International Institute of Professional Studies, Devi Ahilya Vishwavidyalaya

INTERNATIONAL INSTITUTE OF PROFESSIONAL
STUDIES,
DEVI AHILYA VISHWAVIDYALAYA
Major Research Project submitted for the partial fulfillment of the

requirement for the degree of Master of Business Administration
(Management Science)
PROJECT TITLE
A Comparative Analysis of Unit Linked Insurance Plans

(ULIPs) – An IDBI Fortis Perspective
And
Study of Customers Buying Behavior
Guided by: Submitted by:
Dr.Geeta Sharma Pratiksha Rajani

MBA (MS) 5Yrs.
8th Semester, Finance
IM-2K6-49
I.I.P.S. DAVV
CERTIFICATE
This is to certify that Ms.PRATIKSHA RAJANI, student of MBA (MS)

5Yrs. 8th Semester International Institute of Professional Studies has
completed her Major Research Project on “A Comparative Analysis of
ULIP - An. IDBI Fortis Perspective and Study of Customers Buying
Behavior ”. Her work throughout the project was up to my satisfaction. I
wish her all the best for her future.
Dr. Geeta Sharma
Signature of Guide:
Date:
2
ACKNOWLEDGEMENT
I would like to express my sincere gratitude to my faculty guide Ms. Geeta

Sharma Ma’am for guiding me throughout my research project and for all
her valuable inputs and constant support towards me throughout my project.
Her encouragement, time and effort are greatly appreciated.
I would like to thank my family, without their help and constant support; this
project would not have been possible.
I would like to thank all my friends who offered their valuable opinions and
suggestions and sometimes critical views throughout the survey which made
me constantly update myself and come out with a successful project.
It was a truly wonderful learning experience.
Pratiksha Rajani
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DECLARATION
I here by declare that I have successfully completed the MAJOR

RESEARCH PROJECT on “A Comparative Analysis of ULIP - An. IDBI
Fortis Perspective and Study of Customers Buying Behavior”. It is my
own research work done under the guidance of Geeta Sharma Ma’am,
faculty, IIPS
Pratiksha Rajani
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CONTENTS
• Abstract
• Introduction
o Insurance and ULIPs
o Company profile
• Objectives
• Literature Review
• Research Methodology
• Analysis
o Comparison of Plans
o Survey Analysis
• Findings
• Recommendations
• Strengths & Weaknesses
• Conclusion
• Scope for Further Research
• Limitations
• Bibliography
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• Enclosures
ABSTRACT
The project aims to make a detailed study of Unit Linked Insurance Plans
(ULIPs) in the Indian context, a comparative analysis of ULIPs of some well
known selected companies and in the process identify the strengths and
weaknesses of IDBI FORTIS. The different selected companies apart from
IDBI FORTIS on which the project is entirely focused are namely:
a. ICICI PRUDENTIAL
b. BAJAJ ALLIANZ
c.. LIFE INSURANCE CORPORATION OF INDIA
The comparative study is primarily based in terms of the various benefits

offered viz. Death Benefits, Health benefits, Maturity Benefits financial
benefits & other benefits. The various parameters taken into consideration
were flexibility, transparency, liquidity and the number of funds options
available. The project consists of a detailed analysis of the comparison of
various ULIPs of IDBI FORTIS with that of the selected major players in
the market. The results of the project have been an outcome of a detailed
analysis of collected secondary data and well supported by analysis of
primary data collected through a survey in the Indore city. The project
required me to design a questionnaire and conduct a primary survey. The
survey was mainly conducted to study about the factors affecting the buying
behavior of customers. The number of respondents targeted was 50. The data
gathered from the primary survey was coded in a statistical tool called as
CHI-SQUARE. Finally we interpreted the results of the project by
combining both the primary and the secondary data analyses then identified
the areas where the company is really strong and the areas where it needs to
have a second look. Finally after a detailed study we have found out the
merits and demerits of the IDBI FORTIS and based on those we have given
some recommendations to the company to really work on.
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INTRODUCTION
INSURANCE
Insurance may be described as a social device to reduce or eliminate risk of
loss to life and property. Under the plan of insurance, a large number of
people associate themselves by sharing risks attached to individuals. The
risks which can be insured against include fire, the perils of sea, death and
accidents and burglary. Any risk contingent upon these, may be insured
against at a premium commensurate with the risk involved. Thus collective
bearing of risk is insurance.
Life Insurance was the first to be nationalized in 1956. Consolidating the

operations of various insurance companies formed Life Insurance
Corporation of India. General Insurance followed suit and was nationalized
in 1973. General Insurance Corporation of India was set up as the
controlling body with New India, United India, National and Oriental as its
subsidiaries. The process of opening up the insurance sector was initiated
against the background of Economic Reform process, which commenced
from 1991. For this purpose Malhotra Committee was formed during this
year who submitted their report in 1994 and Insurance Regulatory
Development Act (IRDA) was passed in 1999. Resultantly Indian Insurance
was opened for private companies and Private Insurance Company
effectively started operations from 2001.
LIFE INSURANCE
As is evident from its very name, it deals with insurance of human life. “Life
insurance corporation of India”- a public sector undertaking has the
monopoly in this sector since its nationalization.
In our wordily life, whenever there is uncertainty, there is an involvement of
risk. The instinct for security against such risk is one of the basic motivating
forces determining human attitudes.
As a squeal to this quest for Security, the concept of insurance must have
been born. The urge to provide insurance or protection against the loss of
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life & property must have prompted people to make some sort of sacrifice
willingly in order to achieve security through “COLLECTIVE CO-
OPERATION”, in this sense; story of insurance is probably as old as the
story of mankind.
All life insurance companies in India have to comply with the strict
regulations laid out by Insurance Regulatory and Development Authority of
India (IRDA). Therefore there is no risk in going in for private insurance
players. In terms of being rated for financial strength like international
players, only ICICI Prudential is rated by Fitch India at National Insurer
Financial highest claims paying ability rating.
UNIT LINKED INSURANCE PLANS (ULIP)

