A SUMMER TRAINING PROJECT REPORT ON SELLING OF INSURANCE PRODUCTS IN HDFC LIFE

REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF POST GRADUATE DIPLOMA IN MANAGEMENT FROM

NIILM CENTRE FOR MANAGEMENT STUDIES

(SESSION :- 2011-2013)

SUBMITTED BY:TAUSHIF NAIYER ROLL NO-2011132 BATCH (2011-2013) SUBMITTED TO INDUSTRY GUIDE Mr.DEEPESH PAL (Sr.CDM) FACULTY GUIDE Mr. RAJESH SHARMA

INFORMATION SHEET
NAME OF THE COMPANY: HDFC life ADDRESS OF COMPANY: HDFC LIFE,3RD FLOOR,PLOT NO.15 MANGALAM PLACE,NEAR M2K CINMEMA HALL,SEC-03,ROHINI, NEW DELHI-110085 PH. NO. OF THE COMPANY: 011-40746020,9953990077 DATE OF INTERNSHIP COMMENECMENT: 2nd May DATE OF INTERNSHIP COMPLETITION: 2nd JULY NAME OF INDUSTRY GUIDE: Mr. DEEPESH PAL DESIGNATION OF THE INDUSTRY GUIDE: Sr. C D M STUDENT`S NAME: TAUSHIF NAIYER STUDENT`S ROLL NO.: 2011132 STUDENT`S EMAIL ID: taushifnaiyer786@gmail.com STUDENT`S MOBILE NO: 9582201990

DECLARATION
I here by declare that, this project report title SELLING OF INSURANCE PRODUCTS IN HDFC LIFE prepared by me under the Guidance of Mr. RAJESH SHARMA. I further declare that this project has not been submitted earlier to any Institute / University for any Degree or Diploma.

TAUSHIF NAIYER ROLL NO 2011132 NIILM-CENTRE FOR MANAGEMENT STUDIES KNOWLEDGE PARK-V,PLOT NO 53, GREATER NOIDA (UP) 201301

GREATER NOIDA

ACKNOWLEDGEMENT
I take this opportunity to express profound gratitude and deep regards to my guide Mr.RAJESH SHARMA for his Exemplary Guidance, Monitoring and constant encouragement through out the course of this project work. The help of guidance given by him time to time shall carry me a long way in my journey of life on which I am about to embark. I record with appreciation of the help rendered by Mr. DEEPESH PAL, SENIOR CDM HDFC Life, New Delhi for, giving me an opportunity and putting forward his excellent ideas along with proving me all facilities necessary for completion of my project. My several well wisher help me directly or indirectly; I virtually fall short of words to express my gratefulness to them. There for I am leaving this acknowledgment incomplete in their Reminiscence.

INTRODUCTION
Established on 14th August 2000, HDFC Standard Life Insurance Co. Ltd. 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. The Company is one of leading private insurance companies, offering a range of individual and group insurance solutions, in India. Being a joint venture of top financial services groups, HDFC Standard Life has adequate financial expertise to manage long-term investments safely and resourcefully.

HDFC Standard Life believes that establishing a strong and ethical foundation is an essential prerequisite for long-term sustainable growth. To ensure this, HDFCSL have concentrated their focus on expansion of branch network, organising 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. Our core values are drilled down to all levels of employees, as these are inviolable. HDFCL continue to promote high integrity in business practices and shun short cuts and unethical practices, as we wish to be perceived as an institution with high moral standing. Since our inception in 2000, when the Indian insurance space was opened for private participation, we have consistently focused on setting benchmarks in all aspect on insurance business. Being the first private player to be registered with the IRDA and the first to issue a policy on December 12, 2000, our differentiators are:

Strong Promoters HDFC Standard Life is a strong, financially secure business supported by two strong and secure promoters HDFC Limited and Standard Life. HDFC Limited excellent brand strength emerges from its unrelenting focus on corporate governance, high standards of ethics and clarity of vision. Standard Life is a strong, financially secure business and a market leader in the UK Life & Pensions sector.

Preferred and Trusted Brand Our brand has managed to set a new standard in the Indian life insurance communication space. We were the first private life insurer to break the ice using the idea of self-respect instead of death to convey our brand proposition (Sar Utha Ke Jiyo). Today, we are one of the few brands that customers recognize, like and prefer to do business. Moreover, our brand thought, Sar Utha Ke Jiyo, is the most recalled campaign in its category.

Investment Philosophy
We follow a conservative investment management philosophy to ensure that our customers money is looked after well. The investment policies and actions are regularly monitored by a formal Investment Committee comprising non-executive directors and the Principal Officer & Executive Director. As a life insurance company, we understand that customers have invested their savings with us for the long term, with specific objectives in mind. Thus, our investment focus is based on the primary objective of protecting and generating good, consistent, and

stable investment returns to match the investors long-term objective and return expectations, irrespective of the market condition.

Need-Based Selling Approach Despite the criticality of life insurance, sales in the industry have been characterized by over reliance on tax benefits and limited advicebased selling. Our eight-step structured sales process Disha however, helps customers understand their latent needs at the first instance itself without focusing on product features or tax benefits. Need-based selling process, 'Disha', the first of its kinds in the industry, looks at the whole financial picture. Customers see a plan not piecemeal product selling.

Risk Control Framework HDFC Standard Life has fully implemented a risk control framework to ensure that all types of risks (not just financial) are identified and measured. These are regularly reported to the board and this ensures that the company management and board members are fully aware of any risks and the actions taken to ensure they are mitigated

Focus on Training
Training is an integral part of our business strategy. Almost all employees have undergone training to enhance their technical skills or the softer behavioural skills to be able to deliver the service standards that our company has set for itself. Besides the mandatory training that Financial Consultants have to undergo prior to being licensed, we have developed and implemented various training modules covering various aspects including product knowledge, selling skills, objection handling skills and so on.

