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“BIRLA SUN LIFE INSURANCE”

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1. INTRODUCTION 2. ORGANISATION STRUCTURE 3. PRODUCTS ORGANISATION 4. DISTRIBUTION NETWORK 5. PRICING POLICY OF THE COMPANY 6. AWARDS AND ACHIEVEMENT 7. SWOT ANALYSIS
8. CONCLUSION

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SERVICES

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9. BIBLOGRAPHY

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1. INTRODUCTION:
BRIEF HISTORY OF UNIT- LINKED INSURANCE: The “unit linked life insurance policy” as it is understood and practiced in the west was introduced in our country only in 2000 when LIC brought in to the market a policy called “BIMA PLUS”. As a data, expect two or three new companies all the companies are selling the unit linked life insurance policies. The term “unit” in our country is somehow identified only with the ‘units’ sold by UNIT TRUST OF INDIA. This product is also called “EQUITY LINKED POLICY” or “MARKET LINKED POLICY” to indicate that the returns under these plans are linked to the market returns of the equities or shares. The credit of introducing the first unit linked plan goes to UTI when they brought out the Unit linked life insurance (ULIP) in 1971,In 1989 LIC Mutual Fund introduced the ‘DhanRaksha’ Plan identified to the ULIP. The term of the policy in either 10 or 15 years. With the effect from 1-7-02 the target amount under these two schemes has been introduced to Rs. 2 lakhs from Rs.75, 000.it works like this: from the uniform contribution for each year (for example @Rs.20,000 for ten years) a small portion is used to buy term death cover for Rs.2 lakhs and the balance is invested in units and at the end of ten years the

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the insulation against inflation is the insulation against inflation is subject to the usual investment risks and the investments performing reasonably well. The insurance 5 . After two years the full death benefit will be paid equal to the target amount. The concept involved in these unit or equity –linked policies is that as the major part of your premium amounts paid over a period of years is invested in equities and other capital market instruments year after year. The annuity benefit was for a fixed number of units.50. they are not very popular in large numbers. There is some restriction in full death cover in the first two years. From April 2000 this plan is made NAV driven and UTI has made several beneficial changes. a free accident cover is also given for Rs. these plans are considered to be the cheapest insurance with good returns! As life insurance people are not making these plans.accumulations made in your account is given as the maturity benefit along with a 5 or7. the value of which depended upon the market value of a portfolio of equity assets. The idea of linking insurance benefits to the performance of units was first tried for annuities. the return when it comes will not be affected very much by inflation as it happens in a maturity value of the policy in any average life insurance policy for the same period.000.5% bonus. The teachers insurance and annuity association in USA first introduced this method in 1952 to pay the annuities in collaboration with the college retirement equity fund. In fact. Of course.

Canada and UK. The SEC ruled that life insurance contracts with an equity base would be subject to the securities act of 1933-34 and investment company act 1940. In 1959 the US supreme court ruled that such insures will be subject to the regulation of securities and exchange commission (SEC) only in 1964 the SEC permitted insurance companies to introduce such annuities. What is paid under the policies is the returns on the performance of the chosen equities and not a fixed sum as in an ordinary policies. The majority of them are whole life plans. However. It is rightly called “variable” because both the premiums and the benefits under the policy are ‘variable’ according to eh choice of the policyholder. Netherlands. 6 .linked life insurance policy” inUK it is called “Variable insurance contracts” in USA.companies could not follow this method to extend the benefit to the general public due to legal obstacles and funding problems till 1964. While it is called “Unit. Each groundwork for successfully operating unit-linked life insurance policies was first made in Holland. life insurance contracts linking to the performance of units came only in 1976 in USA. The agents selling such policies were also to take special licenses.

differed investment feature. 2) Various insurance company fees-including sales charges which are deducted from each premium payment and 3) Your tax –deferred investment account. variable insurance products are regulated by the securities &exchange commission. For 7 . There are stringent regulations on selling these policies in other countries. since the variable life insurance products switches the investment risk from the insurance company to the policy owner. And the amount is probably a lot less than you would hope. As a security. which brings out a new set of agent requirements dealing. For example. in USA.Basically. these types of policies are considered both insurance contracts and securities and are regulated by both the securities &exchange commission and the state insurance commissioner. whatever amount is left after the first two goes into the third. it offers the life insurance coverage combined with a tax. An agent authorized to sell variable life insurance must be licensed by the state as well as by the National Association of Securities Dealers (NASD) to work as a registered representative. primarily with full and fair disclosure laws. in USA. Your premium payment are spent on three things: 1) The cost of the life insurance.

