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Summer Training Report On HDFC Standard Life Insurance Company Limited

Submitted To: Mrs. MANISHA

Submitted : By SANDEEP BBA III 9870

S. D. (P.G.) COLLEGE, PANIPAT

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ACKNOWLEDGMENT

I would like to thank my project guide Mr. Anil Kumar, Channel Development Manager HDFC Standard Life Insurance, New Delhi for guiding me through my summer internship and research project. His encouragement, time and effort are greatly appreciated.

I would like to thank Mrs. MANISHA for supporting me during this project and providing me an opportunity to learn outside the class room. It was a truly wonderful learning experience.

SANDEEP

PREFACE

Today in the world of competition, for the first time consumer is the king of market and it was over the way around when there was no competition and product/service providers were operating totally in monopolistic condition market for his product/service. Customer seldom receives what he demands or wants. Prior to 2005 there was only one company i.e. LIC (Life Insurance Corporation) in the field of life insurance, which was operating in monopolistic arena. With the opening of the market, foreign and private Indian players are keen to convert untapped market potential into opportunities by providing tailor-made products: The presence of a host of new players in the sector has resulted in a shift in approach and the launch of innovative products, services and value-added benefits. Foreign majors have entered the country and announced joint ventures in both life and nonlife areas. Major foreign players include New York Life, Aviva, Tokio Marine, Allianz, Standard Life, Lombard General, AIG, AMP and Sun Life among others. The Insurance Regulatory and Development Authority (IRDA) has played a proactive role as a regulator and a facilitator in the sectors development.

The size of the market presents immense opportunities to new players with only 20 per cent of the countrys insurable population currently insured. This project will take you through a major player i.e. HDFC Standard Life Insurance. This project basically includes fund management & channel development in HDFC Standard Life insurance.

EXECUTIVE SUMMARY HDFC Standard Life insurance is the oldest life insurance company in the world. It is the largest insurer in the UK and is the 28th largest company in the world. In India, the company is marketing life insurance products and unit linked investment plans. From my research at HDFC SLIC, I found that the company has a lot of competition from other private insurers like ICICI, Aviva, Birla Sun Life and Tata AIG. It also faces competition from LIC. To compete effectively HDFC SLIC could launch cheaper and more reasonable products with small premiums and short policy terms (the number of years premium is to be paid). The ideal premium would be between Rs. 5000 Rs. 25000 and an ideal policy term would be 10 20 years. HDFC must advertise regularly and create brand value for its products and services. Most of its competitors like Aviva, ICICI, Max, Reliance and LIC use television advertisements to promote their products. The Indian consumer has a false perception about insurance they feel that it would not benefit them if they do not live through the policy term. Nowadays however, most policies are unit linked plans where a customer is benefited even if their death does not occur during the policy term. This message should be conveyed to potential customers so that they readily invest in insurance.

Family responsibilities and high returns are the two main reasons people invest in insurance. Optimum returns of 16 20 % must be provided to consumers to keep them interested in purchasing insurance. On the whole HDFC standard life insurance is a good place to work at. Every new recruit is provided with extensive training on unit linked funds, financial instruments and the products of HDFC. This training enables an advisor/sales manager to market the policies better. HDFC was
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ranked 13 in the Best Places to Work survey. The company should try to create awareness about itself in India. In the global market it is already very popular. With an improvement in the sales techniques used, a fair bit of advertising and modifications to the existing product portfolio, HDFC would be all set to capture the insurance market in India as it has around the globe.

ANALYSIS OF DIFFERENT PLANS IN HDFC STANDARD LIFE INSURANCE COMPANY LTD .

OBJECTIVES OF THE STUDY To analysis the product details of HDFC Standard life Insurance Company limited. To find out factors that influence customers to purchase insurance policies and give suggestions for further improvement. To know the image of the private life insurance companies in the minds of the customers. To know the preferences of the people in the taking policies by conducting market survey. To know the perception of the customers on value added services offered by private HDFC Standard life insurance. To know the strength &weakness of different plans &policies

TABLE OF CONTENTS

1. Introduction of Insurance 2. Industry Profile 3. HDFC Standard Profile 4. Plans Offered By HDFC SLIC 5. Research Design 6. Methodology 7. Questionnaire 8. Conclusion 9. Reference

Introduction of insurance Insurance is commerce. Insurance product is a financial contract entered into by parties with a define consensus of mind. Insurance, in its purest from, is a risk management tool, a security blanket. It provides financial protection against unexpected events. When we buy insurance, effectively a portion of risk is transferred to the insurer. This protection comes at a price, but its a function of what we might otherwise find ourselves burdened with. Whatever stage of life we are at, chances are, and we need insurance.