Focus on Long-Term Value

HDFC Standard Life do not focus in the business of ramping up the topline only, but to create long-term value for policyholders, shareholders, and partners. Today, we are extremely satisfied with the base that we have created for the long-term success of this company.

Transparent Dealing
We are one of the few companies whose product details, pricing, clauses are clearly communicated to help customers take the right decision.

Strict Compliance with Regulations

We have initiated and implemented many new processes, some of which were found useful by the IRDA and later made mandatory for the entire industry.The agents who successfully completed this training only, were authorized by the company to sell ULIPs. This has now been made compulsory by IRDA for all insurance companies under the new Unit Linked Guidelines.

Diversified Product Portfolio

HDFC Standard Lifes wide and diversified product portfolio help individuals meet their various needs, be it:

Protection: Need for a sound income protection in case of your unfortunate demise Investment: Need to ensure long-term real growth of your money

Savings: Save for the milestones and protect your savings too Pension: Need to save for a comfortable life post retirement Health: Cover for health related exigencies

FUTURE GOALS THROUGH INSURANCE

A wide range of vehicles are available to fund future financial goals. These could be low risk low return instruments like bank deposits and small savings, or higher risk products such as equity, which can offer potentially higher returns. Insurance scores over other investment vehicles in the following aspects: Certainty Once a goal has been identified and a value for it has been crystallized, an insurance policy is an excellent vehicle to fund the goal. This is because one can rest assured that even in the unfortunate event of death or even critical illness, the sum assured will fund a future goal of the policyholder.

Tax efficient Maturity benefits of most insurance policies are tax free under Section 10 (10D) and the premium paid is eligible for deduction under Section 80C of the Income Tax Act, 1961. Flexibility Insurance products, especially Unit Linked Plans, provide flexibility in terms of asset allocation to suit specific risk appetites, policy durations, premium payment terms and fund switching options. Wider options Depending on the time horizon of the goal, the return required and the investors risk appetite, a broad spectrum of asset allocations between equity and debt is possible in a Unit Linked Plan. An investor may tailor his policy to suit his requirement.
Liquidity

Most Insurance products offer good liquidity after the lock-in period to take care of any emergency requirement of funds. But they do have inherent deterrents in the form of charges to discourage unnecessary encashment. Earmarking Very often an insurance policy is taken for a specific goal. This therefore can become a deterrent against utilizing these funds for any other purpose and also encourages continued contributions.

PLANNING FOR UNFORESEEN EVENTS

Insurance helps you to provide for contingent liabilities like hospitalization, critical illness, debt redemption etc, in a cost efficient manner. 1.)TERM INSURANCE PLAN Term insurance is the simplest and cheapest form of life cover, which pays the sum assured on death. This is useful to simply provide for a familys survival in the unfortunate event of demise of the bread winner. This can also be used to cover repayment of any debt of a policy holder by simply assigning the policy to the creditor. Upon maturity or claim on the policy, the proceeds are paid to the creditor. Loan Cover policies are a variant where the sum assured keeps reducing in line with the loan balance. Health covers These policies provide cover against major health care expenses like hospitalization, surgery, critical illness etc. The benefits could be in the form of fixed pay outs on hospitalization or a lump sum on diagnosis against some specified critical illnesses. Accident benefit This is usually an add-on cover over a basic policy and pays an additional sum assured to the beneficiary in case of death due to accident. Since accidental death is sudden and unforeseen, the family could be faced with issues like relocation, debt servicing and other requirement for funds

2.) RETIREMENT PLAN Indian life expectancy has improved dramatically over the years due to availability of advanced medical facilities. However, a longer working life may not really be possible due to occurrences of life-style induced illness and high burn-out rate. The evolving demographic balance with plenty of young talent becoming continuously available may also be a deterring factor to a longer working life unless one is self employed. Consequently, our retirement life span could well be as long as our active working life span. This means that we have to build a solid corpus during our active life to maintain our life style for the long post retirement life if we are to enjoy the true meaning of the word retirement. Pension Plans help us build up our savings during our earning years and provide us a lump sum on retirement. This lump sum can then provide us a retirement income by investing in an annuity.

PROVIDE POST RETIREMENT INCOME The worst situation that a retiree can face is to run out of funds late into retirement. Such a situation may force him to seek help from friends / relatives or liquidate his fixed assets which essentially are a compromise of self respect. This is where insurance offers the best solution in the form of an annuity. Annuities bought from the retirement corpus can either be used to provide regular post retirement income for a fixed term or also for the entire life.

A retirement plan may be broadly divided into two phases, namely accumulation (pre-retirement) and distribution or consumption (postretirement). In the above graph*, we assume a 30-year old who plans to retire at the age of 60 and expects to live till age 80. His accumulation phase is between age 30 and 60 when he builds his retirement corpus and distribution phase is between age 60 and 80 when he draws down this corpus for his living. Retirement Plans ensure that the distribution phase of your life is as comfortable as your earning years.

INSURANCE AS AN INFLATION SHIELD

Inflation lowers the purchasing power of money and makes a dramatic cumulative impact over the long term. It reduces your real income year after year as your cost of living keeps increasing. So, it must be taken into account while framing financial goals. The following illustration depicts the impact of inflation on income and prices.

Insurance products such as Unit Linked Plans help us combat the impact of inflation on our financial goals by providing the option to invest in equity, which is known to deliver one of the best returns from all asset classes, over the long term. Ignoring inflation would result in our savings falling short of the estimated value of future goals, especially over the long term.

LIFE STAGE PLANNER

Young And Single You are a single energetic twenty-something and have just kickstarted your career. With the newly acquired financial independence, most of you feel more inclined to shop, travel and enjoy life. However, it is important to note that this is also the best time to take higher risks as there are least financial responsibilities. Your Insurance Needs

Saving for future expenses Whether for your home down payment or for your marriage, you need a savings plan to build a corpus for your future needs. Tax Planning Now that you are earning, you wouldnt want your hard earned money to just flow out of your hands. Tax planning is an important aspect of financial planning and you

should draw the maximum tax benefits that investment products offer.