In our country. 8 . all materials used in selling and the SEC must also approve promoting these product prior to use. No special qualifications are need by the agent and SEBI does not have any control over the designing of or illustration prepared by the insurance companies in selling such policies.example. however. Also it is enough if the selling agent has passed the basic IRDA insurance license examination. any sales presentation or illustration must be preceded by or accompanied by a prospectus approved by the SEC. only the IRDA regulates this policy and the investment of the premiums collected under the policies.

rooted in performance ethics based on value creation for its multiple stakeholders. a name that evokes all that is positive in business and life. the company has catapulted to second position in new business premium in the highly competitive private life insurance industry based on its strategy of unit-linked plans. quality. a group turnover exceeding Rs. Birla sun life insurance forayed into the life insurance and retirement planning business by pioneering the unique unit-linked solutions in India. performance. 000 crore. perfection and above all. 000 crore and a market capitalization of over Rs. A highly respected and admired group.13. the Aditya Birla Group is one of India’s largest business houses. anchored by a 72. It typifies integrity. The Aditya Birla Group’s operations span over 40 units across 18 countries.BRIEF HISTORY COMPANY LTD. character.: OF BIRLA SUN LIFE INSURANCE A joint venture between the Aditya Birla Group and Sun life Financial.27. 000 crore spread over 7 lac shareholders. In just over 2 years of its launch. In operation for over 50 years now.000 strong committed workforce. an asset base which exceeds Rs. innovation. Known for its rack solid fundamentals it nurtures a culture where success does not come in the 9 .20. THE ADITYA BIRLA GROUP: “Aditya Birla”.

The Group has larged power relationship with large corporations like Hindustan Petroleum. white cement and the third largest in grey cement. Hindalco industries limited. Tata. Indian Rayan Industries Limited. it is the second largest producer of insulators and the fifth largest producer of carbon black in the world. and Aditya Birla Group enjoys a dominant position in all the sectors in which it operates. Powergen Plc and AT&T. Indian Aluminum Company limited. Louis Phillip. Not to mention. In India. the group is the single largest producer of viscose filament yarn.way of the need to keep learning afresh to continue innovating and to carry on experimenting. Being one of the largest corporate houses in India. aluminum. It is the world’s largest producer of viscose staple fibre. van heusen and peter England. largest single location aluminum plant and the largest single location refiner of palm oil. The flagship companies of the Aditya Birla Group include some of the largest and most respected companies in India such as grasim industries limited. Indo Gulf Corporation Limited. 10 . What’s more. the recognition of being the market leader in the ready to wear branded apparel segment with brands like Allen solly.

This new access to 11 . the Philippines. With a history that dates back to 1871. shareholders. Today the sun life financial group of comp anise and the partners are represented globally in Canada. SUN LIFE FINANCIAL: Sun life financial is a leading international financial services organization. London. Indonesia. employees and the society at large. Sun life financial knows its value lies in more than assets and history. It endeavors to make the workplace a source of creativity. Nurturing a corporate culture imbedded with a high level of commitment and a sense of shared destiny. Sun life financier’s parent company. listed its shares on stock markets in Toronto. It also lies in the culture of the integrity and the pursuit of excellence that have marked all of the organization endeavors. New York. innovation and self-fulfillment for its employees. the United States. India and Bermuda. The mission of the Aditya Birla Group is creation of value for its customers. inc. Japan. Sun life financial services of Canada.The group fosters a culture that promotes excellence and rewards entrepreneurship. and Philippines. In March of 2000. Sun life financial has evolved from a single mutual life insurance to one of the most highly rated insurance and wealth management institution in the world.

shareholders equity provides Sun life financial with even greater opportunities to grow around the world. The Sun life financial group of companies around the world. has excellent ratings with the world’s top ratings agencies. sun life financier’s primary insurance business. 12 . With assets under management as on September 30. offer innovative and practical financial solutions to individuals and corporations:  Life. 2000 totaling more than CDN$345 billion. it ranks amongst the largest international financial services organizations in the world. Sun life financial enjoys independent rating that place us at the top of the financial sector in North America. VISION: To be a world-class of financial security to individuals and corporate and to be amongst the top three private sector life insurance companies in India. Brokerage and Banking Sun life assurance Company of Canada. Health and Disability  Pension Funds and Plans  Investment Management  Annuities and Savings  Trust.