Definition: Insurance can be define as a contract by which insurance agrees to pay the insured a compensation for specified damage loss or injury suffered in exchange for periodic payment called premium Insurance cannot prevent the happening of the event; it can protect a person from the financial losses he may suffer after the happening of the event. Therefore, insurance if aimed at compensating the financial loss suffered an insured event. Classification of insurance: Insurance is basically classified into two categories. (1) Life Insurance (2) General Insurance Life insurance: This is provided for the payment of sum money on the death of the insured person due to natural causes or on the expiry of a certain number of years if the insured person is then alive. Death and life neither of them can be compensated. Life insurance aims to compensate the Income Earning Capacity of the person.
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Events covered in Life Insurance: In Life Insurance, income earning capacity of the person is covered. The loss of the income earning capacity can be on the happening of the following events when the life is assured. 1. Death. 2. Sickness (critical illness). 3. Accident (Death or permanent disability due to accident). 4. Retirement. Objectives and advantages of life insurance: Protection against Risk of Untimely Death: Life insurance is a product, with offers protection against the risk of Death the full sum assured is made available under a life assurance policy, whereas under other savings schemes, the total accumulated savings alone will be available. Protection during old age: Life insurance can also be used as a means of saving ones future. There are a number of life insurance policies which in addition to life cover also provide the means of investing ones income. The sum as per the policy will be received only after a period of time. This amount thus provides for the old age. Forced savings: Payment of life insurance premiums is compulsory and becomes a habit. Saving in other scheme can be easily withdrawn and may be used for less worthy purpose. Terminatio1n of a life insurance policy by the policyholder usually results in substantial loss in benefits under the policy to the policyholder. One is thus encouraged to save and keep ones policy alive. Educational Requirement and Charity:

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The object of insurance may be to serve as a security to education funds in respect of loans advanced for educational purpose or to provide donations to charitable institution like hospital and school. Nomination and Assignment: The life insured can name the person or person whom the policy money would be payable in the event of his death the proceeds of a life insurance policy can be protected against the claims of the creditors of the life insured by effecting a valid assignment of the policy. The beneficiaries are fully protected from creditors expect the extent of any interest in the policy retained by the insured. Marketability and Suitability for Borrowing: After 3 years, if the policy holder finds that he is unable to continue payment of premiums he can surrender a policy for a cash sum. A life insured policy is accepted as a security for a commercial loan. Loan from the Insurance Company: A policy holder can take a loan from his insurance company against the security of his life insurance policy provided the term of the terms of his policy allow such a loan can be taken usually after a period of 3 years from commencement of the policy and is a percentage of its surrender value. Investment Option: The unit link products gives comprehensive insurance solution that cater to an individuals need of earning potentially high return as well as stay for life. Thus there is an option to invest money in the products that combine the best of insurance and investment. In a volatile market conditions it is possible to secure both as one can hedge the investment with saver investment vehicles that provide a diversified portfolio.

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Tax Benefits: The Indian income tax act provides tax concessions to the policy holder both on payment of premium and on the maturity amount. Under sec 88 the benefits on premium paid by an individual for life insurance policy on his own life/on the life of spouse children minor or major, including married daughters. Protection to Wife and Children: Under sec 6 of the married womans property act if a married man takes a policy of the life insurance on his own life and expenses on the face of it to be for the benefit of his wife or of his wife and children or any of them, than it shall be deemed to be a trust for the benefit of his wife and children or any of them, according to the interest so expressed and shall not so long as any object of trust remains be subject to the controls of the husband or to his creditors or from part of his estate. An insurance policy taken by a married man in the above manner is ideal way to protect the interest of his wife and children, even after his untimely death.

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INDUSTRY PROFILE History of insurance: Insurance began as a way of reducing the risk of traders, as early as 5000 BC and 4500 BC in. Life insurance dates only to ancient Rome; "burial clubs" covered the cost of members' funeral expenses and helped survivors monetarily. Modern life insurance started in late 17th century, originally as insurance for traders: merchants, ship owners and underwriters met to discuss deals at Lloyd's Coffee House, predecessor to the famous. The first insurance company was formed in 1732, but it provided only fire insurance. The sale of life insurance in sthe U.S. began in the late 1760s. The Synods in and created the Corporation for Relief of Poor and Distressed Widows and Children of Presbyterian Ministers in 1759; Episcopalian priests organized a similar fund in 1769. Between 1787 and 1837 more than two dozen life insurance companies were started, but fewer than half a dozen survived. Prior to, many insurance companies in the United States for their owners, in response to bills passed in 2001 and in 2003, the companies have been required to search their records for such policies for example reported that Nautilus sold 485slaveholder life insurance policies during a two-year period in the 1840s; they added that their trustees voted to end the sale of such policies 15 years before.

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HISTORICAL PERSPECTIVE The history of life insurance in India dates back to 1818 when it was conceived as a means to provide for English Widows. Interestingly in those days a higher premium was charged for Indian lives than the non Indian lives, as Indian lives were considered more risky to cover. The Bombay Mutual Life Insurance Society started its business in 1870. It was the first company to charge the same premium for both Indian and non-Indian lives. The Oriental Assurance Company was established in 1880. The General insurance business in India, on the other hand, can trace its roots to Triton Insurance Company Limited, the first general insurance company established in the year 1850 in Calcutta by the British. Till the end of the nineteenth century insurance business was almost entirely in the hands of overseas companies. Insurance regulation formally began in India with the passing of the Life Insurance Companies Act of 1912 and the Provident Fund Act of 1912. Several frauds during the 1920's and 1930's sullied insurance business in India. By 1938 there were 176 insurance companies. The first comprehensive legislation was introduced with the Insurance Act of 1938 that provided strict State Control over the insurance business. The insurance business grew at a faster pace after
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independence. Indian companies strengthened their hold on this business but despite the growth that was witnessed, insurance remained an urban phenomenon. The Government of India in 1956, brought together over 240 private life insurers and provident societies under one nationalized monopoly corporation and Life Insurance Corporation (LIC) was born. Nationalization was justified on the grounds that it would create the much needed funds for rapid industrialization. This was in conformity with the Government's chosen path of State led planning and development. The non-life insurance business continued to thrive with the private sector till 1972. Their operations were restricted to organized trade and industry in large cities. The general insurance industry was nationalized in 1972. With this, nearly 107 insurers were amalgamated and grouped into four companies- National Insurance Company, New India Assurance Company, Oriental Insurance Company and United India Insurance Company. These were subsidiaries of the General Insurance Company (GIC).

