“A STUDY ON LIFE TIME SUPER PLAN OF ICICI PRUDENTIAL LIFE INSURANCE CO. LTD”

8/7/2019 A STUDY ON LIFE TIME SUPER PLAN OF ICICI PRUDENTIAL LIFE INSURANCE CO. LTD.

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INSTITUTE OF MANAGEMENT STUDIES BAGALKOT-02

CERTIFICATE OF APPROVAL

PROJECT REPORT

2006-2007

This is to certify that the project report entitled A

Study on LIFE TIME SUPER plan of ICICI Prudential

Life Insurance Co.Ltd.. Is being submitted by Miss. Sapna

N.Pattanshetti ,a student of MBA first year. She has

satisfactorily completed the project work for the partial

fulfillment of MBA Course under Karnataka University,

Dharwad.

INTERNAL:

Prof.SUBRAMANIAM Prof.SUBRAMANIAM

Examiners:

1.

2.

B.V.V.Sanghas Institute Of Management Studies, Bagalkot 2


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DECLARATION

I here by declare that this project report titled A study on Life Time Super plan of ICICI

Prudential Life Insurance Co.Ltd., under taken at ICICI Prudential Life Insurance Co,

LTD, Hubli, submitted by me in partial fulfilment for the degree of Master of

Business Administration of Karnataka University ,Dharwad for the academic year

2006- 07 is genuine and bonfied work.

To the best of my knowledge and belief the matter is not submitted earlier for the

award of any degree either to Karnataka University, Dharwad or any other University.

DATE:

PLACE:

SAPNA N. PATTANSHETTI

MBA II Semester



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ACKNOWLEDGEMENT

This project gives me an opportunity to express my heartly thanks to those who helped

me directly or indirectly in the completion of project report.

I would like to express my gratitude Mr. SHRINIVAS JANGAL for their kind

permission to take this project at their esteemed organization. I express my sincere

gratitude to Mr. Naveen Kumar Naidu, UNIT MANAGER of ICICI Prudential Life

Insurance Company Ltd. Hubli.They guided me in each and every step, and also helped to

make the project report successfully and I also thank the Staff of ICICI Prudential Life

Insurance Company.

I would like to express my deep sense of gratitude to our beloved director and my

guide Prof. SUBRAMANIAM ,for his excellent guidance and constant inspiration and

support. And also I would like to thanks all the faculties of the institute.

I express my sincere thanks and dedicate my work to my parents and friends who

have been always a moral support and strong pillars at all works of my life.

SAPNA N. PATTANSHETTI

MBA II Semester



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CONTENTS

Part-I

i. Executive summary

Industry Profile

ii. Company Profile

iii. Objective of the study

Part-II

Functional Analysis

Plan Analysis

Part- III

1. Findings

2. Suggestions

3. Conclusion.

4. Annexure



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PART I



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EXECUTIVE SUMMARY

India's Number One private life insurer, ICICI Prudential Life Insurance Company is a

joint venture between ICICI Bank-one of India's foremost financial services companies

and Prudential plc- a leading international financial services group headquartered in the

United Kingdom. Total capital infusion stands at Rs. 20.60 billion, with ICICI Bank

holding a stake of 74% and Prudential plc holding 26%.

Life Time Super policy is a regular-premium unit-linked policy, which offers

potentially higher returns that systematically enable to meet long-term financial

objectives. In addition, Life Time Super also provides the protective benefit of an

insurance cover, which keeps family secure, always. In this plan the policy holder has the

flexibility to do withdrawal at the different lifestages depending upon the needs.

From the study suggestthe investors that , as the Life Time Super is a better tool

for integrated financial planning investing in Life Time Super creates asset by providing

flexible choice of funds to invest, it accumulates the asset by having the flexibility of

increasing investor accumulation by putting in extra premium whenever investor have

some money to put in. It also provides some other features like riders which protects the

health of the investor and meets the needs of Life stages. It has different benefits like

switching options, maturity benefit and death benefits.

From the study conclude that Life Time Super is a better as compared to any other

plans. It takes care of the investment and provides the protection against the health

hazards. Thus Life Time Super is the product that satisfies totally a different set of needs

and death benefit as a multiple of the annual premium .Thus, this is how Life Time Super

helps an investor to create, protect, and accumulate his investments.



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OBJECTIVE

To study how Life Time Super plan is an Asset Creation,Asset

Protection and Asset Accumulation for investor.

DATA COLLECTION APPROACH:

Primary Sources:

a) Interaction with policyholder

Secondary Sources:

a) Company Websites

b) Company Magzines , reports and publications



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INDUSTRY PROFILE

Life Insurance Market in India

Many may not be aware that the life insurance industry of India is as old as it is in

any other part of the world. The first Indian life insurance company was the Oriental Life

Insurance Company, which was started in India in 1818 at Kolkata.

A number of players (over 250 in life and about 100 in non-life) mainly with

regional focus flourished all across the country. However, the Government of India,

concerned by the unethical standards adopted by some players against the consumers,

nationalised the industry in two phases in 1956 (life) and in 1972 (non-life).

The insurance business of the country was then brought under two public sector

companies, Life Insurance Corporation of India (LIC) and General Insurance Corporation

of India (GIC).