A ULIP is a life insurance policy which provides a combination of risk cover
and investment. ULIPs have gained high acceptance due to attractive
features they offer like flexibility, transparency, liquidity and a vast variety
of fund option. Unit linked plans are suitable for all customer profiles;
however as a general belief the risk averse investors tend to choose
traditional plans and an informed customer prefers a ULIP. ULIPs offer the
kind of flexibility that no insurance product can. ULIPs essentially combine
the benefits of an insurance policy and a market-linked investment. Investors
can select a ULIP with an equity-debt combination that is in line with their
risk profile. A risk-taking investor would typically select one with a high
equity component, while a risk-averse investor would opt for a debt-heavy
one. Simply put, ULIPs are structured in such a way that the protection
element and the savings element are distinguishable, and hence managed
according to your specific needs. In this way, the ULIP plan offers
unprecedented flexibility and transparency.
So with many players around for a company to really be successful it has to
really be very efficient on all fronts. It has to constantly adapt to the
changing consumer preferences with a lot of new innovations and
implementing new technology try to different from the lot. Especially if it is
a new player in the market the company has to really work very hard to get
into the completion and stay afloat.
The private companies are coming out with better products which are more
beneficial to the customer. Among such products are the ULIPs or the Unit
Linked Insurance Plans which offer both life cover as well as scope for
savings or investment options as the customer desires.
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Further, these types of plans are subject to a minimum lock-in period of
three years to prevent misuse of the significant tax benefits offered to such
plans under the Income Tax Act.
Unlike the mutual fund product that has a very simple cost structure, ULIPs
carry a greater number of costs (administration and mortality), in addition to
the others. So comparing ULIPs with mutual funds is erroneous.
Unit linked insurance plan (ULIP) is a life insurance solution that provides
the client with the benefits of protection and flexibility in investment. It is a
solution which provides for life insurance where the policy value at any time
varies according to the value of the underlying assets at the time. The
investment is denoted as unit and is represented by the value that it has
attained called as
Net Asset Value (NAV).
ULIPs are a category of goal-based financial solutions that combine the
safety of insurance protection with wealth creation opportunities. In ULIPs,
a part of the investment goes towards providing a life cover. The residual
portion of the ULIP is invested in a fund which in turn invests in stocks or
bonds; the value of investments alters with the performance of the
underlying fund opted by the customer. Simply put, ULIPs are structured in
such that the protection element and the savings element are distinguishable,
and hence managed according to your specific needs. In this way, the ULIP
plan offers unprecedented flexibility and transparency.
STRUCTURE OF ULIP
ULIP offered by different insurers have varying charge structures. Broadly
the different TYPES OF FEES AND CHARGES are given below.
However the insurers have the right to revise or cancel the fees and charges
over a period of time.
• Mortality Charges: These are charges to provide for the cost of

insurance coverage under the plan. Mortality charges depend on
number of factors such as age, amount of coverage, state of health etc.
• Fund Management Charges: These are fees levied for management of

the fund(s) and are deducted before arriving at the Net Asset Value
(NAV).
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• Policy/ Administration Charges: These are the fees for administration
of the plan and levied by cancellation of units. This could be flat
throughout the policy term or vary at a pre-determined rate
• Surrender Charges: A surrender charge may be deducted for

premature partial or full encashment of units wherever applicable, as
mentioned in the policy conditions.
• Fund Switching Charge: Generally a limited number of fund switches

may be allowed each year without charge, with subsequent switches,
subject to a charge. But now a days many insurers offer fund
switching free of cost.
• Service Tax Deductions: Before allotment of the units the applicable

service tax is deducted from the risk portion of the premium.
ADVANTAGES OF ULIPS
ULIP distinguishes itself through the multiple benefits that it provides to the
consumer. The plan is a one stop solution for everything the customers want.
Unit Linked Insurance Plans (ULIPs) are different from traditional plans
purely because, they are much more transparent, various charges are shared
with the customer before the sale of the product, so as to enable the customer
to make an informed decision. Customers have the flexibility to choose
their life cover. Also the customers have the choice of multiple fund options
based on their risk appetite, thereby enabling an investor to make the desired
returns from the investment.
The following are some of the advantages of Unit linked plans:
a. Life protection
b. Investment and Savings

• Market linked fund based on risk profile
• Switch option
• Premium redirection
• Automatic Transfer Plan(ATP)
c. Tax Planning
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d. Flexibility of cover continuance
e. Transparency
f. Extra protection with riders

