data
2. Secondary Data
Primary Data: it has been collected through the guidance of our

trainer with through knowledge of life insurance and their terminology of
product in detail with each and every insurance products terms and
tenure.
Secondary Data: it has been collected through the websites,
books, magazines, newspaper, journals for collecting information

regarding project under study.
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MEANING OF PORTFOLIO MANAGEMENT
Portfolio management is the selection and management of all of an
organization’s projects, programmes and related business-as-usual activities
taking into account resource constraints. A portfolio is a group of projects and
programmes carried out under the sponsorship of an organization. Portfolios can
be managed at an organizational, programme or functional level.
The process of managing the assets of a insurance policy or policy holder,
including choosing and monitoring appropriate investments and allocating funds
accordingly.It has often been said that portfolio management is not a science,
but an art. Certainly, the human factor manifesting in a portfolio manager’s
ability to create outperformance bears out this truism. Computer system can
pick and run to some extent, portfolio which will provide a return equal to an
index, but the possibilities of higher fund outperformance (and under
performance) are presented by actively managed funds. With the more actively
managed funds, portfolio managers can demonstrate their experience and
expertise in picking assets, countries, sectors’, and companies that will generate
positive returns.
If you own more than one security, you have an investment portfolio. You build
the portfolio by buying additional stocks, bonds, mutual funds, or other
investments. Your goal is to increase the portfolio's value by selecting
investments that you believe will go up in price.
According to modern portfolio theory, you can reduce your investment risk by
creating a diversified portfolio that includes enough different types, or classes,
of securities so that at least some of them may produce strong returns in any
economic climate.
Note that this explanation contains a number of important ideas:
Over time, other industry sectors have adapted and applied these ideas to other
types of "investments," including the following:
2
COMPANY PROFILE’S
LIFE INSURANCE COMPANY OF INDIA LTD

It was established in the year 1956 on September 1. The Life
Insurance Corporation of India (LIC) is the largest life insurance
company in India and also the country's largest investor. It is fully
owned by the Government of India. It also funds close to 24.6% of the
Indian Government's expenses. it is 53 years old organization. Its
Headquartered is in Mumbai, which is considered the financial capital
of India, the Life Insurance Corporation of India currently has 8 zonal
Offices and 101 divisional offices located in different parts of India, at
least 2048 branches located in different cities and towns of India
along with 500 satellite Offices attached to about some 50 Branches,
and has a network of around one million and 200 thousand agents for
soliciting life insurance business from the public. Indian Insurance
Industry has conceived Life Insurance Industry.
CORPORATE OFFICE:-
LIC’s corporate office is in Mumbai and it is headed by chairman along with 3
Executives directors who are incharge of their portfolios. Executive Director –
Marketing and Sales. Executive Director – Finance and Accounts. Etc – Etc.
ZONA LOFFICE:-
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LIC’S Zonal Office is located at various zones in India. One of the most
important South Central Zone of LIC is located at Hyderabad (Opposite
Secretariat). Zonal Office is headed by Zonal Manager and his/her team.
LIC’S DIVISIONAL OFFICE:-

LIC’S Divisional Office is the 3rd in the administrative system and it is headed
by person called as “Senior Divisional Manager”. The Senior Divisional
Manager head’s his team which is consisting of Divisional Manager and
Marketing Managers.
LIC’S BRANCH OFFICE:-
LIC in its administrative setup has got maximum to maximum its branch offices
all over India encounting 2048. The Branch Office is headed by a Branch
Manger and in some of the branches LIC has also the concept of “Chief
Manager”. Chief Manager has his team of Development Officers and Agents to
do the business
LIC’S WORK FORCE:-
At the Administrative Level LIC has a employee force of 2,00,000 at various-

various designations. At the Marketing Force LIC works with 12,00, 000.
Agents and more than 2,00,000 Development Officers for achieving the LIC’S
life insuring target. Appraisals and Promotions are from time to time in this
organization.
LIC’S PORTFOLIO:- LIC’S main initiative was mainly to provide Life

Insurance to each and every person of an Indian Origin. LIC when it comes to
Life Insurance has plans on Need level basis.LIC has conventional plans and
non conventional plans.
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LIC MF started in the year 1989 on 19th June with a corpus of 2,00,00,000. LIC
in the mutual fund industry has got 20 open ended funds and 25 closed ended
funds. LIC on Mutual Funds set up has got 4 Independent Directors for running
the admin. Started in the year 1989 on 19th June.LIC HFL has also started Public
Deposit Schemes. LIC HFL promotes Housing Finance for purchase of
apartments or independent flats. LIC also has share pattern as it invests in
housing finance. In the year 2009 LIC will enter into Venture capital industry.
LIC introduced health insurance in the year 2008 with Health Plus as its
product. Health Plus is a product of health + stock market. Health Insurance has
got health benefits such as MSB and HCB and also stock market.
5
ICICI PRUDENTIAL LIFE INSURANCE COMPANY ROFILE
ICICI Prudential Life Insurance is a joint venture between the ICICI Group and
Prudential plc, of the UK. ICICI started off its operations in 1955 with
providing finance for industrial development, and since then it has diversified
into housing finance, consumer finance, mutual funds to being a Virtual
Universal Bank and its latest venture Life Insurance.
ICICI Prudential Life Insurance Company is a joint venture between ICICI

Bank - one of India's foremost financial services companies-and Prudential plc -
a leading international financial services group headquartered in the United
Kingdom. Total capital infusion stands at Rs. 47.80 billion, with ICICI Bank
holding a stake of 74% and Prudential plc holding 26%.We began our
operations in December 2000 after receiving approval from Insurance
Regulatory Development Authority (IRDA). Today, our nation-wide team
comprises of over 2000 branches (inclusive of 1,100 micro-offices), over
258,000 advisors; and 24 banc assurance partners.
ICICI Prudential is the first life insurer in India to receive a National Insurer
Financial Strength rating of AAA (Ind) from Fitch ratings. For three years in a
row, ICICI Prudential has been voted as India's Most Trusted Private Life
Insurer, by The Economic Times - AC Nielsen ORG Marg survey of 'Most
Trusted Brands'. As we grow our distribution, product range and customer base,
we continue to tirelessly uphold our commitment to deliver world-class
financial solutions to customers all over India.
Established in 1848, Prudential plc. of U.K. has grown to be the largest life
insurance and mutual fund company in U.K. Prudential plc. has had its presence
in Asia for the past 75 years catering to over 1 million customers across 11
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Asian countries. Prudential is the largest life insurance company in the United
Kingdom (Source : S&P's UK Life Financial Digest, 1998).ICICI and
Prudential came together in 1993 to provide mutual fund products in India and
today are the largest private sector mutual fund company in India. Their latest
venture ICICI Prudential Life plans to take care of the insurance needs at
various stages of life.
ICICI is the no.1 private player in Insurance market in term of the premium
share, 7913 crores (approx) was the total [premium by ICICI Prudential in the
year 2006, which is 28% of the total premium contribution by all private
players in the market.
2,34,460 is the number of the Life Advisors that ICICI PRUDENTIAL was
having till 2006-2007, and the number of branches that they are having is 583
which ahs drastically changed from year 2005- 2006 to 2006-2007. This magic
number 583 has turned from the number 175.
So, here we have the marketing strategy for the ICICI Prudential that it is
playing on the numbers of Life Advisors and widening its network to increase
its market share.
Contact Information
ICICI Prudential Life Insurance Company Limited
Registered Office
ICICI Towers
9th floor, Bandra-Kurla Complex
Mumbai - 400 051.
Tel: 494 3232
Delhi office:
3rd floor
Videocon Towers
7
FINANCIAL PRODUCT OF LIFE INSURANCE COMPANY OF INDIA
1) WHOLE LIFE PLAN:-

This plan is mainly devised to create an estate for the heirs of the policy holder
as the plan basically provides for payment of sum assured plus bonuses on the
death of the policyholder. However, considering the increased longevity of the
Indian population, the Corporation has amended the above provision, thereby
providing for payment of sum assured plus bonuses in the form of maturity
claim on completion of age 80 years or on expiry of term of 40 years from date
of commencement of the policy whichever is later.The premiums under the
policy are payable up to age 80 years of the policyholder or for a term of 35
years whichever is later.
If the payment of premium ceases after 3 years, a paid-up policy for such
reduced sum assured will be automatically secured provided the reduced sum
assured exclusive of any attached bonus is not less than Rs.250
Suitable For:-
This policy is suitable for people of all ages who wish to protect their families
from financial crises that may occur owing to the policyholder’s premature
death.
BENEFITS:-
Insurance Regulatory & Development Authority (IRDA) requires all life
insurance companies operating in India to provide official illustrations to their
customers. The illustrations are based on the investment rates of return set by
the Life Insurance Council (constituted under Section 64C(a) of the Insurance
Act 1938) and is not intended to reflect the actual investment returns achieved
or may be achieved in future by Life Insurance Corporation of India (LICI). For
the year 2004-05 the two rates of investment return declared by the Life
Insurance Council are 6% and 10% per annum.
8
PRODUCT SUMMARY :-
This is a whole of life assurance plan that provides financial protection against
death through out the lifetime of the Life Assured.
Premiums:
Under Table Nos 2 & 5 the premiums are payable yearly, half-yearly, quarterly,
monthly or through Salary deductions, as opted by you. Under Table No 8 the
premium is payable in one lump sum (Single Premium).
Under Table No 2 the premiums are payable for a period of 35 years or up to
age 80 years, whichever is later. Under Table No 5 the premiums are payable up
to the selected premium paying period. Under Table No 2 the premiums are
payable for a period of 35 years or up to age 80 years, whichever is later. Under
Table No 5 the premiums are payable up to the selected premium paying period.
The premiums are payable for the periods as specified above or up to earlier
death
Bonuses:
This is a with-profit plan and participates in the profits of the Corporation’s life
insurance business. It gets a share of the profits in the form of bonuses.
Simple Reversionary Bonuses are declared per thousand Sum Assured
annually at the end of each financial year. Once declared, they form
part of the guaranteed benefits of the plan. A Final (Additional) Bonus
may also be payable provided a policy has run for certain minimum period.
9
Death Benefit :
The Sum Assured plus all bonuses to date is payable in a lump sum upon the
death of the life assured.
Maturity Benefit :
This is a whole of life assurance plan and hence does not have a
maturity date. You, however, have the option to take the Sum Assured plus all
bonuses declared under the policy anytime after 40 years from the date of
commencement of the policy provided you have attained, at least, 80 years of
age.
Supplementary/Extra Benefits :
These are the optional benefits that can be added to your basic plan for extra
protection/option. An additional premium is required to be paid for these
benefits.
Surrender Value :
Buying a life insurance contract is a long-term commitment. However,
surrender value is available under the plan on earlier termination of the plan.
Guaranteed Surrender Value :
The policy may be surrendered after it has been in force for 3 years or more.
The guaranteed surrender value is 30% of the basic premiums paid excluding
the first year’s premium. In case of a single premium policy the guaranteed
surrender value is 90% of the single premium paid excluding any
extra/additional premium.
CORPORATION’S POLICY ON SURRENDERS :
In practice, the Corporation will pay a Special Surrender Value – which is either
equal to or more than the Guaranteed Surrender Value. The benefit payable on
surrender reflects the discounted value of the reduced claim amount that would
be payable on death. This value will depend on the duration for which
premiums have been paid and the policy duration at the date of surrender. In
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some circumstances, in case of early termination of the policy, the surrender
value payable may be less than the total premiums paid.The Corporation
reviews the surrender value payable under its plans from time to time depending
on the economic environment, experience and other factors.
SURVIVAL BENEFIT:-
Sum assured plus accrued bonuses and the terminal bonuses, if any, on the
policyholder attaining age 80 years or on expiry of term of 40 years from the
date of commencement of the policy whichever is later.
DEATH BENEFIT
Sum assured plus accrued bonuses and the terminal bonuses, if any,
on the death of the policyholder are paid to his/her nominees/heirs.
BENEFIT ILLUSTRATION
Statutory warning
“Some benefits are guaranteed and some benefits are variable with returns
based on the future performance of your insurer carrying on life insurance
business. If your policy offers guaranteed returns then these will be clearly
marked “guaranteed” in the illustration table on this page. If your policy offers
variable returns then the illustrations on this page will show two different rates
of assumed future investment returns. These assumed rates of return are not
guaranteed and they are not upper or lower limits of what you might get back as
the value of your policy is dependent on a number of factors including future
investment performance.”
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Table No 2
Age at entry: 35 years
Sum Assured: Rs.1,00,000/-
Premium Paying term: 45 years
Mode of premium payment: Yearly
Annual Premium: Rs.2917/-
End Total Benefit payable on death / maturity at the end of