In line with the economic reforms that were ushered in India in early nineties, the

Government set up a Committee on Reforms (popularly called the Malhotra Committee)

in April 1993 to suggest reforms in the insurance sector. The Committee recommended

throwing open the sector to private players to usher in competition and bring more choice

to the consumer.

The objective was to improve the penetration of insurance as a percentage ofGDP, which remains low in India even compared to some developing countries in Asia.

Reforms were initiated with the passage of Insurance Regulatory and Development

Authority (IRDA) Bill in 1999. IRDA was set up as an independent regulatory authority,

which has put in place regulations in line with global norms. So far in the private sector,

12 life insurance companies and 9 general insurance companies have been registered.



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COMPANY OVERVIEW

India's Number One private life insurer, ICICI Prudential Life Insurance Company

is a joint venture between ICICI Bank-one of India's foremost financial services

companies-and Prudential plc- a leading international financial services group

headquartered in the United Kingdom. Total capital infusion stands at Rs. 20.60 billion,

with ICICI Bank holding a stake of 74% and Prudential plc holding 26%.

They began their operations in December 2000 after receiving approval from

Insurance Regulatory Development Authority (IRDA). Today, their nation-wide team

comprises of over 580 offices, over 234,000 advisors; and 22 bancassurance partners.

ICICI Prudential was the first life insurer in India to receive a National Insurer

Financial Strength rating of AAA (Ind) from Fitch ratings. For three years in a row, ICICI

Prudential has been voted as India's Most Trusted Private Life Insurer, by The Economic

Times. As they grow their distribution, product range and customer base, they continue

to tirelessly uphold their commitment to deliver world-class financial solutions tocustomers all over India.

B.V.V.Sanghas Institute Of Management Studies, Bagalkot10


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ABOUT THE PROMOTERS

ICICI BANK

It is India's second largest bank and largest private sector bank with over 50 years

presence in financial services and with assets of over Rs 3446.58 bn as on March 31,

2007. The Bank offers a wide range of banking products and financial services to

corporate and retail customers through a variety of delivery channels and through its

specialised subsidiaries in the areas of investment banking, life and non-life insurance,

private equity and asset management. ICICI Bank is a leading player in the retail banking

market and services its large customerbase through a network of over 950 branches and

extension counters, 3300 ATMs, call centers and internet banking to ensure

that customers have access to its services at all times.

PrudentialPlc

Established in London in 1848, Prudential plc, through its businesses in the UK

and Europe, the US and Asia, provides retail financial services products and services to

more than 20 million customers, policyholder and unit holders and manages over 251

billion of funds worldwide (as of 31 December 2006).

In Asia, Prudential is the leading European life insurance company with life

operations in China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the

Philippines, Singapore,Taiwan, Thailand, Vietnam. Prudential is the second largest retail

fund manager for Asian as at June 2006.

Its fund management business has expanded into a total of ten markets : China,

Hong Kong, India, Japan, Korea, Malaysia, Singapore, Taiwan, Vietnam and United Arab

Emirates.



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What makes ICICI Prudential No. 1

The ICICI Prudential edge comes from their commitment to their customers, in all

that they do - be it product development, distribution, the sales process or servicing.

Following are the important points to know what makes ICICI Prudential No.1

1. Their products have been developed after a clear and thorough understanding of

customers' needs. It is this research that helps them develop Education plans that

offer the ideal way to truly guarantee child's education, Retirement solutions that

are a hedge against inflation and yet promise a fixed income after retire, or Health

insurance that arms customer with the funds they might need to recover from adreaded disease.

2. Having the right products is the first step, but it's equally important to ensure that

their customers can access them easily and quickly. To this end, ICICI Prudential

has an advisor base across the length and breadth of the country, and also partners

with leading banks, corporate agents and brokers to distribute their products

3. Risk management and underwriting practices form the core of their business.

With clear guidelines in place, they ensure equitable costing of risks, and thereby

ensure a smooth and hassle-free claims process.

4. Entrusted with helping customers meet their long-term goals, they adopt an

investment philosophy that aims to achieve risk adjusted returns over the long-

term.

5. Last but definitely not the least, their 16,000 plus strong team is given the

opportunity to learn and grow, every day in a multitude of ways. They believe this

keeps them engaged and enthusiastic, so that they can deliver on their promise to

cover customer, at every step in life.



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Ownership

It is to be , it is up to me

1. Take responsibility and see tasks through to completion.

2. Own mistakes, learn from failures.3. Be a team player ownership for team performance.

Passion

Boundless energy and enthusiasm

1. Exhibit winning instinct.

2. Demonstrate speed and urgency for achieving result.

3. Challenge status quor do things differently.

Integrity

Be honest and fair in what you say and do

1. Practice what you preach.

2. Stand up honesty and fearlessly for what is right.

3. Act in a consistent and aquitable manner.



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Company hopes to Achieve

Understanding the needs of customers and offering them superior products and

service

Leveraging technology to service customers quickly, efficiently and conveniently

Developing and implementing superior risk management and investment

strategies to offer sustainable and stable returns to our policyholders

Providing an enabling environment to foster growth and learning for our

employees

And above all, building transparency in all our dealings.