Securing your parents health Given their age, your parents would be vulnerable to ill health and therefore you need to plan for their medical needs as well.

Just Married Newly married, you are looking forward to building a whole new world with your life partner. Marriage brings additional responsibilities and thus additional expenses, which may burn a hole in your pocket unless you plan your finances wisely. Your Needs

Saving for future needs This is the stage in life where you need to set aside a regular savings for your familys future needs. This may be for immediate needs such as car or vacation or for buying your dream house. Life Cover With marriage comes the responsibility of securing your partners life. A good life insurance plan can ensure that your partner is financially secure, no matter what. Secure your health With time and age on your side, it would be ideal to provide a cushion for any health contingencies that you or your family may face in the future.

Married With Children As you step into parenthood, your dreams increase manifold its not just about you anymore, but about your little ones too. Take that extra step to ensure that no matter what the circumstances maybe, you dont have to compromise on your dreams for your bundles of joy.

Your Needs

Childs education & future expenses Saving for your childs education assumes utmost importance, at this stage. In the long-term, you may also want to set aside funds for his/her marriage expenses. Safeguard family from loan liabilities If you have a home loan, you may want to secure your family against the stress of loan repayment, in the unfortunate event of your death. Retirement planning You may now start feeling the importance of building a retirement corpus to enable you to continue the lifestyle you are used to leading even after retirement.

Married With Grown Up Children This is a stage when you have a well established career and draw a decent income. As your children are growing, so are your expenses. You may also have to spend on maintaining the house, for instance renovating the house, replacing old furniture, etc. Your Needs

Childs higher education / marriage Your main goal, at this stage, is to fund your childs higher education. With your childrens marriages around the corner, you may want to rearrange your investment plan to fund these joyous events. Retirement planning Retirement seems to be on the horizon, so planning for your golden years is a priority. Health contingencies Old age brings with itself a wide range of health issues. You would surely like to be well equipped to face any eventuality

Nearing Retirement

Your children are most probably independent and well settled by now. At this stage, your income is at its peak. You have substantial funds at your disposal to set aside for your retirement.

Your Needs

Retirement planning Your goal at this stage is to plan for your retirement. It is important to understand your true net worth and how you wish to spend your retired years. This is because even if you have not yet focused on retirement, investing wisely in the next 10-12 years can help significantly. Investments At this age you might also have substantial savings which can be invested for stable growth. You should consider investing in tax efficient instruments. Regular income post retirement You should focus on investing in those products that provide capital preservation and generate regular income to meet your post-retirement needs.

Types of Insurance.

Unit Linked Plans And Conventional Plans

3.)CONVENTIONAL PLANS i) PENSION PLANS

Retirement is a natural progression and only if you are financially secure during these years can you hope to live a comfortable retired life. Pension plans are designed to accumulate your savings during your earning years and thereafter provide you with a regular income after retirement so that you dont have to depend on your children or society. Further, the premium payment in the case of pension plans can be made as recurring payments for a fixed period of time (regular premium) or once as a lump sum (single premium). Either way, the amount and returns thereon are cumulated and paid out to the policy holder at the retirement date as a lump sum. Part of this lump sum is then used to purchase an annuity which provides post retirement income Benefits:

These plans are flexible as they allow you to choose your investment period, the premium amount and the premium frequency. Reversionary bonuses are usually declared by the insurance company annually and once declared are guaranteed. There are tax benefits under various sections of the Income Tax Act, 1961. A deduction is available from the total income up to Rs 1 lakh under section 80 CCC and 80 C.

ii.)MONEY BACK PLANS When you plan for your future, ideally you should set out with specific goals and these should have costs and deadlines attached to them. Once this is done, money back plans provide an excellent vehicle to take you to the fulfillment of these goals.

Money-back plans are insurance products which pay out pre-defined benefits at periodic times during the entire term of the policy. For instance, in a money-back plan with a 20 year term, 25 per cent of the sum assured could be paid out after every five years (i.e., at the end of the 5th, 10th and 15th year) and the remaining 25 per cent of the sum assured along with the bonus, if any, would be paid out at the end of the 20th year. However, in the case of the unfortunate death of the insured person, the total sum assured (100%) and bonuses will be paid. Benefits:

Since a part of the sum assured is received periodically, this plan combines short term financial goals with long term savings and insurance. Tax benefits under Section 80C are applicable on the premium paid. The periodic lump sums as well as maturity amount is tax free.

iii.)CHILDRENS PLANS Your children are your pride and joy and you would like them to have the best that money can buy. And with a sound financial plan, you can make sure that the materializing of their dreams is not hindered for want of funds. Childrens insurance policies and products are designed with this specific aim in mind. These plans set out to secure you financially against the back drop of constraints such as inflation and the rising cost of education. They help you to fund various aspirations like an overseas education, extra curricular activities, sports training, supplementary vocational education, marriage celebrations, etc. by providing a lump sum amount at a specified future date.

An additional feature offered by childrens plans is that they continue to offer financial protection even in the event of the loss of the premium paying parent. This ensures that the amount envisaged is actually delivered even in the event of unforeseen eventualities. Benefits:

Childrens insurance plans enable the parents to save money for childs future without any disturbance to the family budget. This is because the premiums can be chosen to suit the parents convenience. There are a number of options and customized products to choose from for the childs future. Reversionary bonuses are usually declared by the insurance company annually and once declared are guaranteed. Tax benefits under Section 80C are applicable on the premium paid. Certain plan options also allow the plan to continue after demise of insured parent and the insurance company continues paying the premium.

iv)ENDOWMENT PLANS Life is full of risks both financial and non financial. While it is difficult to eliminate the non- financial risks, insurance helps you to minimize the financial ones. Endowment plans are one such product. They ensure that you receive an assured amount at the end of the policy term plus bonuses, if any. If, due to unfortunate circumstances, the insured person expires during the term of the policy, the sum assured and bonuses go to the nominee. Endowment plans can be taken in the name of minors too.