of premiums year
year paid till Variable Total
end of Guaranteed
Scenario Scenario Scenario Scenario
year
1 2 1 2
1 2917 100000 3900 10800 103900 110800
2 5834 100000 7800 21600 107800 121600
3 8751 100000 11700 32400 111700 132400
4 11668 100000 15600 43200 115600 143200
5 14585 100000 19500 54000 119500 154000
6 17502 100000 23400 64800 123400 164800
7 20419 100000 27300 75600 127300 175600
8 23336 100000 31200 86400 131200 186400
9 26253 100000 35100 97200 135100 197200
10 29170 100000 39000 108000 139000 208000
15 43755 100000 58500 162000 158500 262000
20 58340 100000 104000 288000 204000 388000
25 72925 100000 130000 360000 230000 460000
30 87510 100000 156000 432000 256000 532000
35 102095 100000 182000 504000 282000 604000
40 116680 100000 208000 576000 308000 676000
45 131265 100000 234000 648000 334000 748000
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Table No 5
Annual Premium: Rs.4,444/-
End Total Benefit payable on death / maturity at the end of year

of premiums Variable Total
year paid till end Guaranteed
of year Scenario 1 Scenario 2 Scenario 1 Scenario 2
1 4444 100000 3900 10800 103900 110800
2 8888 100000 7800 21600 107800 121600
3 13332 100000 11700 32400 111700 132400
4 17776 100000 15600 43200 115600 143200
5 22220 100000 19500 54000 119500 154000
6 26664 100000 23400 64800 123400 164800
7 31108 100000 27300 75600 127300 175600
8 35552 100000 31200 86400 131200 186400
9 39996 100000 35100 97200 135100 197200
10 44440 100000 39000 108000 139000 208000
15 66660 100000 58500 162000 158500 262000
20 66660 100000 104000 288000 204000 388000
25 66660 100000 130000 360000 230000 460000
30 66660 100000 156000 432000 256000 532000
35 66660 100000 182000 504000 282000 604000
40 66660 100000 208000 576000 308000 676000
45 66660 100000 234000 648000 334000 748000
Note
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This illustration is applicable to a non-smoker male/female standard (from
medical, life style and occupation point of view) life.The non-guaranteed
benefits (1) and (2) in above illustration are calculated so that they are
consistent with the Projected Investment Rate of Return assumption of 6% p.a.
(Scenario 1) and 10% p.a. (Scenario 2) respectively. In other words, in
preparing this benefit illustration, it is assumed that the Projected Investment
Rate of Return that LICI will be able to earn throughout the term of the policy
will be 6% p.a. or 10% p.a., as the case may be. The Projected Investment Rate
of Return is not guaranteed. The main objective of the illustration is that the
client is able to appreciate the features of the product and the flow of benefits in
different circumstances with some level of quantification. Future bonus will
depend on future profits and as such is no guaranteed. However, once bonus is
declared in any year and added to the policy, the bonus so added is guaranteed.
The Maturity Benefit is the amount shown at the end of 45 years.
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Age at entry: Minimum - 15 years last birthday Maximum - 60 years
Sum Assured: Minimum - Rs.50,000/- Maximum - No limit
Mode of payment: Yearly, half-yearly, quarterly, monthly and SSS
Policy Loan: Yes
1.)WHOLE LIFE POLICY-LIMITED PAYMENT:-

This is the best form of life assurance for family provision since it enables the Life
Assured to pay all the premiums during the ordinarily vigorous and most productive
years of life. He need not pay any premium in the later stages of life if and when his
conditions might become adverse.
With Profits Limited Payments Policies do not cease to participate in profits after
completion of the premium paying period but continue to share in the periodical Bonus
Distribution until the death of the Life Assured.The Without-Profit option is available
under Table no. 3.
If the policyholder pays at least 3 years' premiums and then discontinues paying any
more premium, a reduced paid-up assurance policy comes into force.

15
or may be achieved in future by Life Insurance Corporation of India (LICI). For
the year 2004-05 the two rates of investment return declared by the Life
Product-summary:- This is a whole of life assurance plan that provides

financial protection against death through out the lifetime of the Life Assured.
Premiums:
Under Table Nos 2 & 5 the premiums are payable yearly, half-yearly,
quarterly, monthly or through Salary deductions, as opted by you.
Under Table No 8 the premium is payable in one lump sum
(Single Premium). Under Table No 2 the premiums are payable for a period of
35 years or up to age 80 years, whichever is later. Under Table No 5 the
premiums are payable up to the selected premium paying period.
death
Bonuses:
insurance business. It gets a share of the profits in the form of bonuses.
Simple Reversionary Bonuses are declared per thousand Sum Assured annually
at the end of each financial year. Once declared, they form part of the
guaranteed benefits of the plan. A Final (Additional) Bonus may also be payable
16
provided a policy has run for certain minimum period.
Death Benefit :
Maturity Benefit :
This is a whole of life assurance plan and hence does not have a maturity date.
You, however, have the option to take the Sum Assured plus all bonuses
declared under the policy anytime after 40 years from the date of
age.
benefits.
Surrender Value :
Guaranteed Surrender Value :
extra/additional-premium.
Corporation’s policy on surrenders :
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value payable may be less than the total premiums paid.
The Corporation reviews the surrender value payable under its plans from time
to time depending on the economic environment, experience and other factors.
SURVIVAL BENEFIT
policyholder attaining age 80 years or on expiry of term of 40 years from the
date of commencement of the policy whichever is later.
DEATH BENEFIT
Sum assured plus accrued bonuses and the terminal bonuses, if any, on the death
of the policyholder are paid to his/her nominees/heirs.
Benefit Illustration
Statutory warning
guaranteed and they are not upper or lower limits of what you might get back as
the value of your policy is dependent on a number of factors including future
investment performance.”
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Table No 2
End of Total Benefit payable on death / maturity at the end of year

year premiums
paid till end of
year Variable Total
Guaranteed
Scenario 1 Scenario 2 Scenario 1 Scenario 2
1 2917 100000 3900 10800 103900 110800
2 5834 100000 7800 21600 107800 121600
3 8751 100000 11700 32400 111700 132400
4 11668 100000 15600 43200 115600 143200
5 14585 100000 19500 54000 119500 154000
6 17502 100000 23400 64800 123400 164800
7 20419 100000 27300 75600 127300 175600
8 23336 100000 31200 86400 131200 186400
9 26253 100000 35100 97200 135100 197200
10 29170 100000 39000 108000 139000 208000
15 43755 100000 58500 162000 158500 262000
20 58340 100000 104000 288000 204000 388000
25 72925 100000 130000 360000 230000 460000
30 87510 100000 156000 432000 256000 532000
35 102095 100000 182000 504000 282000 604000
40 116680 100000 208000 576000 308000 676000
45 131265 100000 234000 648000 334000 748000
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Table No 5

of premiums
year paid till end
of year Variable Total
Guaranteed
1 4444 100000 3900 10800 103900 110800
2 8888 100000 7800 21600 107800 121600
3 13332 100000 11700 32400 111700 132400
4 17776 100000 15600 43200 115600 143200
5 22220 100000 19500 54000 119500 154000
6 26664 100000 23400 64800 123400 164800
7 31108 100000 27300 75600 127300 175600
8 35552 100000 31200 86400 131200 186400
9 39996 100000 35100 97200 135100 197200
10 44440 100000 39000 108000 139000 208000
15 66660 100000 58500 162000 158500 262000
20 66660 100000 104000 288000 204000 388000
25 66660 100000 130000 360000 230000 460000
30 66660 100000 156000 432000 256000 532000
35 66660 100000 182000 504000 282000 604000
40 66660 100000 208000 576000 308000 676000
45 66660 100000 234000 648000 334000 748000
Note:
i) This illustration is applicable to a non-smoker male/female standard (from

medical, life style and occupation point of view) life.
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ii) The non-guaranteed benefits (1) and (2) in above illustration are calculated
so that they are consistent with the Projected Investment Rate of Return
assumption of 6% p.a. (Scenario 1) and 10% p.a. (Scenario 2) respectively. In
other words, in preparing this benefit illustration, it is assumed that the
Projected Investment Rate of Return that LICI will be able to earn throughout
the term of the policy will be 6% p.a. or 10% p.a., as the case may be. The
Projected Investment Rate of Return is not guaranteed.
iii) The main objective of the illustration is that the client is able to appreciate
the features of the product and the flow of benefits in different circumstances
with some level of quantification.
iv) Future bonus will depend on future profits and as such is not guaranteed.
However, once bonus is declared in any year and added to the policy, the bonus
so added is guaranteed.
v) The Maturity Benefit is the amount shown at the end of 45 years.
PLAN PARAMETERS:-
Minimum Maximum
Entry age 12 (nearer birthday) 60
Sum assured (Rs.) 50000 NO LIMIT
55(Max. Prem.
Term (years) 5
ceasing age is 70)
Maximum premium paying
Mode of Payment Policy loan available
period
80 yrs. of age or 40 yrs. of
Yearly, half yearly,
premium paying term from the
quarterly, monthly, Yes
date of commencement
salary saving scheme
whichever is later.
2.) WHOLE LIFE POLICY-SINGLE PREMIUM:-

This is the best form of life assurance for family provision since it enables the
Life Assured to pay the premium during the ordinarily vigorous and most
productive years of life, relieving him from the necessity of making payments
later in life when they might become a burden.
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With Profits Single Premium policies do not cease to participate in profits after
completion of the period for which premium has been paid ,but continue to
share in the periodical Bonus Distribution until the death of the Life Assured.
SUITABLE FOR:Being a limited-payment life assurance policy, this plan is

suitable for people of all ages and social groups who wish to protect their
families from a financial setback that may occur owing to their demise.
BENEFITS:-

the Life Insurance Council (constituted under Section 64C(a) of the
Insurance Act 1938) and is not intended to reflect the actual investment
returns achieved or may be achieved in future by Life Insurance
Corporation of India (LICI). For the year 2004-05 the two rates of investment
return declared by the Life Insurance Council are 6% and 10% per annum.
Product summary
This is a whole of life assurance plan that provides financial

protection against death through out the lifetime of the Life Assured.
Premiums:
Under Table Nos 2 & 5 the premiums are payable yearly, half-yearly, quarterly,
monthly or through Salary deductions, as opted by you. Under Table No 8 the
premium is payable in one lump sum (Single Premium).
Under Table No 2 the premiums are payable for a period of 35 years or up to

age 80 years, whichever is later. Under Table No 5 the premiums are payable up
to the selected premium paying period.
death
Bonuses:
insurance business. It gets a share of the profits in the form of bonuses. Simple
Reversionary Bonuses are declared per thousand Sum Assured annually at the
end of each financial year. Once declared, they form part of the guaranteed
benefits of the plan. A Final (Additional) Bonus may also be payable provided a
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policy has run for certain minimum period.
Death Benefit :
Maturity Benefit :
This is a whole of life assurance plan and hence does not have a maturity date.
You, however, have the option to take the Sum Assured plus all bonuses
declared under the policy anytime after 40 years from the date of
age.
Supplementary/Extra Benefits:-
benefits.
Surrender-Value:-
Guaranteed-Surrender-Value:-
extra/additional-premium.
Corporation’s policy on surrenders:- :

