CONTENTS

Chapter I : Introduction of the topic and brief profile of the Organization Chapter II: Objectives Of The Training and Research Methodology Chapter III: Details of training under taken Chapter IV: Work experience and Observation Chapter V: Summary and Conclusion Bibliography Annexure

Chapter I: Introduction of the topic and brief profile of the Organization

CHAPTER I : INTRODUCTION OF THE TOPIC

Highest NAV Guaranteed Plans

Now a days, we are seeing a new Innovative product in the market. Theyre called Highest NAV Guaranteed Plans .These products have come in, after the recent crash in the market, and companies are taking advantage of the fact that Investors are looking for some kind of a safe investment equity product. Hence, theyve launched these Highest NAV Return ULIPs which confuse investors and make them (believe that they are going to get the highest return from the Stock market in long run generally the tenure is 7 yrs, for these plans . Highest NAV Guarantee Policy Works These plans use strategies like Dynamic Hedging and CPPI (Constant proportion portfolio insurance), which are advanced strategies used in Derivatives world. But, let me explain a simplified version of the whole process. Supposing a policy starts today and is guaranteed to give highest NAV in next 7 yrs and we can control how money moves to debt and equity, its pretty simple. In the beginning, lets assume a NAV of Rs 10, and the Asset allocation is 100% in equity and 0% in debt . Now suppose, the market moves up and NAV goes upto Rs 15 by the end of the first year, at this point, try to understand what Insurance company has to provide they have to make sure, that they provide at least Rs 15 as the return after 6 yrs . Now in order to achieve this, all they have to do is keep X amount in debt instruments which will mature in next 6 years and provide Rs 15 at the end of 6 yrs, so assuming the debt return at 7%, they need to put around Rs 10 in Bonds , so that the maturity of the bond is Rs 15 at the end of 6 yrs . => 10 * (1.07)^6 => 15.007

They can now invest the rest Rs 5 in Equity as Rs 10 is allocated to Debt . So, now theyve made sure that whatever happens to the market, they get Rs 15 for sure at the end of 6 yrs. Now, there are two possibilities Case 1 : Market Goes down : If market goes down, the NAV will go down correspondingly, but as per the strategy, the maturity value will be at least Rs 15. Case 2 : Market Goes up again : If market goes up at this point and the NAV rises above 15, for example say to Rs. 18, now again they will pull out money from Equity and allocate such an amount to debt, that the maturity at the end of total 7 yrs would be Rs 18 and so on Note :

These highest guaranteed schemes do not provide wide range of product categories, such as equity-oriented growth funds, balance funds and debt funds. Guarantee on highest NAV is available only if one survives the term. If one die during the term, oner nominees will get the prevailing value of the fund. This is inferior to even a regular debt product because of the high cost structure involved.

Following is a pictorial description of how the Guaranteed NAV plan works with assumption of a 7 year tenure.

How

Investors get Confused One have to read in between the lines; Investors need to understand that these schemes guarantee the Highest NAV, READ AGAIN! , its Highest NAV and not Highest Returns . Normal Investors dont give much thought before buying these products and normally assume that the returns will be linked to the Equity Markets . Do one Know , one can Now Subscribe to All the Comments on JagoInvestor !! (One can Unsubscribe Later) Returns from Highest NAV Guarantee Plans So, what are the return expectations of these funds? We know, that long-term equity returns, are normally in the 12-15% range while, debt returns turn out to be 6-7%. So, considering the fact, that these products will shift most of their money to debt, by the end of the tenure , we can expect the returns to be in range of 9-10%. We do get some equity upside in these products, but that will be limited. After a point, this product will turn into a debt oriented fund with a major portion in debt . Also if one factor in costs, like premium allocation charges , fund management charges and other yearly charges, the returns will not be what one actually expect. One will be amazed to know, that the returns expected from these schemes, may be lower than the returns offered by equity-oriented Ulips. The reason being, that the basic objective of protecting the previous high NAV of the fund, may constrain the fund managers ability to take risks while allocating funds. So if the market has fallen down, the fund manager cant take the risk of shifting the money from Debt to Equity to gain from the potential upsides in future , because they have to provide the Guarantee.

Source : LiveMint Research Current Products in Market with Highest NAV Guarantee

ICICIs Pinnacle Birla Sun Life Platinum Plus-III Bajaj Allianz Max Gain SBI Life Smart Ulip Tata AIG Apex Invest Assure LIC Wealth Plus Reliance Highest NAV Guarantee Plan. AEGON Religare Wealth Protect Plan