Benefits:

This plan helps one plan for the future of their loved ones and rest assured that finances will not be an obstacle, even in case of the insured persons demise. Reversionary bonuses are usually declared by the insurance company annually and once declared are guaranteed. Tax benefits under Section 80C are applicable on the premium paid.

v.)TERM PLANS As the breadwinner of the family, even the best financial plan that you create can go out of gear if you are not around to meet the financial commitments it entails. With term plans, you can be sure that in the event of your unfortunate demise your family will be compensated for the financial loss to the extent that you see fit. Term Assurance Plans are those plans where the sum assured is paid out only if the insured person dies. There is no maturity benefit under these plans. Due to this feature, the premium amount is relatively low. The premium can be paid regularly or even in a lump sum, according to the design of the plan. Such policies can be taken either on a single basis or on joint basis. Benefits:

These plans are ideal for individuals who have dependents to be taken care of. In the unfortunate event of the insured persons death, the dependents are left financially secure. The premium for such plans is very low, especially if the insured in young.

The plan can be topped up with add additional features (known as riders), such as accident death cover or critical illness cover. There are tax benefits for the insured person.

vi.)WHOLE LIFE PLANS Insurance has become a necessity, particularly in India where most families are dependent on a single earning individual. Further, since there is no social security available in India, the financial interests of the family have to be protected through other sources. Whole life insurance policies are designed to provide lump sum payments to a family in the event of the death of the insured person. Unlike term insurance, a whole life insurance policy covers you for your entire life and not just for a specific period of time. Benefits:

The policy stays in force as long as the insured individual continues to live and benefits remain constant during the entire coverage period of the policy. There is no need to undergo future medical examination once the policy is in force. There is also an element of tax-saving in these policies.

RIDERS Riders are additional optional benefits that can be attached to a life insurance policy. These can be purchased at a marginally additional premium. a) Waiver Of Premium What is: Waiver of premium is a benefit under which payment of premiums is waived off when the insured person suffers total disability. In such a case, further payment of premiums is exempted but the policy continues.

Need: This optional benefit ensures that the policy continues to invest the regular premium as planned and that the objective for taking the insurance policy is not compromised. b) Critical Illness Cover What is: If the insured is diagnosed as having any critical illness covered by the insurance company, the sum assured is paid out to the insured person as a lump sum amount. However, the policy continues even as the critical illness cover ceases to exist. Need: The need for critical illness cover arises because of exorbitant medical costs, which can be covered, at least partially, at a nominal expense through critical illness cover. c) Accidental Death Benefit What is: Under the accidental death benefit rider, an additional amount covered under this benefit is payable in the case of the accidental death of the insured person during the term of the rider. Need: The need for this rider arises because the accidental death of the insured person could cause additional financial inconveniences to the family/dependents due to the event. d) Accelerated Sum Assured What is: When Accelerated Sum Assured benefit rider is chosen, the insured person is paid the sum assured on being diagnosed as suffering from any of the critical illness. After the settlement of claim the basic policy is terminated.

3.)Unit Linked Insurance Plans

Introduction In Unit Linked Plans, the investments made are subject to risks associated with the capital markets. This investment risk in investment portfolio is borne by the policy holder. Thus, you should make your investment choice after considering your risk appetite and needs. Another factor that you need to consider is your future need for funds. HDFC Standard Life offers you a variety of unit-linked insurance products to suit your goals be it for your retirement planning, for your health, for your childs education and marriage or for investment purposes. Which Investor Class Are They Most Suited For?

Those who wish to closely track their investments: Unit linked plans allow policy takers to closely monitor their portfolios. They also offer the flexibility to switch your capital between funds with varying risk-return profiles. Individuals with a medium to long term investment horizon: Unit linked plans are ideal for individuals who are ready to stay invested for relatively long periods of time. Those with varying risk profiles: Across the seven funds offered, the equity component varies from zero to a maximum of 100 per cent. Thus there is a choice of funds available to all types of investors - from risk-averse investor to those investors who have strong risk appetite.

Investors across all life stages: This plan category offers a variety of plans which can be opted for depending upon the life stage you are in and your needs and financial liabilities at that point in time.

How Is It Structured? In a Unit Linked Plan, the premiums you pay are invested in the funds chosen by you after deducting allocation charges and charges including those for managing funds, policy administration and for providing insurance cover are deducted from the funds by cancelling certain units. The value of each unit of a fund is determined by dividing the total value of the funds investments by the total number of units. Advantages Of A Unit Linked Plan

Market linked returns: Unit linked plans give you an opportunity to earn market-linked returns as part of the premiums are invested in market linked funds which invest in different market instruments including debt instruments and equity in varying proportions. Life protection, Investment and Savings: Unit linked plans offer the twin benefits of life insurance and savings at market-linked returns. Thus, you have the opportunity to invest your money to earn higher returns, while taking care of your protection needs. Investing in unit linked plans helps to inculcate a regular habit of saving and investing, which is important for building wealth over the long term. Flexibility: Unit Linked Plans offer you a wide range of flexible options such as

The option to switch between investment funds to match your changing needs.

The facility to partially withdraw from your fund, subject to charges and conditions. Single premium additions to enable the policy holder to invest additional sums of money (over and above the regular premium) as and when desired, subject to conditions. Servicing A Unit Linked Plan

Single Premium: The policy holder is required to pay the entire premium amount as a lump sum at the beginning of the policy term. Regular Premium Payment (annually, semi-annually or monthly): The policy holder has to pay the pre-determined premium amount periodically i.e. annually, semi annually or monthly, depending upon the premium payment term opted for. Number of Premium Paying Years: This depends on the term of the policy that you have chosen. In most cases, the policy term and the number of premium paying years (in case of regular premiums) are the same. However, some policies give the insured the option of choosing the number of premium paying years.

