LIST OF APPENDICESshodhganga.inflibnet.ac.in/bitstream/10603/27841/17/17...surrender value is 90% of the basic premiums paid excluding the first year’s premium. In case of a single

LIST OF APPENDICES

Appendix-1 Comparison of Traditional Products

PRODUCT COMPARISON - TRADITIONAL

LIC - Jeevan Nidhi LIC- New Jeevan Suraksha-I

SBI Life - Lifelong Pension Plus

TATA AIG Assure Golden Years

Plan / Type of Plan Traditional - Deferred Annuity with life cover

Traditional – Deferred Annuity Plan

Traditional pension plan

Traditional – deferred annuity

Term

6 to 35 years under Single Premium policies and 5 to 35 years under Regular Premium policies

Min 5 years Max 40 years

Premium Payment Mode

Yearly, Half-yearly, Quarterly, SSS & Single Premium

Yearly, Half-yearly, Quarterly, SSS & Single Premium

Single or Regular payment You can contribute additionally during the policy term. Monthly, Quarterly, half yearly, yearly

Monthly / Quarterly / Half yearly / Annually

Entry Age

Min 18 Max 65

min 18 yrs and Max 65 yrs

Min 18 Max 50

Maturity Age

Min 40 Max 75

Min 40 yrs Max 70 yrs

Sum Assured

Rs.50,000/- and in multiples of Rs.5,000/- thereafter, with no upper limit.

Min SA Rs. 50,000 Max Rs. 10 lacs

Minimum Rs. 25,000/-

Premium Amount

Min Annual Premium Rs. 3,000 Min Single Premium Rs. 10,000

Annualized min prem amount for Regular - Rs. 7,500 Annualized max prem amount for Regular - No limit Annualized min prem amount for single - Rs. 50,000 Annualized max prem amount for single - No limit Additional contribution amt Min Rs, 2,000 Max No limit

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Retirement Benefits

Option to commute upto 1/3 of the vesting amt. which shall include SA, accrued guarantee additions, bonuses Annuity on the balance amount if commutation is exercised, otherwise annuity on the full amount

At maturity the policyholder can encash up to a maximum 25% of the maturity proceeds as a tax-free lump sum. The balance should be compulsorily converted to an annuity at the rates applicable at the time of maturity of the policy.

Option to prepone or postpone the vesting age.

Sum assured on maturity. Guaranteed addition of 10% in case of death or on maturity if the policy is in force for 10 yrs.

Death Benefits

On the death of the Life Assured during the deferment period of the policy, i.e. before the annuity vests, an amount equal to the SA under the Basic plan along with the accrued Guaranteed Additions, simple Reversionary Bonuses and Terminal Bonus, if any, will be paid in a lump sum to the appointed nominee, provided the policy is in force for full SA. Nominee will also have the option to purchase an annuity with this amount.

On death of the Life Assured during the term of the policy the basic premiums paid, excluding any rider premiums or extra premiums, up to the date of death accumulated with interest at such rates as decided by the Corporation will be payable to the nominee. Currently, the interest rate is 3%, 4% or 5 % if the death occurs within the first 10 years, 20 years or thereafter respectively

If death occurs the accumulated FV will be paid to the Nominee or legal heir. Term cover SA if opted for is also payable and the policy terminates thereafter.

On death nominee will get sum assured.

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Options of Taking Pension

Annuity for life - till the person is alive Annuity Guaranteed for certain periods - annuity is paid for 5,10,15, 20 yrs as chosen whether survives or not. After this period the Annuity is paid to the person as long as he/she is alive. Annuity with return of purchase price on death: The annuity is paid to the life assured as long as he/she is alive. On the death of the life assured, the purchase price of the annuity is paid as death benefit.The amount is increases every year at a simple rat eof 3% per annum Joint Life Last Survivor Annuity: The annuity is paid to the life assured as long as he/she is alive. On death of the life assured, 50% of the annuity is payable to the nominated spouse as long as the spouse is alive Guaranteed additions @ Rs. 50 per thousand SA for each completed year for the first five years From 6th year the bonus will get.

(i) annuity payable for remainder of life (ii) annuity payable for life with guaranteed period of 5, 10, 15 or 20 years (iii) Joint life and last survivor annuity to the annuitant and his/ her spouse under which annuity payable to the spouse on death of the purchaser will be 50% of that payable to the annuitant (iv) Life annuity with a return of purchase price on death of the annuitant (v) Life annuity increasing at a simple rate of 3% per annum

i) Purchase annuity plan for the entire amount ii) commute upto one third of FV as lump sum and the Balance can be used for the purchase of annuiy. iii) 2% discount if annuity is purchased from SBI Life.