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Organization chart of

ICICI Prudential Life Insurance

Branch manager

Sales Manager Sales Manager

Unit Unit Unit Unit Unit Unit

Manager Manager Manager Manager Manager Manager

Advisor Advisor Advisor Advisor Advisor Advisor



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MANAGEMENT COMMITTEE

Board of Directors

The ICICI Prudential Life Insurance Company Limited Board comprises reputed

people from the finance industry both from India and abroad.

Mr. K. V. Kamath, Chairman

Mr. Barry Stowe

Mrs. Chanda Kochar

Mrs. Kalpana Morparia

Mr. H.T. Phong

Mr. M. P. Modi

Mr.R Narayanan

Mr. Keki Dadiseth

Mrs. Shika Sharma, Managing Director

Mr. N.S.Kannan, Executive Director

Mr. Bhargav Dasgupta, Executive Director



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Management Team

Mrs. Shika Sharma , Managing Director & CEO

Mr. N.S. Kannan Executive Director

Mr. Bhargav Dasgupta Executive Director

Mrs. Anita Pai , Chief customer service And Techonology

Mr. Azim Mithani , Chief Actuary

Mr. Puneet Nanda Chief Investments Officer

Mr. Binayak Dutta, Chief Sales And Distribution

Distribution

ICICI Prudential has one of the largest distribution networks amongst private life insurers

in India. As of January 31, 2007 the company has over 540 offices across the country and

over 200,000 advisors.

The company has over 20 bancassurnace partners, having tie-ups with ICICI

Bank, Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank, Idukki

District Co-operative Bank, Jalgaon Peoples Co-operative Bank, Shamrao Vithal Co-op

Bank, Ernakulam Bank and 9 Bank of India sponsored Regional Rural Banks (RRBs). It

has also tied up with NGOs MFIs and corporates for the distribution of rural policies



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PART II



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DEPARTMENTS OF ICICI PRUDENTIAL

1.1 Sales & Distribution

This section is divided into four parts:

Managers Utilities in section one will find important announcements for

managers, tools like pre-recruitments profiling, managers related initiatives, etc.

Advisor Utilities this section will hold advisor related tools like,

electronic benefits illustration, advisor Initiatives, Important announcements,

statutory changes that affect advisor, etc.

Contests details off all current contests that are running will be found

under this heading.

Contests Updates & Results Updates of all contest & results declare will

be available for view in this section

Group information on the group products, printable pre quote &

application forms, etc.will be hosed in this section.

1.1. Bancassurance & Alliances

Bancassurance or Banca as is it is commonly known includes our Bank

partners. The corporate agents and the alliance partners from the other member of

the team. The business philosophy at B&A is to leverage distribution synergies

with their partners and value to the business of both.



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1.2 Finance

MIS reviews current roles,

Planning evaluation next goals,

Internal audit assesses that rules are met,Compliance handles the Regulatory net,

CCU advisor cost trends,

Distribution payouts handles Sales spends,

EPU keeps customers thrilled,

Investments Operation measured the coffers filled,

Accounts provides the overall view,

Thats the 9-jewels team for you;

The CFO is at the helm,

Now, lets get to know each of them!!!

Planning & MIS monitoring of Organization performer Sales, Quality, trends

on a continuous basis. With insights into MIS, socio economic factors & competitors

behavioral patterns, they contribution to sales targets, strategic initiatives, projected

branches, projected work force the ahead!!!

Internal Audit Risk Management, Business Continuity Plan, Best practices,

policy manuals are not mere words on paper .adhere to them.

We ensure practice what you preach!!!!

Compliance We ensure that every action is within the regulator framework!!!

CCU-we ensure that every rupee is spent economically, prudently, cost effectively!!!

Distribution payouts we roll out commission payouts, referral, bonuses, contest spends

& effectiveness. Basically the sales goodies!!!

EPU- Cost discipline, expense processing vender payments, reimbursement, salary

payouts.they handles E-TRACK!!!



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Investment operation they being the custodian of investments, benchmark our

performance with the best in the industry. They manage the cash flow!!!

Accounts financial Accounting, Expense provisioning, Income Accrualsthey strive

on the excellence & transparency of our systems & controls, to keep the auditors,

customers & shareholders assured that the financial story is said right!!!

Driven by sheer professionalism, we strive relentlessly towards our Organization

Vision.

Together we can.and will make a difference!!!



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1.4 Human Resource:

Performance Management

They are committed to creating a performance driven culture through effective

management of performance of all staff members in a way that is mutually

beneficial. They drive the same by linking individual performance objectives to

business objectives and evaluating performances consistently and fairly.

Training & capability Development Programs

The focus of training & capability Development Programs is to develop key

competencies & skill among staff members so as to facilitate attainments of full

people potential. The various capability Development programs are fast tax.

Advantages, Grand Slam specifically designed for UMS, FSCs and Executives

respectively.

HR Policies & Procedures

The Policies and procedures laid down here promote the philosophy of the

Company with regard to standards of excellence; terms of employment;

employment Development; and employment services. The objective of the section

is to inform the policies related to Travel, Compensation, Med claim, Transfers

etc

1.5 Information Technology

Various IT initiatives under taken at ICICI Prudential are aimed at strengthening

the bond between the business and the use of technology.