Controlling oner emotions with these products Lets talk about mistakes from the investors point of view. We, as investors, dont think with inquisitive, susceptive minds. Getting good returns from stock markets is anyways a tough thing in itself. So when these companies come up with plans like these, which say highest NAV in 7

yrs, we have to ask, How is this possible? . Dont say its not possible at all, just ask how? How do they achieve it? Stop seeing dreams of getting high returns without looking at the risk involved, and try to find out what is the strategy theyre using, Is there something in between the lines? We all want to get great returns, but we have to shed this belief that, companies come up with plans specially for us. All the companies out there exist to earn money, and their motive behind every product is to make money, & generate profits for their companies, so that they keep their shareholders happy. So next time a product like this comes up , one have to control oner emotions before getting in and first investigate. The worst part of this whole business, (of guaranteed highest NAV products) is the timing and how it gives naive investors, high illusions about the product. Products like these, take major advantage of psychology of the ordinary saver. Many Investors in smaller towns have broken their Fixed Deposits and taken some loan to invest in products like these, especially SBI Life Smart Ulip and LIC Wealth Plus because of the trust factor with LIC and SBI . See How Agents are Misselling LIC Wealth Plus one should be Pissed off At these Insurance Companies

Do one Know that, The Securities & Exchange Board of India (SEBI) , the stock market and mutual fund regulator, does not allow mutual funds to guarantee returns. Therefore Mutual funds can not provide guaranteed products which are related to stock markets, but IRDA can approve things like these and all these insurance companies come under the ambit of Insurance Regulatory and Development Authority of India (IRDA). So any Insurance Company can come up with a new Plan, link it with market and start providing Guaranteed products . One have to understand that equity markets and guarantees are a very risky idea together, so please stay away.

Do one observe when do all these Innovative products come up in Market? The answer is around end of the year, which is a premier Tax Investment time (Jan , Feb , Mar) . Is innovation in Finance space limited to End of the year? Why dont these products come through out the year? Why? The answer is simple, if it comes after anytime other than last 4-5 months of the Financial Year (ie Dec, Jan, Feb, Mar), no body will bother to

invest in these, because no body is bothered to invest at all . Companies very well understand investors psychology and their helpless ness at the end of the year because they have to provide investment proofs for Tax exemption as soon as possible . This is not just limited to these products , its true for NFOs , IPOs in booming markets , More Sales calls at the end of the year, and other new products .

The so-called Guarantee is a marketing gimmick and is implicitly a result of the way the investment is structured. What it means is that the strategy they use itself is such that it will provide one the highest NAV, even we can create our own Plan and do what they are doing . But they make sure that Investors feel like they have done years of research and came up with these amazing plans .

Why The Tenure is 7 yrs ? I am not very sure on this , but here are my thoughts on comments area

One have to understand that there is nothing Innovative in this product , the fact that 7 companies have come up with the same product proves that its not innovation because Innovation is unique . AEGON Relegate has gone ahead in this stupidity and introduced their Guaranteed Plan which guaranteed 80% of the Highest NAV, Looks like they think that it makes them look different from others.

Invest If one are looking for modest returns, like 8-10%, one can invest in these policies. The return of these policies may be high in the beginning, if market does well; but when market starts performing badly, the returns can take a hit and then be in a tight range. Owner NAV will be protected for sure, but the returns wont be, since over time the CAGR return will go down. Remember, if owner NAV is 10 today and one highest NAV is 20, for a 2 year period, the return is a good enough 41%, but by the 4th year its just 18.9% and by the end of 7th year its a measly 10.4%. So what one really need, is protection of returns, not the NAV which is just a fixed number

INSURANCE
The meaning of insurance: Insurance is a policy from a large financial institution that offers a person, company, or other entity reimbursement or financial protection against possible future losses or damages. A simple example will make the meaning of insurance easy to understand. A biker is always subjected to the risk of head injury. But it is not certain that the accident causing him the head injury would definitely occur. Still, people riding bikes cover their heads with helmets. This helmet in such cases acts as insurance by protecting him/her from any possible danger. The price paid was the possible inconvenience or act of wearing the helmet; this i.e. equivalent to the insurance premiums paid.

Major types of insurances are as mentioned below:

Life insurance: Descendants family receives financial benefits. Life insurances also offer paid proceeds to the beneficiary. Automobile insurance: Usually automobile insurances cover damages and legal financial expenditures of the automobile driver. Health insurance: Health insurance covers the expenditures associated to treatment and medical expenditures. Credit insurance: Borrowers often fail to repay debts, loans and mortgages due to certain unavoidable circumstances, credit insurances can be of great help during such crisis.

Property insurance: Property protection insurance provides protection from risks associated to theft, fire, floods etc.

Life insurance
Life insurance or life assurance is a contract between the policy owner and the insurer, where the insurer agrees to pay a sum of money upon the occurrence of the insured individual's or individuals' death or other event, such as terminal illness or critical illness. In return, the policy owner agrees to pay a stipulated amount called a premium at regular intervals or in lump sums.