Well –trained professionals through a multi channel distribution network and superior technology will make these solutions available.MISSION: To be the first preference of our customers by providing innovative need based life insurance and retirement solutions to individual as well as corporate. within the regulatory framework. Our endeavor will be to provide constant value addition to customers throughout their relationship with us. We will provide career development opportunities to our employees and the highest possible returns to our shareholders. OUR VALUES: • • • • • • • INTEGRITY TRANSPERENCY CUSTOMER FOCUS EXCELLENCE INNOVATION MERITOCRACY RESPECT FOR THE INDIVIDUAL 13 .

Our customers have appreciated these products. builder and enhancer options were 9.75%. viz. The flexibility of changing the investment option initially availed by them is also available. mutual funds and banks. 11. which is above the minimum level guaranteed. Some of these features are described below: 1. any number of times (within 14 . catering to the customer’s twin needs of insurance and investment. 3. Builder (Medium risk portfolio) or Enhancer (High risk portfolio) with guaranteed returns fund. CONVENIENCE IN PAYMENT OF PREMIUMS: The customer has the option of paying any amount of premium.74% respectively. PROSPECTS FOR GROWTH WITH UNDERLYING GURANTEES: According to their risk appetite. GUARANTEES PROVIDE SAFETY NET: The policyholders enjoy the upside returns provided by the portfolios in all the investment options.OUR FEATURES: Our unit-linked flexi products are based on universal life platform. protector (Representing a low risk portfolio). which have the beneficial features of life insurance. 2. the customers can choose out of three investment options. As on 31st December 2002. the annualized returns since inception under protector.12% and 14. at present ranging from 3%-6%.

with the advantage of greater accumulation resulting into higher death/surrender/withdrawals/ maturity benefits. the face amount as well as the policy fund representing the saving portion in the premium is payable. A policy can lapse if and only if the policy fund pertaining to the individual policy becomes negative. ACCELERATED PAYMENT OF PREMIUM POSSIBLE: Depending on one’s financial situation a shorter premium-paying period can be selected. In case of death. 6. RISK COVER DOES NOT DECRESE DURING THE TERM OF THE POLICY: Unlike traditional life insurance policies. in our flexi policies.a policy year) irrespective of the mode. The continuity of risk is ensured with the help of monthly recovery of cost of insurance and automatic premium advance facility. where the sum at risk (Sum assured –paid up value) actually goes on decreasing. 4. 15 . death benefit is sacrosanct and and remains uniform throughout the tenure of the policy. BUILT-IN GUARD AGAINST UNITENDED LAPSATION: These products provide continuity of risk coverage for a long time even if the premiums remain unpaid. 5. Traditional products available in the market do not offer such a facility.

16 . CUSTOMERS CAN SEE THEIR MONEY PERFORM: Our policyholders are provided with an access code to know the policy values online. In such an environment. insurance products have been know to be illiquid. our products do not provide any surrender charge after the first four years. LIQUIDITY ON TAP: Traditionally. OTHER BENEFITS: a. the facility of withdrawals without affecting the risk cover is one of our unique features.7. 9. A policy can be customized to the policyholder’s requirements. Lower premium for female customers ‘Age last birthday’ gives the customers advantage of lower age c. Besides. NO PENALTY FOR SURRENDER: Unlike in traditional type of life insurance policies where the policy holders have to suffer a financial loss on surrender of their policies. For instance our ‘Flexi life line’ with the facility of limited premium payments and withdrawals thereafter. the investment performance of the various options is published every quarter and the policyholders receive a yearly statement reflecting the status of the policy fund. 10. becomes a veritable pension plan with attendant tax benefits. b. 8. Policy loans are at a cost and surrenders defeat the very purpose of insurance.

d. Detailed illustration at the point of sale 17 .