There are 4 solution groups which are aligned with the different function of the

company.



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The Life Asia Solution Group Team managing Life Asia is core policy system.

Life Asia is a proven, reliable system operating on robust software, and on a hardware

platform providing ease of use. It provides the flexibility in designing better product

offerings to end user. This solution group also, manages the group solution software

packages. A critical aspect of our every day work lives is IT infrastructure and that is

managed by sub group in the Life Asia solution group.

All the forward thinking business are headed for web, as web presence integrated

with back end system allows for a strong self-service paradigm to be built for customers

and partners. We have solutions Group- Web which is constantly trying to provide real-

time information to our CRM initiative using the Goldmine packages, catering to the

Sales Force for lead management, and to customers services, for handling

quires/complaints/request.

Our group also has an architect who is in charges of developing and maintaining a

blueprint for the enterprise as a whole. This team works as an in house R&D Solution

group, exploring various tech initiatives for the future. Finally, our Corporate Solution

Group caters to the information needs of the corporate function like HR and financial.

This team also works towards running initiatives to drive up usages and derive returns on

our IT investments.



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The Insurance Regulatory and Development Authority

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.

The other decisions taken simultaneously to provide the supporting systems to the

insurance sector and in particular the life insurance companies was the launch of the

IRDAs 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, which are expected to be introduced by early next year.

Since being set up as an independent statutory body the IRDA has put in a

framework of globally compatible regulations. In the private sector 12 life insurance and

6 general insurance companies have been registered.



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Insurance plans at a glance

Broadly, insurance plans can be distinctly divided into ULIPs and traditional

plans. A brief detail of both segments.

Unit Linked Insurance Product

ULIPs have gained high acceptance due to attractive features they offer. These

include:

1. Flexibility

Flexibility to choose Sum Assured.

Flexibility to choose premium amount.

Option to change level of Premium /Sum Assured even after the plan has started.

Flexibility to change asset allocation by switching between funds

2. Transparency

Charges in the plan & net amount invested are known to the customer

Convenience of tracking ones investment performance on a daily basis.

3. Liquidity

Option to withdraw money after few years (comfort required in case of

exigency)

Low minimum tenure.

Partial / Systematic withdrawal allowed

4. Fund Options

A choice of funds (ranging from equity, debt, cash or a combination)

Option to choose your fund mix based on desired asset allocation



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Traditional Plans

These are the oldest types of plans available. These plans cater to customers with

a low risk appetite. Some of the common features of traditional plans are:

1. Steady Investment

Major chunk of investible funds are in debt instruments

Steady and almost assured returns over the long term

2. Features

Death benefit is Sum Assured + guaranteed & vested bonus

Helps in asset creation as they are for a long tenure

Premium to Sum Assured ratios are fixed for each plan and age.

Generally withdrawals are not allowed before maturity

Products

Insurance Solutions for Individuals

ICICI Prudential Life Insurance offers a range of innovative, customer-centric products

that meet the needs of customers at every life stage. Its products can be enhanced with up

to 4 riders, to create a customized solution for each policyholder.

Savings & Wealth Creation Solutions

These solutions give the customer the dual benefit of protection along with the potentially

higher returns of market-linked instruments.

CashPlus



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It is a transparent, feature-packed savings plan that offers 3 levels of protection as well

as liquidity options



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Save'n'Protect

It is a traditional endowment savings plan that offers life protection along with

adequate returns.

CashBak

It is an anticipated endowment policy ideal for meeting milestone expenses like a

child's marriage, expenses for a child's higher education or purchase of an asset. It is

available for terms of 15 and 20 years

LifeTime Super & LifeTime Plus

These are unit-linked plans that offer customers the flexibility and control to

customize the policy to meet the changing needs at different life stages. Each offer 4 fund

options - Preserver, Protector, Balancer and Maximiser.

Life Time Super policy is a regular-premium unit-linked policy, which offers

potentially higher returns that systematically enable to meet long-term financial

objectives. In addition, Life Time Super also provides the protective benefit of an

insurance cover, which keeps family secure, always.

LifeTime Plus-is the only unit-linked plan that provides the family with both,

Sum Assured AND Fund Value. Both these amounts ensure customer loved ones remain

financially secure, regardless of life's uncertainties. This ideal wealth creation plan alsoserves as a protective insurance cover.

LifeLink Super

It is a single premium unit linked insurance Plan which combines life insurance

cover with the opportunity to stay invested in the stock market. It works best for

investors who have in mind long-term financial goals, such as the education of a

child or the purchase of a larger home.



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Premier Life Gold

It is a limited premium paying plan specially structured for long-term wealthcreation. It Is one of the finest wealth creation plans available, Premier Life Gold

provides with the benefit of paying premiums for a brief period but enjoying the benefits

of cover and potentially higher returns over the long run.

simply, Premier Life Gold ensures customer to enjoy long-term benefits even

when they make short-term investments.

Invest Shield Life New

It is a unit linked plan that provides premium guarantee on the invested

premiums and ensures that the customer receives only the benefits of fund appreciation

without any of the risks of depreciation.