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Riders

Choice of Add on covers e.g. Term cover, Total Permanent Disability cover In Total Permanent Disability cover if the person is incapacitated then the SA will be paid

Term benefit, accident benefit, disability benefits, critical illness benefits with a nominal extra charge.

Bonuses

Simple Reversionary Bonuses are declared per thousand Sum Assured annually at the end of each financial year. Once declared, they form part of the guaranteed benefits of the plan. Final (Additional) Bonuses may also be payable provided policy has run for a certain minimum period.

Guaranteed additions of 10% of annual premium on 15th policy anniversary and 10% of annual premium on every 5th policy anniversary thereafter in case of regular premium policy whereas single premium policy 1% of single premium every on 15th anniversary and 1% of single premium on on every 5th policy anni. Thereafter.

Reversionary and terminal bonus. Death and maturity benefit may further be increased by way of bonuses depends on actual company’s performances.

Tax Benefits

The premiums are exempt under section 80CCC of IT Act.

Tax relief under Section 80ccc is available on premiums paid under New Jeevan Suraksha I

80 C At the vesting 1/3rd of the amount received under commutation is exempt u/s 10(10A)(iii) of IT Act

As per current IT law

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Surrender

The policy may be surrendered after it has been in force for 2 years or more but before the vesting date. The guaranteed surrender value is 90% of the basic premiums paid excluding the first year’s premium. In case of a single premium policy the guaranteed surrender value is allowed after 2 years from the date of commencement of the policy.

Regular Premium: 1st-NA, 2-15%, 3-10%, 4-5%, 5-5%, 6-3%, 7-3%, 8,9,10-2%, 11-1% Single Premium 1st-NA, 2-5%, 3-4%, 4-3%, 5-2%, 6,7,8,9,10-2%, 11-1%

Guaranteed cash value of poliy is equal to 30% of the total amount of premium of basic policy paid, excluding 1st yr premium and all extra premium of basic policy provided premium has been paid for at least 3 consecutive years.

Loans

Loan is not available

Automatic premium loan – in case you are unable to pay the premium within the grace period, it will be advanced as an automatic loan.

Charges

Charges for Regular premium: 1st Year for prem. Upto Rs.49,900/- 15%p.a. of the annual prem. Above Rs. 50,000 and above 12% p.a. of the annual prem. 2nd year onwards 4% of annual premium Additional prem contribution allocatin charges 3% Charges for Single Premium: 1st year for prem upto Rs.199,900 - 4% of the single premium For premium Rs.200,00 and above 3.50% of the single premium. 2nd year onwards - No charge

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Other Reduced paid up value- this benefit comes into effect if 3 annual premiums paid wherein SA is reduced in proportion to the no. of premiums actually paid to the total no. of premiums payable. On maturity or in death a reduced SA would be payable. Reduced amount does not participate in any future bonus and guaranteed addition. Reinstatement: within 5 yrs after the due date of first unpaid premium.

Appendix-2 Comparison of ULIP products

PRODUCT COMPARISON - ULIP

LIC Pension Plus TATA AIG – Life Invest Assure Future

SBI Life - Smart Pension

Plan / Type of Plan ULIP- deferred pension plan (No Life cover)

Unit Linked Unit linked deferred Pension plan

Premium Paying Term

Min 10 years

10 yrs / 15 yrs / 20 yrs / 25 yrs


Monthly, Quarterly, half yearly, yearly (through ECS) single premium can be paid

Single / annually / semi-annually / quarterly / monthly Regular – Min 10 Max 35 yrs Single – lump sum

Single premium

Entry Age

Min 18 Max 75

Regular prem– Min 18 max 65 Single prem Min 18 Max 70


Maturity Age

Min 40 Max 85

Regular prem– Min 45 max 75 Single prem Min 45 Max 75


Sum Assured

Min.Rs. 15,000 p.a., Rs. 1,500 p.m. Single premium Rs. 30,000 Max Rs.1,00,000 p.a. Single premium no limit

Premium Amount

Min.Rs. 15,000 p.a., Rs. 1,500 p.m. Single premium Rs. 30,000 Max Rs.1,00,000 p.a. Single premium no limit