N. A high degree of transparency is followed in al the business practiced and procedures and all employees are governed by an internal code of conduct. The various committees overseeing the business are: BOARD OF DIRECTORS • Mr. Gary M. the companies act. Douglas C. 1938.chairman • Mr. 1956 and the IRDA regulations. Come ford • Mr. B. Hence • Mr. ORGANISATION STRUCTURE: two guides Biral sun life insurance business operations if its core values.2. namely integrity and transparency. Mitra • Mr. Kumar Mangalam Birla • Mr.Purankmalka 18 .K. S. Donald Stewart. as well as the provisions of the insurance act. BSLI complies with a all regulations governing the life insurance business. BSLI abides by the corporate governance framework in accordance with the Kumar Managalam Birla committee as applicable to the life insurance business.

Akers • Mrs. G.N.M.P.B.K.C.• Hish Highless • Mr. Javeri • Mr.M. mitra • Mr. S. Puranmalka Mr. S. A.Shah EXECUTIVE COMMITTEE • Mr.K. B. Puranmalka • Mr. Mitra Mr. B. G.C. D.Gupta • Mr. N. Comeford • Mr. Cmerford INVESTMENT COMMITEE • Mr.J. Heck 19 . Gupta Maharaja G. Talwar • Mr.k.N. D. Henck Mr.N. G. S. P. Fenn • Mr.Singh AUDIT COMMITEE • • • • Mr. S.

S.) (group life &personal) (control & admin. (Senior vice president-alternative Channel and group life) Anjana Grewal Shah K.) 20 .S.Nandagopal (Senior vice president –direct sales force) Mr. B.N.K. Nani Javeri (CEO) Mr.N. Peter Akers (CFO and appointed actuary) Mr. Puranmalka • THE BSLI MANAGEMENT TEAM Mr.Gopalkirshnan Jaskirat Kaur (actuary) Snehal (marketing &comm.• Mr.Goveia P.Mitra • Mr. E.

K. Venkatachalam (chief manager-human resource) Mr. Sanjay Parikh (chief manager.Mr.H.product 21 .finance and planning) development) Mr. Mayank Braganaza (chief manager.

BRIEF PROFILE OF SEVICES OF ORGANISATION: 22 .3.

Introduced in line with the latest global trends. which can be given belowFLEXI SECURELIFE RETIREMENT PLAN: This is a unit-linked retirement plan to give you efficient returns in the long term so as to build a sufficiently large corpus of savings on retirement. A unique combination of security from life insurance and returns from investment. the unitlinked plans put you in total control of your money. together. During the accumulation phase the plan gives you a choice of three investment options to invest your money with an option to switch between these funds to match your risk appetite.linked solutions bring together the best of life insurance and investment. In the annuity phase the plan gives 2 options to choose from. What’s more. What’s more it offers a guaranteed minimum return of 3% on your premium (deposit) amount net of all charges and deductions in this phase. 23 . Birla sun life insurance provides individual as well as group life insurance solutions aimed at the corporate sector. Unit.Pioneered by Birla sun life insurance. INDIVIDUAL LIFE PLANS: Birla sun life insurance offers number of individual life plans. They are simple transparent and flexible. they offer 3% minimum guaranteed overall returns on the premium. The planes built in tow phases: the accumulation phases and annuity phase.

which offers the dual benefit of a life insurance cover as well as large tax-free savings in the long term.FLEXI LIFE LINE PLAN: This plan offers a life insurance cover till the age of 100 years thus providing you with a lifetime of security. These periodic payments help you meet your various financial obligations at crucial junctures such as education or marriage of your child. which offers a life insurance cover and gives lump sum payment at periodic intervals. FLEXI CAH FLOW MONEY BACK PLAN: It is a flexible life insurance plan. The plan is taken for a specified period and the benefits are payable in the events of death during the tenure of the plan or at maturity.. FLEXI SAVE PLUS ENDOWMENT P LAN: It is a flexible life insurance plan. The unitlinked plan also offers you the option of not withdrawing the lump sum 24 . These periodic payments intervals. It is an investment for your future in which you accumulate large savings through the benefits of compounding. The unit-linked nature of the plan coupled with the benefits of compounding can lead to very efficient returns in the long term. The plan gives you the flexibility of making tax-free withdrawals and can be customized as tax efficient pension during your working years while the plan continues for a lifetime.