Charges The following charges are deducted from your policy towards the cost of benefits and administration services provided by HDFC Standard Life Insurance

Administration charges: A fee is charged for administration of your policy every month. Administration charges are deducted by cancelling units proportionately from each of the funds you have chosen. Fund management charges: These charges are towards meeting expenses related to managing the fund. This is

charged as a percentage of the funds value and is deducted before arriving at the net asset value of the fund.

Switch charges: You can switch between the funds available to suit your changing needs and goals. In a policy year, a fixed number of such switches are available free of cost. Subsequent to this, each switch would attract a certain charge. These charges are deducted by cancelling units proportionately from each of the funds you have chosen. Surrender charges: These charges are levied for premature encashment of units. They are charged as a percentage of the fund value and depend on the policy year in which the policy has been surrendered. Mortality Charges: Depending upon the age, and the amount of cover, these charges are levied towards providing a death cover to the insured. Premium Allocation Charge: This charge is deducted as a fixed percentage of the premium received, and is usually charged at a higher rate in the initial years of a policy. This charge varies depending upon whether the policy is a single premium or regular premium policy, the size of the premium, premium frequency and payment mode. Partial Withdrawal Charges: Lump sum withdrawals are allowed from the fund after the lapse of three years of the policy term and subject to pre-specified conditions. However, such withdrawals attract charges, as mentioned in the respective policy brochures.

Switching Between Funds HDFC Standard Life Insurance offers you the flexibility to switch between funds available under a unit linked plan. You may wish to switch between equity and debt funds, in times when there is market

volatility or interest rate fluctuations. At times, changes in your financial standing, liabilities or risk profile may also require that you change your investments accordingly. Making Withdrawals You may also make partial withdrawals from your funds after a certain specified period, subject to a partial withdrawal charge. The withdrawal amount should be at least the minimum prescribed withdrawal amount and the fund must not fall below the minimum fund value after the withdrawal. You can make a full withdrawal of your policy before its maturity date. However, surrender charges will be applicable in this case.

4.) PROTECTION

PLANS

Calculate your Human Life Value (HLV) Calculate your HLV. This will help you understand today's value of your future earnings. It will calculate the corpus needed to secure your familys financial future in your absence.

Decide your life coverage Estimate your life cover considering your HLV, loan liabilities and family expenses.

Choose the additional optional benefit Some polices offer you additional benefits. You can customize your policy by choosing any of the options available as riders.

Work out the premium payable Based on your life coverage and additional benefits opted for (if any), get an indication of the corresponding premium you need to pay. You can either contact an HDFC Standard Life

representative or use our online calculator to calculate the amount of premium you need to pay Tips on reducing premium It is not possible to negotiate the basic premium rates offered by insurance companies. However, keeping the following points in mind, you can surely reduce the costs incurred on premiums.

Mode of Premium payment as annual: Choosing the annual mode of payment reduces the premium cost. Insurance companies add extra charges to cover additional costs incurred by them if you pay multiple premium rather of single yearly premium. These additional charges increase insurance cost thus ultimately increasing your premium amount. Start at a young age: The premium of the insurance plans increases with age. At a young age, you are medically fit and physically sound. This helps in reducing the insurance cost and in turn reduces your premium amount. Tenure of the policy: The longer the term of the policy, lower will be the premium. Longer duration polices allow you to build the required corpus with smaller premiums. Do not take riders that you do not need: Additional benefits on policies come with additional charges and increase your cost of premium. You can lower premium costs by opting only for those riders that you actually need. Keep yourself Fit: Health related issues, Disability problems, Smoking and drinking habits, risky lifestyle all add to the insurance cost thus increasing insurance premium. Keep yourself healthy and fit to get the benefit of lower insurance premiums. Insurance is for saving tax: Saving tax is just an added advantage of insurance policy; the main objective of insurance is to provide protection to you and your family and to build an assured corpus for your future needs.

Insurance Myths

Insurance will benefit only after my death: Insurance polices provide protection to you and your family. One of the main objectives of taking insurance is to provide financial cushion to your family in case you are not around but its not the only objective. Insurance helps you to build a corpus for yourself; provides you with comfortable retired life and even takes care of your lengthy medical bills. My group insurance is adequate: Your group insurance might be adequate but what if you change the job? Once you change the job your group insurance will cancel off and you will not get any insurance benefit. So it is always advisable to take insurance other than the insurance offered by your employer. Only the Breadwinner of the family needs insurance: Every family member needs insurance. Your work profile changes the insurance needs but certainly does not eliminate them. I'm single and don't have any dependents, therefore I don't need any coverage: You might not need a life insurance policy where your nominee is taken care of but you certainly need a policy to take care of your health and retirement worries. Life insurance is far more important than health coverage: As the health costs are increasing by the day, taking a health insurance plan has become as important as a life coverage plan. Health plans, disability plans and critical illness plans provide you with financial cushion and compensate for the financial loss you suffer in case you are not able to work because of illness. If life insurance plan secures the future of your loved ones then health coverage plan secure your own future.

Tools & Calculators Protection Plans

Family Maintenance Calculator Save Tax Calculator Premium Calculator Child's Marriage Planner

Childrens Plans

Save Tax Calculator Premium Calculator Future Expense Planner Save Tax Calculator Premium Calculator Monthly Savings Calculator Save Tax Calculator Premium Calculator Ideal Body Weight Calculator Cost of Smoking Calculator Health Tax Calculator Premium Calculator

Retirement Plans

Savings & Investment Plans

Health Plans

Why Do I Need Health Plan? 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.