Min. Regular – Rs. 10,000/- Min Single – Rs. 25,000/-

Min Rs. 50,000 Max - No limit

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Retirement Benefits

Guaranteed interest shall accrue on the gross premium including top-up premiums at the end of financial year. Min 3% and Max 6% int rate. The minimum guarantee rate of 4.5% p.a. is applicable to all premiums received upto 31.3.2011 including top-ups No partial withdrawal is allowed

Option of future capital guarantee is a twin benefit of market linked returns and capital guarantee. Maturity Benefit: total fund value, top ups if any with guaranteed bonus. 1/3 lump sum with guaranteed bonus is tax free and remaining to purchase annuity.

Guaranteed amount of maturity or vesting Minimum guaranteed return of 4.5% per annuam (on gross prem) The guaranteed interest rate shall be50 basis points above the average of the reverse repo rate prevailing as on last working day of June, September, December and March. Phased retirement income (option to take multiple single premium policies)

Death Benefits

No life cover. Nominee will receive total fund value, top-up premium with guaranteed bonus. Capital guarantee is not applicable in case of death / surrender / lapsation

If death occurs the fund value is payable in lumpsum to the nominee or legal heir of the the policyholder


Option to commute max 1/3 on fund value and guaranteed maturity proceeds in the event of vesting if policy is discontinued or surrendered within 5 yrs from the date of commencement

i) Purchase annuity plan for the entire amount. ii) commute upto one third of fund value as lump sum and the balance can be used for the purchase of annuity. You can avail 2% discount on annuity purchase price if buy from SBI life.

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Bonuses

Guarantee bonus: 10-14 yrs – 3%, 15-19 yrs – 4.5% 20-29 yrs – 6% 30-35 yrs – 7%

Tax Benefits

80 CCC Under Sec. 80 CCC and 10 (10A) iii of Income Tax Act 1961

Surrender

Discontinuance charge: Annual premium below 25,000 : 1st yr - max . Upto 2500/-, 2nd year - max upto 1,750, 3rd year - max upto 1,250 4th yr - max upto 750/-, 5th and thereafter nil Annual premium above 25,000: 1st year max upto 6,000/- 2nd year - max upto 5,000, 3rd year - 4,000 4th year - max 2,000 and 5th and onwards - nil No discontinuation charge for single premium

If surrender before lock in (i.e. 5 yrs) then the fund value at the time of surrender request is disinvested and credited to Discontinued Policy fund, there are no surrender charges. surrender value plus investment income accumulated subject to min. of 3.5% p.a. be credited to Discontinued Poicy. If death occurs before the payment of surrender value then the death claim is paid to the beneficiary or nominee immediately.

Loans


No loan No loan

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Allocation charges single premium policies : 3.3% Regular premium : 1st year - 6.75% 2nd to 5th year - 4.50% thereafter 2.50% allocation charges for top up charges - 1.25%

Future equity pension fund – 50%, Future income pension fund – 50% Regular: Rs.10,000 – 49,999/- 1st yr-15%, 2-12%, 3-3%, 4-3%, 5-3%, 6 or above 0% Rs.50,000 – and above 1st yr-13%, 2-12%, 3-3%, 4-3%, 5-3%, 6 or above 0% Single premium: 25000 to 99999 – 6% 1 lc to 499999 -4% 5 lac to 9999999 – 3% 10 lac and above – 2%

Premium allocation charges - 3% of single premium

Fund Management charges

Fund Management Charges: 0.70% p.a. of unit fund for Debt fund 0.80% p.a. of unit fund for mixed fund

Future equity P.Fund – 1.25% Future capital guarantee PF- 1.5% Future growth P. fund – 1.10% Future Balance P. Fund – 1.05% Future Income P.Fund – 1% Future select equity Fund – 1.45%

Fund management chrges for guaranteed pension fund is 1.% p.a.

Policy Admn charges Policy admn. Charges: Rs. 30 p.m. during the first policy ear and Rs. 30 pm escalating at 3% p.a. thereafter throughout the term of the policy shall be levied.

Regular – Rs 55 per month Single – Rs. 25 per month Top up- 1.5 of premium per top up

Policy administratio charges - Rs. 50/- monthly

Switching charges Switching charges: Two switches will be allowed free of charge. Subsequent switches in that year will be Rs. 100 per switch.

