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COMPARATIVE STUDY OF ULIPS OF SELECTED COMPANIES
Presented By:-
Pallavi Jain
MBA 2A
INSURANCE
Introduction
Working of Insurance
History Present
INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY
IRDA is a national agency of the Government of India, based in Hyderabad. It was formed by an act of Indian Parliament known as IRDA Act 1999.
Mission of IRDA as stated in the act is "to protect the interests of the policyholders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental there to."
INTRODUCTION TO THE COMPANY
THE RIGHT ORGANIZATION TO PARTNER WITH
HISTORICAL BACKGROUND OF THE COMPANY
Money Matter Inc. was started by Mr. Prem Pal Sharma in 2002 in Rajasthan. In Rajasthan they work under the name of Money Matter Wealth Advisors Pvt. Ltd. It has its head office in Delhi. It has six branches in Rajasthan. In Punjab, Money Matter Inc. start their services in 5th September 2008. Right now they have four branches in Punjab. For Punjab Region they have their head office in Mohali .
QUICK FACTS
Incorporated on 5th September 2008. Presence in Punjab and Rajasthan. 6 offices with 60 professionals and 100 Business associates.
Locations: Mohali (Punjab) Sri Ganganagar (Rajasthan) AnupGarh (Rajasthan) Suratgarh (Rajasthan) Ramsinghpur (Rajasthan) Ludhiana (Punjab)
Upcoming Branches: Jalandhar (Punjab) NawanShahar (Punjab) Amritsar (Punjab) Panchkula (Haryana)
Vision Enabling Success, Enriching Lives, Spread Smiles
Mission
To create superior value in financial sectors.
• Organic Growth• Acquire and Transform• Improve
Pillars
Values
Right PeopleOrganizational
AlignmentExecution Discipline
Processes
Caring ; Honesty ; Passion ; Team Work ; Disciplined Professionalism
Right PeopleOrganizational
AlignmentExecution Discipline
Processes
Money Matter Inc.Differentiators
Opportunity in India
Customer Needs
Business Model
Career & Growth Prospects
Not a Product Program, . . . instead a Customer Program
1. Understand financial needs and key expectations.
2. Evaluating the customer as a whole, not just for a product.
3. Product features are designed for the specific segment.
FOCUS ON CUSTOMER, NOT PRODUCT . . .
CAREER PROGRESSION & FUTURE OPPORTUNITIES
Director
Regional Manager
Zonal Manager
Sr. Manager
Relationship Manager
Asst Relationship Manager
Sr. Relationship Officer/ Relationship Officer
MANAGEMENT TEAM
Mr. Prem Pal Sharma
(Chief Operating Officer)
Mr. Gaurav Sharma
(Strategic Unit Head)
Ms. Shallu(Head of Administration
& Finance-Strategic Unit)
Mr. Santosh KumarDubey
(Head Sales-Strategic Unit)
INTRODUCTION TO PARTICULAR BRANCH
“Money Matter Inc. wants to be the Preferred Partner for all Financial Needs of the Customer”
Objective
PRODUCTS
This is basically a wealth Management unit deals in all the almost all investment option present in market. They give there services in :-
Insurance Demat Account Mutual Funds Bonds Share Debenture Corporate FDs & Corporate Loan. Gold
THE COMPANIES ASSOCIATED WITH BRANCH
In Life Insurance In General Insurance
1) Tata AIG 1) Tata AIG General Insurance
2) Kotak Life Insurance 2) Reliance General Insurance
3) Aviva Life Insurance 3) Bajaj Allianz General Insurance
4) ICICI Prudential 4) Royal Sundram
5) LIC 5) United
6) Bajaj Allianz 6) National
7) Birla Sun Life 7) Oriental
7) HD FC Standard Life 8) New India
8) SBI Life 9) Iffco Tokyo
9) Reliance Life 10) Star Health
10) Star Health
ORGANIZATION CHART OF TRAINING UNIT
Branch Manager
•Mr. Bikramjeet Singh
Assistant Relationship
Manager
•Mr. Veer Davinder Singh• Mr. Yashpal Sharma
DEPARTMENTS
To improve sales strategies.
To make the people aware about the new products.
To give the best possible services.
To provide best working environment.
To handle the grievances of the employees.
To retain the employees.
There are two departments in Money matter Inc.1) Sales 2) Human ResourceHOD- Mr. Bikramjeet Singh HOD- Ms. Navjeet KaurObjectives of Sales Department:- Objectives of HR Department:-
1
2
3
Five Years Goal
Achieve market share of 5% (top own-branch players) within target segment
Serve a satisfied customer base of ~2 million customers
Be the best employer in financial services industry in India, attracting diverse talent due to its unique business model and wide product range
SWOT ANALYSIS OF MONEY MATTER INC.