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KEY MILESTONES 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 by the Insurance Act with the objective of protecting the interests of the insuring public. 1956: 245 Indian and foreign insurers along with provident societies were taken over by the central government and nationalized. LIC was formed by an Act of Parliament- LIC Act 1956- with a capital contribution of Rs. 5 Crore from the Government of India.

INDUSTRY REFORMS Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies. Since being set up as an independent statutory
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body the IRDA has put in a framework of globally compatible regulations. The other decision taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies was the launch of the IRDA online service for issue and renewal of licenses to agents. The approval of institutions for imparting training to agents has also ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products.

PRESENT SCENARIO - LIFE INSURANCE INDUSTRY IN INDIA The life insurance industry in India grew by an impressive 47.38%, with premium income at Rs. 1560.41 billion during the fiscal year 2006-2007. Though the total volume of LIC's business increased in the last fiscal year (2006-2007) compared to the previous one, its market share came down from 85.75% to 81.91%. The 17 private insurers increased their market share from about 15% to about 19% in a year's time. The figures for the first two months of the fiscal year 2007-08 also speak of the growing share of the private insurers. The share of LIC for this period

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has further come down to 75 percent, while the private players have grabbed over 24 percent. With the opening up of the insurance industry in India many foreign players have entered the market. The restriction on these companies is that they are not allowed to have more than a 26% stake in a companys ownership. Innovative products, smart marketing, and aggressive distribution have enabled fledgling private insurance companies to sign up Indian customers faster than anyone expected. Indians, who had always seen life insurance as a tax saving device, are now suddenly turning to the private sector and snapping up the new innovative products on offer. Some of these products include investment plans with insurance and good returns (unit linked plans), multi purpose insurance plans, pension plans, child plans and money back plans.

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HDFC STANDARD LIFE INSURANCE COMPANY LIMITED HDFC Incorporated in 1977 with a share capital of Rs 10 Crores, HDFC has since emerged as the largest residential mortgage finance institution in the country. The corporation has had a series of share issues raising its capital to Rs. 119 Crores. The gross premium income for the year ending March 31, 2007 stood at Rs. 2,856 Crores and new business premium income at Rs. 1,624 Crores. The company has covered over 8,77,000 lives year ending March 31, 2007. HDFC operates through almost 450 locations throughout the country with its corporate head quarters in Mumbai, India. HDFC also has an International Office in Dubai, UAE with service associates in Kuwait, Oman and Qatar. HDFC is the largest housing company in India for the last 27 years. HDFC Standard Life Insurance Company Limited. Is one of India's leading private insurance companies, which offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Limited), India's leading housing finance institution and a Group Company of the Standard Life Plc, UK. As on February 28, 2009 HDFC Ltd. Holds 72.43% and Standard Life (Mauritius Holding) 2006, Ltd. Holds 26.00% of equity in the joint venture, while the rest is held by others.

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HDFC Standard Life believes that establishing a strong and ethical foundation is an essential prerequisite for long-term sustainable growth. To ensure this, we have concentrated our focus on expansion of branch network, organizing an efficient and well trained sales force, and setting up appropriate systems and processes with optimum use of technology. As all these areas form the basic infrastructure for establishing the highest possible customer service standards.

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SNAPSHOT-I

Incorporated in 1977 as the first specialized Mortgage Company in India. Almost 90% of initial shareholding in the hands of domestic institutes and retail investors. Current 77% of shares held by foreign institutional investors. Besides the core business of mortgage HDFC has evolved into a financial conglomerate with holdings In: HDFC Standard Life insurance Company- HDFC holds 78.07 %. HDFC Asset Management Company HDFC holds 50.1% HDFC Bank- HDFC holds 22.25%. Intelnet Global (Business Process Outsourcing) HDFC holds 50%. HDFC Chubb General Insurance Company HDFC holds 74%. Our Vision: 'The most successful and admired life insurance company, which means that we are the most trusted company, the easiest to deal with, offer the best value for money, and set the standards in the industry'. 'The most obvious choice for all'

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Our Values : Values that we observe while we work:

Integrity Innovation Customer centric People Care One for all and all for one Team work Joy and Simplicity

Our Key Strengths: Financial Expertise: As a joint venture of leading financial services groups, HDFC Standard Life has the financial expertise required to manage your long-term investments safely and efficiently. Range of Solutions: We have a range of individual and group solutions, which can be easily customized to specific needs. Our group solutions have been designed to offer you complete flexibility combined with a low charging structure. Track Record So Far: Our gross premium income, for the 2009 stood at Rs. 5,564.69 crores. year ending March 31,

The company has covered over 8,33,070 lives as on March 31, 2009.
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STANDARD LIFE Standard Life is Europes largest mutual life assurance company. Standard Life, which has been in the life insurance business for the past 175 years is a modern company surviving quite a few changes since selling its first policy in 1825. The company expanded in the 19 th century from kits original Edinburgh premises, opening offices in other towns and acquitting other similar businesses. Standard Life Currently has assets exceeding over 70 billion under its management and has the distinction of being accorded AAA rating consequently for the six years by Standard and Poor.

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SNAPSHOT Founded in 1875, company supporting generation for last 179 years. Currently over 5 million Policy holders benefiting from the services offered. Europes largest mutual life insurer.