12 free switches Rs. 100 per switch

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Miscellaneous charges Miscellaneous carge: charge levied for change in premium mode. Rs. 50/- per transaction.

Guarantee charge is 0.35% of the fund value per annum. Duplicate copy of statement - Rs. 100/- per statement

Charges

Bid/offer spread - nil

Other Policy reinstatement : can reinstate within two years


PRODUCT COMPARISON - ULIP

Bajaj New UnitGain Easy Pension Plus SP Plan

HDFC Unit Linked Pension Plan IDBI Federal Retiresurance Milestone Pension Plan

Kotak Retirement Income Plan

Plan / Type of Plan

ULIP

Unit Linked

Unit Linked Pension Plan

Unit Linked

Term

Min 5 Max 40


Min 10 Max 30 yrs

Premium Paying Term

Single Premium Min. 10 yrs Max. 40 yrs.

Single Premium


Monthly / half yearly / Annually

Entry Age

Min 18 Max 65

Min. 18 Max. 65

Min 25 yrs (for 15 yrs term), 30 (for 10 yrs term) subject to min age at vesting equal to 40 yrs Max 75 yrs subject to max age at vesting equal to 85 yrs

Min. 18 Max 60 yrs

Maturity Age

Min 45 Max 70

Min. 50 yrs. Max. 75 yrs.

Min 40 Max 85 yrs

Min 45 Max 75

Sum Assured

depends upon minimum premium

Premium Amount

Single premium Rs. 10000/- Max No limit Min top up premium Rs. 5000/-

Min. Regular premium Rs. 12,000/- p.a. and half yearly, for monthly mode Rs.2,400/- p.m. Max. Annualized premium Rs. 10 lac. Single premium can top-up, premium can be reduced or increased after 3 yrs.

Min Rs. 1,00,000 and Max No limit

Min 10,000/- annually and top-up Min. 10,000/-

Retirement Benefits

The fund value as on the vesting date will be used to purchase an immediate annuity, at rates prevailing at that point of time.

1/3 of the total benefit at vesting is tax free. For policies with term equal or greater than 15 yrs the customer gets Bumper Addition of 50% of original annualised premium at vesting and on death.

At vesting your maturity benefit is higher of: the guaranteed benefit at vesting (as per IRDA CIR 124)_ the guaranteed maturity value per unit x no. of units (on vesting)

guaranteed maturity value. 1/3 can be withdrawn lump sum and the balance can be used to buy an annuity. Ill health Retirement or Early Retirement: In case of illness policyholder may choose to

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the fund value

retire early and can withdraw max. 1/3 of units in cash and balance annuity. This option can be availed of three years after policy inception.

Death Benefits Death during the deferment

period - spouse will have the option to take the fund value as a lump sum or purchase an annuity. Open market option is also available. But the spouse age should be above 45

If death during policy term, spouse will receive a cash lump sum.

If death occurs before vesting date, the nominee will get the FV the beneficiary can also opt to use the FV to purchase annuity. The beneficiary can also opt to choose to receive 1/3rd part as lumpsum and utilise the rest to purchase an annuity.

Family will get 1/3 of death benefit in cash and rest to purchase an annuity.


1) Option to take lumpsum 1/3 of the fund value as a lump sum. The balance amount would be use to purchase immediate annuity. 2) Open Market option we can purchase an immediate annuity from Bajaj or from any other company. If purchased from Bajaj the annuity will be marked up as applicable in the immediate annuity product available on that time. 3) the minimum instalment of annuity from Bajaj depending on the immediate annuity product

Customer can choose retirement age between 50 yrs and 75 yrs.

On vesting you have the following options: i) to receive upto 1/3rd of the FV in lump sum and utilise the balance to purchase an annuity from IDBI or any other annuity provider ii) to utilise the entire FV to purchase an annuity from IDBI Fed or any other annuity provider.