How life insurance works There are three parties in a life insurance transaction; the insurer, the insured, and the owner of the policy (policyholder), although the owner and the insured are often the same person. For example, if Mr. Rajan buys a policy on his own life, he is both the owner and the insured. But if Mrs. Anita, his wife, buys a policy on Rajans life, she is the owner and he is the insured. The owner of the policy is called the grantee (he or she will be the person who will pay for the policy). Another important person involved is the beneficiary. The beneficiary is the person or persons who will receive the policy proceeds upon the death of the insured. The beneficiary is not a party to the policy, but is designated by the owner, who may change the beneficiary unless the policy has an irrevocable beneficiary designation. With an irrevocable beneficiary, that beneficiary must agree to changes in beneficiary, policy assignment, or borrowing of cash value. The policy, like all insurance policies, is a legal contract specifying the terms and conditions of the risk assumed. Special provisions apply, including a suicide clause wherein the policy becomes null if the insured commits suicide within a specified time for the policy date (usually two years). Any misrepresentation by the owner or insured on the application is also grounds for nullification. Most contracts have a contestability period, also usually a two-year period; if the insured dies within this period, the insurer has a legal right to contest the claim and request additional information before deciding to pay or deny the claim. The face amount of the policy is normally the amount paid when the policy matures, although policies can provide for greater or lesser amounts. The policy matures when the insured dies or reaches a specified age. The most common reason to buy a life insurance policy is to protect the financial interests of the owner of the policy in the event of the insured's demise. The insurance proceeds would pay for funeral and other death costs or be invested to provide income replacing the deceased's wages. Other reasons include estate planning and retirement. The owner (if not the insured) must have an insurable interest in the insured, i.e. a legitimate reason for insuring another persons life. The insurer (the life insurance company) calculates the policy prices with an intent to recover claims to be paid and administrative costs, and to make a profit.

MAJOR PLAYERS OF INDIA IN INSURANCE

Reliance Life Insurance is a part of the Reliance group. It is one of the partners of Reliance Capital Ltd which is a Anil Dhirubhai Ambani Group. Reliance Capital is one India's most dominant private sector financial services companies. They offer insurance products which help one with savings as well as give one protection. Canada HSBC Life is a joint venture of Canada Bank, HSBC Insurance (Asia pacific) & Oriental bank of Commerce. The Company got its approval from IRDA in June 2008 and from that commencing its business. They have more than 4100 branches all over India. DLF pramerica Life Insurance Company Ltd. is a joint venture between DLF Limited & Prudential International Insurance Holdings Limited. DLF Pramerica believes in delivering a secure & enrich life to there customers.

MetLife One of the fastest growing insurance company in India is MetLife. The company started its operations in between 2000-2001. They have a range of various products to offer. ICICI Prudential Life Insurance. Max New York Life Max Indias leading multi business corporation & New York Life joined there hands in 2000.The company started there operations in 2001. The company is involved in Life & health products. Bajaj Allianz Bajaj who are into iron & steel, finance, insurance & etc and Allianz who provides financial services when came together they formed Bajaj Allianz Life Insurance Company. ICICI Bank with Prudential plc, both well known & strong financial

institutions came together in December 2000 to form an insurance company - ICICI Prudential

Bharti AXA Bharti AXA Life Insurance is a joint venture between Bharti & AXA. The company started its functionality in December 2006 and they always believe to be a strong financial institute. HDFC Standard Life HDFC Standard Life Insurance is a joint venture between Housing Development Finance Corporation Limited & a Group of Standard Life Plc.The Company started commencing its business in December 2000. AEGON Religare AEGON Religare Life Insurance Company Ltd is a joint venture with AEGON, Religare and Bennett, Coleman & Company a part of Times Group. AEGON Religare Life Insurance company was launched in July 2008. Kotak Mahindra A joint venture of Kotak Mahindra group & Old Mutual plc is known as Kotak Mahindra Old Mutual Funds. The Company started commencing its business in 2001. The company aim is to help customers in making there financial decisions. Future Generali Life Future Generali is a joint venture between Future Group of India & Italy based Generali Group.Future Generali in India is into both Life & Non Life businesses in India. The company wants to provide a financial security to all. SBI Life SBI Life Insurance Company Limited is a joint venture between State Bank of India and BNP Paribas Assurance. It is present in more than 41 countries across the world. SBI Life offers a variety of plans in life insurance and pension. Shriram Life Shriram Life Insurance Company is a joint venture between Shriram Group and Sanlam Group.Shriram Group is one of Indias most esteemed financial services & Sanlam Group is one of the largest life insurance providers of South Africa. TATA AIG The TATA Group and American International Group Inc together formed Tata AIG Life Insurance Co. Ltd.Tata Group holds 74% stake in the insurance venture with AIG holding the balance 26%. They started their operations in April 2001

Aviva Aviva, one of UK's largest insurance company and world's 5th largest insurance group. It was one of the first international insurance company to set up its office in India in the year 1995. They introduced the concept of banc assurance in India. IDBI Fortis IDBI Fortis Life Insurance Co. Ltd is a joint venture between three financial institutes; they are IDBI Bank, Federal Bank and Fortis. They introduced there plans in March 2008. IDBI owns 48% equity while Federal Bank and Fortis own 26% equity each. Sahara The Sahara Pariwar stepped into the insurance business by launching Sahara India Life Insurance Co. Ltd. They received the IRDA license in February 2004 and started their operations in October 2004. They are the first solely owned private sector insurance company in India. ING VYSYA ING Life was established in 2001 as a joint venture between ING Insurance International B.V. (INGI), ING Vysya Bank Limited and GMR Industries Limited. At present, INGI, Exide Industries Limited, Ambuja Cement Ltd, Enam Group are the joint venture partners. Star Union Star Union Dai-ichi Life Insurance Co.Ltd. is formed by three various financial institutions. Bank of India, Union Bank of India and Dai-ichi Mutual Life Insurance Company This firm was incorporated in the year 2007 and got their IRDA license on the 26th Dec 2008.