JOINT VENTURE

HDFC Standard Life Insurance Company Limited was one of the first companies to be granted license by the IRDA to operate in life insurance sector. Reach of the JV player is highly rated and been conferred with many awards. HDFC is rated AAA by both CRISIL and ICRA. Similarly, Standard Life is rated AAA both by Moodys and Standard and Poors. These reflect the efficiency with which HDFC and Standard Life manage their asset base of Rs. 15,000 Cr and Rs. 600,000 Cr. respectively. HDFC Standard Life Insurance Company Ltd was incorporated on 14th August 2000. HDFC is the majority stakeholder in the insurance JV with 81.4% staple and Standard of as a staple 18.6% Mr. Deepak Satwalekar is the MD and CEO of the venture.
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HDFC Standard Life Insurance Company Ltd. Is one of Indias leading Private Life Insurance Companies, which offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.) Indias leading housing finance institution and the Standard Life Assurance Company, a leading provider of financial services from the United Kingdom. Both the promoters are well known for their ethical dealings and financial strength and are thus committed to being a long-term player in the life insurance industry- all important factors to consider when choosing your insurer.

BUSINESS GROWTH The gross premium income of HDFC, for the year ending March 31, 2007 stood at Rs. 2,856 crores and new business premium income at Rs. 1,624 crores. The company has covered over 8,77,000 lives year ending March 31, 2007. Company also declared our 5th consecutive bonus in as many years for our with profit policyholders.

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KEY STRENGTH Financial Expertise: As a joint venture of leading financial services groups. HDFC standard Life has the financial expertise required to manage long-term investments safely and efficiently. Range of Solutions: HDFC SLIC has a range of individual and group solutions, which can be easily customized to specific needs. These group solutions have been designed to offer complete flexibility combined with a low charging structure. Strong Ethical Values: HDFC SLIC is an ethical and Cultural Organization. False selling or false commitment with the customers is not allowed. Most respected Private Insurance Company : HDFC SLIC was awarded No-1 Private Insurance Company in 2004 by the World Class Magazine Business World for Integrity, Innovation and Customer Care.

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PRODUCTS & SERVICES The right investment strategies won't just help plan for a more comfortable tomorrow -- they will help you get Sar Utha ke Jiyo. At HDFC SLIC, life insurance plans are created keeping in mind the changing needs of family. Its life insurance plans are designed to provide you with flexible options that meet both protection and savings needs. It offers a full range of transparent, flexible and value for money products. HDFC SLIC products are modern and contemporary unitized products that offer unique customer benefits like flexibility to choose cover levels, indexation and partial withdrawals. PLANS THAT ARE OFFERED BY HDFC STANDARDS LIFE INSURANCE

Individual Products Protection Plans A person can protect his family against the loss of his income or the burden of a loan in the event of his unfortunate demise, disability or sickness. These plans offer valuable peace of mind at a small price. Protection range includes our Term Assurance Plan & Loan Cover Term Assurance Plan.

Safeguard your familys financial independence Security against uncertainties Financial cushion in case of an eventuality
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Why do I need Protection Plans? Protection Plans help you shield your family from uncertainties in life due to financial losses in terms of loss of income that may dawn upon them incase of your untimely demise or critical illness. Securing the future of ones family is one of the most important goals of life. Protection Plans go a long way in ensuring your familys financial independence in the event of your unfortunate demise or critical illness. They are all the more important if you are the chief wage earner in your family. No matter how much you have saved or invested over the years, sudden eventualities, such as death or critical illness, always tend to affect your family financially apart from the huge emotional loss. Types of Protection Plans HDFC TERM ASSURENCE PLAN This plan is designed to help secure your familys financial needs in case of uncertainties. The plan does this by providing a lump sum to the family of the life assured in case of death or critical illness (if option is chosen) of the life assured during the term of the contract. One can choose the lump sum that would replace the income lost to ones family in the unfortunate event of ones death. This helps your family to maintain their financial independence, even when you are not around. Features

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Advantages

High cover at a very nominal cost. Flexibility to choose the Sum Assured. Additional benefit options can be availed at marginal costs. Premium amount remains the same over the term of the policy in case of regular premium Option of paying single premium or regular premium. Tax benefits under sections 80C, 80D and 10(10D) of Income Tax Act, 1961.

HDFC LONG TERM ASSURENCE PLAN

HDFC Loan Cover Term Assurance Plan This plan aims to protect your family from your loan liabilities in case of your unfortunate demise within the policy term. It provides the beneficiary with a lump sum amount, which is a decreasing percentage of the initial Sum Assured. This means that as the outstanding loan decreases as per the loan schedule, the cover under the policy also decreases as per the policy schedule. Features

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Advantages

Flexibility to choose the Sum Assured. Decreasing Sum Assurance as the outstanding loan decreases ensures that you do not pay for the protection you dont need. Additional Optional Benefit is available at a nominal cost. Option of paying single premium or regular premium. Tax benefits are offered under section 80C, 80 D and 10(10D) of the Income Tax Act, 1961

HDFC HOME LOAN ASSURENCE PLAN HDFC Home Loan Protection Plan This plan aims to protect your family from your loan liabilities in case of your unfortunate demise within the policy term. It ensures that your family does not lose the dream house that you have purchased for them, in case you are not around to repay the outstanding monthly installments on your housing loan. This provides you with the comfort of knowing that in your absence, a sum of money will be available towards repaying
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your housing loan, making sure that your family will be secure in your family home.