which takes care of one’s financial commitments toward his/her depending should anything unfortunate happen to line policyholder.amounts and continuing it in the plan to take advantage of the benefits of compounding. 25 . pure risk coverage plan. Unlike other term plans this plan refunds the entire amount of premium that you pay over a period of time. GROUP PLANS: Birla sun life insurance Company offers number of group plans. It is a low premium. it decreases the contribution to the fund in the years. described belowGROUP GRATUITY SOLUTIONS: It works for your future group gratuity addresses the need of prudent financial management for a progressive corporate house. BIRLA SUN LIFE TERM PLAN: The plan offers large life insurance cover for very low costs for a specified term. The unique benefit being it provides market-linked returns that present an opportunity for capital appreciation in the long term. which can be. BIRLA SUN LIFE PREMIUM BACK TERM PLAN: The plan offers you a life insurance cover for a specified term. There are two options of maturity benefits to choose from and what is m ore it is a low cost life insurance plan. Besides when the fund yields better returns.

AREAS OF EXCELLENCE: Drawing from the strength of the joint venture partners. The contribution is invested in unit-linked funds yielding market-linked returns to meet your future needs efficiently. Additionally original / principal contribution is guaranteed against market fluctuation. life insurance cover is provided at an affordable cost.  Leadership in unit-linked plans. it helps fulfill the insurance needs of employees as well as provide financial security to their families. Renewed every year.Birla sun life insurance offers group superannuating plan as a retirement solution for employees. The plan has 6 additional riders and two options. the beneficiary (family) of the member gets the benefit. In the event of death of the member. The company is one of the largest sellers of unit-linked 26 . GROUP PROTECTION PLAN: Birla sun life insurance provides group protection plan for a homogenous group. The plan has benefits that empower both the employer and employee.95% of sales come through unitlinked plans. The aditya Birla group and sun life financial inc. the team of Birla sun life insurance has crossed several milestones of excellence.GROUP SUPERANNUATION PLAN: Retire in comfort. Under this plan.

plans in one of the fastest growing life insurance markets in the world. The first advisor to qualify to the “top of the table” (TOT) amongst all private life insurance companies. 27 .   A high persistency ratio of 95.3. The mandatory use of a sales illustration within BSLI set up a standard of transparency in the industry.    A very efficient utilization of capital.06% of total policies.000 and average premium of Rs. Low claims ratio of 0. The regulator has now introduced the ‘free look period’ as an industry norm.19.46% by premium.  The company is a p pioneer in introducing unique product features like a ‘free look period’ and best sales practices such as the use of “sales illustrations”. 26.500 per policy in the industry with a unit-linked product range. BSLI has consistently recorded the highest average sum assured of Rs.

and 89 ban assurance & corporate partners. 28 . All three sales channels came out with flying colors. This has caused some amount of investor uncertainty. which met with a good response.478 crore during the year 2003-04 an increase of 222% over the premium income lat year. the markets have been choppy and combined with the upcoming elections. After a continuous rise between may 2003 and January 2004. There was a large supply of IPOs by PSUs. In March 2004.GROWTH OF BIRALA SUN LIFE IN UNIT-LINKED LIFE INSURANCE: Another successful financial year came to an end. During the year 2003-04 the company has launched two new groups and one individual fund. the BSE sensex has gone up by 81% but the first quarter of year 2004 was not very exciting for the market except for a huge supply of PSU IPOs.250 agents. The fundamentals remained good and foreign institutional investors (FIIS) continued buying even though the markets declined. The GDP growth numbers has also been encouraging at 10. the quarter saw a correction in the market. The BSE sensex went up to an all time high in January 2004 and the quarter closed at 5590. The company reported an annualized new business income of Rs.4% in October – December 2003 quarter. During the year 2003-04. The company of the year-end had an agency force of around 10.60 down almost 4% from December 2003 level.

60/ US $ against Rs. Forex reserves have crossed $ 110 bn in March 2004 on the back of strong growth in FDI and FII inflows. 29 .45. We will continue to invest in diversified and quality portfolio with a long-term view.47. The rupee strengthened further to close the quarter at 43.61 at the end of December quarter and Rs.year benchmark G-sec closed at 5.The interest rates remained range bound in the quarter with some amount of volatility.50 a year ago.15% at the end of the quarter. The 10.