Strengths1. Product range2 Experienced and young staff
Weaknesses1. Infrastructure 2. Inadequate promotion strategies3. Low retention rate
Opportunities1. Growing awareness2. Untapped market
SWOT Analysis of Money Matter Inc.
INTRODUCTION TO TOPIC
FEATURES
Insurance + Investment. Portfolio investment. Riders benefit. Transparency Higher liquidity Gains depend upon market moments. Potential for better returns.
STRUCTURE OF ULIPS
Premium Allocation Charges. Administration Charges. Mortality Charges. Fund Management Charges. Rider Premium Charges. Partial Withdraw Charges. Miscellaneous Charges. Switching Charges. Surrender Charges.
DIAGRAMMATIC REPRESENTATION
DIFFERENT TYPES OF FUNDS IN ULIPSGeneral Description Nature of Investments Risk Category
Equity Funds Primarily invested in company stocks with the general aim of capital appreciation
Medium to High
Income, Fixed Interest and Bond Funds
Invested in corporate bonds, govt. sec
Medium
Cash Funds Sometimes known as Money Market Funds - invested in cash, bank deposits and money market instruments Low
Low
Balanced Funds Combining equity investment with fixed interest instruments
Medium
Advantages of ULIPs
Advantages of ULIPs
• Unit Plus III• Horizon III
• ICICI Pru LifeStage Assure
• LifeTime Plus
• Kotak Smart Advantage Plan
• Kotak Super Advantage Plan
• Money Plus• Market Plus I
SBI LifeICICI
Prudential Life
Kotak Mahindra
Old MutualLIC
Plans under the Study
LIC MONEY PLUS
Minimum Age at Entry
0
Maximum Age at Entry 65 yrs
Minimum Maturity age 18 yrs
Maximum Maturity Age 75
Policy Term 10,15-30 yrs
Minimum Premium Regular premium (other than monthly (ECS) mode):
Rs. [5,000] p.a. for policy term 20 to 30 years
Rs. [10,000] p.a. for policy term 15 to 19 years
Rs. [15,000] p.a. for 10 years
Regular premium (for monthly (ECS) mode):
Rs. [1,000] p.m. for policy term 15 to 30 years
Rs. [1,500] p.m. for policy term 10 years
Sum Assured 30 times of the annualized premium if age at entry is upto 45 years
20 times of the annualized premium if age at entry is 46 to 60 years
10 times of the annualized premium if age at entry is 61 years and
above
LIC MARKET PLUS 1
Minimum Age at Entry 18yrs
Maximum Age at Entry Regular premium: 75 yrs Single premium: 80
yrs
Policy Term 10,15-30 yrs
Minimum Premium Regular premium:Rs. [5,000] p.a. for 20 years and above Rs. [10,000] p.a. for 15 to 19 years Rs. [15,000] p.a. for 10 to 14 yearsRegular premium (for monthly (ECS) mode): Rs. [1,000] p.m. for 15 years and aboveRs. [1,500] p.m. for 10 to 14 years
Minimum Sum Assured Rs 30.000
ICICI PRU LIFESTAGE ASSURE
Minimum PremiumRs 12,000 P.a. for monthly mode
Rs. 10,000 p.a. for all other modes
Minimum Entry Age 0 years
Maximum Entry Age 65 years
Minimum Age at Maturity 18 years
Maximum Age at maturity 75 years
Term 10/ 15/ 20/ 25/ 30 years
Minimum Sum Assured 5 * Annual Premium
Tax Benefit
Premium paid for the policy and critical illness
benefit rider will be eligible for tax benefit under
section 80C & 80D respectively and 10 (10D), as
per prevailing Income Tax laws.