Features

Advantages

A decreasing Sum Assured payable if you die during the term of the contract. This sum assured is intended to help pay-off your outstanding home loan Policy can be availed by paying a single premium in advance The premium amount can be included in the housing loan and repaid as part of the loan repayment installments Decreasing Sum Assured makes sure that you do not pay for protection you dont need

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Childrens Plans

Helps you secure your childs dreams Economic support when your child needs it most Funding major milestones Why do I need Childrens Plans?

Childrens Plans helps you save so that you can fulfill your childs dreams and aspirations. These plans go a long way in securing your childs future by financing the key milestones in their lives even if you are no longer around to oversee them. As a parent, you wish to provide your child with the very best that life offers, the best possible education, marriage and life style. Most of these goals have a price tag attached and unless you plan your finances carefully, you may not be able to provide the required economic support to your child when you need it the most. For example, with the high and rising costs of education, if you are not financially prepared, your child may miss an opportunity of a lifetime. For exampleToday, a 2-year MBA course at a premiere management institute would cost you nearly Rs. 3,00,000/- At a assumed 6% rate of inflation per annum, 20 years later, you would need almost Rs. 9,07,680/- to finance your child's MBA degree.

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An illustration of how education expenses could rise with passing time due to inflation

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So, how can you cope with these costs? Childrens Plans help you save steadily over the long term so that you can secure your childs future needs, be it higher education, marriage or anything else. A small sum invested by you regularly can help you build a decent corpus over a period of time and go a long way in providing your child a secured financial future along with . Types of Childrens Plans Our range of Children's Plans includes

HDFC Childrens Plan As a parent, your priority is your childs future and being able to meet your childs dreams and aspirations. With our HDFC Childrens Plan, you can start building your savings today and ensure a bright future for your child. This With Profits plan is designed to secure your childs future by giving your child (Beneficiary) a guaranteed lump sum on maturity or in case of your unfortunate demise, early into the policy term. Features
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Advantages

The Double Benefit Plan Option helps you secure your childs immediate and future needs. In case of your unfortunate demise, we will pay the Sum Assured to your child (Beneficiary). Your family need not pay any further premiums and the policy continues. And on maturity of the plan, we will pay you the Sum Assured plus Bonuses Declared You can choose to pay your premium as either Annually, HalfYearly or Quarterly depending on your convenience. You also have a range of convenient auto premium payment options

Tax benefits are offered under section 80C and 10(10D) of the Income Tax Act, 1961

Retirement Plans

Monetary security Financial independence even after retirement Live carefree in your golden years

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Why do I need Retirement Plans? Retirement Plans provide you with financial security so that when your professional income starts to ebb, you can still live with pride without compromising on your living standards. By providing you a tool to accumulate and invest your savings, these plans give you a lump sum on retirement, which is then used to get regular income through an annuity plan. Given the high cost of living and rising inflation, employer pensions alone are not sufficient. Pension planning has therefore become critical today. Indias average life expectancy is slated to increase to over 75 years by 2050 from the present level of close to 65 years. Life spans have been increasing due to better health and sanitation conditions in the country. However, the average number of years of employment has not been rising commensurately. The result is an increase in the number of postretirement years. Accordingly, it has become necessary to ensure regular income for life after retirement, so that you can live with pride and enjoy your twilight years.

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Priorities at different stages of life

However, skyrocketing costs can throw even a well-laid plan off balance. With costs rising every day, you can just imagine how high they will be when you are ready to hang up your boots. So, what should you do to counter this? Its time to plan your retirement and that too sooner than later.

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The above illustration shows how with each passing year your annual savings requirement would increase. For instance, if you are 30 years old and plan to retire at 60, then, with a current annual expenditure of Rs. 3,00,000/- , you would need a corpus in excess of Rs. 2,00,00,000/- to maintain your living standards, assuming you live till 85 years and the inflation rate is 4%. To build this retirement corpus, you need to invest Rs 3,60,000/- per annum in a retirement plan that offers 8% returns per annum. In case you delay planning your retirement by 5 years then the investment amount would increase to Rs 6,90,000/- per annum.
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Types of Retirement Plans

Our range of Savings & Investment Plans includes

Investment Plans HDFC SLICs Single Premium Whole of Life plan is well suited to meet long term investment needs. This provides attractive long term returns through regular bonuses. Pension Plans

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Pension Plans help to secure financial independence even after retirement. Pension range includes Personal Pension Plan, Unit Linked Pension, Unit Linked Pension Plus. Savings Plans Savings Plans offer a flexible option to build savings for future needs such as buying a dream home or fulfilling your childrens immediate and future needs. Savings range includes Endowment Assurance Plan, Unit Linked Endowment, Unit Linked Endowment Plus, Unit Linked Endowment Plus II, Money Back,

Unit Linked Enhanced Life Protection II, Children's Plan, Unit Linked Young Star, Unit Linked Young Star Plus. Why do I need Savings & Investment Plans? You have always given your family the very best. And there is no reason why they shouldnt get the very best in the future too. As a judicious family man, your priority is to secure the well-being of those who depend on you. Not just for today, but also in the long term. More importantly, you have to ensure that your familys future expenses are taken care, even if something unfortunate were to happen to you.

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A big factor that you need to consider while building your wealth is inflation. It has a dual impact on your hard-earned savings. Inflation not only erodes your current purchasing power but also magnifies your monetary requirements for the future. Sample this: An 35 Year individual needs to invest Rs. 36,000/- per year with 8% returns to build a corpus of Rs. 10,00,000/- by the age of 50 Years.