Some of the important milestones in the life insurance business in India are:
1818: Oriental Life Insurance Company, the first life insurance company on Indian soil started functioning. 1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company started its business. 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956: 245 Indian and foreign insurers and provident societies are taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India.

BRIEF PROFILE OF THE ORGANIZATION

Birla Sun Life Insurance Company Limited is a joint venture between The Aditya Birla

Group, one of the largest business houses in India and Sun Life Financial Inc., a leading
international financial services organization. The local knowledge of the Aditya Birla Group combined with the expertise of Sun Life Financial Inc., offers a formidable protection for owner future. The Aditya Birla Group has a turnover of close to Rs. 119000 crores, with a market capitalisation of Rs. 133875 crores (as on 31st March 2008). It has over 100,000 employees across all its units worldwide. It is led by its Chairman - Mr. Kumar Mangalam Birla. Some of its key companies are Hindalco, Grasim and Aditya Birla Nuvo.

Sun Life Financial

Sun life financial based in Canada-started in 1865. It operates in all the important markets of the world like Canada, the United States, the United Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. Sun Life Financial Inc. has assets under management of over US$404.7 billion (as on 31st March, 2008). It is a leading performer in the life insurance market in Canada.

Brands Of Aditya Birla Group

Birla Sun Life Insurance

(BSLI)

has been operating for 9 years. It has contributed

significantly to the growth and development of the life insurance industry in India. It pioneered the launch of Unit Linked Life Insurance plans amongst the private players in India. It was the first player in the industry to sell its policies through the Banc assurance route and through the Internet. It was the first private sector player to introduce a Pure Term plan in the Indian market. BSLI has covered more than 2 million lives since it commenced operations. And its customer base is is spread across more than 1500 towns and cities in India. The company has a capital base of Rs. 1274.5 crores as on 31st March 2008. With an experience of over 9 years, BSLI has contributed significantly to the growth and development of the life insurance industry in India and currently ranks amongst the top 5 private life insurance companies in the country.

Known for its innovation and creating industry benchmarks, BSLI has several firsts to its credit. It was the first Indian Insurance Company to introduce Free Look Period and the same was made mandatory by IRDA for all other life insurance companies. Additionally, BSLI pioneered the launch of Unit Linked Life Insurance plans amongst the private players in India. To establish credibility and further transparency, BSLI also enjoys the prestige to be the originator of practice to disclose portfolio on monthly basis. These category development initiatives have helped BSLI be closer to its policy holders expectations, which gets further accentuated by the complete bouquet of insurance products (viz. pure term plan, life stage products, health plan and retirement plan) that the company offers.

Add to this, the extensive reach through its network of 600 branches and 1,75, 000 empanelled advisors. This impressive combination of domain expertise, product range, reach and ears on ground, helped BSLI cover more than 2 million lives since it commenced operations and establish a customer base spread across more than 1500 towns and cities in India. To ensure that our customers have an impeccable experience, BSLI has ensured that it has lowest outstanding

claims ratio of 0.00% for FY 2008-09. Additionally, BSLI has the best Turn around Time according to LOMA on all claims Parameters. Such services are well supported by sound financials that the Company has. The AUM of BSLI stood at Rs. 8165 crs as on February 28, 2009, while as on March 31, 2009, the company has a robust capital base of Rs. 2000 crs.

Achievements of BSLI
1st to introduce ULIP fund options. 1st to launch illustrations so that customers understand the products better before they buy. 1st to issue NAVs of funds for better transparency. 1st to disclose portfolio on a monthly basis. 1st to introduce Free Look Period and the same was made mandatory by IRDA for all other Life Insurance Companies.