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available on that time. Annuity Options: a) Annuity for Life b) Annuity for life with 5,10,15 or 20 yrs certain payout c) Annuity for Life with return of capital

Riders

Term benefits / Accidental death benefits / Permanent disability benefit / Critical illness benefit / Accidental disability guardian benefit

Bonuses

i) The guaranteed benefit at vesting will be equal to the single premium paid accumulated annually at the minimum guarantee rate ii) The min guarantee rate of 4.5% is applicable to all proemium received upto March 31, 2011. iii) after that the guarantee rate would be 50 basis points above the avg. reverse repo rate prevailing as on last working day of June, Sept. Dec and March. The min. guarantee rate shall be max of 6% and min 3%

Tax Benefits

1/3 amount would be tax free as p ax law. er the current tUnder 80CCC under 80 C

Under sec. 80 CCC upto Rs. 1,00,000, 1/3rd of the retirement corpus can be commuted tax free

Under 80 CCC and Sec 10(10A) . Premium paid for Kotal Critical illness benefit

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under sec 10 (10A) may qualify for 80 D. Surrender

full withdrawal / surrender of fund value, net of surrender charge is allowed any time after 3 years from commencement

1st yr 100%. No. Of anualised premiums not paid in the 5 yrs. Percentage of value in 4 yrs-95%, 3 yrs-35%,2 yrs-15%,1yr-5%, 0 yr-Nil

If surrender or death before vestin med at the

g then the units are redee

ply.

After 3rd policy year on attainment of age 45 whichever is later. 3% in 4th year, 2% in 5th year, 1% in 6th year, 0% from 7th year. No charge applicable on top-ups.

NAV and the guarantee will not ap

Loans


No loan facility

Allocation charges

Allocation: A portion of the premium paid will be charged towards expenses. Accordingly, the allocation of single premium and top ups would be 98%

Regular premium 1 yr - 12,000 to 4,99,999 - Yly-60%, Hly-60%, Monthly-60% 5 lac to 10 lac - Yly-80%,Hly-80%, Monthly-80% Year 2 - Yly-85%, Hly-80%, Monthly-80% Year 3+ - Yly-98%, Hly-98%, Monthly-98% Single Premium – 1 yr-97.50%, 2+ yr-98%

13.125% of annual premium in 1st year and 2.8% from 2nd year onwards and on top-ups 2.5%

Fund Management charges

Fund Management charge : 1.75% p.a. of NAV for Equity Growth Pension Fund, Accelerator Mid-Cap Pension Fund and Pure Stock Pension Fund, 1.25% p.a. of NAV for Equity Index Pension Fund II, 0.95% p.a. of the NAV for Bond Pension 0.95% p.a. of NAV for Liquid Pension Fund

1.25% p.a. (will not exceed 2.5% p.a.)

Fund Management charges - 1.25% p.a.

Dynamic Money market fund – 0.6, Dynamic Gilt fund – 1.0%, Dynamic bond fund – 1.2%, Dynamic floating rate fund – 1.2%, Dynamic balance fund – 1.8%, Aggressive growth fund – 1.6%

Policy Admn charges

Policy admn charges: applicable for first five years only and will be

Rs. 60/- per month

1st year 13% of annual premium upto Rs. 20,000/- for portion of premium over Rs.

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deducted through cancellation of units at monthly intervals. If Single Premium is less than Rs.25,000, then Policy Administration Charge is Rs.300 p.a. inflating at 5% p.a. If Single Premium is greater than or equal to Rs.25,000, then Policy AdministrationCharge is Rs.600 p.a. inflating at 5% p.a.

20,000/- the charge would be 3% and for subsequent years 8% below Rs. 20,000 and 2% above Rs. 20,000/-

Switching charges

Switching charges: Three free switches would be allowed every year. Subsequent switches would be charged @ 5% of switch amount or Rs. 100, whichever is lower

24 switches free in a year and any additional switch will be Rs. 100 per switch.

First four switches free. Rs. 500/- would be charged for every additional switches thereafter.

Revival charges Rs. 250/-

Lapsed policy or policy in Automatic Cover Maintenance mode within 2 years from the date of unpaid premium can be revived by paying revival charge of Rs. 500/-

Miscellaneous charges

Miscellaneous Charge: The miscellaneous charge would be charged at the rate of Rs.100/- per transaction in respect of issuance of copy of policy document.

12 premiums reduction free in a year and additional would be charged Rs.250/- per request. 6 servicing request free – additional Rs. 250/-

Investment guarantee charge - 0.25% p.a.

Mortality charges -The cost of life cover through cancellation of units on a monthly basis. The mortality rates are guaranteed. Charges for alteration in policy contract (change in SA, change in premium mode, etc.) and revivals are Rs. 50/-, Premium

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383

redirection fee Rs. 100/ Other Unlimited top ups

Choice of 5 investment funds mortality charges are nil

Choice of Invt options with Guaranteed NAVs: Guaranteed Returns Funds- this fund aims to deliver a min guaranteed maturity value per unit at vesting. This fund invests in fixed income instruments. Guaranteed Growth Funds- This fund seeks to manage the debt exposure with an aim to deliver min guaranteed maturity value per unit at vesting. The balance of the fund is invested in equity to further enhance returns.