Our Savings & Investment Plans provide you the assurance of lump sum funds for your and your familys future expenses. While providing an excellent savings tool for your short term and long term financial goals, these plans also assure your family a certain sum by way of an

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insurance cover. Types of Savings & Investment Plan

Health Plans
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Secure your health costs Financial independence despite illnesses Meeting medical expenses effortlessly

Why do I need Health Plans? Health plans give you the financial security to meet health related contingencies. Due to changing lifestyles, health issues have acquired completely new dimension overtime, becoming more complex in nature. It becomes imperative then to have a health plan in place, which will ensure that no matter how critical your illness is, it does not impact your financial independence.

In the race to excel in our professional lives and provide the best for our loved ones, we sometimes neglect the most important asset that we have our health. With increasing levels of stress, negligible physical activity and a deteriorating environment due to rapid urbanization, our vulnerability to diseases has increased at an alarming rate.

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Note: Current figures are for the year 2000(Cardiovascular diseases)), 2001 (COPD and Asthma), 2004 (Cancer) and 2005(Diabetes and Mental Health). All figures above are on a per lakh basis.
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As can be seen in the above chart, lifestyle diseases are set to spread at disturbing rates. The result increased expenditure. In many cases, people need to borrow money or sell assets to cover their medical expenses. All it takes is a suitable plan to help you overcome the financial woes related to your health by paying marginal amounts as premiums. For example, if you are 30 years old, then a mere sum of approximately Rs 3500* annually (exclusive of taxes) can provide you a health insurance plan of Rs 5 lakh over a period of 20 years, and a worry-free future for you and your family. Types Of Health Plans Our range of Health Plans includes

Group Products HDFC Standard Life has the most comprehensive list of products for progressive employers who wish to provide the best and most innovative employee benefit solutions to their employees. It offers different products for different needs of employers ranging from term insurance plans for pure protection to voluntary plans such as superannuation and leave encashment.
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HDFC SLIC offers the following group products to esteemed corporate clients: Group Term Insurance Group Variable Term Insurance Group Unit-Linked Plan An investment solution that provides funding vehicle to manage corpuses with Gratuity, Defined Benefit or Defined Contribution Superannuation company. Also suitable for other employee benefit schemes such as salary saving schemes and wealth management schemes. Social Product Development Insurance Plan Development Insurance plan is an insurance plan which provides life cover to members of a Development Agency for a term of one year. On the death of any member of the group insured during the year of cover, a lump sum is paid to those member beneficiaries to help meet some of the immediate financial needs following their loss. or Leave Encashment schemes of your

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ligibility Members of the development agency and their spouses with: - Minimum age at the start of the policy 18 years last birthday - Maximum age at the start of policy 50 years last birthday Employees of the Development Agency are not eligible to join the group. The group to be covered is only eligible if it contains more than 500 members. Premium Payments The premium to be paid will be quoted per member in the group and will be the same for all members of the group.

The premium can only be paid by the Development Agency as a single lump sum that includes all premiums for the group to be covered. Cover will not start until the premium and all the member information in our specified format has been received. Benefits On the death of each member covered by the policy during the year of cover a lump sum equal to the sum assured will be paid to their beneficiaries or legal heirs. Where the death is as a result of an
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accident, an additional lump sum will be paid equal to half the sum assured. There are no benefits paid at the end of the year of cover and there is no surrender value available at any time. The role of the Development Agency Due to the nature of the groups covered, HDFC Standard Life will be passing certain administrative tasks onto the Development Agency. By passing on these tasks the premium charged can be lower. These tasks would include: Submission of member data in a specified computer format Collection of premiums from group members Recording changes in the details of group members Disbursement of claim payments and the mortality rebate (if any) to group members These tasks would be in addition to the usual duties of a policyholder such as: Payment of premiums Reporting of claims Keeping policy holder information up to date Training and support will be available to give guidance on how to
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complete the tasks appropriately. Since these additional tasks will impose a burden on the Development Agency, the Development Agency may charge a Rs. 10 administration fee to their members. Prohibition of rebates Section 41 of the Insurance Act, 1938 states No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectus or tables of the insurer. INTROUCTION TO UNIT LINKED FUNDS Unit linked plans are based on the component of the premium or the contribution of the customer towards the plan. This contribution can be in different modes like yearly, half yearly, quarterly and monthly. Unit linked plans have multiple benefits like life protection, rider protection, savings, transparency, investment choices, liquidity and planning for

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taxes. These plans work like mutual funds. The premium is collected from the policy holder. He is allotted a certain number of units based of his contribution. The Net Asset Value is the value of each unit of the fund. It is found by subtracting the charges and current liabilities from the current assets and investments and dividing this number by the total number of outstanding units. Let us take an example. There are 100 investors and each invests Rs. 10 in a fund. The total value of the fund is Rs. 1000 and each person is allotted 1 unit of Rs 10. Now the money (Rs. 1000) is invested in the debt or equity market. Suppose the fund value increased by 20%. As a result the Rs. 1000 invested became Rs. 1200. Hence the value of every investor is now Rs. 12 and not Rs. 10.

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UNIT LINKED VERSUS OTHER FINANCIAL INSTRUMENTS Parameter s Safety Liquidity Returns Life Cover High None Low 1 RBI Bonds Fixed Deposits High High Low time 1 Mutual Funds Medium High High time 1 High High High time 10 times Unit linked

amount Tax benefits Tax free

amount Taxed

amount Taxed Tax free

We find that life insurance unit linked plans is a good area to invest money in as it provides liquidity, safety, high returns, life cover and tax benefits in a single plan. HDFC SLIC offers the option of indexation to beat inflation. Risk is reduced to a large extent as the company invests in a diversified portfolio.