• Death due to accident
• Disability
• Critical illness
g. Liquidity
• Partial withdrawals during the term
• At maturity
h. Variable investment options
i. Premium holiday
j. Allow Top-ups
COMPANY PROFILE
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ABOUT IDBI FORTIS
IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading
financial conglomerates – India’s premier development and commercial
bank, IDBI Bank, one of India’s leading private sector banks, Federal Bank
and Europe’s banking and insurance giant, Fortis, each of which enjoys a
significant status in their respective business segments. In this venture, IDBI
Bank owns 48% equity while Federal Bank and Fortis own 26% equity each.
IDBI Fortis launched its first set of products across India in March 2008,
after receiving the requisite approvals from the Insurance Regulatory
Development Authority (IRDA). The company offers its services through a
vast nationwide network across the branches of IDBI Bank and Federal
Bank in addition to a sizeable network of advisors and partners.
At IDBI Fortis, people endeavor to deliver products that provide value and
convenience to the customer. Through a continuous process of innovation in
product and service delivery the company intends to deliver world-class
wealth management, protection and retirement solutions to Indian customers
IDBI Ltd. continues to be, since its inception, India’s premier industrial
development bank.
Created in 1956 to support India’s industrial backbone, IDBI has since
evolved into a powerhouse of industrial and retail finance. Today, it is
amongst India’s foremost commercial banks, with a wide range of
innovative products and services, serving retail and corporate customers in
all corners of the country from over 490 branches and more than 600 ATMs.
The Bank offers its customers an extensive range of diversified services
including project financing, term lending, working capital facilities, lease
finance, venture capital, loan syndication, corporate advisory services and
legal and technical advisory services to its corporate clients as well as
mortgages and personal loans to its retail clients. As part of its development
activities, IDBI has been instrumental in sponsoring the development of key
institutions involved in India’s financial sector – such as the Securities and
Exchange Board of India (SEBI), National Stock Exchange of India Limited
(NSE) and National Securities Depository Ltd.
Federal Bank is one of India’s leading private sector banks, with a national
network and dominant presence in the state of Kerala. It has a strong
network of over 550 branches and 450 ATMs spread across India. The bank
provides over four million retail customers with a wide variety of financial
products. Federal Bank is one of the first large Indian banks to have an
entirely automated and interconnected branch network. They operate on the
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core banking platform and are RTGS/ NEFT enabled through which the
Bank offers state-of-the-art technology enabled products and services.
In addition to interconnected branches and ATMs, the Bank has a wide

range of services like Internet Banking, Mobile Banking, Tele Banking, and
Any Where Banking, debit cards, co-branded credit cards, online bill
payment and call centre facilities to offer round the clock banking
convenience to its customers. The Bank has been a pioneer in providing
innovative technological solutions to its customers and the Bank has won
several awards and recommendations.
Fortis, a European financial services provider engaged in banking and
insurance with a presence in over 50 countries, offers its personal, business
and institutional customers a comprehensive package of products and
services through its own channels, in collaboration with intermediaries and
through other distribution partners. With a market capitalization of over
EUR 40 billion, Fortis ranks among the 20 largest financial institutions in
Europe. Fortis’ sound solvency position and dedicated, professional
workforce of over 80,000, enables it to combine global strength with local
flexibility to provide its clients with optimum support and service.
VISION
To be the leading provider of wealth management, protection and retirement

solutions that meets the needs of our customers and adds value to their lives.
MISSION
 To continually strive to enhance customer experience through

innovative product offerings, dedicated relationship management and
superior service delivery while striving to interact with our customers
in the most convenient and cost effective manner.
 To be transparent in the way we deal with our customers and to act

with integrity.
 To invest in and build quality human capital in order to achieve the

mission.
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VALUES
• . Transparency: Crystal Clear communication to our partners and

stakeholders
.
• Value to Customers: A product and service offering in which
customers perceive value
• Rock Solid and Delivery on Promise: This translates into being

financially strong, operationally robust and having clarity in claims.
.
• Customer-friendly: Advice and support in working with customers
and partners.
.
• Profit to Stakeholders: Balance the interests of customers, partners,
employees, shareholder sand the community at large.
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OBJECTIVE
• To compare the Unit Linked Insurance Plans (ULIPs) of IDBI

FORTIS with that of some other selected companies.
• To identify the strengths and weaknesses of IDBI FORTIS and

suggest areas where it could focus more and improve upon.
• To study about the factors affecting the buying behavior of customers.
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LITERATURE REVIEW
Till today a lot of research has been done on the Indian insurance industry
especially the life insurance sector.
The material for this study was collected from various internet sites, journals
and books by various authors. Similar research has been carried out by
Sathak Mohanty who worked on the risk profile of ULIPs and analyzed
insurance as an investment option. He says that Life Insurance Corporation
of India (LIC) is still the undisputed leader in the Indian context.
According to Anita Gupta-director, marketing and communication, ING

Vysa Life insurance ULIPs are suitable for all types of customers, right from
the lower class to the premium class. Also according to the Financial express
(Dated 12th April, 2009) ULIPs are flexible to the core.
During the course of the project some official studies on the products of
Tata-AIG and HDFC standard Life have been referred to.
Also the author Heena Vasnani says that if you are one of those who are
interested in keeping their hands in the stock market as well as providing a
life time protection to their family, must go for a ULIP LINKED
INSURANCE PLAN.
Dhirendra Kumar of Value Research said unit-linked insurance policies

(ULIPs) still continue to attract investment even though the pace may have
slowed down. “Inflows into tax-saving funds are expected to be around Rs
5,000 crore,” Kumar said.
Posted by Deepak Shenoy made the research study ULIP versus TERM
PLAN+INVESTMENT: The winner is clear.
A New Dimension in Insurance: ULIP – Khushbu Kesarwani, Research

Scholar dept. of Commerce and Business Administration, University of
Allahabad, says that ULIP is a new word entered into the market of
insurance in the recent years which changed all the trends in the past.
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RESEARCH METHODOLOGY
The Research Methodology used in this research project includes both the
secondary data and primary data. The right design and timeline of the project
is developed to achieve the objectives of the project.
SOURCES OF DATA
In the data collection method, we have to collect both primary and secondary
data to meet our objectives.
Secondary Data - The secondary data will be collecting directly from the
companies and their websites and internet surveys. Also a lot of similar
research studies and journals have been referred to.
Primary Data -The primary data will be collecting by a survey based on the
questionnaire. It is formulated on the basis of information carefully gathered
by me about the various mindsets of the people. Following are various
variables
• Age of the Respondents