Birla Sun Life Insurance Co. Ltd

Following are the Life Insurance plans that Birla Sun life Insurance Company Ltd. 1.)Birla Sun Life Insurance Term Plan - This plan can take care of owner financial commitments of owners towards owner family by providing large cover at low cost. Minimum age of entry for this plan is 18-55 and maximum maturity age is 70 years. 2. Birla Sun Life Insurance Premium Back Term Plan - This is a low cost life cover promises one to refund the entire premium on maturity or death. Two options are also there to choose 100% premium back or 125% premium back. Maximum term period for this plan is 20 years. 3. Birla Sun Life Insurance Guaranteed Bach at Plan - Its an non participating endowment plan offers one guaranteed returns and chance to earn survival benefit from the

3rd year onwards. One can withdraw this benefit each tear or can use it as to pay the premium dues. 4. Birla Sun Life Insurance Money Back Plus Plan - This is also a non-participating endowment plan, which gives one maturity and survival both benefits. One remarkable point is that on every policy anniversary it increases oner cover by an equal amount of oner base premium. 5. Birla Sun Life Insurance Gold-Plus II - Its an investment plan offering nine-funding option to choose and 100% equity fund option also. Free unlimited switches are given to one to manage oner investments. This plan offers good liquidity to one. 6. Birla Sun life insurance Platinum Plus - It is a unit linked, non participating insurance plan. In this plan, the investment risk is borne by the policyholder but not if this policy is detained till maturity. 7. Birla Sun Life Insurance Saral Jeevan Plan - In todays fast life its really easy to buy an insurance plan, which one immediately can purchase just by providing three health statements to the company. Bsli Saral Jeevan is the best option to go for. 8. Birla Sun Life Insurance Supreme-Life - Its a unit linked non-participating plan providing 8-fund options to choose. It gives a choice of two death benefits. 9. Birla Sun Life Insurance Dream Plan - Its a unit-linked policy, which provides one guaranteed returns, 0% allocation charges, and option to double or triple the guaranteed maturity. 10. Birla Sun Life Insurance ClassicLife Premier - It will give one guaranteed additions in the form of guaranteed units and a good choice of 8 investment funds are also there. One are free to choose the term period of 10,20,30 or whole life.

11. Birla Sun Life Insurance SimplyLife - It ensures a lifetime of tax-free investments to fulfill the needs of oner dear ones. Its a market related plan provides one a good death benefit amount. 12. Birla Sun Life Insurance PrimeLife Premier - Its a single time investment with top up options. It keeps one hassle free and provides one guaranteed returns at regular intervals. 13. Birla Sun Life Insurance PrimeLife - It is a single premium policy gives one the benefit of life insurance and investments as well. Its a non-participating ULIP policy. 14. Birla Sun Life Insurance Flexi Cash Flow - For this policy one can pay lump sum premium payment at regular intervals. It will give one 3% guaranteed returns on net policy charges. 15. Birla Sun Life Insurance Flexi Save Plus - This plan will give one the choices of 3 fund options, maturity ages & guaranteed returns of 3%. 16. Birla Sun Life Insurance Flexi Life Line - This would provide one a life long cover till 100 years of age and will give one the option of tax-free partial withdrawals. 17. Birla Sun Life Insurance Single Premium Bond - This plan gives one the opportunity to make one time investment with no medical tests and will also gives one the facility of high entry age. Its a short term investment plan provides one the option of 5 years or 10 years term period. 18. Birla Sun Life Insurance Freedom 58 - Its a non- participating ulip plan. It helps one accumulate oner premiums and the investment return there of into a corpus of oner retirement. 19. Birla Sun Life Insurance Flexi Secure Life Retirement Plan II - This will provide one

the option to take a life cover or not. One can choose oner retirement age onerself whether one want to prepone/postpone it. 20. Birla Sun Life Insurance Children's Dream Plan - Its a unit-linked policy, which provides one guaranteed returns, 0% allocation charges, and option to double or triple the guaranteed maturity.

Chapter II: OBJECTIVES OF THE TRAINING

CHAPTER II: OBJECTIVES OF THE TRAINING

Objectives of study
To determine and analyze the highest NAV product of BSLI with other

company.
To study and determine the competitor position in the market. To analyze market share of Birla Sun Life Insurance products in Bhopal city.

Chapter III: Details of training under taken

CHAPTER III: DETAILS OF TRAINING UNDER TAKEN

COMPARISON PLAN

OF

HIGHEST

NAV

BSLI Platinum Premier Plan

BSLI Platinum Premier Plan is an ULIP policy from the stable of Birla Sun Life Insurance. This is an unique plan which not only protects your NAV but also offers flexibility in your investment. This is yet another insurance plan or policy which is developed for those who appreciate and targets the equity market in wealth generation. But just like any other ULIP Plan in India, has its own risks depending upon the equity market status. Benefits: This Birla Sun Life Insurance Platinum Premier Plan helps you direct your investment to the Platinum Premier Fund and thus be able to derive higher returns with either the starting unit price of Rs. 10 or the maximum unit price recorded for the next 7 years and 3 months or the final unit price at the end of 10 years. You can get to choose whichever option you want. Thus this eventually mean that the highest NAV is always protected no matter what eventuality happens. The rest of the premiums can be made either 100% debt or 100% equity depending upon your need.

Loyalty Additions: Apart from the above protection, you will get 5% as loyalty additions of the annual premiums when the policy gets matured will only help you add more wealth to your existing plan.