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Tax Benefits INCOME TAX SECTION Sec. 80C GROSS ANNUAL SALARY Across HOW MUCH HDFC TAX CAN STANDARD LIFE PLANS the life

YOU SAVE? All Upto 33,990

Rs. All

income Slabs

saved insurance plans.

on investment of Rs. 1,00,000. Sec. 80 CCC Across all Upto 33,990 Rs. All the pension saved plans.

income slabs.

on Investment of Rs.1,00,000. Sec. 80 D Across all Upto Rs. 3,399 All saved the health riders

income slabs

on insurance

Investment of available with the Rs. 10,000. conventional

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plans.

TOTAL SAVINGS POSSIBLE Rs. 33,990 under Sec. 80C and under Sec. 80 CCC , Rs.3,399 under Sec. 80 D, calculated for a male with gross annual income exceeding Rs. 10,00,000. Sec. 10 (10)D Under Sec. 10(10D), the benefits you receive are completely tax-free, subject to the conditions laid down therein. Rs37,389

RESEARCH DESIGN INTRODUCTION A Research Design is the framework or plan for a study which is used as a guide in collecting and analyzing the data collected. It is the blue print that is followed in completing the study. The basic objective of research cannot be attained without a proper research design. It specifies the methods and procedures for acquiring the information
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needed to conduct the research effectively. It is the overall operational pattern of the project that stipulates what information needs to be collected, from which sources and by what methods.

STATEMENT OF PROBLEM: One of the major problems affecting the performance of the company is the change in the customer needs and requirements, and also depends on the companys Value added services. Therefore the problematic area of this study focuses on the study of customer perception towards value added services provided by the HDFC Standard Life Insurance Ltd. RESEARCH DESIGN OF THE STUDY: Marketing research can be defined as the systematic design, collection, analysis, and reporting of the data and finding relevant to a specific marketing situation facing the company. Research design is the basic plan which guides the researchers in the collection and analysis of data required for practicing the research product. In fact the research design is the conceptual structure with which research is conducted. It consist the blue print for the collection, measurement and analysis of the data that was followed completing the study to ensure that study is relevant to the problem and will follow the predetermined and set data. The main data feature of Research Design is that it specifies population to be studied. The main them of the chapter is to know the source of the data the researcher has collected. Data are raw facts of observation, typically about physical phenomenon. Thus data are usually subjected to value added process where :
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It from is aggregated, manipulated and organized Its contents are analyzed and evaluated It is placed in a proper context for human user Therefore, information is processed data placed in a context gives value for the reader. It is a basis for analyzing and interpreting, which helps in making note of findings, conclusions and also helps to give suggestions so data should accurate, correct and clear. If it is inaccurate and not in proper order the whole out put gets affected and it may lead to confusion. RESEARCH METHODOLOGY

INTRODUCTION AND MEANING

Research is a careful investigation or inquiry especially through search for new facts in branch of knowledge: market research specifies the information. Required to address these issues: designs the method for collecting information: manage and implements the data collection process analyses the results and communicates the finding and their implications.

Research problem is the one which requires a researcher to find out the best solution for the given problem that is to find out the course of action, the action the objectives can be obtained optimally in the context of a given environment.

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TECHNIQUES The problem definition can be said to be the quite essential part of the research process; as it determine precisely, what the managerial problem is and the type of information that the research can generate to help the problem before conducting the fieldwork. It is better to decide upon the method/technique of data collection. Generally, there are two technique of data collection are:

1. Census Technique 2. Sample Technique

A census is a complete enumeration of each and every unit of population where as in a sample only a part of the universe is studied and conclusion about the entire universe is drawn about that basis. The census method is costlier and more time consuming as compared to sampling method but the result are near representatives than sample method. The availability of resources, time factor degree of accuracy desire and scope of the problem enable us to apply sample technique. DATA COLLECTION The objectives of the project are such that both primary and secondary data is required to achieve them. So both primary and secondary data was used for the project. The mode of collecting primary data is questionnaire mode and sources of secondary data are various magazines, books, newspapers, & websites etc.

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1. Primary Data The primary data was collected to make the comparison between the products offered by HDFC Standard Life Insurance and ICICI Prudential. The primary data was collected by means of questionnaire and analysis was done on the basis of response received from the customers. The questionnaire has been designed in such a manner that the consumers satisfaction level can be measured and consumer can enter his responses easily. 2. Secondary Data The purpose of collecting secondary data was to achieve the objective of studying the recent trends and developments taking place in Life Insurance. Descriptive research is used because of following reasons

1 Problem is defined 2 Problem is of social science in nature 3 It describes the characteristics of objects, people, groups, organization or environment 4 It addresses who, what, when and how questions 5 There is some understanding of the nature of the problem 6 Degree of probability is partially defined 7 Questions based on buyer preferences of products etc are asked

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The Survey Method is used because of following reasons 1. In this samples are interviewed through questionnaire and the response of samples is observed and described. 2...Here various tools like questionnaire, telephone conversation etc are used.

STEPS IN SAMPLE DESIGN 1. Here the type of universe is finite, therefore we have taken a mass from whole population 2. Here the sample units are taken geographically ie. Delhi region is taken 3. Here the source list is not available 4. We have taken a sample size of 100 samples due to cost constraint as the sample to be studied with in the available funds 5. Here the sampling method is used is area sampling method which is a part of probability sampling because of following reasons a. The samples from various areas of Delhi region ie shakti nagar, north campus, kamla nagar, ashok vihar etc are taken b. Then samples have selected with the help of simple random sampling and survey is done.