InvestShield Cashbak

It is a unit linked plan that provides premium guarantee on the invested

premiums along with flexible liquidity options

Protection Solutions

LifeGuard

It is a protection plan, which offers life cover at low cost. It is available in 3

options - level term assurance, level term assurance with return of premium & single

premium.



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HomeAssure

It is a mortgage reducing term assurance plan designed specifically to help

customers cover their home loans in a simple and cost-effective manner.

Child Plans

Education insurance

Under the SmartKid brand provides guaranteed educational benefits to a child

along with life insurance cover for the parent who purchases the policy. The policy is

designed to provide money at important milestones in the child's life. SmartKid plans are

also available in unit-linked form - both single premium and regular premium.

Features and benefits of SmartKid

SmartKid offers an exclusive choice of 3 education insurance plans: SmartKid

New Unit-linked Regular Premium, SmartKid New Unit-linked Single Premium and

SmartKid Regular Premium.

1. SmartKid New Unit-linked Regular Premium

SmartKid New Unit-linked Regular Premium is a unit-linked plan, which enables parent

and their child to accumulate wealth by virtue of the performance of the underlying

market-linked instrument.



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Features

Premium: The minimum premium to be invested is Rs. 10,000 per annum. After

deducting premium allocation charges from the premium, the remaining amount will be

invested in a fund of their choice.

Sum Assured: The minimum Sum Assured that the policyholder can opt for is Term *

Annual Premium/2, subject to minimum of Rs 1 lac.

Policy term: The term of the policy will be calculated as the difference between child's

current age and the age of child when the policy matures.

Mortality, Policy Administration charges: These and other charges will be deducted

from the units in the fund.

2. SmartKid New Unit-linked Single Premium

SmartKid New Unit-linked Single Premium works in much the same way as

SmartKid New Unit-linked Regular Premium policy mentioned above. The only different

feature is the premium amount will be required to pay only a single premium, which starts

at as low as Rs. 50,000

3. SmartKid Regular Premium

Flexible investment option: Choosing the amount of premium with which you

wish to safeguard child's education.

Flexible policy tenure: The tenure of the plan will be calculated as the

difference between childs current age and his or her age at which the policy matures.

Flexible premium options: The premium will be calculated based on 3

factors: Sum Assured, policy tenure and your age.

Guaranteed bonus:A guaranteed bonus of 3.5% per annum is declared for the first 4premium paying years plus an annual vested bonus declared in subsequent years.



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Retirement Solutions

ForeverLife

It is a traditional retirement product that offers guaranteed returns for the first 4 years and

then declares bonuses annually.

LifeTime Super Pension

It is a regular premiumunit linked pension plan that helps one accumulate over the long

term and offers an annuity option (guaranteed income for life) at the time of retirement.

LifeLink Super Pension

It is a single premium unit linked pension plan.

Health Solutions

Health Assure and Health Assure Plus:

Health Assure is a regular premium plan which provides long term cover against 6 critical

illnesses by providing policyholder with financial assistance, irrespective of the actual

medical expenses. Health Assure Plus offers the added advantage of an equivalent life

insurance cover.



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Cancer Care:

It is a regular premium plan that pays cash benefit on the diagnosis as well as at different

stages in the treatment of various cancer conditions.

Diabetes Care:

Diabetes Care is the first ever critical illness product specially for individuals with Type 2

diabetes. It makes payments on diagnosis on any of 6 diabetes related critical illnesses,

and also offers a coordinated care approach to managing the condition. Diabetes Care

Plus also offers life cover

Group Insurance Solutions

ICICI Prudential also offers Group Insurance Solutions for companies seeking to

enhance benefits to their employees.

Group Gratuity Plan:

ICICI Pru's group gratuity plan helps employers fund their statutory gratuity obligation

in a scientific manner. The plan can also be customized to structure schemes that can

provide benefits beyond the statutory obligations.

Group Superannuation Plan:

ICICI Pru offers both defined contribution (DC) and defined benefit (DB) superannuation

schemes to optimise returns for the members of the trust and rationalise the cost.

Members have the option of choosing from various annuity options or opting for a partial

commutation of the annuity at the time of retirement.



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Group Immediate Annuities:

In addition to the annuities offered to existing superannuation customers, we offer

immediate annuities to superannuation funds not managed by us.

Group Term Plan:

ICICI Pru's flexible group term solution helps provide affordable cover to members of a

group. The cover could be uniform or based on designation/rank or a multiple of salary.

The benefit under the policy is paid to the beneficiary nominated by the member on

his/her death.

Flexible Rider Options

Riders are extra benefits attachable with the main policy, which provides added

protection against specific risks at a nominal extra cost.

Features of Riders

Riders can be attached to policies from the beginning or on policy

anniversary date.

Once attached, a rider can be discontinued at a later date.

The combined premiums of all riders attached to a policy cannot be

greater than 30% of the premium of the basic plan

The sum assured of an individual Rider cannot Exceed Rs.10 Lakh and

cannot exceed the sum assured of the basic plan.

Riders are pure risk covers and hence have no maturity benefits.

ICICI Pru Life offers flexible riders, which can be added to the basic policy at a

marginal cost, depending on the specific needs of the customer.