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value payable may be less than the total premiums paid.
The Corporation reviews the surrender value payable under its plans from time
to time depending on the economic environment, experience and other factors.
SURVIVAL BENEFIT:-
policyholder attaining age 80 years or on expiry of term of 40 years
from the date of commencement of the policy whichever is later.
DEATH BENEFIT:-Sum assured plus accrued bonuses and the terminal

bonuses, if any, on the death of the policyholder are paid to his/her
nominees/heirs.
Benefit Illustration
STATUTORY WARNING :-“Some benefits are guaranteed and

some benefits are variable with returns based on the future
performance of your insurer carrying on life insurance business. If
your policy offers guaranteed returns then these will be clearly
marked “guaranteed” in the illustration table on this page. If your
policy offers variable returns then the illustrations on this page will
show two different rates of assumed future investment returns. These
assumed rates of return are not guaranteed and they are not upper or
lower limits of what you might get back as the value of your policy is
dependent on a number of factors including future investment
performance.
Table No 2
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of premiums
year paid till end
Guaranteed
1 2917 100000 3900 10800 103900 110800
2 5834 100000 7800 21600 107800 121600
3 8751 100000 11700 32400 111700 132400
4 11668 100000 15600 43200 115600 143200
5 14585 100000 19500 54000 119500 154000
6 17502 100000 23400 64800 123400 164800
7 20419 100000 27300 75600 127300 175600
8 23336 100000 31200 86400 131200 186400
9 26253 100000 35100 97200 135100 197200
10 29170 100000 39000 108000 139000 208000
15 43755 100000 58500 162000 158500 262000
20 58340 100000 104000 288000 204000 388000
25 72925 100000 130000 360000 230000 460000
30 87510 100000 156000 432000 256000 532000
35 102095 100000 182000 504000 282000 604000
40 116680 100000 208000 576000 308000 676000
45 131265 100000 234000 648000 334000 748000
Table No 5
25
of premiums
year paid till end
Guaranteed
1 4444 100000 3900 10800 103900 110800
2 8888 100000 7800 21600 107800 121600
3 13332 100000 11700 32400 111700 132400
4 17776 100000 15600 43200 115600 143200
5 22220 100000 19500 54000 119500 154000
6 26664 100000 23400 64800 123400 164800
7 31108 100000 27300 75600 127300 175600
8 35552 100000 31200 86400 131200 186400
9 39996 100000 35100 97200 135100 197200
10 44440 100000 39000 108000 139000 208000
15 66660 100000 58500 162000 158500 262000
20 66660 100000 104000 288000 204000 388000
25 66660 100000 130000 360000 230000 460000
30 66660 100000 156000 432000 256000 532000
35 66660 100000 182000 504000 282000 604000
40 66660 100000 208000 576000 308000 676000
45 66660 100000 234000 648000 334000 748000
B) MONEY BACK PLAN:-
1.)THE MONEY BACK POLICY-20 YEARS:-

Unlike ordinary endowment insurance plans where the survival benefits are
payable only at the end of the endowment period, this scheme provides for
periodic payments of partial survival benefits as follows during the term of the
policy, of course so long as the policy holder is alive. In the case of a 20-year
Money-Back Policy (Table 75), 20% of the sum assured becomes payable each
after 5, 10, 15 years, and the balance of 40% plus the accrued bonus become
payable at the 20th year.
For a Money-Back Policy of 25 years (Table 93), 15% of the sum assured
becomes payable each after 5, 10, 15 and 20 years, and the balance 40% plus
26
the accrued bonus become payable at the 25th year. An important feature of this
type of policies is that in the event of death at any time within the policy term,
the death claim comprises full sum assured without deducting any of the
survival benefit amounts, which have already been paid. Similarly, the bonus is
also calculated on the full sum assured.
BENEFITS:-
INTRODUCTION:-
or may be achieved in future by Life Insurance Corporation of India (LICI).
For the year 2004-05 the two rates of investment return declared by the Life
Product summary :-These are Money Back type Assurance plans that provide
financial protection against death throughout the term of plan along with the
periodic payments on survival at specified durations during the term.
Premiums:-
Premiums are payable yearly, half-yearly, quarterly, monthly or through salary

deductions as opted by you throughout the term of the policy, or till the earlier
death. This is a with-profit plan and participate in the profits of the
Corporation’s life insurance business. It gets a share of the profits in the form of
bonuses. Simple Reversionary Bonuses are declared per thousand Sum
Assured annually at the end of each financial year. Once declared, they
form part of the guaranteed benefits of the plan. Final (Additional) Bonus may
also be payable provided policy has run for certain minimum period.
Death Benefit: The Sum Assured plus all bonuses to date is payable
in a lump sum upon the death of the life assured during the policy term
irrespective of the Survival benefit /benefits paid earlier
27
SURVIVAL BENEFITS:
The percentage of Sum Assured as mentioned below will be paid on survival to

the end of specified durations :
% of Sum Assured paid at the end of specified duration
Plan
Duration
75 93
5 20% 15%
10 20% 15%
15 20% 15%
20 40% 15%
25 - 40%
28
All bonuses declared upto the maturity date will also be paid along with the
final survival benefit.
benefits.
Surrender Value:

surrender values are available under the plan on earlier termination of the
contract.
Guaranteed Surrender Value: The policy may be surrendered after it has been in
force for 3 years or more. The guaranteed surrender value is 30% of the basic
premiums paid excluding the first year’s premium and all survival benefits paid
earlier.
Corporation’s policy on surrenders: In practice, the Corporation will pay a
Special Surrender Value – which is either equal to or more than the Guaranteed
Surrender Value. The benefit payable on surrender is the discounted value of the
reduced claim amount that would be payable on death or at maturity.
This value will depend on the duration for which premiums have
been paid and the policy duration at the date of surrender.
In some circumstances, in case of early termination of the policy,
the surrender value payable may be less than the total premiums paid. The
Corporation reviews the surrender value payable under its plans from time to
time depending on the economic environment, experience and other factors.
29
Note:
The above is the product summary giving the key features of the plan.
This is for illustrative purpose only. This does not represent a
contract and for details please refer to your policy document.
Plan/ Term 75/ 20 Years 93/ 25 Years
At the end of 5 years 20% 15%
At the end of 20 years balance 40% + bonus 15%
At the end of 25 years NIL balance 40% + bonus
30
Age at entry : 35 years
Policy Term : 20 Years
Mode of premium payment : Yearly
Sum Assured : Rs. 1,00,000 /-
Annual Premium : Rs. 6564 /-
End of Total Benefit on Death during the year (Rs.)

year premiums
paid till end of
year Variable Total
Guaranteed Scenario 1 Scenario 2 Scenario 1 Scenario 2
1 6564 100000 2400 4800 102400 104800
2 13128 100000 4800 9600 104800 109600
3 19692 100000 7200 14400 107200 114400
4 26256 100000 9600 19200 109600 119200

End of Total Benefit on survival / maturity at the end of year
year 5 premiums paid
32820 100000 12000 24000 112000 124000
till end of year Guaranteed Variable Total
6 39384 100000 14400 28800 114400 128800
7 45948 100000 16800 33600 116800 133600

1 6564 0 0 0 0 0
8 52512 100000 19200 38400 119200 138400
2 13128 0 0 0 0 0
100000 21600 43200 121600 143200
3 9 59076
19692 0 0 0 0 0
100000 24000 48000 124000 148000
4 10 65640
26256 0 0 0 0 0
100000 36000 72000 136000 172000
5 15 98460
32820 20000 0 0 20000 20000
6 20 39384 100000
0 48000
0 96000
0 148000
0 196000
0
131280
7 45948 0 0 0 0 0
8 52512 0 0 0 0 0
9 59076 0 0 0 0 0
10 65640 20000 0 0 20000 20000
15 98460 20000 0 0 20000 20000

31
20 131280 40000 53000 106000 93000 146000
year premiums
paid till end Variable Total
of year
End of Total Benefit on survival / maturity at the end of year
year premiums paid 100000 2700 4800 102700 105800
1 5507
till end of year Guaranteed Variable Total
2 11014 100000 5400 9600 105400 111600
1 3 16521
5507 100000
0 8100
0 14400
0 108100
0 117400
0
4 22028 100000 10800 19200 110800 123200

2 11014 0 0 0 0 0
5 27535 100000 13500 24000 113500 129000
3 16521 0 0 0 0 0
6 33042 100000 16200 28800 116200 134800
4 22028 0 0 0 0 0
100000 18900 33600 118900 140600
5 7 38549
27535 15000 0 0 15000 15000
6 8 44056
33042 100000
0 21600
0 38400
0 121600
0 146400
0
7 9 38549
49563 100000
0 24300
0 43200
0 124300
0 152200
0
8 44056 0
100000 0
27000 0
48000 0
127000 0
158000
10 55070
9 49563 0 0 0 0 0
15 82605 100000 40500 72000 140500 187000
10 55070 15000 0 0 15000 15000
20 110140 100000 54000 116000 154000 216000
15 82605 15000 0 0 15000 15000
100000 67500 145000 167500 245000
20 25 137675
110140 15000 0 0 15000 15000
25 137675 40000 74500 161000 114500 201000

32
assumption of 6% p.a.(Scenario 1) and 10% p.a. (Scenario 2) respectively. In
PLAN PARAMETERS:-
Minimum Maximum
Entry age 13 (lbd) 50
Sum assured (Rs.) 50,000 NO LIMIT
Fixed at 20 for plan 75 and 25
Term (years) -
for plan 93
Mode of Payment Maximum Maturity Age Policy loan available
Yearly, Half-
yearly,Quarterly, Monthly, 70 years No
Salary Saving Scheme
33
2.)THE MONEY BACK POLICY-25 YEARS:-
Unlike ordinary endowment insurance plans where the survival benefits are
payable only at the end of the endowment period, this scheme provides for
periodic payments of partial survival benefits as follows during the term of the
policy, of course so long as the policy holder is alive.
In the case of a 20-year Money-Back Policy (Table 75), 20% of the sum assured
becomes payable each after 5, 10, 15 years, and the balance of 40% plus the
accrued bonus become payable at the 20th year.
For a Money-Back Policy of 25 years (Table 93), 15% of the sum assured
becomes payable each after 5, 10, 15 and 20 years, and the balance 40% plus
the accrued bonus become payable at the 25th year.
An important feature of this type of policies is that in the event of death at any
time within the policy term, the death claim comprises full sum assured without
deducting any of the survival benefit amounts, which have already been paid.
Similarly, the bonus is also calculated on the full sum assured.
BENEFITS:-
INTRODUCTION:-Insurance Regulatory & Development Authority (IRDA)
requires all life insurance companies operating in India to provide
official illustrations to their customers. The illustrations are based
on the investment rates of return set by the Life Insurance Council
(constituted under Section 64C(a) of the Insurance Act 1938)
and is not intended to reflect the actual investment returns achieved or may be
achieved in future by Life Insurance Corporation of India (LICI).
For the year 2004-05 the two rates of investment return declared by the Life
Insurance Council are 6% and 10% per annum These are Money Back type
Assurance plans that provide financial protection against death
throughout the term of plan along with the periodic payments on
survival at specified durations during the term. Premiums are
34
payable yearly, half-yearly, quarterly, monthly or through salary deductions as
opted by you throughout the term of the policy, or till the earlier death.
BONUSES:-This is a with-profit plan and participate in the profits of the