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ANALYSIS AND INTERPRETATION After the data collection, it was compiled, classified and tabulated manually and with help of computer. Then the task of drawing inferences was accomplished with the help of percentage and graphic method. Different suggestions given by me to the Company after analyzing the views of every respondent are also given in the report.

LIMITATIONS OF THE STUDY It is said, Nothing is perfect and if the quite is true, I am sure that there would be few shortcoming in this project also. Sincere efforts have been made to eliminate discrepancies as far as possible but few would have reminded due to limitations of the study. These are:

1. Limited scope The survey was conducted in Delhi thus the respondents belonged to only this region of the country. This could have brought bias into the study. 2. Nature of the study The survey concentrated on personal information about income, saving and investment. All these issues are highly sensitive and of secretive nature therefore there could have been untrue answers to some of the questions.

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3. Ambiguous replies Some of the respondents gave ambiguous replies for certain questions or omitted the responses to some of them. The interpretation of such responses becomes difficult and could generate wrong results. 4. Unrepresentative sample size The sample size taken for the purpose of the study does not very significantly represent the whole society and their saving investment patterns may not clearly bring out the average trends existing in the market.

5. Assumption for the purpose of analysis Some assumption was made while doing analysis and interpretation; there could be few limitations in regard to these. LIMITATION OF THE STUDY : The existing customers did not have enough time to spare for the survey. Feedback from the respondents may be biased. Sample Area: The study id conducted within DELHI & NCR. Cost constraint: Survey is little costly. Sample Size: the intended sample size is only 100, which may not give a true picture of the consumer investment pattern. Time constraint: Since the project is to be conducted alone with on the job training there is time constraint in meeting people.

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Questionnaire 1.Do you have a life insurance policy/investment plan in your name? [ ] Yes [ ] No 2.If yes which companys insurance policies do you hold? [ ] HDFC Standard Life Insurance [ ] Birla Sun Life Insurance [ ] Aviva Life Insurance [ ] Bajaj Allianz Life Insurance [ ] LIC [ ] Tata AIG Life Insurance [ ] ICICI Prudential Life Insurance [ ] Others (specify name) 3.What is the approximate premium paid by you annually (in Rupees)? [ ] Rs. 5,000 Rs. 10,000 [ ] Rs. 10,001 Rs. 15,000 [ ] Rs. 15,001 Rs. 25,000 [ ] Rs. 25,001 Rs. 50,000 [ ] Rs. 50,001 Rs. 1,00,000 [ ] More than Rs. 1,00,000 (specify premium) 4.What kind of insurance policy would suit you best in your current stage of life? [ ] Life Insurance [ ] Life Insurance and Investment Plans [ ] Child Plans [ ] Tax saving plans
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5.Are you aware of the new unit linked Insurance plans in the market? [ ] Yes [ ] No 6.How much would you be willing to spend per Annum if you were to go for an Investment /insurance plan? [ ] Less than Rs.6,000 [ ] Rs. 6,001 Rs.10,000 [ ]Rs. 10,001 Rs.25,000 [ ] Rs. 25,001 Rs.50,000 [ ] Rs. 50,000 Rs.1,00,000 [ ] More than Rs.1,00,000 7.Which according to you is an ideal policy term? (Number of years you would be willing to pay premium) [ ] 3 to 5 years [ ] 6 to 9 years [ ] 10 to 15 years [ ] 16 to 20 years [ ] 21 to 25 years [ ] More than 30 years 8.What motivates you to purchase insurance/investment plans? [ ] Advertisements [ ] High Returns [ ] Advice from friends [ ] Family responsibilities [ ] Others (specify)

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9.In which kind of company would you prefer to make a purchase of insurance? [ ] Government owned company [ ] Public Limited Company [ ] Private Company [ ] Foreign based company 10.Typically what kind of returns would you look at from your investments? (Please note: Higher returns involve greater risk) [ ] Less than 5% [ ] 6% - 10 % [ ] 11% - 15 % [ ] 16% - 20 % [ ] 21% - 25% [ ] 26% - 30% [ ] 31% - 40% [ ] 41% - 50% [ ] More than 50% Personal Details : Name: Address: Age: Contact No. : Profile of respondent:

Professional Employed

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CONCLUSION HDFC Standard Life Insurance was grown a lot through its aggressive marketing strategies and the growth rate as tremendous, through it is growing faster it has to work on certain things and maintain the standard. This can be done through introducing more innovative products and recruiting good quality advisors because they are the pillars of the company and it is the most valuable value added services that the company is having. Therefore, the best the company can do is giving the customer something, which is little bit different and better than its competitor. The company should also be successful in expressing the extra features, which is given to the customer. The customer should feel that whatever company is giving is something great, and no one could ever imagine about it. This feeling makes the customer feel that company is very much satisfying them. In addition, the extra feature given to satisfying is some thing great.

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REFERENCES: List of websites: www.irda.com www.hdfcsl.com . www.money control.com . www.bajajallianz.com . www.icici.prulife.com List of Books & Magazines: Marketing Management- ICFAI publication Marketing Management- Philip kotler Outlook- the Laymans Guide to Insurance Business line IRDA Journal . Insurance World . The Outlook Money . Secrets of Successful Insurance Sales by Mr. Jack Kinder

List of News Papers: Business Line Economics Times

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