Premium not paid for first 3 policy years within the grace period. Automatic Cover Maintenance: remains insurance cover intact. This can avail after payment of premium of 3 completed years.

Appendix-3 Comparison of Company Profile

COMPARISON OF COMPANY PROFILE

Mode LIC TATA IDBI SBI BAJAJ ICICI HDFC KOTAK Trust with the brand name

Yes Yes Yes Yes Yes Yes Yes Yes

Years of experience in the market

1.9.1956

576 yrs

12.2.2001

12 yrs

March 2008

5 yrs

March 2001

12 yrs

12.3.2001

12 yrs

December 2000

13 yrs

2000

13 yrs

2001

12

International Alliance

No AIA Federal And

Ageas

BNP Paribas Cardif

Allianz Prudential Standard Life

Old Mutual

Efficient service


Convenient location for contact

More than 200 offices

54 offices 62 offices &

branches of IDBI banks

635 and SBI bank branches

1043 branches

1400 offices

568 branches

in 700 cities

No.could not get

Easily approachable


Internet accessibility


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Appendix-4 List of Insurance Companies selected for Study

385

LIST OF INSURANCE COMPANIES SELECTED FOR STUDY

Sr. No. Name of the Company

1 Life Insurance Corporation of India

2 ICICI Prudential Life Insurance Co. Ltd.

3 SBI Life Insurance Co. Ltd

4 IDBI Federal Life Insurance Co. Ltd.

5 TATA AIA Life Insurance Co. Ltd.,

6 HDFC Standard Life Insurance Co. Ltd

7 Kotak Mahindra Old Mutual Life Insurance Ltd.

1

QUESTIONNAIRE FOR POLICYHOLDERS OF PENSION PRODUCTS

1. Does your employer provide pension after retirement? YES / NO

2. From which company have you bought a pension / retirement plan?

____________________________________________________________________________________ 3. What type of a plan you have opted for? ULIP / CONVENTIONAL 4. In what manner do you contribute to your pension plan?

Monthly Quarterly Half-yearly Yearly 5. What is your contribution to your pension plan?

a Less than Rs. 1,000/- b Between Rs. 1,000/- to Rs. 3,000/- c Between Rs. 3,000/- to Rs. 5,000/- d Between Rs. 5,000/- to Rs. 10,000/- e More than Rs. 10,000/-

6. What are the features of a provider you have considered while buying a pension product?

[Circle the option giving rank 1 to the least important and 5 to the most important]

a Trust with the brand name 1 2 3 4 5 b Years of experience in the market 1 2 3 4 5 c International alliance 1 2 3 4 5 d Security of funds and financial strength 1 2 3 4 5 e Efficient service 1 2 3 4 5 f Convenient location for contact 1 2 3 4 5 g Easily approachable 1 2 3 4 5 h Internet accessibility 1 2 3 4 5

7. What are your important considerations while buying a pension product?


a Premium 1 2 3 4 5 b High Investment returns 1 2 3 4 5 c Retirement benefits 1 2 3 4 5 d Death benefits 1 2 3 4 5 e Options of taking pension 1 2 3 4 5 f Tax benefit 1 2 3 4 5 g Vesting (Retirement) age option e.g. age 50, 55, 60 1 2 3 4 5 h Allocation charges 1 2 3 4 5 I Security of money invested 1 2 3 4 5 J Additional benefits in a plan 1 2 3 4 5 k Good service by the company 1 2 3 4 5

2

8. Was the product selected by you available in other company? YES? NO 9. What is your preferred channel for buying pension products? (please tick)

a Insurance Agents b Brokers c Banks d Insurance Companies e Post Office f Internet

10. What are your preferences regarding the mode of obtaining the account information?


a Periodic statements of the account by regular mail 1 2 3 4 5 b Access to the account through Internet 1 2 3 4 5 c Regular contact over phone or in person 1 2 3 4 5

11. What kind of service do you expect?


a Periodic information of account statements and investment decisions

1 2 3 4 5

b Promptness in settlement 1 2 3 4 5 c Portability (flexibility) in terms of change in job,

location 1 2 3 4 5

d Ease of withdrawal 1 2 3 4 5 12. What is the preferred frequency of account statements?