Source: National Commission on Macroeconomics and Health Report 2005. 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. 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. *Note: The assumption is based on the HDFC Critical Care Plan. The figure is only indicative and the actual premium may depend upon numerous factors such as age, sum assured, gender, policy term, premium payment frequency and additional benefits opted for. It also differs from plan to plan and option to option

5.Health Plans
Types:- HDFC Critical Care Plan: This plan pays a lump sum amount on survival of a period of 30 days from the date of diagnosis of a critical illness as defined under the policy. The lump sum amount is not linked to any health care expenditure hence you can spend the same for treatment, paying off mortgages, paying EMI, travel, family income etc. In the absence of the cover you will have to dig into the savings or raise loans as the expenses associated with Critical Illnesses can be very high. HDFC SurgiCare Plan: This Plan provides you with timely support in case of medical emergencies with respect to hospitalization and surgeries, as the case maybe, ensuring your financial independence at all times. HEALTH CLAIMS

If you suffer from a critical illness, requisite claims have to be made. Heres what you need to do.

Guide To Make Claims Under HDFC Critical Care Plan

Guide To Make Claims Under HDFC SurgiCare Plan

o

This facility can be availed in any of the hospitals in TTKs network of hospitals. (please click here to view the list of TTKs network of hospitals)

Note: Pre-authorisation of cashless claims will be permitted only when the policy is in full force and any due premium has been paid.

In the event the claim arises during the grace period cashless facility will not be available. If the cashless facility is not approved for whatever reasons or if the hospitalization takes place in non networked hospitals, the hospital will not extend the cashless benefit and the policyholder will have to settle the hospital bills through his/her own funds.
o

Non cashless hospitalization is allowed when the policyholder is admitted in non networked hospital or when the cashless service is denied.

*Claim documents include verified photocopies of policy document, photo identity document, hospitalization discharge card/summary, hospitalization invoice along with the itemized invoice and corresponding payment receipts, surgical summary (in case the claimant has undergone a surgery) verified by the operating surgeon, all the supporting diagnostic reports and prescriptions, and the

photocopy of the TPA ID card along with the duly filled and signed claim form in original. All photocopies must be duly verified by the hospital authorities. INVESTMENT PHILOSOPHY As a life insurance company, we understand that customers have invested their savings with us for the long term, with specific objectives in mind like protection for the family in case of death of family member, child education and marriage liabilities or just investment returns over a longer period of time. With the above in mind, our investment focus is based on the primary objective of protecting and generating good and consistent investment returns to match the investors long term objective and return expectations. Our investment success is therefore based on teamwork guided by a robust and repeatable investment process. You can click on the following links to get a better understanding of HDFC Standard Life Investment approach

Investment process Risk Management

Market Watch Market Outlook & Strategy September 2009 Equity markets Indices BSE Sensex S&P CNX 31st August 2009 15,667 4,662 31st July 2009 15,670 4,636 1 Month 12 Month Return Return(%) (%) -0.02 0.55 7.57 6.93

Nifty BSE 100 BSE Mid Cap BSE 8,226 5,883 6,997 8,177 5,571 6,206 0.60 5.60 12.75 7.93 2.45 1.53

Debt markets 31st August 2009 10-yr G Sec yield (%) Inflation (%) Oil ($/barrel) INR/USD 7.35 -0.21* 69.97 48.88 31st July 2009 6.97 -1.58 69.26 48.16 29th August 2008 8.67 12.76 115.11 43.79

AUTHORITIES OF FINANCIAL ADVISOR

PART A - COMMON TERMS Introduction HDFC Standard Life Insurance Company Limited (hereinafter called as 'HDFC SL' which expression shall unless repugnant to the context or meaning thereof be deemed to include its successors and assigns) having its Registered Office at Ramon House, 169 H. T. Parekh Marg Backbay Reclamation, Churchgate, Mumbai-400 020, owns

and maintains, directly or indirectly, www.hdfcinsurance.com (the Website). HDFC SL owns or has license to use all contents, graphs, images, HTML and CGI or other scripts displayed and used on this Website. The information contents provided on this site should /cannot be copied, modified, uploaded, downloaded, published or republished, transmitted or otherwise distributed for commercial purposes without prior and explicit permission from HDFCSL. Reproduction of any information or material, with or without any modification, provided on this Website is prohibited unless, with prior permission of HDFC SL, and shall amount to violation of copyright and would be an illegal act. 1. Restriction of Services HDFC SL reserve its right to select the user of this Website and take decision as to whether to permit or not any person to use services provided on this Website. 2. No warranties All information and material on this site are provided on an "as is" basis, and are without guarantees or warranties of any kind, express or implied. Furthermore, any ideas and/or information provided or gained from this site would not necessarily reflect the views of HDFC SL or its directors or employees. The materials and/or information available or obtained at/through this site is/are not guaranteed or warranted in terms of completeness, correctness, accuracy, reliability or otherwise howsoever by HDFC Standard Life or its directors or employees. The information on Policies provided on the Website is

indicative of the terms, conditions, warranties and exceptions contained in the respective insurance policy. For further details, please refer to the policy document and product brochures.

3. Limitation of Liability This Website may contain links to Websites, Web-pages and services also operated by HDFC SL and / or its Affiliates, and your use of each website is also subject to the Terms and Conditions and other terms and guidelines, if any, in respect of each such website. In the event that any of the terms, conditions, and notices contained herein conflict with the Terms and Conditions or other terms and guidelines contained within any particular website, then the Terms and Conditions and other terms and guidelines for such website shall prevail. You hereby agree and confirm that You shall click on the links to and familiarize Yourself with the terms and conditions and other terms and guidelines found throughout this Web site and the affiliated websites and abide by them if You choose to use the sites, pages or services to which they apply. The information obtained at/or through this site is not and should not be construed as an offer for a policy or any other assistance. The terms and conditions on which HDFC SL sells the policies are subject to changes from time to time depending on various factors. While the site may be updated with changes periodically, HDFC does not guarantee that this site reflects the latest amendments/ information at all times or at any time. The terms and conditions are also largely dependent on the prevalent IRDA Regulations. HDFC SL does not guarantee that this site is complete or accurate in its information content as regards the above.