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Accident & disability benefit:

If death occurs as the result of an accident during the term of the policy, the beneficiary

receives an additional amount equal to the rider sum assured under the policy. If the death

occurs while travelling in an authorized mass transport vehicle, the beneficiary will be

entitled to twice the sum assured as additional benefit.

Critical Illness Benefit:

It protects the insured against financial loss in the event of 9 specified critical illnesses.

Benefits are payable to the insured for medical expenses prior to death.

Income Benefit:

This rider pays the 10% of the sum assured to the nominee every year, till maturity, in the

event of the death of the life assured. It is available on SmarKid and CashPlus .

Waiver of Premium:

In case of total and permanent disability due to an accident, the future premiums continue

to be paid by the company till the time of maturity. This rider is available with LifeTime

Super, LifeTime Super Pension and CashPlus.



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Life Time Super

Life Time Super policy is a regular-premium unit-linked policy, which offers potentially

higher returns that systematically enable to meet long-term financial objectives. In

addition, Life Time Super also provides the protective benefit of an insurance cover,

which keeps family secure, always.

Key Benefits of LifeTime Super

Potentially higher returns over the long term by investing in unit-linked

funds

Additional allocation of units at regular intervals to boost investment

Option to withdraw money systematically over a period of 5 years on

maturity of the policy

In case of an unfortunate event of death, the family will receive Sum

Assured or Fund Value, whichever is higher

Cover Continuance option available which ensures continuance of lifeinsurance cover, even if customer wish to take a temporary break in

premium payment

Tax benefits on premiums paid and benefits received under the policy, as

per the prevailing Income Tax Laws

Policy works in the following manner

1. Customer need to choose the premium amount, term and Sum

Assured for which he wishes to take the policy.

2. After deducting premium allocation charges, the balance amount is

invested in the investment fund(s) of their choice.

3. Customer can opt for add-on riders available under the policy.



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4. On survival, the maturity benefit is paid to the policyholder. In the

unfortunate event of death, the nominee receives the higher of Sum

Assured or the Fund Value.

ICICI Prudential Life insurance Company offer customer 4 investment funds. They havethe option to choose how they want their investments to grow, based on the objectives of

each of the funds. Given alongside are the investment objective and asset allocation of

each of the funds:

Fund name and its

objective

Asset allocation Min Max Potential

Risk-

Reward

Maximiser: Long Term

Capital Appreciation

Equity & Equity

Related Securities

Debt, Money Market &

Cash

75%

0%

100%

25%

High

Fund name and its

objectiveBalancer: Balance of

growth and steady

returns

Equity & Equity

Related SecuritiesDebt, Money Market &

Cash

0%

60%

40%

100%

Moderate

Protector: Accumulate

steady income at a lower

risk

Debt Instruments,

Money Market

& Cash

100% 100% Low

Preserver: Protection of

capital through very low

risk investments

Investments upto 20%

can be allocated to this

fund.

Debt Instruments

Cash & Money Market

0%

50%

50%

100%

Capital

Preservation

Max.



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Potential Risk-Reward

Fund name and its objective

SWITCHING OPTION

Under this option you can switch your investment between the funds at any time

(provided the policy is in force), depending on your financial priorities and investment

objective. In any policy year, 4 switches can be done free of charge. The minimum switch

amount is Rs.2,000.

Maturity Benefit

On maturity of this policy, you will be entitled to receive the Fund Value at the time of

maturity. Alternatively, you can opt for the Settlement Options available

Settlement Options

On maturity of the policy, you can choose to take the Fund Value as a structured benefit.

With this facility, you can opt to get payments on a yearly, half-yearly, quarterly or

monthly (through ECS) basis, for a period 3 of 1,2,3,4, or 5 years, post maturity

(settlement period) . At any time during the settlement period, you have option to

withdraw the entire fund value.

Death Benefit

In the unfortunate event of death during the term of the policy, the nominee shall receive

the higher of Sum Assured (net of permissible 1 partial withdrawals) and the Fund Value.

Cover Continuance option

This option ensures that your life insurance cover continues in case you are unable to pay

premiums, any time after payment of first three years' premium. All applicable charges



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will be automatically deducted from the units available in your fund. You need to opt for

cover continuance, if 4 you wish to avail of this benefit

Additional Protection with Riders.

Riders Benefit

Accident and Disability

Benefit Rider (ADBR)

In the event of death or disability due to

an accident, the rider benefit amount

would be paid accordingly

Critical Illness Benefit

Rider (CIBR)

In the event of the Life Assured being

diagnosed for any of the specified critical

illness, the rider benefit amount would be

paid.

Waiver of Premium

Rider (WOPR)

In the event of total and permanent

disability due to an accident, all further

premiums till maturity would be paid by

the company.

.

Rider charges for opted riders will be recovered by cancellation of units .

surrender values

Policyholder can surrender their policy. Surrender values are available to them after

deducting surrender charges and would depend on the number of completed policy years.

Following are the surrender values applicable after payment of full 3 years' premium.

No.of Completed years of the

policy

Surrender value as a % of fund

value

3 years 98%

4 years 99%

5 years and above 100%



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Life Time Super at-a-glance

Minimum / Maximum Entry Age 0 - 65 years

Maximum Age at Maturity 18-75 years

Minimum / Maximum Policy

Term

10 - 75 years

Premium Payment Frequency Yearly, Half-yearly, Monthly

Minimum Premium Rs.18,000 per annum

Minimum Sum Assured Annual Premium x Term/2, subject to a

minimum of Rs.1,00,000.