Choice of Investments: The BSLI Platinum Premier Plan gives you the choice of two options to get your premium invested, namely, guaranteed option and self-managed option. With the guaranteed option Birla Sun Life will create a new series regularly during your policy tenure and each of these units starts at Rs. 10. For this option the guaranteed unit price would be the highest daily NAV that was recorded during the seven years and three months period of the plan. And with the self-managed option you get to choose where you want your money to be invested, either full 100% equity or full 100% debt or any percentage of your money in either option depending upon your risk taking behavior and/or safe measures. There are in fact 10 investment funds to choose from. You can switch between them any number of times during the policy period.

Life Cover:

Apart from this you will get life cover for you and thus your family is well protected no matter what happens to you.

Partial Withdrawals:

Partial withdrawal is allowed in this Platinum Premier Plan after 3 years.

Policy Details:

The minimum annual policy premium is Rs. 25,000 and Rs. 30,000 if paid using half yearly,

quarterly or monthly. The sum assured is a minimum of 5 times annual policy premium. The premiums can be paid online and even the switching between the funds can be done online by you and thus making, the BSLI Platinum Premier Plan a flexible insurance policy among the existing similar plans available.

Tax such insurance policies.

Benefits:

Under secion 80C the annual premiums are given tax benefits, i.e., up 1 Lakhs can be invested in

BAJAJ ALLIANZ
Bajaj Allianz Lifes new Unit Linked Insurance Policy (ULIP) MAX Gain is promising a fund value calculated on the basis of highest Net Asset Value (or NAV) at maturity to the policyholder. The highest NAV (monitored on a daily basis) that is recorded during the term of the policy is multiplied by the units to arrive at the fund value at maturity. Birla Sunlife had a plan which offered similar feature of highest daily NAV which has been discontinued since December 15, this year. Bajaj Allianz Lifes is here to fill the gap with its MAX Gain. Minimum premium to be paid under Max Gain is Rs.25000 per annum with a choice to increase or decrease the regular premium while the sum assured is 5 times the annual premium. The rate of premium allocation after the initial two years will be 100% and no surrender charges are to be paid. Based on the premium amount paid, the plan can pay 175-350% of the total allocation charges subtracted as guaranteed addition at maturity.

Tata AIG Life Apex Pension offers Retirement with Highest NAV
Return of premium on death and vesting One medical declaration only Tax benefits u/s 80CCC as per Income Tax Act, 1961 Tata AIG Life Insurance Company Limited (Tata AIG Life) announced the launch of Tata AIG Life Apex Pension Plans a bouquet of 4 ingeniously designed unit linked pension plans that assist the policy holder to secure his golden years through the unique feature called Guaranteed Maturity Unit Price (GMUP) which enables him to get returns based on the highest NAV per unit achieved on the reset dates. The policyholders premium is allocated immediately in the respective Investment Fund from where the money is transitioned to the respective Return Lock-in Fund on the immediate next reset date. The Investment Fund The investment objective for the Investment Fund is to provide capital protection with a high level of safety and liquidity through judicious investment in high quality short-term debt. The Return Lock-in Fund The investment objective for the Return Lock-in Fund is to use the participation in an actively managed well diversified equity portfolio of large cap companies to generate capital appreciation and use high credit quality debt instruments to lock-in that capital appreciation. The NAV per unit of this fund is noted every reset date for the purposes of calculating the GMUP. The 4 plans a customer can choose from, depending upon his age, planned retirement age and financial requirement, include:

1. Tata AIG Life Apex Pension With this plan, the policy holder pays a single premium for a 10 year term. The Apex Pension Return Lock-in Fund comes with 100 reset dates in the plan. 2. Tata AIG Life Apex Pension 10 The plan requires payment of premium for 3 years only for a 10 year term. It offers the policy holder the flexibility to opt for reducing premium from the 2nd policy year. The Apex Pension 10 Return Lock-in Fund comes with 100 reset dates in the plan. 3. Tata AIG Life Apex Pension 15 Under this variant, the policy holder is required to pay premium for 5 years for a 15 year term. This plan also offers the flexibility to opt for reducing premium from the 2nd policy year. The Apex Pension 15 Return Lock-in Fund comes with 150 reset dates in the plan. 4. Tata AIG Life Apex Pension 20 The policy holder pays premium for 10 years for a 20 year term in this plan. The option of reducing premium can be chosen from the 2nd policy year. The Apex Pension 20 Return Lock-in Fund comes with 200 reset dates in the plan. For all the above variants, the minimum annualized premium is Rs 48,000. Tata AIG Life Apex Pension plans will be available nationally through Tata AIG Lifes advisors and several other distribution partners.

Reliance Life
Highest NAV Guarantee Plan | RELIANCE Life Insurance Company or RLIC has launched a new unit-linked insurance plan (ULIP) which assures the highest Net Asset Value (NAV) achieved during the term of the policy. The unique selling point of this Reliances scheme which sets it apart from other similar schemes

is the calculation of NAV which is calculated on the basis of the entire policy term and not on any fixed dates. On maturity, the plan guarantees the highest ever returns (which is calculated by multiplying the number of units on date by highest NAV) to the customer. There are 2minimum payment options available under the plan 1. Regular options that allows customers to pay Rs.20,000 annually which can also be paid in monthly, quarterly and half yearly option. 2. Single premium, wherein the customer pays a minimum of Rs.30,000 only once at the inception during the tenure of the policy.