• Income of the Respondents
• Occupation of the Respondents
• Percentage of Savings
• Risk involved in ULIP
• Sector Preferred
• Purpose of Investment
• Mode of information for choosing Plans
• Other Factors like SAFETY OF PRINCIPAL, HIGH RETURNS, and
LOW RISK etc.
DATA SAMPLING: The number of respondents targeted was 50 and the

survey is confined to Indore city.
RESEARCH DESIGN: Descriptive Approach.
ANALYSIS
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About the Product
IDBI FORTIS different variety of schemes and a good range of ULIPs under
the flagship banner Wealthsurance. There are a lot of other ULIPs under
Bondsurance, Homesurance and Retiresurance but as our study is only
confined to the study and comparative analysis of ULIPs under
Wealthsurance we would just be discussing about the various plans under
Wealthsurance. As discussed earlier the Wealthsurance Foundation Plan
enables the customer to save and build wealth to meet your financial goals.
However, unlike other investment alternatives, it also enables him to achieve
his wealth goals even in the event of unexpected death, accidents,
disablement or serious illness. The Wealthsurance Foundation Plan can
ensure that his plans for wealth creation are achieved by protecting that plan
with insurance benefits. Wealthsurance is one of its kinds in India. The
company offer 11 investment options and 8 protection benefits under the
plan apart from tax benefits Under Wealthsurance there are a lot of different
funds available which are explained below:
WEALTHSURANCE
Min entry age: 30 days

Max entry age: 65 yrs
Min premium: 10000
Max maturity age: 75 yrs
Riders: ADBR, ADB, WOPR, MAJOR
DISEASES BENIFIT, HOSPITAL CASH BENEFIT, TERMINAL
ILLNESS BENEFIT
Min premium payment term: 3 yrs
Types of funds: EQUITY, NIFTY, Capital
Guarantee, Asset Allocator, GRF, MONTHLY INT A/C, INCOME,
LIQUID As discussed earlier we would be comparing the Unit Linked
Insurance Plans (ULIPs) of the companies selected initially with those of
IDBI FORTIS and then make a detailed analysis. This analysis would be
well supported by the primary data analysis and then the final results would
18
be interpreted .So here first we would be listing out various ULIPs of the
selected companies and their details. After that we make a detailed
comparison with that of the plans under Wealthsurance of IDBI FORTIS and
explain it.
So following are the details of ULIPs of various companies and the
comparative analyses.
Comparison of Plans
LIFE INSURANCE CORPORTAION (LIC) OF INDIA
LIC offers three different types of ULIP

a. Market Plus
b. Profit Plus
c. Fortune Plus
MARKET PLUS
Min entry age 18 yrs

Max entry age 70 yrs
Max Maturity age 75 yrs
Min premium 10000 SP
No of funds 04
Riders ADBR
Min premium payment term 5 yrs
PROFIT PLUS
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Min entry age 0 yrs
Max Maturity age 70, 75 yrs
Min premium 20000
No of funds 04
Riders ADBR, CIBR
FORTUNE PLUS

Min premium 20000
No of funds 04
Riders ADBR
Min premium payment term 5yrs
ADBR-Accidental Death Benefit Rider, CIBR-Critical Illness Benefit Rider
Comparative Analysis
MARKET PLUS
• Premium allocation charge is 16.5% in this product where as

Wealthsurance has a charge of Max 4%.
• There are no riders available in this product as against Wealthsurance
has a host of riders to choose from.
• After 3 years we can go for partial withdrawals as against in this
product there are no partial withdrawal available.
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PROFIT PLUS
• Premium allocation charge is 15% min in this product where as

• .There are no riders available in this product as against Wealthsurance
FORTUNE PLUS
• Min Entry age in Wealthsurance is 0 years as against in this

product it is 12 years
• Max entry age in Wealthsurance is 65 years as against in this
product it is 60 years only.
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BAJAJ ALLIANZ LIFE INSURANCE COMPANY
BAJAJ ALLAINZ offers five different types of ULIP

a. UNIT GAIN PLUS GOLD
b. UNIT GAIN PREMIER
c. CENTURY PLUS
d. NEW UNIT GAIN PLUS
e. PENSION GUARANTEE
UNIT GAIN PLUS GOLD
Min entry age 0 yrs

Min premium 12000
No. of funds 06
Riders 6(after 18)
UNIT GAIN PREMIER
Min entry age 0 yrs

Min premium 50000
No. of funds 03 s
Riders NM
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CENTURY PLUS
Min entry age 8 yrs

Min premium 25000
No of funds 07
Riders ADBR
NEW UNIT GAIN PLUS
Min entry age 0 yrs

Min premium 10000
No. of funds 07
Riders ADBR, WOP CIBR, FIB,
HCB, PDB
PENSION GUARANTEE

Max Maturity age NA
Min premium 25000-purchase price
No. of funds NM
Riders NM
Min premium payment term NM
ADBR-Accidental Death Benefit Rider,
CIBR-Critical Illness Benefit Rider,
NM-Not Mentioned,
WOP-Waiver of Premium,
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FIB-Family Income Benefit,
HCB-Hospital Cash Benefit,
PDB-Permanent Disability Benefit
UNIT GAIN PLUS GOLD
• Wealthsurance only has a allocation charge of only 4% in comparison

to 15% in this product
• .Max Entry age in Wealthsurance is 65 as against 60 of Unit Gain
Gold Plus
CENTURY PLUS
• Wealthsurance has an Min Entry Age of 0 Years against this product

where the entry age is 8 Years.
• . Min Premium in Wealthsurance is only Ten Thousand Rupees in
comparison to Twenty Five Thousand Rupees of this product.
• In Wealthsurance there is a choice of 5 riders where as in this product
only one rider is available
NEW UNIT GAIN PLUS
• Wealthsurance only has a allocation charge of only 4% in comparison

to 55% in this product
• .Max Entry age in Wealthsurance is 65 as against 60 of Unit Gain
Gold Plus
UNIT GAIN PREMIUM

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• Min Premium in Wealthsurance is only Ten Thousand Rupees in
comparison to Fifty Thousand Rupees of this product.
• Max Entry age in Wealthsurance is 65 as against this product which
has a cut of 60 years.
PENSION GUARANTEE
• Wealthsurance can be customized for retirement planning.