Corporation’s life insurance business. It gets a share of the profits in the form of
bonuses. Simple Reversionary Bonuses are declared per thousand Sum Assured
annually at the end of each financial year. Once declared, they form part of the
guaranteed benefits of the plan. Final (Additional) Bonus may also be payable
provided policy has run for certain minimum period. The Sum Assured plus all
bonuses to date is payable in a lump sum upon the death of the life assured
during the policy term irrespective of the Survival benefit /benefits paid earlier.
Survival Benefits:
The percentage of Sum Assured as mentioned below will be paid on survival to
the end of specified durations :
% of Sum Assured paid at the end of specified duration
Plan
Duration
75 93
5 20% 15%
10 20% 15%
15 20% 15%
20 40% 15%
25 - 40%
All bonuses declared upto the maturity date will also be paid along with the
final survival benefit.
35
benefits.
Surrender Value:
surrender values are available under the plan on earlier termination of the
contract.
Guaranteed Surrender Value:

the first year’s premium and all survival benefits paid earlier.
Corporation’s policy on surrenders:

surrender is the discounted value of the reduced claim amount that would be
payable on death or at maturity. This value will depend on the duration for
which premiums have been paid and the policy duration at the date of surrender.
In some circumstances, in case of early termination of the policy, the surrender
value payable may be less than the total premiums paid.The Corporation
reviews the surrender value payable under its plans from time to time depending
on the economic environment, experience and other factors.
Note:
The above is the product summary giving the key features of the plan. This is
for illustrative purpose only. This does not represent a contract and for details
please refer to your policy document.
36
Plan/ Term 75/ 20 Years 93/ 25 Years
At the end of 20 years balance 40% + bonus 15%
At the end of 25 years NIL balance 40% + bonus
Benefit Illustration :
Statutory warning :
guaranteed and they are not the upper or lower limits of what you might get
back as the value of your policy is dependent on a number of factors including
future investment performance.”
37
End Total Benefit on Death during the year (Rs.)

of premiums
year paid till end Variable Total
of year Guaranteed Scenario 1 Scenario 2 Scenario 1 Scenario 2
1 6564 100000 2400 4800 102400 104800
2 13128 100000 4800 9600 104800 109600
3 19692 100000 7200 14400 107200 114400
4 26256 100000 9600 19200 109600 119200
5 32820 100000 12000 24000 112000 124000
6 39384 100000 14400 28800 114400 128800
7 45948 100000 16800 33600 116800 133600
8 52512 100000 19200 38400 119200 138400
9 59076 100000 21600 43200 121600 143200
10 65640 100000 24000 48000 124000 148000
15 98460 100000 36000 72000 136000 172000
100000 48000 96000 148000 196000

20 131280
38
End Total Benefit on survival / maturity at the end of year
of premiums
Variable Total
1 6564 0 0 0 0 0
2 13128 0 0 0 0 0
3 19692 0 0 0 0 0
4 26256 0 0 0 0 0
5 32820 20000 0 0 20000 20000
6 39384 0 0 0 0 0
7 45948 0 0 0 0 0
8 52512 0 0 0 0 0
9 59076 0 0 0 0 0
10 65640 20000 0 0 20000 20000
15 98460 20000 0 0 20000 20000
20 131280 40000 53000 106000 93000 146000

39

year premiums paid
till end of year Variable Total
1 5507 100000 2700 4800 102700 105800

2 11014 100000 5400 9600 105400 111600
3 16521 100000 8100 14400 108100 117400
4 22028 100000 10800 19200 110800 123200
5 27535 100000 13500 24000 113500 129000
6 33042 100000 16200 28800 116200 134800
7 38549 100000 18900 33600 118900 140600

8 44056 100000 21600 38400 121600 146400
9 49563 100000 24300 43200 124300 152200
10 55070 100000 27000 48000 127000 158000
15 82605 100000 40500 72000 140500 187000
20 110140 100000 54000 116000 154000 216000
25 137675 100000 67500 145000 167500 245000
40
End Total Benefit on survival / maturity at the end of year
of premiums Variable Total
5507 0 0 0 0 0
1
2 11014 0 0 0 0 0
3 16521 0 0 0 0 0
4 22028 0 0 0 0 0
5 27535 15000 0 0 15000 15000
6 33042 0 0 0 0 0
7 38549 0 0 0 0 0
8 44056 0 0 0 0 0
9 49563 0 0 0 0 0
10 55070 15000 0 0 15000 15000
15 82605 15000 0 0 15000 15000
20 110140 15000 0 0 15000 15000
25 137675 40000 74500 161000 114500 201000

assumption of 6% p.a.(Scenario 1) and 10% p.a. (Scenario 2) respectively. In
41
UNIT LINKED INSURANCE PLAN:-
FORTUNE PLUS:-
It is a unit linked assurance plan where premium payment term (PPT) is 5 years
and the premium payable in the first year will be 50% of total premium payable
under the policy. The level of cover will depend on the level of premium you
agree to pay.
Four types of investment funds are offered. Premiums paid after allocation
charge will purchase units of the Fund type chosen. The Unit Fund is subject to
various charges and value of the units may increase or decrease, depending on
the Net Asset Value (NAV). The plan therefore serves the purpose of insurance-
cum-investment.
Payment of Premiums: You may pay premiums regularly at yearly, half-yearly,

quarterly or monthly (ECS) intervals for 5 years. The minimum First year
premium will be Rs.20,000/- and you may pay any amount exceeding it. From
second year onwards each year’s premium will be 25% of the first year
premium.
Other Features:
i) Partial Withdrawals: You may encash the units partially after the
third policy anniversary subject to the following:
i) In case of minors, partial withdrawals shall be allowed from the policy

anniversary coinciding with or next following the date on which the life
assured attains majority (i.e. on or after18th birthday).
ii) Partial withdrawals may be in the form of fixed amount or in the form of
fixed number of units.
iii) For 2 years’ period from the date of withdrawal, the Sum Assured under the
Basic plan shall be reduced to the extent of the amount of partial withdrawals
made.
42
iv) Under policies where less than 3 years’ premiums have been paid and further
premiums are not paid, the partial withdrawals shall not be allowed.
v) Under policies where atleast 3 years’ premiums have been paid, partial
withdrawal will be allowed subject to Policyholder’s Fund Value being atleast
Rs. 10,000/-.
ii) Switching: You can switch between any fund types for the entire Fund Value
during the policy term subject to switching charges, if any.
iii) Discontinuance of premiums: If premiums are payable either yearly, half-

yearly, quarterly or monthly (ECS) and the same have not been duly paid within
the days of grace under the Policy, the Policy will lapse. A lapsed policy can be
revived during the period of two years from the due date of first unpaid
premium.
I) Where atleast 3 years’ premiums have been paid, the Life Cover and Accident
Benefit rider, if any, shall continue during the revival period.
During this period, the charges for Mortality and Accident Benefit cover, if any,
shall be taken, in addition to other charges, by canceling an appropriate number
of units out of the Policyholder’s Fund Value every month. This will continue to
provide relevant risk covers for:
i. two years from the due date of first unpaid premium, or
ii. till the date of maturity, or
iii. till such period that the Policyholder’s Fund Value reduces to Rs. 5,000/-,
whichever is earlier.
The benefits payable under the policy in different contingencies during this
period shall be as under:
A. In case of Death: Higher of Sum Assured under the Basic Plan or the
Policyholder’s Fund Value. The Sum Assured shall be subject to provisions of
Partial Withdrawals made, if any.
B. In case of Death due to accident: Accident Benefit Sum Assured in addition

to the amount under A above, if Accident Benefit is opted for.
43
C. On Maturity: The Policyholder’s Fund Value.
D. In case of Surrender (including Compulsory Surrender): The Policyholder’s

Fund Value. The Surrender value, however, shall be paid only after the
completion of 3 policy years.
E. In case of Partial Withdrawals: For 2 years period from the date of

withdrawal, the sum assured under the basic plan shall be reduced to the extent
of the amount of partial withdrawals made.
II) Where the policy lapses without payment of at least 3 years’ premiums, the
Life Cover and Accident Benefit rider cover, if any, shall cease and no charges
for these benefits shall be deducted. However, deduction of all the other charges
shall continue. The benefits under such a lapsed policy shall be payable as
under:
F. In case of Death: The Policyholder’s Fund Value.
G. In case of death due to accident: Only, the amount as under F above.
H. In case of Surrender (including Compulsory Surrender): Policyholder’s Fund

Value / monetary value as the case may be, shall be payable after the completion
of the third policy anniversary. No amount shall be payable within 3 years from
the date of commencement of policy.
I. In case of Partial withdrawal: Partial Withdrawals shall not be allowed under

such a policy even after completion of 3 years period.
iv) Revival: If due premium is not paid within the days of grace, the policy
lapses. A lapsed policy can be revived during the period of two years from the
due date of first unpaid premium or before maturity, whichever is earlier. The
period during which the policy can be revived will be called “Period of revival”
or “revival period”.
If premiums have not been paid for at least 3 full years, the policy may be
revived within two years from the due date of first unpaid premium. The revival
shall be made on submission of proof of continued insurability to the
satisfaction of the Corporation and the payment of all the arrears of premium
without interest.
If atleast 3 full years’ premiums have been paid and subsequent premiums are
not paid, the policy may be revived within two years from the due date of first
44
unpaid premium but before the date of maturity. No proof of continued
insurability shall be required but all arrears of premium without interest shall be
required to be paid.
The Corporation reserves the right to accept the revival at its own terms or
decline the revival of a lapsed policy. The revival of a lapsed policy shall take
effect only after the same is approved by the Corporation and is specifically
communicated in writing to the Proposer / Life Assured
Irrespective of what is stated above, if less than 3 years’ premiums have been
paid and the Policyholder’s Fund Value is not sufficient to recover the charges,
the policy shall be terminated and thereafter revival will not be entertained. If 3
years’ or more than 3 years’ premiums have been paid and the Policyholder’s
Fund Value reduces to Rs. 5000/-, the policy shall terminate and Policyholder’s
Fund Value as on such date shall be refunded to the Life Assured and thereafter
revival will not be allowed.
Settlement Option:
When the policy comes for maturity, you may exercise “Settlement Option” and
may receive the policy money in instalments spread over a period of not more
than five years from the date of maturity. There shall not be any life cover
during this period. The value of installment payable on the date specified shall
be subject to investment risk i.e. the NAV may go up or down depending upon
the performance of the fund.
Reinstatement:
A policy once surrendered will not be reinstated.
Risks borne by the Policyholder:
i) LIC’s Fortune Plus is a Unit Linked Life Insurance product which is