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DISTRIBUTION NETWORK BIRLA SUN LIFE INSURANCE COMPANY LTD. While in India there was no precedent for selling life insurance though these alternate modes. brokerage. brokers. DIRECT SALES FORCE: Through this channel. across the country selling life insurance though trained career agents called ‘insurance advisor’. The team of agency managers and advisors are geared for productivity enhancement national presence in 44branches and 9development centers. ALTERNATE CHANNELS: The experience in various countries for selling life insurance through banks. distribution strategy is aimed at creating a national presence through a scaleable model. accessibility and quality service for the customers. 31 . which would achieve convenience. Internet and these distribution alternatives will be pursed by the organization from the inception stage. a philosophy of piloting and stabilizing the model was adopted. corporate agency. call center. affinity group and direct marketing are being consolidated. the company sets up brick and mortar branches on a standardizes template.4. corporate agents. The successful business models for banassurance.

The business focus is on the Aditya birla group companies and the top corporate in India. the company has established relationships with more than 100 blue chips corporate across the country by providing group protection and group retirement solution.BankMuscat.BSLI alternate channels are frontrunners in bancassurance business. OUP INSURANCE: The selling of insurance to corporate and affinity groups is developed though dedicated relationship managers.with a winning multi-channel distribution system in place . Through this channel. in partnership with Citibank . Development credit bank and IDBI Bank.the IT strategy revolves around selecting and implementing critical business applications to support contemporary products like universal life and aligning process to provide world-class customer 32 .Bankof Rajasthan.Deutsche bank.Catholic Syrian Bank.use of the call center and the internet will continue to be part of the direct marketing initiatives . when distribution spans across more than 50 locations . The company has achieved leadership position in-group business in private life insurance position in providing fund management services for the group retirement plans. DISTRIBUTION IN TUNE WITH TECHNOLOGY: Technology plays the crucial role.

Birla sun life insurance’s mission of providing life insurance solutions though “well trained” professionals. 33 .).services. TRANNING TO SUPPORT DISTRIBUTION: In keeping with support throughout the country. We have a team of qualified professionals to provide the crucial support throughout the country. our tanning team has geared up to meet the challenge. A high quality wide area network (WAN) was set up to interconnect all branches and the headquarters at mumbai. The systems are web enabled and equipped to provide consistent information across all touch points (branches. callcenters website etc.

PRICING POLICY OF THE COMPANY: 34 .5.

100 will be levied. The annual insurance charges per thousand-face amount for sample ages for healthy lives FUND SWITICHING CHARGES: In a year. SURRENDER CHARGES: The surrender charges is levied in the first four years and varies based on the year in which the policy is 35 .KEEP TRACK OF YOUR POLICY FUND: Birla sun life insurance sends you an annual policy statement on every policy anniversary to keep you completely informed on the performance of our various funds based on the unit price will be available on our website.free method of paying premiums through an electronic debit to your bank account. FEES AND CHARGES: The policy loading fee* is an up-front charge and varies as per the premium payment mode and the policy year CHARGES: Charges towards the cost of insurance will be deducted by cancellation of units at the prevailing unit price on a monthly basis. one switch between investment fund options is free. ELECTRONIC CLEARING SERVICE (ECS): The ECS is a convenient and hassle. a charge of Rs. For every additional switch.

annualilsed premium is defined as the amount that is payable if the coverage paying period is equal to the coverage benefit period. a charge of Rs. The surrender charge percent reduces by one for e very month thereafter.for the purpose of surrender charge only. In the 25th month. During the first 24 months of the policy. the charge will be an amount equal to the annulled premium payable for this policy . the surrender charge is zero. WITHDRAWAL CHARGES: • In a year tow withdrawals are free of charge • For every additional withdrawal.surrender. 36 . FEES AND CHARGES: The policy loading fee* is an up-front charge and varies as per the premium payment mode and the policy year . the surrender charge is 24 percent of the annualized premium.100 will be levied. If the policy is surrendered at any time after the 49th month.

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Awarded a Silver Shield in the Insurance category by the Institute of Chartered Accountants of India (ICAI) for the financial year ended 31st March. (BSLI) won the prestigious ‘Good Corporate Citizen Award’ from Bombay Chamber of Commerce and Industry for the year 2009-10 under the category of ‘Banking and Financial Institutions. 2009 Recruiting and Staffing Best in Class Awards. Outlook Money Awards 2004 BSLI . 38 . ICAI Awards for Excellence in Financial Reporting.Best Life Insurer (Runner Up) 2004 TROPHY.Birla Sun Life Insurance Company Ltd.