• Customers can opt for a partial withdrawal without any charges post 3
years from his fund value and use the money as pension. There is no
Tax/Charges on the money withdrawn/taken as pension
ICICI PRUDENTIAL LIFE INSURANCE COMPANY
ICICI PRUDENTIAL offers seven different types of ULIP
a. LIFE TIME GOLD

b. LIFE LINK SUPER
c. PREMIER LIFE GOLD
d. LIFE TIME PLUS
e. LIFE STAGE
f. SMART KID CHILD PLAN
g. LIFE TIME SUPER PENSION
LIFE TIME GOLD
Min entry age 0yrs

Max entry age 65yrs
Max Maturity age 75yrs
Min premium 20000
No. of funds 07
Riders ADBR,CIBR, WOP
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LIFE LINK SUPER
Min entry age 0yrs

Max entry age 65yrs
Min premium 50000
No. of funds 07
Riders NO
Min premium payment term SP
PREMIER LIFE GOLD
Min entry age 0yrs

Max entry age 65, 69 yrs
Min premium 10000
No. of funds 07
Riders ADBR,CIBR ,WORP
Min premium payment term 3,5 yrs
LIFE TIME PLUS
Min entry age 0yrs

Max entry age 65yrs
Min premium 20000
No. of funds 07
Riders ADBR, CIBR
LIFE STAGE
Min entry age 0yrs

Max entry age 65yrs
26
Min premium 15000
No. of funds 07
Riders ADBR, CIBR
Min premium payment term LIFE BASED
SMART KID CHILD PLAN
Min entry age 0yrs

Max entry age 15yrs
Min premium 12000
No. of funds 07
Riders ADBR, CIBR WOP
LIFE TIME SUPER PENSION
Min entry age 18yrs

Max entry age 65yrs
Max Maturity age 45 yrs vesting age
Min premium 15000
No. of funds 07
Riders ADBR, CIBR
ADBR-Accidental Death Benefit Rider,
CIBR-Critical Illness Benefit Rider,
NM-Not Mentioned,
WOP-Waiver of Premium
SP-Single Premium
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LIFE TIME GOLD
• Premium allocation charge is premium based in this product where

as Wealthsurance has a charge of Max 4% and with higher premium
the allocation charge decreases.
• Min Premium in Wealthsurance is only Rs.10000 as against in this
product it is 20000
• In Wealthsurance there is unlimited switching and partial withdrawal
allowed absolutely free of charge.
LIFE LINK SUPER
• Premium allocation charge is 20% in this product where as

product it is 20000
• In Wealthsurance there is unlimited switching and partial withdrawal
allowed absolutely free of charge.
PREMIER LIFE GOLD

Wealthsurance has a charge of Max 4%
• There are no riders available in this product as against Wealthsurance
• In Wealthsurance there is unlimited switching redirection and partial
withdrawal allowed absolutely free of charge
LIFE TIME PLUS

product it is 20000
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withdrawal allowed absolutely free of charge.
LIFE STAGE

product it is 20000
withdrawal allowed absolutely free of charge.
• There are only 2 riders available in this product as against
Wealthsurance has a host of riders to choose from.
SMART KID CHILD PLAN

product it is 12000
• Wealthsurance can be beautifully customized to be a child plan by
just adding wavier of premium.
LIFE TIME SUPER PENSION
• Premium payable in this product is Rs.75000 as against in

Wealthsurance it is only Rs.10000
• There are only two rider available in this product as against
Wealthsurance has a host of riders to choose from.
• Allocation charge of 20% on this product and Wealthsurance has a
4% charge.
• Annuity is taxable where as all the funds in Wealthsurance is tax free.
Wealthsurance can be customized to be a tax free retirement plan. For
post 3 years customers can also do unlimited partial withdrawal
whenever there is a need for money without being charged or taxed.
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SURVEY ANALYSIS
A detailed survey was done in Indore city to understand and

study the consumers buying behavior towards ULIP. The
primary data was collected through questionnaires. This
questionnaire was mainly formulated to target the common
man to see his perception and awareness of various
investment options available. The sample size of the survey
was 50. The sample of respondents was carefully selected
covering people in all age groups and with different
backgrounds and occupations. The analysis of these
questionnaires gives us an insight about the mindset of
people regarding ULIP. The study extract the prominent
factors influencing the investments decisions of the
customers .Customer preferences as to where they would
like to invest have been studied Also we come to know
about the preferences given by customers towards various
top life insurance companies and their reasons for it. Here
we see that most of the customers invest regularly from
quite some time but since the last few months their
investments have come down due to recession and market
slowdown. Following is the analysis of the primary data
collected through questionnaires.
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1. AGE OF THE RESPONDENTS AND PREFERENCE FOR ULIPs
Options Frequenc (observed- (observed- (observed-