different from the traditional insurance products and are subject to the
risk factors. The premium paid in Unit Linked Life Insurance policies
are subject to investment risks associated with capital markets and the
NAVs of the units may go up or down based on the performance of
fund and factors influencing the capital market and the insured is
responsible for his/her decisions. Life Insurance Corporation of India
is only the name of the Insurance Company and LIC’s Fortune Plus is
only the name of the unit linked life insurance contract and does not in
any way indicate the quality of the contract, its future prospects or
returns. Please know the associated risks and the applicable charges,
from your Insurance agent or the Intermediary or policy document of
the insurer. The various funds offered under this contract are the
45
names of the funds and do not in any way indicate the quality of these
plans, their future prospects and returns.
All benefits under the policy are also subject to the Tax Laws and
other financial enactments as they exist from time to time.
Cooling off period: If you are not satisfied with the “Terms and
Conditions” of the policy, you may return the policy to us within 15
days.
Loan: No loan will be available under this plan.
Assignment:
Assignment will be allowed under this plan.
Exclusions: any amount exceeding it. From second year onwards each
year’s premium will be 25% of the first year premium. In case the Life
Assured commits suicide at any time within one year, the Corporation
will not entertain any claim by virtue of the policy except to the extent
of the Policyholder’s Fund Value on death.
Benefits:
A) Death Benefit: Higher of Sum Assured or the Policyholder’s
Fund Value shall be available as death benefit.
B) Maturity Benefit: On the Life Assured surviving the maturity date

of the contract, an amount equal to the Policyholder’s Fund Value is
payable.
3.Options:
ACCIDENT-BENEFIT-OPTION:
If you are above 18 years of age, you may opt for Accident Benefit equal
to the amount of life cover subject to minimum of Rs. 25,000/- and
maximum of Rs. 50 lakh (taken all policies with LIC of India and other
insurers). In case of death by Accident, an additional sum equal to
Accident Benefit sum assured shall be payable.
Eligibility Conditions and Other Restrictions:
46
(a) Minimum Age at entry 12 years (age last birthday)
Maximum Age at
(b) 60 years (age nearer birthday)
entry
Minimum Maturity
(c) 18 years (completed)
Age
Maximum Maturity
(d) 65 years (age nearer birthday)
Age
(e) Minimum Policy Term 5 years
Maximum Policy
(f) 20 years
Term
(g) Minimum Premium Rs.20,000/- for first Premium
(h) Sum Assured under Higher of 5 times the first year’s annualized premium
the Basic Plan or half of the policy term times the first year’s
annualized premium.
Where the minimum Sum assured is not in the multiples of Rs. 5,000/-, it will
be rounded off to the next multiple of Rs. 5,000/-.
Method of Calculation of Unit price: Units will be allotted based on the Net
Asset Value (NAV) of the respective fund as on the date of allotment. There is
no Bid-Offer spread (the Bid price and Offer price of units will both be equal to
the NAV). The NAV will be computed on daily basis and will be based on
investment performance, Fund Management Charge and whether fund is
expanding or contracting under each fund type and shall be calculated as under:
47
5. Investment of Funds: Plan offers following four Funds detailed below:
Investment in Short-term Investment

Details and
Government / such as money market Investment in
Fund objective of the
Government Instruments (Including Listed Equity
Type fund for
Guaranteed Securities Govt. Securities & Shares
risk/return
/ Corporate Debt Corporate Debt)
Bond
Not less than 60% 100% Nil Low risk
Fund
Not less than Steady Income -

Secured
Not less than 45% Not more than 85% 15% & Not Lower to
Fund
more than 55% Medium risk
Not less than Balanced Income

Balanced
Not less than 30% Not more than 70% 30% & Not and growth -
Fund
more than 70% Medium risk
Not less than Long term

Growth
Not less than 20% Not more than 60% 40% & Not Capital growth -
Fund
more than 55% High Risk
The Policyholder has the option to choose any ONE of the above 4 funds.
Appropriation price is applied (when fund is expanding): Market

value of investments held by the fund plus the expenses incurred in
the purchase of the assets plus the value of any current assets plus any
accrued income net of fund management charges less the value of any
current liabilities less provisions, if any divided by the number of
units existing at the valuation date (before any new units are
allocated).
Expropriation price is applied (when fund is contracting): Market

value of investments held by the fund less the expenses incurred in
the sale of assets plus the value of any current assets plus any accrued
income net of fund management charges less the value of any current
liabilities less provisions, if any divided by the number of units
existing at the valuation date (before any units redeemed).
48
Applicability of Net Asset Value (NAV): The premiums received up to a
particular time (presently 3 p.m.) by the servicing branch of the Corporation
through ECS or by way of a local cheque or a demand draft payable at par at the
place where the premium is received, the closing NAV of the day on which
premium is received shall be applicable. The premiums received after such time
by the servicing branch of the Corporation through ECS or by way of a local
cheque or a demand draft payable at par at the place where the premium is
received, the closing NAV of the next business day shall be applicable.
Similarly, in respect of the valid applications received for surrender, partial

withdrawal, death claim, switches etc up to such time by the servicing branch of
the Corporation closing NAV of that day shall be applicable. For the valid
applications received in respect of surrender, partial withdrawal, death claim,
switches etc after such time by the servicing branch of the Corporation the
closing NAV of the next business day shall be applicable.
In respect of maturity claim, NAV of the date of maturity shall be applicable.

The timing given is as per the existing guidelines and changes in this regard
shall be as per the instruction from IRDA.
7.CHARGES UNDER THE PLAN:-
A) Premium Allocation Charge: This is the percentage of the premium

deducted from the premium received. The balance constitutes that part of the
premium which is utilized to purchase (Investment) units for the policy.
The allocation charges are as below
Allocation Charge
Premium Band (per annum)
First year thereafter
20,000 to 2,00,000 15.00 % 2.50 %
2,00,001 to 3,00,000 14.50 % 2.50 %
3,00,001 to 6,00,000 13.00 % 2.50 %
6,00,001 and above 13.50 % 2.50 %
Charges for Risk Covers:

i) Mortality Charge - This is the cost of life insurance cover which is age
specific and will be taken every month. The life insurance cover is the
difference between Sum Assured under Basic plan and the Fund Value after
deduction of all other charges.
49
The charges per Rs. 1000/- life insurance cover for some of the ages in respect
of a healthy life are as under:
Age 25 35 45 55
Rs. 1.42 1.73 3.89 10.76
ii) Accident Benefit Charge - It is the cost of Accident Benefit rider (if opted
for) and will be levied every month at the rate of Rs. 0.50 per thousand Accident
Benefit Sum Assured per policy year.
C) Other Charges:
i) Policy Administration Charge - Rs. 60/- per month during the first policy year
and Rs. 20/- per month thereafter, throughout the term of the policy.
ii) Fund Management Charge - It is the charge levied as a percentage of the

value of units at following rates:
0.75% p.a. of Unit Fund for “Bond” Fund
1.00% p.a. of Unit Fund for “Secured” Fund
1.25% p.a. of Unit Fund for “Balanced” Fund
1.50% p.a. of Unit Fund for “Growth” Fund
Fund Management Charge shall be appropriated while computing NAV.
iii) Switching Charge - This is a charge levied on switching of monies from one
fund to another. Within a given policy year 4 switches will be allowed free of
charge. Subsequent switches in that year shall be subject to a switching charge
of Rs. 100 per switch.
iv) Bid/Offer Spread - Nil.
v) Surrender Charge - Nil.
vi) Service Tax Charge - A service tax charge shall be levied on the Mortality
50
Charges and Accident Benefit rider charges, if any, on a monthly basis. The
level of this charge will be as per the rate of service tax as applicable from time
to time. Presently, the rate of Service Tax is 12% with an educational cess at the
rate of 3% thereon and hence effective rate is 12.36%.
vii) Miscellaneous Charge - This is a charge levied for an alteration within the
contract, such as reduction in policy term, change in premium mode, etc. An
alteration may be allowed subject to a charge of Rs.50/-.
D) Right to revise charges: The Corporation reserves the right to revise all or
any of the above charges except the Premium Allocation charge and Mortality
charge. The modification in charges will be done with prospective effect with
the prior approval of IRDA.
Although the charges are reviewable, they will be subject to the following
maximum limit:
- Policy Administration Charge

Rs.150/- per month during the first policy year and Rs. 50/- per month
thereafter, throughout the term of the policy.
- Fund Management Charge: The Maximum for each Fund will be as follows:
i. Bond Fund: 1.5% p.a. of Unit Fund
ii. Secured Fund: 2.0% p.a. of Unit Fund
iii. Balanced Fund: 2.5% p.a. of Unit Fund
iv. Growth Fund: 3.0% p.a. of Unit Fund
- Switching Charge shall not exceed Rs. 200/- per switch.
- Miscellaneous Charge shall not exceed Rs. 100/- each time when an alteration
is requested.
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8. Surrender:
The surrender value, if any, is payable only after the completion of the third
policy anniversary. The surrender value will be the Policyholder’s Fund Value at
the date of surrender. There will be no Surrender charge.
If you apply for surrender of the policy within 3 years from the
date of commencement of policy, then the Policyholder’s fund value
of units shall be converted into monetary terms. No charges shall be
deducted thereafter and this monetary value shall be paid on
completion of 3 years from the date of commencement of policy.
In case of death of life assured after the date of surrender but

before the completion of 3 years from the date of commencement of
policy the monetary value payable on the completion of 3 years
shall be payable to the nominee/ legal heir immediately on death.
Compulsory Surrender:
The policy shall be surrendered compulsorily in following cases:
i) where the policy is not revived during the period of revival, the
policy shall be terminated after completion of 3 years from the date of
commencement of the policy or on expiry of revival period, whichever is later.
However, if the date of maturity falls before the expiry of revival period, then
the policy shall be terminated on the date of maturity.
ii) where premiums have been paid for less than 3 years and the balance in
policyholder’s fund value is not sufficient to recover the relevant charges;
52
iii) where premiums have been paid for at least 3 years and the
balance in policyholder’s fund value falls below Rs. 5,000/-.
The conversion in monetary value shall be as under:
The NAV on the date of application for surrender or on the date when revival
period is over (in case of compulsory surrender), as the case may be, multiplied
by the number of units in the Policyholder’s Fund as on that date.
53
FREQUENCY OF PREMIUM PAYMENT : ANNUAL BASIC PLAN
AGE AT ENTRY: 35 years
TERM: 20 years
PPT: 5 years
FIRST YEAR PREMIUM: 20000
SUM ASSURED UNDER BASIC PLAN: 200000
DEATH BENEFIT PAYABLE AT END OF YEAR OF SURRENDER/

End Of Total DEATH MATURITY VALUE
Policy Premium
Year Paid Payable Payable Payable Payable
Guaranteed Variable Variable
Amount Amount Amount Amount
Scenario Scenario Scenario Scenario Scenario
Scenario 2
1 2 1 2 1
1 20000 200000 16732 17384 200000 200000 0 0
2 25000 200000 22048 23602 200000 200000 0 0
3 30000 200000 27610 30360 200000 200000 27610 30360
4 35000 200000 33429 37706 200000 200000 33429 37706
5 40000 200000 39518 45692 200000 200000 39518 45692
6 40000 200000 40752 49048 200000 200000 40752 49048
7 40000 200000 42007 52671 200000 200000 42007 52671
8 40000 200000 43289 56592 200000 200000 43289 56592
9 40000 200000 44597 60838 200000 200000 44597 60838
10 40000 200000 45924 65433 200000 200000 45924 65433
11 40000 200000 47260 70403 200000 200000 47260 70403
12 40000 200000 48597 75778 200000 200000 48597 75778
13 40000 200000 49924 81591 200000 200000 49924 81591
14 40000 200000 51232 87884 200000 200000 51232 87884
15 40000 200000 52511 94702 200000 200000 52511 94702
16 40000 200000 53750 102096 200000 200000 53750 102096
17 40000 200000 54939 110129 200000 200000 54939 110129
18 40000 200000 56067 118870 200000 200000 56067 118870
19 40000 200000 57121 128399 200000 200000 57121 128399
20 40000 200000 58090 138809 200000 200000 58090 138809
Reduction in yield @ 6% 3.99%