ICICI PINNACLE PLAN Guaranteed Highest NAV

Product highlights

ICICI Prudential Pinnacle is an open-ended, unit-linked insurance policy with an advantage of varying exposure to equity with downside risk protected. Limited premium-paying term (3 years) providing extended insurance protection (10 years) An option to increase or decrease the sum assured anytime during the policy term The minimum and maximum age for entry is 8 years and 65 years, respectively. The policy is available for 10 years. The minimum single premium is Rs. 50,000 per annum, with no cap on maximum limit. Minimum sum assured is five times the annual premium. The policy can be surrendered after the 3rd year, and there are no surrender charges after the 5th year.

Benefits of ICICI Pru Pinnacle

Guaranteed highest NAV as recorded on daily basis in the first seven years of the fund (from Oct. 24, 2009 to Oct. 24, 2016)

An additional 3 per cent of fund value (prevailing NAV) received upon maturity Liquidity in terms of partial withdrawals allowed from the 6th policy year In case of the unfortunate event of death of the insured, the nominee gets the higher of the fund value and sum assured (reduced by partial withdrawals, if any) 100 per cent surrender value after the 5th policy year Tax benefits on the premium paid and benefits received under the policy as per the prevailing Income Tax laws.

Tax benefits

ICICI Prudential Pinnacle Fund provides tax benefits under Sec 80C of the Income Tax Act, where the premium paid is eligible for tax deductions up to Rs. 1 lakh. The maturity proceed is also exempt from tax under Section 10(10D).

Chapter IV: Work Experience and Observation

CHAPTER IV: WORK EXPERIENCE AND OBSERVATION

1) Do one think that investment in Insurance sector is good option?

Particulars Yes

No. of respondents 90

No

10

No. of respondents

no, 10

yes no

yes, 90

Interpretation : 90 people say that investment in insurance sector is good option and 10 are saying not.

2) Which companys policy do one have?

Particulars No. of respondents

BSLI

40

LIC

60

60 50 40 30 20 10 0 BSLI LIC 40

60

No. of respondents

Interpretation: 40 people have BSLI policies and 60 have LIC.

3) Which type of policy one have?

Particulars Whole life plan Retirement plan Children plan Health plan Golden jubilee plan Total No. of respondents LIC 20 10 18 6 6 60 No. of respondents BSLI 10 4 22 4 0 40

25 20 15 10 5 0
lif e pl an R et ire m en tp la n C hi ld re n pl an

20

22 18 No. of respondents LIC 6 6 0

pl an pl an

10

10 4 4

No. of respondents BSLI

H ea lth

W ho le

Interpretation: 20 people of LIC and 10 of Birla have whole life plan, 18 people of LIC and 22 o Children plan.

4) What percentage of interest one get from it?

Particulars No. of respondents LIC No. of respondents BSLI

G ol d

en

ju bi

le e

Below 5 % 5-8 % 8-12 % Above12 %

0 14 42 4

0 6 28 6

45 40 35 30 25 20 15 10 5 0 0 0 5-8 % Below 5 % 14 6

42

28 No. of respondents LIC No. of respondents BSLI

4 8-12 %

Above12 %

Interpretation: 14 people of LIC and 6 of Birla are getting 5-8% R.O.I., 42 people of LIC and 28 of Birla are getting 8-12% interest. 5) Why do one invest in this(LIC/BSLI) company?
Particulars High interest Good image of CO. Growth of the CO. Annual premium is reasonable Maturity benefits No. of respondents LIC 8 12 18 10 12 No. of respondents BSLI 12 4 12 4 8

M tu b n fits a rity e e An u l p m mis n a re iu re so a le a nb G w o th C . ro th f e O 4 4

1 2

1 0 1 2

1 8

G o im g o C . od ae f O

1 2 1 2

H h in re ig te st 0 5

8 1 0

1 5

2 0

Interpretation: 12 people of Birla are investing in this company due to its high interest, 18 people of LIC say that they are investing in LIC due to growth of the co. 6) Do one think that investment in BSLI is better than LIC ?
Particulars Yes No No. of respondents 44 56

No. of respondents
Yes No

44 56

Interpretation: 44 people are saying that investment in BSLI is better than LIC, but 56 are saying no. (If NO then go to Q.N. 8 otherwise Q.N. 7) 7) If yes, then why?
Particulars Guaranteed F.V. at maturity Growth rate More ULIP plan Risk covered All above No. of respondents 10 16 8 4 6

N . o re o d n o f sp n e ts

6 4

1 0

Ga n e F .a u ra te d .V t m tu a rity G w ra ro th te M re U IP p n o L la

8 1 6

R co e d isk v re A a oe ll b v

Interpretation: 16 people are saying that because BSLI gives guaranteed F.V. at maturity time, 8 are saying it has more ULIP plans. 8) If no, then why?
Particulars LIC have govt. stake Brand loyalty of LIC Low A.P. than BSLI High return No. of respondents 24 14 12 6

High return, 6 LIC have govt. stake Brand loyalty of LIC Low A.P. than BSLI High return Brand loyalty of LIC, 14

Low A.P. than BSLI, 12

LIC have govt. stake, 24

Interpretation: 24 people are saying that investment in LIC is better it has govt. stake, 14 are saying it has brand loyalty.