y expected expected)² expected)²/e
18-30 16 3.5 12.25 .98
31-40 22 9.5 90.25 7.22
41-50 9 -3.5 12.25 .98
>50 3 -9.5 90.25 7.22
Total 50 16.4
Expected frequency= 50/4= 12.5
Chi square = 16.4
• Here the EXPECTED FREQUENCY is calculated by dividing the

total number in the sample by the number of categories on the basis of
the expectation that all there is equal association between age and
preference of ULIP, which is taken as NULL HYPOTHESIS.
• The OBSERVED FREQUENCY is the response of the respondents
conducted through poll.
• The calculated value is then compared with the tabulated value which
can be found out by looking at chi square table at 3 degree of freedom
at 5% level of significance which comes out to be 7.815.
• Since the calculated value is greater than the tabulated value, the
NULL HYPOTHESIS is rejected which interprets that there is
association between age and preference of ULIP. Customers lying
under the group of 31-40 tend to invest more in ULIP.
31
2. INCOME OF THE RESPONDENTS AND PREFERENCE FOR
ULIPs

Below 1.5 lakh 8 -2 4 .4
1.5-2.5 lakh 11 1 1 .1
2.5-3.5 lakh 10 0 0 0
3.5-4.5 lakh 14 4 16 1.6
Above 4.5 lakh 7 -3 9 .9
Total 50 3
Expected frequency= 50/5= 10
Chi square = 3

the expectation that all there is equal association between income and
preference of ULIP, which is taken as NULL HYPOTHESIS.
at 5% level of significance which comes out to be 9.488
• Since the calculated value is less than the tabulated value, the NULL
HYPOTHESIS is accepted which interprets that there is no
association between income and preference of ULIP. Customers of all
the income groups tend to invest in ULIP.
3. OCCUPATION OF THE RESPONDENTS AND PREFERENCE

FOR ULIPs
32
Govt. service 12 -.5 .25 .02
Businessman 7 -5.5 30.25 2.42
Private 22 9.5 90.25 7.22
company Job
Self employed 9 -3.5 12.25 .98
Total 50 10.64
Chi square = 10.64

the expectation that all there is equal association between occupation
and preference of ULIP, which is taken as NULL HYPOTHESIS.
association between occupation and preference of ULIP. Customers
lying under the group of private company job tend to invest more in
ULIP.
4. PERCENTAGE OF INCOME AS SAVINGS
33
0-5 % 26 9.4 88.36 5.32
5-10 % 13 -3.6 12.96 .78
10-15 % 11 -5.6 31.36 1.88
TOTAL 50 7.98
Expected frequency= 50/3 = 16.66
Chi square = 7.98

the expectation that all there is equal association between % of
savings and preference of ULIP, which is taken as NULL
HYPOTHESIS.
association between % of savings and preference of ULIP. Customers
doing the saving of around 5 %, used to invest in ULIP.
5. RISK INVOLVED IN ULIPs

High Risk 18 5.5 30.25 2.42
Moderate Risk 23 10.5 110.25 8.82
34
Low Risk 9 3.5 12.25 .98
Safe 0 -12.5 156.25 12.5
Total 50 24.72
Chi square = 24.72

the expectation that all there is equal association between risk
involved and preference of ULIP, which is taken as NULL
HYPOTHESIS.
association between risk involved and behavior pattern. Customers
find that there is moderate risk involved in ULIP and therefore take
into account before making investment.
6. SECTOR PREFERRED BY CUSTOMERS TO INVEST.

Govt. Sector 33 8 64 2.56
Private Sector 17 -8 64 2.56
Total 50 5.12
35
Expected frequency= 50/2 =25
Chi square = 5.12

the expectation that all there is equal association between the
preference of sector and customers buying behavior, which is taken as
NULL HYPOTHESIS.
association between the preference of sector and customer buying
behavior. People mostly bend towards the government sector.
7. FACTORS CONSIDERED BEFORE MAKING INVESTMENT
36
Options frequenc Observed- (Observed- (observed-
Safety of 14 4 16 1.6
principal
Low risk 14 4 16 1.6
Higher 15 5 25 2.5
returns
Maturity 4 -6 36 3.6
period
Terms 3 -7 49 4.9
and
conditions
Total 50 14.2
Expected frequency= 50/5 = 10, Chi square = 14.2

the expectation that all there is equal association between the
aforesaid factors and the buying behavior of customers, which is taken
as NULL HYPOTHESIS.
37
association between the factors considered before making investment
and buying behavior. People mostly prefer high returns while making
investment.
8. PURPOSE OF INVESTMENT

Buying a 0 -12.5 156.25 12.5
House
Children’s 16 3.5 12.25 .98
Education
Children’s 22 9.5 90.25 7.22
Marriage
Retirement 12 -.5 .25 .02
Total 50 20.72
Expected frequency= 50/4= 12.5, Chi square = 20.72

the expectation that all there is equal association between the purpose
of investment and customers buying behavior, which is taken as
NULL HYPOTHESIS.
38
association between the two and people use to make investment
mostly for the purpose of children’s marriage.
9. MODE OF INFORMATION USED BY CUSTOMERS TO