The 8th Asia Insurance Industry Awards 2004 . 39 . The Indo-Canadian Business Chamber.Best Life Insurer (Runner Up) 2004 CERTIFICATE.Outlook Money Awards 2004 BSLI . .Birla Sun Life Insurance was among the top five nominees in the category. Birla Sun Life Insurance was presented 'The Hewitt Best Employers In India Awards 2004' Trophy.BSLI awarded for its 'Successful Performance' for 4 years April 2005.

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41 .6 You can top up your premium anytime during the term to increase your benefits.1. The death benefit will be proportionately reduced.1.2 Normally any time after one to three years time depending upon the scheme.1. you can chose to withdraw your money by partial or complete surrender of units. 7. 7.1.7 The plans are available as endowment whole life money back or as pension plans.1.1 STRENGTHS: Strength of this company is given belowbe monitored on daily or bi-weekly basis through the daily. 7. 7. 7.1 There is transparency in the scheme. 7.4 You can also take a loan on a policy after three years duration. The performance of the fund can 7.3 You can surrender the policy and get a guaranteed surrender value.5 You can switch from one stream of investment to the other every year by paying a small fee according to your changing needs.7 SWOT ANALYSIS: SWOT analysis of this company is given below- 7.declared NAV/ Unit prices and also through the website of the company.1. At any given time you will k now the accumulations under your policy due to the investment accruals.1. even up to death.8 In fact some companies allow you to have the contract as long as you want without a fixed term. 7.1.

If after paying premiums for three years you are not able to pay the premium. 7.2 The heavy frontloading of the effectively acts as a disincentive for early withdrawals.2.1. 7.10The normal riders such as accident benefit. 7.12One company has floated a unit-linked policy for women with a critical rider benefit specifically covering some gynecological illnesses.3 The unit-linked plans completely pass on the investment risk to the policyholder and he has to be ever vigilant. disability benefit critical illness or major surgical assistance covers are also available.1.2.2. 7.1. 7.14Some companies offer even “premium holiday option”. 7.9 The option of with or without profits is also available in some plans.1. 7. Actually some companies give a guaranteed bonus as a percentage of the sum assured as bonus 7.2WEAKNESS: Weakness of this company is given below7. the policy will be continued adjusting the overdue premiums from your unit fund.13You can buy the policy with a single premium like a bond or pay premium by the usual yearly.7.1.1 The expenses deducted from the premiums especially in the first two years considerably shrink the amount that goes towards your investment corpus.1. 42 .11The policies are issued with the usual “free-look” provision. half-yearly or quarterly mode.

1 If unit-linked policies can be given section 88 benefits there is a valid reason that investment in an ordinary mutual fund should also be given the same benefit.7. There are number of competitors of this company.4THREATS: Threats of this company is given below7. 7. as they are basically same except for the addition of insurance element in the unit-linked policy.3. Only the dividends are taxfree.3OPPORTUNITIES: Opportunities of this company is given below7. change is competitor’s policy.2 The rear end tax-free benefit is a very attractive tax break for the unitlinked policy as per the current tax laws.3.4. change in government policy.1 This is company is also suffered by the great market competition. 7. 7.2 Another threat of this company is that the changing environment. 43 .4. Changing environment means change in government.3 The return by way of capital appreciation in mutual fund as well as from the sale of stocks are taxed as capital gains with the indexation benefit. according to the current tax laws. 7.3.

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In case they hence doubts about the availability of such agents. Continued advice and guidance will be available with the corporate agent and the broker as they are corporate entities. well.8. when sold to a wrong prospect or brought a wrong agent it will become useless. the buyer if they need such plans according to their risk appetite should select a known.informed agent who is reliable.trained and professional agents market these product. if they sell life insurance also would be a good choice. In view of what was discussed above. CONCLUSION: Unit – linked policies are a very valuable addition to the existing array of insurance producers. Agents who are already dealing with investment or saving instrument or mutual funds. But. 45 . it would be more advisable to go to corporate agent with a background in financial instruments or still better. IRDA and the companies should take care that well. to a good broker who are likely to be better equipped than an ordinary agent.

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9.google. WEB-SITE- www. ECONOMICS TIMES. BUSINESS -STANDARD.com 47 . HINDUSTAN TIMES. www.birlasunlife. BIBLIOGRAPHY NEWS PAPERTHE TIMES OF NEW INDIA.com .

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