4. Nil Liability Under no circumstances, including but not limited to negligence, shall HDFC SL or its directors or employees be liable for any special or consequential damages that are alleged to have resulted from the use and/or inability to use this site or information contained within, even if HDFC SL and/or its employees or directors have been notified of the possibilities of potential damages or losses. 5. Transfer of interest By posting messages, uploading files, inputting data, or engaging in any other form of communication through this site, You are granting to HDFC SL a royalty free, perpetual, non-exclusive, unrestricted, worldwide license to: 1. Use, copy, sublicense, publicly perform or display any such Communication; and 2. Sublicense to third parties the unrestricted right to exercise any of the foregoing rights granted with respect to the Communication. The foregoing grants shall include the right to exploit any proprietary rights in such Communication, including but not limited to rights under copyright, trademark, service mark, or patent laws under any relevant jurisdiction.

6. Right to Monitor: HDFC SL reserves the right to monitor this site and all its content, and to disclose any information as necessary to satisfy any law, regulation or governmental request, or to edit, remove any information or materials, in whole or in

part, that in HDFC SL sole discretion are objectionable or in violation of these Terms and Conditions. 7. Allocation of Units: The day on which units are allocated will be governed by unit allocation rules. These rules will specify which day's unit prices are used for requests made on a specific day and time subject to a cut-off time. For the first premium, allocation rules will apply to the day and time on which the policy is issued. For subsequent premiums and premium top-ups, the allocation rules will apply to the date and time we receive the intimation and the cheque. All allocations or deallocation of units for transactions initiated by the policyholder (like premium payments, fund switches, revival, surrenders, partial withdrawals etc) will be processed using the unit price of the same day to be declared at end of that day provided an asset valuation happens. If it is not a valuation day, we will use the unit price of the immediately next valuation day. The cut-off time for this will be 03:00 pm. For outstation cheques, the allocation will be based on the day the cheque is realized. In case of renewal premium if the delay in realisation causes the policy to cross the grace period, we will lapse/ make paid-up the policy. Policy charges which are taken through de-allocation of units will use either the unit price of the same day if it is a valuation day otherwise we will use the unit price of the valuation day last available. Policy cancellations initiated by us should use either the unit

price of the same day if it is a valuation day otherwise we will use the unit price of the valuation day last available. 8. Disclaimer: You specifically acknowledge and agree that HDFC SL is not liable for any defamatory, offensive or illegal conduct of any user. You also specifically acknowledge that any Communication transmitted by you to HDFC SL via the Internet may not remain confidential or free from interference by unauthorized third parties during its transmission.

Disclaimer in case of unit lined policies

Unit Linked Life Insurance products are different from the traditional insurance products and are subject to the risk factors. The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. HDFC Standard Life Insurance Company Limited is only the name of the Insurance Company and the names of the Unit Linked Plans offered by the Company are only the names of the unit linked life insurance contract and do not in any way indicate the quality of the contract, its future prospects or returns. Please acquaint yourself with the associated risks and the applicable charges, from your Financial Consultant or Corporate Financial Consultant / Insurance Broker or

policy document of the insurer.

The various funds offered under the unit linked contracts are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns.

Part B - Terms and Conditions (called "Terms" or "Terms and Conditions") 1. Applicability of Terms: These Terms and Conditions, in so far as they refer to the User form the contract and agreement between the User and HDFC SL unconditionally. 2. Right To Alter The Services: The website facility is being offered at the sole discretion of HDFC SL and HDFC SL reserves the right to add, amend, revise, withdraw, suspend or cancel the usage of this viewable/usable rights of the website either in whole or in part any of the services which are part of the Website facility, without any prior notice to the User. Any addition, amendment, revision, suspension or cancellation shall be effective and binding on the User. HDFC SL may introduce new services (forming part of Website facility) on the Website from time to time. The existence and availability of the new services as part of the Website facility will be notified on the Website as and when they become available and any revision in the Terms and Conditions will take place in accordance with these Terms and Conditions. 3. Terms of usage of the Website: As a condition of accessing the Website and usage of the Website facility, the User unconditionally and absolutely acknowledges and accepts the Terms and Conditions in its

entirety. The User further acknowledges that the availability of the information, advice and the guidance if any on the Website does not constitute a recommendation (unless indicated otherwise) and is not a solicitation (unless indicated otherwise) by HDFC SL or any of their personnel or the experts used by HDFC SL for buying Policies. The User acknowledges that the decision to purchase any Policy is solely his and he has not been directed to purchase a policy by HDFC SL or its Financial Consultants and/or its employees. The User shall be responsible for arranging and providing for the mode to access this website, and HDFC SL shall not be responsible for any damage, breakdown, wear and tear or any cost, directly or indirectly attributable to use of this website. The User further submits to bear charges, if any, that may be levied by HDFC SL to offer services on the website. The services of this website shall be available to Retail clients only.