Reduction in yield @ 10% 3.17%
54
CHILDREN PLANS:-
1.) CHILD FORTUNE PLUS:-

Introduction:
All of us wish to ensure the best possible future for our children. With the cost
of education sky rocketing, it is all the more important that an early provision is
made to ensure that your loved ones get a good head start in life. LIC’s Child
Fortune Plus is a total solution to their education and other needs. The plan is a
unit linked one offering the prospects of long term capital appreciation.
Benefits:
On Maturity:
The maturity benefit will be payable on the earlier of; either the child attaining
25 years of age or the life assured attaining 75 years. On the date of maturity, an
amount equal to the policy holder`s fund value is payable.
On Death:
In the unfortunate event of death of the policy holder, the nominee

child will be paid the Sum Assured under the policy. Further
all future premiums will be waived and units equivalent thereof shall
be credited to the policy fund account at the applicable unit price.
Am I eligible?
A parent, with a child aged 17 years or less can go in for Child Fortune Plus.
The policy will cover the life of the parent.
Partial Withdrawal/Surrender:
A Policyholder can partially withdraw the units at any time after the third policy
anniversary subject to certain conditions. There will be no bid offer spread i.e.
the sale and purchase price of units will be the same. The NAV shall be declared
on day to day basis.
55
Premium Payment options:
The policy can be taken under the lumpsum option or the regular premium
option. ECS payment is also available.
Revival:
In case the policy is lapsed, it can be revived within a period of 2 years (Revival
Period), from the date of First Unpaid Premium. If the premiums have been paid
for a minimum period of three years, the Life cover will continue during the
Revival Period. A unique feature of the plan is that a policyholder can opt for
continuation of cover even beyond the Revival Period, without reviving the
policy or paying any further premiums by exercising the option at least one
month prior to the completion of the Revival Period. The policy cover continues
by deduction of relevant charges from the policy fund till the fund value reaches
one annualized premium.
Other Features:
The plan has other highlights like payment of additional amounts(top ups),
attractive Fund Management/other charges and liberalized conditions for
continuance of the policy in event of lapsation.
The minimum Sum Assured is five times the annualized premium and the
maximum Sum Assured can go upto 25 times the annualized premium,
depending on age at entry. Premium can be paid in yearly, half yearly, quarterly
or monthly( ECS ) modes and the minimum annualized premium is Rs.10,000/-.
The plan offers upto four switches free of charge every year, between the
different types of funds.
With many attractive features, Child Fortune Plus is an ideal solution to meet
the financial requirements arising at various stages like higher education and
start up in life, etc.
2.) CDA ENDOWMENT VESTING AT 18 :-
CHILDREN DEFFRED ENDOWEMENT ASSURANCE PLANS:-
Product Summary: This is an Endowment Assurance plan designed to enable a

parent or a legal guardian or any near relative of the child (called proposer) to
provide insurance cover on the life of the child (called life assured). The plan
has two stages, one covering the period from the date of commencement of
policy to the Deferred Date (called deferment period) and the other covering the
period from the Deferred Date to the date of maturity. The insurance cover on
the child’s life starts from the Deferred Date and is available during the latter
period. The Deferred Date in case of Plan No 41 is the policy anniversary date
56
coinciding with or next following the date on which the child completes 21
years of age. In case of Plan No 50 it is the policy anniversary date coinciding
with or next following the 18th birthday of the child.
Premiums:
Premiums are payable yearly, half-yearly, quarterly or monthly and
this shall cease on the death of the life assured . Premiums are waived
on death of Proposer provided this benefit is availed.
Bonuses:
This is a with-profits plan and participates in the profits of the Corporation’s life
insurance business after the deferred date. It gets a share of the profits in the
form of bonuses. Simple Reversionary Bonuses are declared per thousand Sum
Assured annually at the end of each financial year. Once declared, they form
part of the guaranteed benefits of the plan.
Death Benefit:
The Sum Assured along with vested bonuses is payable in a lump sum
upon the death of the life assured after the defrayments period. If death
occurs before the defrayments period all premiums paid is refunded.
Maturity Benefit:
Sum assured along with all bonuses declared up to maturity date is payable in
lump sum.
Supplementary/Extra Benefits:
benefits.
Surrender Value:

surrender values are available on the plan on earlier termination of the contract.
Guaranteed Surrender Value:
The minimum surrender value allowable under this policy is as under:
57
(a) Before the Deferred date : 90% of the premiums paid excluding the premium
for the first year.
(b) After the Deferred date:
i)If deferment period is less than 10 years:
90% of the premiums paid before the deferment date excluding the premiums
for the first year plus 30% of premiums paid after the deferred date.
(ii) If deferment period is 10 years or more:
90% of a cash option plus 30% of premiums paid after the deferred date.
Corporation’s Policy On Surrenders:
surrender is the discounted value of the reduced claim amount that would be
payable at death or maturity. This value will depend on the duration for which
premiums have been paid and the policy duration at the date of surrender. The
Corporation reviews the surrender value payable under its plans from time to
time depending on the economic environment, experience and other factors.
The above is the product summary giving the key features of the plan. This is
for illustrative purpose only. This does not represent a contract and for details
please refer to your policy document.
STATUTORY WARNING:
based on the future performance of your insurer carrying on ife insurance
58
guaranteed and they are not the upper or lower limits of what you might get
back as the value of your policy is dependent on a number of factors including
future investment performance.
Table 41
Policy Term: 25 Years Deferment period: 11 years
Premium Paying Term: 25 Years
Sum Assured: Rs. 1,00,000 /-
Annual Premium: Rs. 2673 /-

of premiums
year paid till end
Guaranteed
1 2673 2673 - - 2673 2673
2 5346 5346 - - 5346 5346
3 8018 8018 - - 8018 8018
4 10691 10691 - - 10691 10691
5 13364 13364 - 13364 13364
6 16037 16037 - - 16037 16037
7 18709 18709 - - 18709 18709
8 21382 21382 - - 21382 21382
9 24055 24055 - - 24055 24055
10 26728 26728 - - 26728 26728
12 2073 100000 2100 5500 102100 105500
15 40092 100000 8400 22000 108400 122000
20 53456 100000 18900 49500 118900 149500
25 66819 100000 46400 122000 146400 222000
Note: The proposer will have the option to take a cash payment of Rs.39,890/-
on the Deferred Date on cancellation of the policy contract entirely.
59
Table 50)
Policy Term: 25 Years Deferment period: 8 years
Premium Paying Term: 25 Years
Sum Assured: Rs. 1,00,000 /-
Annual Premium: Rs. 2924 /-
End of Total Benefit payable on death / maturity at the end of year

year premiums
paid till end of
year Variable Total
Guaranteed
1 2924 2924 - - 2924 2924

2 5848 5848 - - 5848 5848
3 8772 8772 - - 8772 8772
4 11696 11696 - - 11696 11696
5 14620 14620 - 14620 14620
6 17544 17544 - - 17544 17544
7 20468 20468 - - 20468 20468
8 23392 23392 - - 23392 23392
9 26316 100000 2100 5500 102100 105500
10 29240 100000 4200 11000 104200 111000
12 35087 100000 8400 22000 108400 122000
15 43859 100000 14700 38500 114700 138500
20 58479 100000 25200 66000 125200 166000
25 73099 100000 46700 124500 146700 224500
i)This illustration is applicable to a non-smoker male/female standard (from
assumption of 6% p.a.(Scenario 1) and 10% p.a.(Scenario 2) respectively. In
60
Projected Investment Rate of Return that LICI will be able to earn
throughout the term of the policy will be6% p.a. or 10% p.a., as the
case may be. The Projected Investment Rate of Return is not guaranteed.
iii) The main objective of the illustration is that the client is able to
appreciate the features of the product and the flow of benefits in
different circumstances with some level of
quantification.
GROUP INSURANCE:-
GROUP GRATUITY SCHEME:-

Under the Payment of Gratuity Act, 1972, it is employers statutory liability to
pay 15 days salary (15/26 of a month's wages) for every completed years
service to each of his employees on their exit, for any reason after five years of
continuous service, subject to maximum limit of 3.5 lacs. Higher benefits can be
paid if the employer so desires. Gratuity payable to the employees can be paid
as and when liability arises and can be claimed as deductable expense under P
& L A/c of the relevant financial years. However, the sound system of financial
management envisages providing for Gratuity liability every year and claiming
the tax benefits as it is mandatory as per Accounting Standards 15 (AS15) to
account for the liability on Actual basis. This can be done by creating a Trust,
managed privately or by LIC and paying the amount to the Trust every year. In
case of Privately Managed Trust, investment of funds will have to be done as
per Income-Tax Act, by the trustees and entire administration of the Trust
including Actuarial Valuation will be the responsibility of the Trustees. In case
of LIC managed trust, the job of investment and actuarial valuation is taken
over by the corporation free of charge and in addition, interest is paid by the
Corporation on the accumulated funds.
61
We give below the details as to how the Group Gratuity (Cash Accumulation)
Scheme provides for a convenient mode of funding the statutory obligation of
an employer under the payment of Gratuity Act:
ATTRACTIVE RETURN:
1. LIC offers a very attractive rate of interest depending upon the size of the
fund
2. Employers ordinary annual contribution is allowed as deduction in full in

computation of business income as per Section 36(1) (v).
3. Employer's initial contribution.
No. limit on amount as per Rule 104.It is to be paid on the date of setting up
of fund in full or in 5 yearly equated instalments from such date. Deduction to
be allowed shall not exceed 8 1/3% of the past salaries as per Rule 104.Allowed
as a deduction in full in computation of business income as per Section 36
(1)(v).
4. Benefits to employees Employer's initial and ordinary annual contribution

are not treated as taxable perquisites.
5. Gratuity is payable in lumpsum only as per Rule 3 of part C of Schedule

IV.
6. Gratuity is salary and hence taxable, it is taxed under Sec. 17(i) (iii).
7. Gratuity is tax free upto half month's average salary (of last 10 months)
for each year of service, subject to a maximum of Rs. 3.5 lakhs as per
Sec. 10(10).
8. While computing tax on gratuity, relief of spreading back available as per

Sec. 89(1).
9. Other matters.
62
a) Income of fund exempt from tax : Sec .10(25) (iv)
b) No. deduction is allowed for accounting : Sec .40A(7) (a)
provision made by Employer for
payment of gratuity
c) Deduction is allowed for provsion made : Sec. 40 A(7) (b) (i)
by Employer for payment of
contribution to fund for payment for
gratuity that has become payable.
d) Contribution by the employer should be
: Sec. 43B
paid to the fund for claiming relief
e) Persons deducting tax to furnish
: Sec. 206
prescribed returns to I.T. authority
f) Investment of fund moneys - : Rule 67 or LIC's
gratuity Scheme Rule
101
g) Admission of director to a fund- : Rule 102
restricted to those owing not more than
5% of voting rights
h) Amendment of rules of fund-C.I.T's
: Rule 110
prior approval required
Multi-Employer group are not allowed as per CBDT letter addressed to LIC.
The above scheme, attractive as it is, can be made a part of overall commitment
of any progressive employer wedded to Human Resource Development concept.
GROUP LEAVE ENCASHMENT SCHEME:-