Tax Benefit Premium paid for the policy and critical

illness benefit rider will be eligible for

tax benefit under section 80C & 80D

respectively. Any benefit amount

received under this policy will beeligible for the tax benefit under section

10 (10D), as per prevailing Income Tax

laws.



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Positioning Of Life Time Super

It is necessary to understand few terms before going through the various financial

planning ways.

Save : This is an activity that helps in the Asset Accumulation. It has both short term

and long term perspective. The short term Perspective: is putting aside the extra money

after expenses into one place like a bank. The long-term perspective is when savings is

done keeping in mind certain specific goals.

Invest : This is an activity that focuses Asset Creation. It involves making money

from money. The focus here is on capital growth. This has a long term perspective; for

example the money, which you save after having met your expenses, they put in various

long-term securities to gain returns and thereby creating financial assets. For example

they create assets by putting our savings into equity investments, thereby creating a

financial asset over a long-term or a by buying a property thereby creating a physical

asset. Where they invest depends on the level of risk tolerance.

Spend: This is an activity of using the money for your expenses. This can be done to

meet your day-to-day expenses or to meet any exigencies. A part of your income goes in

spending, which is nothing but protecting your lifestyles. So the act of spending is

nothing but protecting your life styles, your lives and hence your assets.



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Spend

Save

To summarize these three activities can look into the following manner

Income

Save Asset Accumulation

Invest Asset Creation

Spend Asset Protection

The following diagram shows, the way to appreciate the need for better and sound

financial planning.

Income

This is situation in most of the house holds,

based on the premises of taking care of all

Customer expenses first before they can save

anything.

More often than not this results into financial

Failure over the Long-term.

Financial Failure



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Save

Spend

Income

Save

Invest

Spend

Income

This is a situation that is an idea one where the

system is to keep aside money for savings and

then spend. This does not take into account

unexpected expenses that may occur time to

time.

Not feasible all the time when laege expenses

occur and this savings gets depleted.

This may lead to a situation of financial

dependency.

Financial Dependency

This is a more independent situation

because with savings you are also making

investments. This is the difference between

asset accumulation and asset creation

investments create assets, where as savings

accumulate assets. You use savings to meet

unexpected expenses and investments to meet

your long-term goals

This is the state of financial independence.

Financial Independence

This is assumed to be the best possible form of financial planning. But this does not take

into consideration the one big

Concept-protection.



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Income

This may lead to the state of financial failure

Life Time provides Asset Protection, Asset Creation And Asset

Accumulation

Protection A/c Investment A/c

This is the A/c that provides This is the A/c that providesProtection by safeguarding financial Freedom with asset accumulation and

Against the 3D effect asset creation in the long run

DEATH, DISABILITY A unique combination Life time super offers the

OR CRITICAL DISEASE of protection and unique facility of putting

Life time super can protect investment, that aside money for asset

Assets in case of death, or provides with the creation. It has the option

On contration of critical benefit of both of investing in 4 fund

Diseases by paying money thereby acting as a options. It also gives the

Without affecting complete financial flexibility of withdrawal

Investments, Also it pays solution to meet periodic needs

To spend and save in case

Of disability .It provides

Protection against 9 critical

Diseases.


Save

Invest

Spend


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Asset Protection

Life Insurance

The customer has the flexibility of choosing a sum assured that suits his life stage needs.

The customer has the flexibility of increasing the sum assured whenever he wishes. This

gives the customer the control to direct his investment in insurance as per the life stage

depending upon his needs.

Health Protection

The customer has the flexibility of choosing a rider cover that he wishes to take, which

can be a maximum of basic Sum Assured or 10,00,000 whichever is lower. Thus if the

customer is already covered with a medical policy, he can choose to have a lower Sum

Assured under the Health Rider that amount for investment. The customer also avails of

the tax benefits available under section 80D for the Critical Illness Rider Premium. The

riders are in-force till the age of 65 years, which gives the individuals the health

protection in the posy-retirement phase as well.

It provides protection against 9 dreaded diseases. These are

Major organ Transplant

Complete renal Failure

Stroke

Paralysis

Heart attack

Valve Replacement Surgery

Major Surgery of the Arota

Coronary Artery Graft Surgery(bypass)

Cancer



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It also covers for the unfortunate event of Living Dead with the attachment of CIBR

Rider with it .This rider provides with cover against 9 critical illness without affecting

investment A/c at all. Total protection against the eventualities of your life and yet

keeping investment growing.


The3D

EffectDeath

Dreaded

Disease

Disability

On death, the

policyholder

would be paid the

sum assured orfund value at that

point of time

total protection of

life

In the unfortunate event of

disability due to accident,

Life Time Super ensures

an annual payment for 10

years fornormalsustenance and investmentA/c remains intact. Total

protectionagainst theunforeseen & protection ofassets too.

Life Time Superprovides protection

against 9 dreaded

diseases.

It works separately

from investment a/c

pays more money incase of you confront

any one of these. total

protection against the

unfortunate events that

may leave one as

Living Dead.