Monthly Quarterly Six-monthly Annually 13. How would you rank the various tax incentives available for retirement savings / pension plans?


a Exemption on contribution (for self / other family members)

1 2 3 4 5

b Exemption to investment income earned on contributions during accumulation period

1 2 3 4 5

c Tax on maturity of plan 1 2 3 4 5 14. What kind of pension fund investment would you prefer? (Tick the most appropriate alternative)

a Conservative: Low Risk b Balanced: Less conservative – a mix of bonds and equities c Equity: higher rate of return, High risk

15. What kind of information do you expect from the provider?


a Explanation of tax benefits 1 2 3 4 5 b Investment options 1 2 3 4 5 c Performance records 1 2 3 4 5 d Provider profile 1 2 3 4 5

3

16. Switching over of contribution to different Pension Fund Managers’ option should be given at no cost or negligible cost, do you agree? AGREE / DISAGREE

17. Do you find the following charges hefty while buying a pension product?


a Allocation charges 1 2 3 4 5 b Fund Management charges 1 2 3 4 5 c Administrative charges 1 2 3 4 5 d Surrender charges 1 2 3 4 5

18. Are you willing to go for another pension plan? YES / NO 19. What are the product drawbacks? ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ 20. What is your experience with the existing product as well as the provider? ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________

Respondent Information

Name : ________________________________________________________ Address: ________________________________________________________

________________________________________________________ Mobile / Landline: Gender : MALE / FEMALE Education: Professionals (Engineer/CA/Doctor/Lawyer) Post Graduate Graduate Class XII X std Annual family Income (gross) Upto Rs. 1 lakh Between 1 to 3 lakh Between 3 and 5 lakhs Between 5-10 lakhs Over 10 lakhs Family members dependent on this income Only Husband & Wife

Husband, Wife & kids Husband, Wife with dependents (Parents / Sister / Brother)

None

Occupation Service Professionals – Doctor / Lawyer / CA / Engineer Businessman Agriculturist Date Signature

1

QUESTIONNAIRE FOR PROSPECTIVE BUYERS OF PENSION PRODUCTS 1. Have you started saving for your retirement? YES / NO 2. Does your employer provide pension after retirement? YES / NO 3. Do you expect any kind of support from your children in your retired life?

No Yes, partially Yes, totally 4. Are you aware of any voluntary pension plans available in the market? YES / NO

a) What type of a plan you would like to opt for? ULIP / CONVENTIONAL

b) In what manner you would like to contribute to your pension plan?

Monthly Quarterly Half-yearly Yearly 5. What will be the approx. contribution to your pension plan per month?

a Less than Rs. 1,000/- b Between Rs. 1,000/- to Rs. 3,000/- c Between Rs. 3,000/- to Rs. 5,000/- d Between Rs. 5,000/- to Rs. 10,000/- e More than Rs. 10,000/-

6. What are the features of a provider you will consider while buying a pension product?


a Trust with the brand name 1 2 3 4 5 b Years of experience in the market 1 2 3 4 5 c International alliance 1 2 3 4 5 d Security of funds and financial strength 1 2 3 4 5 e Efficient service 1 2 3 4 5 f Convenient location for contact 1 2 3 4 5 g Easily approachable 1 2 3 4 5 h Internet accessibility 1 2 3 4 5

7. What are your important considerations while buying a pension product?


a Premium 1 2 3 4 5 b High Investment returns 1 2 3 4 5 c Retirement benefits 1 2 3 4 5 d Death benefits 1 2 3 4 5 e Options of taking pension 1 2 3 4 5 f Tax benefit 1 2 3 4 5 g Vesting (Retirement) age option e.g. age 50, 55, 60 1 2 3 4 5 h Allocation charges 1 2 3 4 5

2

I Security of money invested 1 2 3 4 5 J Additional benefits in a plan 1 2 3 4 5 k Good service by the company 1 2 3 4 5

8. What is your preferred channel for buying pension products? (please tick)

a Insurance Agents b Brokers c Banks d Insurance Companies e Post Office f Internet

9. What are your preferences regarding the mode of obtaining the account information?


a Periodic statements of the account by regular mail 1 2 3 4 5 b Access to the account through Internet 1 2 3 4 5 c Regular contact over phone or in person 1 2 3 4 5

10. What kind of service do you expect?


a Periodic information of account statements and investment decisions

1 2 3 4 5

b Promptness in settlement 1 2 3 4 5 c Portability (flexibility) in terms of change in job,

location 1 2 3 4 5

d Ease of withdrawal 1 2 3 4 5 11. What is the preferred frequency of account statements?