Many employers are providing Leave Encashment benefit in addition to other
retirement benefits to their employees which is a lumpsum amount payable to
the employees or their dependants on retirement, death, disablement, voluntary
retirement etc.
Funding of leave encashment:
End-of-the-year leave encashment facility available to employees, can be a huge

liability to the company. So can be Medical Leave Encashment, if provided for.
To meet this need of entrepreneurs and businesses, LIC has introduced Group
Leave Encashment Scheme. Just pay a yearly premium, fund your leave
63
encashment liability and let LIC take care of your worries.
Nature of liability:
The amount depends upon the leave to the credit of the employee and his/ her
salary at the time of exit. Liability is of increasing nature as it is linked with
salary as well as leave position.
As per the amended section 209 (3) of the Company's Act 1956 and Accounting
Standard (AS-15) dated January, 1995, the employers have to account for the
liability in respect of leave encashment facility, if any, available to the
employees and to provide for the same in their Annual Accounts. It is, therefore,
necessary for the companies to ascertain liability in respect of Leave
Encashment facilities, if any, available to the employees and provide for the
same in the books of accounts every year. It helps the employers in ascertaining
the true cost of their products and services.
The Features:
Group Leave Encashment Schemes (GLES) of LIC helps the employers in

funding of their lave encashment liability. The salient features of the scheme are
as follows:-
1. The Company will submit the employees' data and rules for Leave
Encashment. LIC will make actuarial valuation and find out the funding
requirements which shall be quoted to the company. The company will
contribute as per the advice of LIC.
2. A uniform life cover per employee or graded cover will be provided

under One Year Renewable Group Term Assurance Plan of LIC. A small
term insurance premium will be charged in addition to contributions for
funding.
64
3. A Running Account will be maintained under the scheme and the
contributions (excluding term assurance premium) will be credited to this
account and all claims except term assurance cover will be settled out of
the Running Account. Interest at the rate declared by LIC from time to
time will be credited to the Running Account at the end of the financial
year.
Benefits:
1. On the exit of an employee or encashment of leaves during the service the

Leave Encashment amount will be paid from the Fund of the scheme
maintained with LIC.
2. On the death of an employee, in addition to his / her leave encashment

benefit, his/her family will be entitled to the amount of Insurance Cover,
which will be tax-free.
3. The Life Insurance Corporation of India will do the Actuarial Valuation

and will provide necessary certificate as per AS-15.
4. The amount of Term Insurance Premium paid for Life Insurance Cover
will be treated as business expenses.
ICICI PRUDENTIAL LIFE INSURANCE FIANNCIAL PRODUCT
EDUCATION INSURANCE PLANS:-
One of your most important responsibilities as a parent is to ensure that

your child gets the best possible education that can be provided. ICICI
Prudential offers a wide portfolio of education insurance plans that are
designed to provide peace of mind to you, as a parent, that your child's
education will be secure. These plans ensure that money is made
available at the crucial junctures in a child's education - Class X, Class
65
XII, graduation and post-graduation - to fund crucial commitments for the
child's future. Importantly, education insurance plans ensure that in the
unfortunate event of the death of a parent, the child's education continues
unhampered.
Under the education insurance plans platform, ICICI Prudential brings the
following products to you. Please click on the product name to know more
about the plans.
Plan Name Plan Type
SmartKid New Unit-linked Unit Linked

Regular Premium
SmartKid New Unit-linked Unit Linked

Single Premium
SmartKid Regular Premium Traditional
BENEFITS:-
Life insurance, especially tailored to meet your financial needs
Need for Life Insurance
Today, there is no shortage of investment options for a person to choose from.

Modern day investments include gold, property, fixed income instruments,
mutual funds and of course, life insurance. Given the plethora of choices, it
becomes imperative to make the right choice when investing your hard-earned
66
money. Life insurance is a unique investment that helps you to meet your dual
needs - saving for life's important goals, and protecting your assets.
Let us look at these unique benefits of life insurance in detail.
Asset Protection
From an investor's point of view, an investment can play two roles - asset
appreciation or asset protection. While most financial instruments have the
underlying benefit of asset appreciation, life insurance is unique in that it gives
the customer the reassurance of asset protection, along with a strong element of
asset appreciation.
The core benefit of life insurance is that the financial interests of one’s family
remain protected from circumstances such as loss of income due to critical
illness or death of the policyholder. Simultaneously, insurance products also
have a strong inbuilt wealth creation proposition. The customer therefore
benefits on two counts and life insurance occupies a unique space in the
landscape of investment options available to a customer.
Goal based savings
Each of us has some goals in life for which we need to save. For a young, newly
married couple, it could be buying a house. Once, they decide to start a family,
the goal changes to planning for the education or marriage of their children. As
one grows older, planning for one's retirement will begin to take precedence.
Clearly, as your life stage and therefore your financial goals change, the
instrument in which you invest should offer corresponding benefits pertinent to
the new life stage.
2. WEALTH CREATION PLAN:-
Wealth Creation Plans give the customer the dual benefit of protection along
with the potentially higher returns of market-linked instruments. The most
67
important benefit of ULIPs is the flexibility they give the customer in choosing
the premium amount and also choosing the underlying fund in which this
money is to be invested. Wealth creation plans also offer the customer more
liquidity options as compared to traditional plans. As such, ULIPs are ideal for
customers who want the protection of a life cover to be allied to the returns of
market linked instrument – giving them an unmatched combination of benefits.
Under the wealth creation platform, ICICI Prudential brings the following
products to you. Please click on the product name to know more about the
plans.
Plan Name Plan Type
Wealth Advantage Unit Linked

LifeStage Assure Unit Linked
LifeTime Gold Unit Linked
LifeLink Super Unit Linked
PremierLife Gold Unit Linked
LifeStage RP Unit Linked
BENEFITS:-

68
Asset Protection
asset appreciation.
Goal based savings
the new life stage. Life insurance is the only investment option that offers
specific products tailor-made for different life stages. It thus ensures that the
benefits offered to the customer reflect the needs of the customer at that
particular life stage, and hence ensures that the financial goals of that life stage
are met.
69
The table below gives a general guide to the plans that are appropriate for
different life stages.
Life Stage Primary Need Life Insurance Product
Young & Single Asset creation Wealth creation plans

Young & Just Wealth creation and mortgage
Asset creation & protection
married protection plans
Children's education, Asset Education insurance, mortgage
Married with kids
creation and protection protection & wealth creation plans
Middle aged with Planning for retirement & Retirement solutions & mortgage
grown up kids asset protection protection
Across all life-
Health plans Health Insurance
stages
PREMIUM GUARANTEE PLUS:-
The latest addition to the life insurance product portfolio of ICICI Prudential is
the Premium Guarantee plan – Invest Shield Life New. Premium Guarantee
plans are the ideal insurance-cum-investment option for customers who want to
enjoy the potentially higher returns(over the long term) of a market linked
instrument, but without taking any market risk.
Under the Premium Guarantee Plans platform, ICICI Prudential brings to you
the following products:
Plan Name Plan Type
InvestShield Life New Unit Linked
InvestShield CashBak Unit Linked
70
KEY BENEFITS:-

Asset Protection
asset appreciation.
Goal based savings
71
the new life stage. Life insurance is the only investment option that offers
specific products tailor-made for different life stages. It thus ensures that the
benefits offered to the customer reflect the needs of the customer at that
particular life stage, and hence ensures that the financial goals of that life stage
are met.
PROTECTION PLAN:-
The sole objective of these plans, as their name indicates, is to serve the
protection needs of the customer and by doing so, safeguard one’s family from
the financial implications of unfortunate circumstances than one cannot foresee.
Under the Protection Plans platform, ICICI Prudential brings to you the
following products:
Plan Name Plan Type
Pure Protect Traditional
LifeGuard Traditional
Save'n'Protect Traditional
72
CashBak Traditional
Home Assure Traditional
UNIT LINKED INSURANCE PLAN:-
LIFE STAGE PENSION PLAN:-

Retirement time is the time to live your dream, dream that you have been
putting off as you never had the time for it. But your retirement dream has a cost
attached to it. We call this your retirement number.
To help you achieve your retirement number ICICI Prudential presents to you,
LifeStage Pension. One of the most distinguishing features of this policy is that
it has no premium allocation charge for regular premiums which means 100%
of your money is invested. What’s more, the policy provides you with a unique
lifecycle-based strategy that continuously re-distributes your money across
various asset classes based on your life stage and risk tolerance, eventually
providing you with a customized retirement solution. Invest today to attain your
retirement number and fulfill your dreams. Read more about the features and
benefits of this unique pension plan
LIFE STAGE PENSION AT GLANCE
73
Minimum/Maximum Entry
18 years to 70 years
Age
Maximum Cover Ceasing
80 years
Age
Minimum/Maximum Policy
Term
Minimum/Maximum
Vesting Age
Premium Payment
Monthly, half-yearly, yearly
Frequency
Minimum Premium Rs. 15,000 p.a.
Under Section 80CCC, as per prevailing Income Tax
Tax Benefit
laws on premium paid for base policy.
BENEFITS:-
Option to choose a unique and personalised lifecycle based portfolio strategy to

create ideal balance between Equity and Debt. This plan invests 100% of your
money in the portfolio of your choice Enjoy the flexibility to choose from 5
pension options through which you can receive your pension. Opportunity to
earn potentially higher returns by investing in Unit Linked Funds. Receive tax-
free commutation up to one-third of the accumulated value on vesting
(retirement) date.Avail tax benefits on premiums paid u/s 80CCC.
PREMIER LIFE PENSION:-
You have strived hard to achieve your dreams and have attained the best comforts life
could offer. After having reached this enviable and secure position, wouldn’t you like
to continue living life on your own terms even after retirement? If you think so, then
you need a retirement solution that not only suits your needs but also lets you retire
RICH.
To help you achieve this, ICICI Prudential Life Insurance presents Premier Life
Pension Plan- a limited premium paying, unit-linked pension policy designed for
preferred customers like you. This unique policy helps you customize your
investments by allowing you to decrease your premium contributions as well as
allowing you to boost your investment kitty by making top-ups at any time. Once you
arrive at your retirement age the accumulated value of your policy provides you with a
regular income (pension) for life.
PremierLife Pension at a glance
Premium Payment Term 3 years 5 years
Rs 100000 Rs 60000
74
Minimum Premium
Minimum Entry Age 18 years 18 years
Maximum Entry Age 70 years 70 years
Minimum Policy Term 10 years 62 years
Maximum Policy Term 10 years 62 years
Maximum/Maximum Age at
50-80 years 50-80 years
maturity
Maximum Sum Assured Zero Sum Assured Policy
Under Section 80 CCC, as per prevailing Income

Tax Benefit Tax Laws on premium paid
BENEFITS :-
1. Flexibility of a limited premium payment term: pay premiums for only 3

years or 5 years.
2. Flexibility to decrease your premiums: reduce your premium contribution

up to the minimum allowed under the chosen premium payment term from the
2nd year onwards.
3. Flexibility to increase your investment:: invest your surplus money over
and above your premiums as top ups, at any time during the policy term.
4. Flexibility to choose your retirement date: choose to start receiving your

pension from anytime between 50-80 years, according to your requirement.
5. Choose from 7 investment funds to invest your money: select from 7

funds, based on your financial goals and risk profile. You can switch funds 4
75
times a year, at no cost. For subsequent switches you will be required to pay a
switch fee of Rs. 100.
6. Enjoy the flexibility to choose from 5 pension options: through which you
can receive your pension.
7. Tax benefits: receive up to one-third of the accumulated value as a tax-free

lumpsum on your retirement day. Also enjoy tax benefits on the premiums you
pay (under u/s 80 CCC) and tax exemptions on death benefits.
LIFE TIME SUPER PENSION:-