CHOOSE PLANS AND COMPANIES
options Frequenc (observed- (observed- (observed-

Advertisement 22 9.5 90.25 7.22
s
Agents 12 -.5 .25 .02
Seminar 7 -5.5 30.25 2.42
Workshop 9 -3.5 12.25 .98
Total 50 133 10.64
Chi square = 10.64

the expectation that there is no association between mode of
information and customers buying behavior,
NULL HYPOTHESIS is rejected which interprets that there is a
significant change in the observed and expected frequency which says
39
that ALL MODES ARE NOT EQUALLY POPULAR,
ADVERTISEMENT IS MOST POPULAR.
FINDINGS
 The Age of the respondents plays an important role in

deciding the investment pattern. Respondents under
the age group of 30-40 mostly prefer to invest in ULIP.
 The respondents from all the income groups tend to

invest in ULIP. The preference does not change with the
change in the income of the customers.
 The respondents have different occupations. Therefore

the impact on purchasing a ULIP is affected by change
in the occupation, people of private job prefer more to
invest in comparison of others.
 .Respondents having savings around 5%, used to invest

in ULIP. Others might go for shares or gold as an
investment option
 Generally, government sector is preferred by the

people for investment depending upon their
requirements.
 Various factors are considered before making

investment but in general people used to prefer high
returns before going for any investment.
 Generally people find moderate risk in making

investment in ULIP.
 There are many companies in the market giving various

plans of ULIP but L.I.C. is the most preferred company
by the customers in the market.
40
 The mode of information for choosing the insurance
company is very well explained and concluded that
advertisements are most popular.
 Mainly the purpose of investment for the customers is

children’s marriage.
Also,
 . There is a great future of the life insurance sector

in India as 80% of the Indian population is still
without life cover and people are just now coming
in response to the awareness campaigns being
carried out by almost all the insurance companies.
 . A good positive growth is being shown by IDBI

FORTIS and even though it is new and has a long
way to go, it has already started working hard and
is trying to make competition much tougher.
 All the products of IDBI FORTIS under

Wealthsurance are really very good and have an
edge over most of the products of other major life
insurance companies as the plans offered by the
company are really very flexible.
 Life Insurance Corporation (LIC) of India is still the

undisputed market leader as 63% of the respondents surveyed
owned a policy in it and it has also got a tremendous rating in
the survey conducted.
41
RECOMMENDATIONS
 IDBI FORTIS has to improve its distribution network as its reach

to a common man is very limited .Also the number of agents
working for the company is very less right now when compared to
the other companies
 The company should constantly come out with innovative products

as the competition is very tough with around 22 companies
fighting hard for the market share. Some new innovative ideas
have been suggested below.
1. An insurance plan for the unborn babies. The premium

payment term could be for 6 months and it could start once
the fetus is 3 months old inside the mother’s womb. There
could be various benefits under this plan for the customers
like in case of a premature or a complicated birth the
company would bear the expenses till the baby is healthy
again through the insurance policy. Also there could be
death benefits in case of the death of the baby inside the
womb or at the time of delivery. This plan could really be
successful as in India there are lot of premature child deaths
and if the company comes out with a plan like this very
tactfully with some implied conditions it would be the first
Indian company to offer insurance to unborn babies.
2. An insurance plan for mentally retarded and physically

handicapped people. This might be hard to digest but if at all
plans like these are possible and really come out then a good
amount of Indian population would really be interested.
3. The company could also come out with a plan for both the
husband and wife where automatically the wife gets insured
along with her husband when her husband purchases the
42
policy. This could also be the other way round. This could
be called the combo family plan. In simple words it means
buy one policy and get another free. No other company has
done something like this till now.
 As the company is a new company it has to really work hard to get it

promoted. The company could start sponsoring major events and
conduct talk shows and seminars to get noticed. It could also take the
help of NGOs. There are many people in India who still do not know
about the concept of insurance. The company could take this as an
opportunity by trying to create awareness.
43
STRENGTHS & WEAKNESSES
• The Fund allocation charges and fund management charges are very
low when compared to most of the other companies in the market.
• The growth of the company has been tremendous in terms of the

premiums collected and the variety of funds introduced. All this has
been done in a very short span of time which indicates that there is a
great future for IDBI Fortis.
• . IDBI Fortis offers funds almost to everyone right from a 3 month

child to a 70 year old elderly person. The variety of funds offered is
very vast.
• The tie-up of the well known IDBI bank with Fortis International and
Federal bank both of which are well established and good rated gives
the company a greater scope for good growth in the future.
• All the plans offered by the company especially under ULIPs are
really flexible as there are no charges charged for switching and a
customer can make use of the switching facility any number of times
he wants to free of charge. Also the premiums payable can be decided
by the customers themselves according to their feasibility and
capacity.
DEMERITS:
• IDBI Fortis has a limited presence right now so most of the people
know nothing about the company.
• With already around more than 20 private companies in the market it

is really a mammoth task for IDBI Fortis to establish itself and move
44
forward successfully as it is always difficult for any new company to
capture the market very early.
45
• Also with LIC still at the helm as the market leader it is really difficult
for the company to move anywhere closer to it because LIC is the
only public sector life insurance company and generally people would
prefer a public company rather than a private company.
• The company has to improve its distribution network as its reach to a

common man is very limited .Also the number of agents working for
the company is very less right now when compared to the other
companies.
• It is very difficult to convince the customers first because this is a new

unknown company and secondly there are no part records which
normally the customers consider seriously to show the company’s
performance.
• The variety of funds under IDBI FORTIS has to increase as

competitors like ICICI Prudential have a larger and better variety of
the same.
46
CONCLUSION
A Unit Linked Insurance Plan (ULIP) is an ideal investment vehicle for

today’s complex and modern financial scenario. Today almost each and
every person is fully aware of every kind of insurance proposals available in
the market. Everybody wants to get their future secured by making
investment in various insurance plans. The proposal which is entitled to low
risk, high returns and early redemption is mostly preferred.
At the same time, investing in ULIP as investing avenue is good for people
who have interest in staying for longer period of time around 10 years and
above.
Also in the coming times ULIP will grow faster. ULIP are actually being
publicized more and also the other traditional endowment policies are
becoming unattractive because of lower interest rates.
It is good for people who are investing in ULIP policies of insurance