9) When company launch new product , then any information is given to one about that product?
Particulars Yes No No. of respondents LIC 24 36 No. of respondents BSLI 16 24

40 35 30 25 20 15 10 5 0 No. of

36 24 16 No Yes respondents respondents No. of Yes No

24

LIC

Interpretation: 24 people of LIC are saying yes and 36 are saying no, 16 people of BSLI are saying yes and 24 are saying no about providing information.` 67

10) In near future, do one think BSLI will have high growth rate?
Particulars Agree Neutral Disagree Cant say No. of respondents 20 26 14 40

BSLI

No. of respondents

40 35 30 25 20 15 10 5 0 Agree Neutral Disagree Cant say 20 26 14 40 No. of respondents

Interpretation: 20 people are saying that BSLI will grow in future, 26 are saying it will be neutral, 40 cant say, and 14 are disagree.

Findings
90 people saying that investment in insurance sector is good option and 10 are saying no.
40 people have BSLI policies and 60 have of LIC.

10 people of BSLI have Whole life plan, 4 have retirement plan, 22 have children plan, 4 have health plan. 56 people are saying that investment in LIC is better than BSLI, 44 are saying investment in BSLI is better. Most of the people of both LIC and BSLI are getting rate of interest 8-12%
Most of the people have children plan of BSLI. Most of the people invest due to high interest of the policy in BSLI

People have more faith in govt. Companies than the private. 14 people invest in LIC due to its brand loyalty. 26 people saying that BSLI growth will be neutral in near future.

Chapter V: Summary and Conclusion

CHAPTER V: SUMMARY AND CONCLUSION

It is essentially a 10-year unit linked insurance plan (Ulip) which guarantees the highest NAV for a period of the first seven years of the plan. Ulips are investment plans which come with some amount of insurance cover. The majority of the insurance premium paid for investing in an Ulip is invested in an investment fund. For the insurance cover, the insurance company charges a mortality premium every month. Let us say one invest in a guaranteed investment plan now at a price of Rs 10 per unit. Five years down the line, the NAV is Rs 30, after that the NAV starts to fall and at the time of maturity 10 years on, the NAV is at Rs 15. These plans guarantee the highest NAV achieved during the period of the first seven years of the policy. So, in this case, one will get paid Rs 30 per unit at maturity even though the NAV of a single unit at that point of time is quoting at Rs 15. In a more optimistic scenario, if the NAV at maturity is Rs 45, one will be paid Rs 45 per unit. Essentially, the insurance company will pay one the highest of the following three things -- the highest NAV achieved during the first seven years of the policy,the NAV at maturity and Rs 10 per unit. So far so good. Read on to figure the problems.

Bibliography

Bibliography
www.birlasunlife.com www.licindia.com www.google.com
Companys Brochures

Annexure
GENERAL Name __________________________________________________________________ Addres_________________________________________________________________ Gender_________Age ________Contact No. __________________________________ 1. Do one think that investment in insurance sector is good option (a) Yes (b) No (b) LIC (b) Retirement Plan (c) Children Plan (d) Health Plan 2. Which companys policy do one have? (a) Birla Sun Life Insurance 3. Which type of policy one have? (a)Whole Life Plan (e) Golden jubilee plan (a) Below 5% (a) High interest (b) 5-8% (f) any other please specify___________________ (c) 8-12% (d) Above 12%

4. What percentage of interest one get from it? 5. Why do one invest in this company? (b) good image (c) Company growth (e) due to maturity benefits (d) Annual premium is reasonable

(f) Any other please specify ______________________________ 6. Do one think that investment in BSLI is better than LIC? (a) Yes 7. if yes then why? (a) Because BSLI gives guaranteed fund value at maturity time (b) Growth rate of company is high (d) Risk factor is covered properly (c) BSLI has more ULIP plans than LIC (e) all above (b) No ( If oner answer is no then jump to question no. 8)

(f) Any other (please specify)_____________ 8. If no then why? (a) Because LIC is having government stake. (c) It has low premium plans than BSLI (b) Brand loyalty of LIC (d) Investment return is higher than BSLI

(e) Any other (please specify)__________________________ 9. Whenever company launch new product, then any information is given to one about that product? (a) Yes (a) Agree (b) No (b) neutral (c) disagree (d) cant say 10. In near future BSLI is having high growth rate. Any suggestions __________________________________________________

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