Monthly Quarterly Six-monthly Annually 12. How would you rank the various tax incentives available for retirement savings / pension plans?


a Exemption on contribution (for self / other family members)

1 2 3 4 5

b Exemption to investment income earned on contributions during accumulation period

1 2 3 4 5

c Tax on maturity of plan 1 2 3 4 5 13. What kind of pension fund investment would you prefer? (Tick the most appropriate alternative)

a Conservative: Low Risk Low return b Balanced: Less conservative – a mix of bonds and equities c Equity: High Risk High Return

3

14. What kind of information do you expect from the provider? [Circle the option giving rank 1 to the least important and 5 to the most important]

a Explanation of tax benefits 1 2 3 4 5 b Investment options 1 2 3 4 5 c Performance records 1 2 3 4 5 d Provider profile 1 2 3 4 5

15. What is your inclination while selecting a service provider?

LIC SBI Life TATA AIG

ICICI Bajaj Allianz

HDFC Standard

Life

Birla Sunlife

IDBI Fortis

Kotak Mahindra

New Pension Scheme (PFRDA)

Max New York

ING Vysya

Met Life Reliance Life

Aviva Life

Bharati Axa

Respondent Information Name : ________________________________________________________ Address: ________________________________________________________

________________________________________________________ Mobile / Landline: Gender : MALE / FEMALE Education: Professionals (Engineer/CA/Doctor/Lawyer) Post Graduate Graduate Class XII X std Annual family Income (gross) Upto Rs. 1 lakh Between 1 to 3

lakh Between 3 and 5 lakhs

Between 5-10 lakhs

Over 10 lakhs

Family members dependent on this income Only Husband & Wife

Husband, Wife & kids

Husband, Wife with dependents (Parents / Sister / Brother)

None

Occupation Service Professionals – Doctor / Lawyer / CA / Engineer Businessman Agriculturist Date ………………. Signature ………………………

Vaishali Bhambure, Ph.D. Student – Mobile No. 9850174777

QUESTIONNAIRE FOR EXPERTS IN THE FIELD OF PENSION

(1) Is total shift from Defined Benefit to Defined Contribution is desirable from the view point of Customer ?

Yes No

(2) Give reasons

(3) Do you think early withdrawal should be allowed in Tier-I account of New Pension

System (NPS)? Yes No

(4) Give reasons

(5) What are the benefits according to you in Defined Contribution Pension?

(6) In Defined Contribution Pension, in the context of changing economic and demographic environment, a

subscriber does not have any specific idea about final payout and the annuity that it would secure for him. How can a pension provider help the subscriber in this regard?

(7) Do the NPS offered by the PFRDA meet the preferences / requirements of a

Customer? Yes No

(8) Give reasons

(9) Do you think an intermediary is required in NPS which may add expenses to the

subscriber? Yes No

(10) Give reasons

(11) Do you think fee based advice is feasible in NPS? Yes No

(12) Are you agreeable to the NPS not allowing more than 50% allocation to equities? Agree Disagree

Vaishali Bhambure, Ph.D. Student – Mobile No. 9850174777

(13) If agree give reasons

(14) If Disagree, why do you want higher allocation to equities?

(15) What presents to you as a face of NPS?

Pension Fund Manager Point of Presence Central Record-keeping Agency NPS Trust Annuity Provider

(16) Do you think NPS is a low cost structure? Yes No

(17) Do you think private PFMs will invest prudently in Pension asset to get larger

amount to individual at the time of retirement? Yes No

(18) Do you agree that the element of forced saving into the system of mandatory

contributions lead to aid capital formation and economic growth? Agree Disagree

(19) What changes do you suggest to the NPS to meet the pension requirement of the subscribers?

(20) Do you think NPS can reach to the poor masses through Swavalamban Scheme? Yes No

(21) Pension reforms will lend stability to the capital market and widen and deepen the bond market, please

comment

(22) Are the PFRDA’s reforms in tune with the needs and preferences of customer? Yes No

(23) If No give reasons

Documents

LIST OF APPENDICESshodhganga.inflibnet.ac.in/bitstream/10603/27841/17/17...surrender value is 90% of the basic premiums paid excluding the first year’s premium. In case of a single