companies as their investment earn them a better return than other policies.
In my opinion, before investing in ULIP, one should be fully aware of each
and everything.
47
SCOPE FOR FURTHER RESEARCH
 The ULIP has not been considered as a fruitful option in the market
nowadays when is compared with just a normal term plan+
investment, so further research can be made in this area.
 The further research can be done by involving other plans of other

companies too.
 The purchasing idea of a ULIP plan can be influenced by any other

factors other than taken in questionnaire and therefore other
researches can be conducted while considering other factors.
LIMITATIONS
• The comparative analysis is done just with the WEALTHSURANCE,

other products are not considered like RETIRESURANCE,
BONDSURANCE, and HOMESURANCE.
• The study is confined only to a small segment of the entire population

due to monetary and time constraints and hence the results are
applicable only to the city of Indore.
• The comparative analysis done here is just among the few companies
and many are left out. So, the results might not represent the real
situation.
48
BIBLIOGRAPHY
• www.licindia.com
• www.idbifortis.com
• www.bajajallianz.com
• www.iciciprulife.com
• www.moneycontrol.com
• www.wikipedia.org
• Research Methodology - C.R. Kothari
• Research Methodology and Statistical Technique - Santosh Gupta
49
ENCLOSURES
QUESTIONNAIRE
(This questionnaire is only of the sake of some research work being done on
insurance companies. Confidentiality would be maintained.)
Name:
________________________________________________________
Gender:  Male  Female
Age Group:
 18-30  31-40  41-50  >50
Qualification:
 Post Graduate  Graduate 12th < 12th
Occupation:
Government Service  Businessman  Private Company
 Self Employed  Any other (Please specify)
Your income range (per annum):
 Below 150000  150000-250000  250000-350000
350000-450000  More than 450000
Your savings per year:
 Below 10000  10000-25000  25000-50000
 50000-100000  More than 100000
50
Your opinion about investment:
 Tax Saving  Good returns  Better future after retirement
 Wealth creation  Any other (please specify)
Preferably you would like to invest in:
 Government Sector  Private Sector
According to you what is the amount of risk involved in (ULIPs) Unit

Linked Investment Plans?
 High risk  Moderate risk  Low risk
 They are Safe  No Idea
What is the mode of information for choosing Life insurance Company?
Advertisements Agents
Seminars Workshops
According to you who are the best insurance company?
________________________________________________________
--------------THANK YOU SO MUCH FOR YOUR VALUABLE TIME----
51

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INTERNATIONAL INSTITUTE OF PROFESSIONAL

Major Research Project submitted for the partial fulfillment of the

A Comparative Analysis of Unit Linked Insurance Plans

Guided by: Submitted by:

Dr.Geeta Sharma Pratiksha Rajani

This is to certify that Ms.PRATIKSHA RAJANI, student of MBA (MS)

Dr. Geeta Sharma

I would like to express my sincere gratitude to my faculty guide Ms. Geeta

It was a truly wonderful learning experience.

I here by declare that I have successfully completed the MAJOR

• Strengths & Weaknesses

• Scope for Further Research

The comparative study is primarily based in terms of the various benefits

Life Insurance was the first to be nationalized in 1956. Consolidating the

UNIT LINKED INSURANCE PLANS (ULIP)

• Mortality Charges: These are charges to provide for the cost of

• Fund Management Charges: These are fees levied for management of

• Surrender Charges: A surrender charge may be deducted for

• Fund Switching Charge: Generally a limited number of fund switches

• Service Tax Deductions: Before allotment of the units the applicable

b. Investment and Savings

f. Extra protection with riders

h. Variable investment options

In addition to interconnected branches and ATMs, the Bank has a wide

To be the leading provider of wealth management, protection and retirement

 To continually strive to enhance customer experience through

 To be transparent in the way we deal with our customers and to act

 To invest in and build quality human capital in order to achieve the

• . Transparency: Crystal Clear communication to our partners and

• Rock Solid and Delivery on Promise: This translates into being

• To compare the Unit Linked Insurance Plans (ULIPs) of IDBI

• To identify the strengths and weaknesses of IDBI FORTIS and

• To study about the factors affecting the buying behavior of customers.

According to Anita Gupta-director, marketing and communication, ING

Dhirendra Kumar of Value Research said unit-linked insurance policies

A New Dimension in Insurance: ULIP – Khushbu Kesarwani, Research

• Age of the Respondents

DATA SAMPLING: The number of respondents targeted was 50 and the

RESEARCH DESIGN: Descriptive Approach.

Min entry age: 30 days

LIFE INSURANCE CORPORTAION (LIC) OF INDIA

LIC offers three different types of ULIP

Min entry age 18 yrs

Min entry age 12 yrs

ADBR-Accidental Death Benefit Rider, CIBR-Critical Illness Benefit Rider

• Premium allocation charge is 16.5% in this product where as

• Premium allocation charge is 15% min in this product where as

• Min Entry age in Wealthsurance is 0 years as against in this

BAJAJ ALLAINZ offers five different types of ULIP

UNIT GAIN PLUS GOLD

Min entry age 0 yrs

UNIT GAIN PREMIER

Min entry age 0 yrs

Min entry age 8 yrs

NEW UNIT GAIN PLUS

Min entry age 0 yrs

Min entry age 45 yrs

ADBR-Accidental Death Benefit Rider,

CIBR-Critical Illness Benefit Rider,

HCB-Hospital Cash Benefit,

PDB-Permanent Disability Benefit

UNIT GAIN PLUS GOLD