ICICI Prudential's LifeTime Super Pension policy is especially designed to
help you systematically save towards a joyful and satisfying retirement.
LifeTime Super Pension Plan is a cost-effective pension plan that delivers

great value in the long run. A regular-premium unit-linked pension policy,
LifeTime Super Pension ensures you earn a fixed income, for your entire life
after retirement. So you can relax and live moments that truly matter.
Read more about the features and benefits of this unique pension plan.
76
Premier-Life Pension at a glance
Age
Maximum Cover Ceasing
75 years
Age
Term
Minimum/Maximum
Vesting Age
Premium Payment
Monthly, half-yearly, yearly
Frequency
Minimum Premium Rs. 10,000 per annum
Under Section 80CCC, as per prevailing Income Tax
Tax Benefit
laws on premium paid for base policy
ICICI Prudential's LifeTime Super Pension policy is a regular-premium unit-

linked pension policy. When you invest in this policy, you provide yourself with
a guarantee that you will enjoy a fixed income-even when you are no longer
working. Take a look at the additional features of ICICI Prudential's LifeTime
Super Pension policy:

5 annuity options: Pick one option based on how long you want your annuity
to last and the extent of coverage you want.
7 investment funds: Select among Flexi-Growth, R.I.C.H., Multiplier, Flexi-
Balanced, Balancer, Protector, and Preserver, based on your financial goals and
risk profile. You can switch funds 4 times a year, at no cost. For subsequent
switches you will be required to pay a switch fee of Rs. 100.
2 variations of Sums Assured: Opt for a Zero Sum Assured or a Sum Assured
that can be chosen between a minimum of Rs. 1 lakh and maximum of the
annual premium multiplied by the policy term.
Tax benefits: Receive up to one-third of the accumulated value as a tax-free
lumpsum on your retirement day. Also enjoy tax benefits on the premiums you
pay (under u/s 80 CCC) and tax exemptions on death benefits [under u/s 10 (10
D)].
77
LIFE LINK SUPER PENSION:-
ICICI Prudential's LifeLink Super Pension Plan has been especially tailored
for individuals who would much rather make a lump-sum investment than pay
premiums at regular intervals for their retirement planning. A cost-effective
single premium unit-linked pension policy, LifeLink Super Pension
Plan provides potentially higher returns that ensure your golden years are
secure and peaceful.
Invest in LifeLink Super Pension Plan today and watch your money multiply
every month, right up to the day you retire. Receive an assured income from
your retirement day, for the rest of your life. Read more about the features and
benefits of this plan.
Read more about the features and benefits of this unique pension plan.
LifeLink Super Pension at a glance

Minimum Premium Rs. 25,000
18 years – 70 years
Age
5 years – 57 years
Term
Minimum/Maximum Vesting
Age
Tax Benefit Under Section 80 CCC, as per prevailing Income Tax

Laws on premium paid
78
BENEFITS:-
One-time lumpsum payment: Make a single investment of as little as Rs.
25,000.
7 Investment funds: Select among Flexi-Growth, R.I.C.H., Multiplier, Flexi-

Balanced, Balancer, Protector, and Preserver, based on your financial goals and
risk profile.
Pension options: Out of the five annuity options, pick one that will best suit
your post-retirement requirements.
Pre-decided retirement age: Determine the age at which you want to start
receiving your pensions. The minimum age of receiving pensions is 45 years.
Switch benefit: Switch between funds anytime to adjust your portfolio, based
on your goals and risk profiles. You can switch funds 4 times a year, at no cost.
For subsequent switches, you will be required to pay a switch fee of Rs. 100.
Tax benefits: Receive up to one-third of the accumulated value as a tax-free

lump sum on your retirement day. Also enjoy tax benefits on the premiums you
pay (under u/s 80 CCC).
79
Different policy bought bye customers
35
LIC
30
ICICI
25
No. of Customers
Birla
Sunlife
20
SBI
15
HDFC
10
Bajaj
Alliance
5
TATA
AIG
0 Kotak
Term Plan Endowment Whole life Money Back Retirement Child Plan Unit Link
Plan Mahindr
a
Different Plans ING
Vyasya
Max
Newyork
Met Life
80
Under insurable persons Fully insurable persons
82% 18%
Potential of life insurance
Under Insured
82% Fully Insured
18%
Only 42 % people having life insurance but among them 82% people
are underinsurance and only 18% people are fully insured according
to them income
81
Insurance Plan Market Share
Term Plan 39%
Money back Plan 14%
Endowment Plan 15%
Child Plan 8%
Unit link Plan 24%
Market share of diffrent Insurance plan
Unitlink plan
24% Child Plan
8%
Endownment Plan
15%
Term Plan
39% Moneyback Plan
14%
82
SUGGESTION
1.) Life insurance has to expand their financial product base for
service orientation.
2) Any company in life insurance has to come with shorter premium

payment term plan related to life insurance investment.
3) Life insurance company have to be periodically monitored by

central government officially for a smooth effective running.
4) Brand preference from the customer have to be taken into

consideration for achieving customer satisfaction &enhancing the
professional service related to life insurance investment.
5) Management has to clear related its investment option when it

comes to public investment.
RECOMMENDATION
1) IRDA has to take steps in insuring maximum to maximum safety &clarity
when its comes to life insurance investment related to any company operated in
India.
2) Company has to take step in order to improve the internal portfolio related to
the investment of the public.
3) An insurance company has to improve on outstanding claim settlement ratio

when it’s come to policy holder claims.
4) Insurance company has to improve on the internal infrastructure of the

organization for giving professional service to policy servicing.
5) Insurance companies have to work on corporate lines with IRDA & set a
professional image in front of IRDA
83
CONCLUSION
After Finding’s we can see about LIC features and his The tendency to take the
expedient approach and focus on the far right of the LIC spectrum, Peacetime
Contingency Operations and conduct training as usual, while briefing that the
LIC block has been checked, will lead us to a possibly fatal false sense of
security.
Instinctive behavior and ingrained training must be adjusted to fit new

circumstances. STXs must be developed locally or borrowed from units
who have already been through the training.
The probability of becoming involved in a LIC operation is high. The
potential to attract international attention, even with limited forces, is also
great. Units have demonstrated that with a balanced training focus and
proper preparation, many pitfalls outlined above can be avoided.
LIC is not conventional warfare. This is critical for the counterinsurgent to

understand. The insurgent’s violent and coercive strategy is applied so
as to achieve political, civil, military and psychological results. Hence,
the counterinsurgent must counter all of these strategic elements
individually. In addition, the target of the insurgent’s violence and
coercion is the population. This is because the population is the centre of
gravity in LIC. Therefore the counterinsurgent must also focus on the
population to be successful. In terms of military principles in
counterinsurgency, doctrinal precision, professionalism, independence,
initiative, force precision, restraint, combined arms, precision
engagement, joint force, effective population based intelligence,
integrated communications, a civil affairs approach and high levels of
training are critical.
So we can say that so many merit’s and Demerit’s in life insurance
Corporation of India.
84
LIMITATION
The following are the deficiencies or limitations of the study. The study is restricted to
only to INSURANCE COMPANIES
It is restricted to Life Insurance Corporation Of india and ICICIC PRUDENTIAL LIFE

CORPORATION hence the conclusion can be generalised
for all the LIFE INSURANCE COMPANY on one hand for the entire INSURANCE
sector on the other hand.
There can be differences in the monitoring system and policies among the different
Insurance Companies even they are following IRDA norms
This study restricted to only for study purposes not for .OTHER PURPOSES. The
whole data is collected in 40 DAYS.. This is for COLLEGE PURPOSES ONLY.
The whole study is based on LIFE INSURACE CORPORATION OF INDIA LTD AND
ICICI PURDENTIAL LIFE INSURANCE COMPANIES DIFFERENT PORTFOLIO
And Their Benefits with TAX.
BIBLIGAPHY
85
IMPORTANT WEBSITE:-
 WWW.LICINDIA.COM
 WWW.ICICIPRULIFE.COM
 WWW.GOOGLE.CO.IN
 WWW.WIKIPEDIA.ORG
News Paper
 Business standard
 Times of India
 Economic times
 Hindustan times
Magazine
 Outlook Express
 Business today
 Finance & Banking
 Money Outlook
86

Research Methodology: Primary Data

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Research Methodology: Primary Data

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RESEARCH METHODOLOGY

The plan of the study of portfolio management of life insurance

Primary Data: it has been collected through the guidance of our

Secondary Data: it has been collected through the websites,

books, magazines, newspaper, journals for collecting information

LIFE INSURANCE COMPANY OF INDIA LTD

LIC’S DIVISIONAL OFFICE:-

LIC’S BRANCH OFFICE:-

LIC’S WORK FORCE:-

At the Administrative Level LIC has a employee force of 2,00,000 at various-

LIC’S PORTFOLIO:- LIC’S main initiative was mainly to provide Life

ICICI Prudential Life Insurance Company is a joint venture between ICICI

1) WHOLE LIFE PLAN:-

End Total Benefit payable on death / maturity at the end of

End Total Benefit payable on death / maturity at the end of year

1.)WHOLE LIFE POLICY-LIMITED PAYMENT:-

conditions might become adverse.

under Table no. 3.

more premium, a reduced paid-up assurance policy comes into force.

Product-summary:- This is a whole of life assurance plan that provides

End of Total Benefit payable on death / maturity at the end of year

End Total Benefit payable on death / maturity at the end of year

i) This illustration is applicable to a non-smoker male/female standard (from

v) The Maturity Benefit is the amount shown at the end of 45 years.

2.) WHOLE LIFE POLICY-SINGLE PREMIUM:-

SUITABLE FOR:Being a limited-payment life assurance policy, this plan is

Insurance Regulatory & Development Authority (IRDA) requires all life

This is a whole of life assurance plan that provides financial

Under Table No 2 the premiums are payable for a period of 35 years or up to

Corporation’s policy on surrenders:- :

DEATH BENEFIT:-Sum assured plus accrued bonuses and the terminal

STATUTORY WARNING :-“Some benefits are guaranteed and

B) MONEY BACK PLAN:-

1.)THE MONEY BACK POLICY-20 YEARS:-

Premiums are payable yearly, half-yearly, quarterly, monthly or through salary

The percentage of Sum Assured as mentioned below will be paid on survival to

% of Sum Assured paid at the end of specified duration

Buying a life insurance contract is a long-term commitment. However,

Plan/ Term 75/ 20 Years 93/ 25 Years

At the end of 5 years 20% 15%

At the end of 10 years 20% 15%

At the end of 15 years 20% 15%

At the end of 20 years balance 40% + bonus 15%

At the end of 25 years NIL balance 40% + bonus

End of Total Benefit on Death during the year (Rs.)

1 6564 100000 2400 4800 102400 104800

2 13128 100000 4800 9600 104800 109600

3 19692 100000 7200 14400 107200 114400

4 26256 100000 9600 19200 109600 119200

7 45948 100000 16800 33600 116800 133600

10 65640 20000 0 0 20000 20000

15 98460 20000 0 0 20000 20000

4 22028 100000 10800 19200 110800 123200

25 137675 40000 74500 161000 114500 201000

i) This illustration is applicable to a non-smoker male/female standard (from

Mode of Payment Maximum Maturity Age Policy loan available

BONUSES:-This is a with-profit plan and participate in the profits of the

% of Sum Assured paid at the end of specified duration

Guaranteed Surrender Value:

Corporation’s policy on surrenders:

At the end of 10 years 20% 15%

At the end of 15 years 20% 15%

At the end of 20 years balance 40% + bonus 15%