4. Terms of Usage of the Website with specific reference to the Users: User ID and User Password: The User acknowledges that he would be able to access the Website facility in regards to his Policy by using the User ID and the User Password. The User further confirms and

agrees that he will be the sole and exclusive owner and is the only authorised user of his User ID and the User Password and accepts sole responsibility for use, confidentiality and protection of the User ID and the User Password as well as for all Account Transactions initiated through his User Account and shall ensure that the User password/s is/are not revealed to any third party or recorded in any written or electronic form. If the User forgets / loses the User ID, he can request HDFC SL for informing his User ID. In case he forgets or loses his User Password, the User would be able to retrieve his User Password by following the procedure on the Website. The User undertakes not to disclose the User Password to any person including employees of HDFC SL. HDFC SL will be entitled to levy service charges for generation of new password. The User shall at all times be fully responsible and liable for all Account Transactions that are carried out by the use of the User ID or the User Password registered under the User. If third parties gain access to the services offered as part of the Website facility through the use of the User ID and User Password, the User shall be deemed to be responsible and the User hereby indemnifies and holds harmless HDFC SL against any liability, costs or damages arising out of claims or suits by or against such third parties based upon or relating to such access and use. Any Account Transactions authorised by using the User ID and User Password shall be deemed to be that of and initiated by the User and HDFC SL is not responsible for any mistake / error made by the User in keying in any details or data or any facts or figures.

HDFC SL would be entitled, at its sole discretion, to seek offline written or other confirmation from the User of any Account Transaction as it may deem fit to ascertain or verify the genuineness of request for Website facility. The User shall follow such procedure laid down by HDFC SL from time to time in case of loss of password. Neither HDFC SL nor any of their officers, directors, employees, Advisors, Affiliates or subsidiaries can or will have any responsibility or liability to the User or to any other person whose claim may arise through the User with respect to any of the circumstances described above. Evidence Of Account Transactions: HDFC SL's own records of the Account Transactions maintained through computer systems or otherwise shall be accepted as conclusive and binding for all purposes. More particularly, the record of HDFC SL generated by the Account Transactions, including the recording of the time of the Account Transactions shall be conclusive proof of the genuineness and accuracy of the Account Transactions. Intellectual Property Rights: You should assume that everything You see or read or hear or experience on the Website (including but not limited to directories, charts, guides, pictures, news articles, excerpts, opinions, critiques reviews, downloads, text, forms, photographs, source code, images, illustrations, profiles, data files, audio clips, video clips, copyrighted material, trademarks, service marks and the like, (collectively "the Content") is copyrighted / protected by intellectual property rights laws unless otherwise mentioned and may not be used except as provided in these Terms and Conditions.

Use of Website: The Website is deemed to be in use or is being accessed by You when it is loaded and/or continues to be loaded in temporary or permanent memory of Your computer or similar system or in the internet browser thereof. It is also understood by the user that if in any case the policy of the User is lapsed due to reasons whatsoever; the IPIN will not be generated and the User will not be able to update his IPIN. In cases if IPIN is generated but the Policy lapses due to reasons whatsoever; then the User will not be availed of all the service rights and may not be able to access the details of his plan and policy. In such cases he would be having his rights restricted to view the summary pages and which may be subject to amendments and changes, as HDFC SL deems fit and necessary.

Registration Obligations: As a pre-requisite for accessing the content on the website, HDFC SL may require you to register for availing the services. You are requested to complete all the required columns and HDFC SL retains the right to cross-verify the same by requesting you to provide documentary evidence for the same. HDFC SL also reserves the right to terminate the registration in its own discretion, not limited to submission of erroneous / incomplete / derogatory / inappropriate / incomplete information. HDFC SL shall at no times be required to ensure that the details provided by you are up to date and it shall be the duty for each user that the same is duly updated at all

points of time. Restrictions on Use: You agree to use the Website strictly for Your personal use. You agree not to use this Website or the Website facility for any purpose which is manner inconsistent with these Terms and Conditions or contravenes any provisions of law or is deemed inappropriate by HDFC SL. You agree not to use, transfer, distribute or dispose of any information contained in the Website in any manner that could compete or conflict with the business interest of HDFC SL or otherwise compromise or imperil the interests of HDFC SL.

Disclaimer: You agree to indemnify and keep HDFC SL indemnified at all times from all losses, damages, costs, expenses, loss of profits, loss of business, proceedings, actions, suits (including legal fees) caused to or suffered by HDFC SL as a direct or indirect consequence of Your actions or actions that are attributable to Your User ID, including due to breach of Terms, negligence and default. We make no warranty regarding the Account Transactions entered into through the Website. No advice or information, whether oral or written, obtained by You from or through the Website facility or any person shall create any warranty not expressly stated herein. HDFC SL, its employees and directors, its suppliers and its third party Advisors shall not be liable for any action taken by You based on or relying on the information

provided in or by the Website. We will not be liable for any direct, incidental or consequential loss, which may be caused to You as a result of Your use of the Website / Website facility. If You are dissatisfied with the Website or any portion thereof, the Website facility or with any of these Terms and Conditions, Your sole and exclusive remedy is to discontinue using this Website and availing Website facility. You acknowledge that any rights not expressly granted herein are reserved. Insurance is the subject matter of the solicitation. Refer respective policy documents for risk factors and further details.

Foreign Jurisdiction: HDFC SL accepts no liability whatsoever, direct or indirect for non-compliance with the laws of any country other than that of HDFC SL's performance of Terms and Condition is subject to existing laws and legal process, and nothing contained in this Terms and Conditions is in derogation of HDFC SL's right to comply with governmental, court and law enforcement requests or requirements relating to your use of Website or information provided to gathered by HDFC SL with respect of such use.

Miscellaneous: HDFC SL may sub-contract and employ advisors to carry out any of its obligations under these Terms and Conditions. HDFC SL may transfer or assign its rights and obligations under this contract to any Affiliate. All Account Transactions, which cannot be carried out instantaneously, would be carried out during working hours either on the same day or such further period as may be determined and/or specified by HDFC SL depending upon the time of logging of the transaction / nature of transaction. You are requested to confirm from HDFC SL, the estimated time required for completion of transaction / request, prior to execution of a transaction / request. All Account Transactions shall be subject to Government notifications, the rules, regulations and guidelines issued by the Insurance Regulatory and Development Authority, the Reserve Bank of India, and those of other regulatory bodies defining rules/regulations governing the offer of any service under the Website facility, if any, on which such transactions are executed and/or cleared by HDFC SL.