This is enabled by

the flexible

feature of the

product, where on

death the life

assured would gethigher of the

chosen Sum

Assured or Fundvalue

Life Time Super

also covers for

the unfortunate

event of

permanent

disability with its

ADBR and

WOP. This rider

pays money for10 years to take

care of expenses

inthose years ofloss income


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Asset Creation

Lifetime Super provides the opportunity for long=term asset creation along with

protection. This product provides with flexible features so that customer can grow

investments in the long run. It is an established fact that putting aside money regularly

leads to long-term wealth creation.

The regular premium that customer pay is directed into his investment A/c as per the

option chosen by him. The value of this investment grows over time. Customer can track

the portfolio regularly and make changes depending on his needs.

It helps in asset creation in the following manner.


Life Time Super regular Premium

Part of the premium

towards the policy

expenses

Allotment of

UNITS

This goes to protection

A/c to provide a cover

against the 3D effect of

Death, Disability And

dreaded Diseases.

Insurance

Charges

Units that build up your

investment value

Various Investment

options, facility of

Withdrawals and

investing back ininvestment A/c

This is customer investment A/c.The units that are bought with the premium, which the

customer paid, first take care of their protection and then remaining amount is put into their

investment account. Here they have various options of investments as per their choice and

priorities. This is the account where their money grows over a long period of time.


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Life Time Super being a regular premium product serves as the right product for

disciplined savings over a long period of time. The other benefit of this disciplined saving

is that it helps in accumulating units over a period of time at an average cost that is lesser

than the average unit value over the same period. This happens because of Rupee-Cost

Averaging. Thus the policyholder over a long-term creates value from his investments.

Concept of Rupee-Cost Averaging

Rupee-Cost Averaging is achieved by regularly investing a fixed amount of money into a

particular fund, over a long-term period, regardless of the state of the market.

By doing so , one would effectively, buy more units when the markets are down and he

prices are low, and fewer units at lower prices. Thus the average cost of acquisition of the

units would be less than the average unit price over the same period.

Rupee-Cost Averaging provides the benefit of regular investment to the policyholders.

This type of an investment pattern is also known as systematic Investment Plan.

This approach helps in decreasing the Cost of acquisition of units as compared to the

average during the same period time, there by creating value in the long-term.



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ACCUMULATION

Asset Accumulation is the last key in financial independence and freedom apart from the

other two pillars of Asset Protection and Asset Creation.

Life Time Super works like other Savings Bank A/c. Customer has the flexibility of

accumulating their money in Life Time Super just as they would do in a bank A/c.

He has the flexibility to take out money of their account for any of their requirements

without having to pay any costs, which is how they use their accumulation account.

They also have the flexibility of increasing their accumulation by putting in extra

premium whenever they have the money to put in .This gives them the benefit of getting

all the accumulation, all savings done only in one account, which is what a perfect

accumulation is all about. A unique opportunity for customer to accumulate all their

wealth at one place.



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Life Time Super would provide the benefit of doing all the three Asset Protection,

Asset Creation and Asset Accumulation in one single policy.


Cover against

the 3D Effect.

Provides you

with Death

Benefit+Cover

Against

Disability+Cov

er Against

Critical

Illnesses

Asset

Protection

Asset

Creation

Asset

Accumulation

Asset creation

with Rupee-cost

Averaging,

Opportunity to

earn reasonablyhigh returns.

Opportunity to

invest in various

plansofcustomer choice

An ideal accumulation vehicle for policyholder.

Provides the benefit of an account which grows

while taking care of theeir your expenses.

Provides the benefit of investingmore amount ofmoney.


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PART III



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FINDINGS

o It provides the customers, the flexibility of increasing the sum assured

which suits investors life stage needs.

o Life Time Super provides health protection by providing a feature like

rider

o Life Time Super also covers you for the unfortunate event of Living

dead with flexible features like 6 choice of funds to grow their

investments in long-run

o This plan has the flexibility to take out money of policyholder account for

any of their requirements without having to pay any costs, which is how

they use their accumulation account.

o The concept of Rupee-cost Average minimizes the timing risk. A sustained

investment plan would always create value in the long-term for the policy

holders, irrespective of the existing investment market conditions.

o The switch option gives the policy holder / investor the control to change

the investment patterns with changing needs at different lifestages.



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SUGGESTIONS

As the Life Time Super is a better tool for integrated financial planning, investing

in Life Time Super creates asset by providing flexible choice of funds to invest, it

accumulates the asset by having the flexibility of increasing investor accumulation by

putting in extra premium whenever investor have some money to put in. It also provides

some other features like riders which protects the health of the investor and meets the

needs of Life stages.



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CONCLUSION

Life Time Super is positioned as a long term wholesome financial products that

takes care of the investment, insurance makes and provides the protection against the

health hazards. Thus Life Time Super is the product that satisfies totally a different set of

needs and death benefit as a multiple of the annual premium. It also provides the

flexibility to control the insurance & savings, according to the needs of the individual at

different life stages.

Thus, this is how Life Time Super helps an investor to create, protect, and

accumulate his investments.

Documents

“A STUDY ON LIFE TIME SUPER PLAN OF ICICI PRUDENTIAL LIFE INSURANCE CO. LTD”