ICICI PRUDENTIAL LIFETIME PLUS
Minimum/Maximum Entry Age 10 years and 30 years
Minimum/Maximum Age of Entry 0 years and 65 years
Minimum/Maximum Premium Rs. 20,000 and Rs. 3,00,000 per annum
Minimum Sum Assured Annual Premium x Term/2
Tax Benefit Available under Sec-80( C) & 10 (10) D
KOTAK SMART ADVANTAGE PLAN
Entry Age Min: 0 , Max: 65yrs
Maturity Age Min:18 yrs , Max: 75
Policy Term 10 / 15 / 20 / 25 / 30 years
Premium Payment Term Equal to the Policy Term
Premium Min: Rs.10,000; Max : No Limit
Sum Assured Min: 5 x Annual Premium. Max: Any multiple
of premium
KOTAK SUPER ADVANTAGE PLAN
Entry Age Min: 0 , Max: 65yrs
Maturity Age Min:18 yrs , Max: 75
Policy Term 10 / 15 / 20 / 25 / 30 years
Premium Payment Term Equal to the Policy Term
Premium Min: Rs.15,000; Max : No Limit
Sum Assured Min: 5 x Annual Premium. Max: Policy term*A
P
SBI LIFE UNIT PLUS III :-
Age at Entry Min: 0 years Max: 65 years
Age at Maturity For Limited Term Max: 70 years
For Whole Life: 90 years
Policy Term For Regular Premium: (The term varies with premium size)
Premium Size (in Rs) Policy Term
24,000 – 99,900 The Policyholder can chose any of the
five fixed policy terms:
10/15/20/25/30 years
100,000 – 499,900 7 to 30 years
500,000 & above 5 to 30 years
Premium Modes Yearly / Half-yearly / Quarterly / Monthly/Single
Annualized
Regular Premium
Amounts
Single Premium
Amounts
Min
Rs 24,000
Rs 60,000
Max
No limit
No limit
Top Up Premium
(X 100)
Min Rs. 5,000
Max: 25% of the basic Regular/Single premium paid till date
Sum Assured Min:
For RP - 5 * AP , For SP – 1.25 * (AP)
Max:
Particulars For Regular Premium For Single
Premium
Entry Age Till 45 yrs 46 to 65 yrs All Ages
Limited Term 20 * AP 10 * AP 5 * SP
Whole Life Term 20 * AP 5 * AP 1.25 * SP
HORIZON IIIAge at Entry Min: 0 years Max:60years
Max. Age at Maturity 70 years
Sum Assured Min: Annualized Basic Premium × 5
Max:
For age of entry upto 45 years: Annualized Basic Premium × 20
For age of entry above 45 years: Annualized Basic Premium × 10
Policy Term 10/15/20/25/30 years
Premium Paying Term Same as policy term
Premium Modes Yearly / Half-yearly / Quarterly / Monthly
Regular Premium Amounts Min
Yearly Rs 18,000
Half-yearly Rs 9,000
Quarterly Rs 4,500
Monthly Rs 1,500
Max
No limit
No limit
No limit
No limit
Top Up Premium Min Rs. 2,000
Max: Cumulative top-ups cannot exceed 25% of total basic premium (s)
Tax Benefits Available under Sec. 80C, Sec. 80D & Sec. 10(10D) of Income Tax Act, 1961
LIMITATIONS
Time has played a biggest constraint that the research could not be carried out comprehensively as the duration of the study was only 6 - 8 weeks.
The sample size for collecting the primary data was meager as it includes only 100 respondents, hence the conclusion would not be a universal one.
Personal biases and prejudices of the customers
may also affect the study.
Balance sheet was not provided.
TITLE
Comparative study of ULIPs of selected companies
OBJECTIVES
To compare the ULIP plans on the basis of selected parameters.
To find out the factors influencing the
investors to invest in ULIP plans. To study the satisfaction of the investors from
their companies.
RESEARCH METHODOLOGY
Type of Research
This is descriptive type of research in which respondents had been surveyed to check their preferences regarding the ULIP Plan
SAMPLE DESIGN
Universe: All the investors who are investing in the ULIP plans. Population: All the investors who are investing in ULIP plans of
any of the company which includes LIC, ICICI Prudential, SBI Life and Kotak Mahindra Old Mutual in Ludhiana city from past three years.
Sampling Unit: Every single investor of any company which
includes ICICI Prudential, LIC, SBI Life and Kotak Mahindra Old Mutual who are investing in ULIP plans from past three years is the sampling unit.
Sample Size: The sample size for the survey conducted is 100
respondents. Equal numbers of respondents are taken for each company i.e. 25.
Sampling Technique: The technique used is Non Probability
technique. Under Non Probability technique, Convenience Sampling is used.
METHOD OF DATA COLLECTION
The two methods of data collection were used which are as follows:-
Primary Data Secondary Data
LIMITATIONS
Data collection error .
Respondents can hide the real information.
Time.
Sample size cannot always represent the whole population.
Balance sheet was not provided.
DATA ANALYSIS AND INTERPRETATIONS
Yrs Bond Fund Secured Fund Balanced Fund Growth Fund
2007-08 7.1% 8.1% 7.9% 8.6%
2008-09 11.6% 0.11% -4.5% -21.9%
2009-10 5.9% 15.5% 25.6% 38.2%
Table4.1 Performance of different funds of Money Plus
Yrs Bond Fund Secured Fund Balanced Fund Growth Fund
2007-08 8.2% 10.18% 12.3% 13.03%
2008-09 12.3% 1.3% 7.4% 21.7%
2009-10 3.8% 29.6% 37.01% 13.95%
Table 4.2 Performance of different funds of Market Plus 1
Yrs Balance
r IV
Flexi
Balanced
IV
Flexi
Growth
IV
Multiplier
Fund IV
Preserver
Fund IV
Protector
Fund IV
Rich
Fund
IV
2007-08 7.1% 5.7% 9% NA 4.5% 5.4% NA%
2008-09 -7.6% -15.3% -33.4% -31.7% 10.2% 10.2% -28.5%
2009-10 33% 40.11% 70.1% 68.6% 7.23% 8.56% 69.3%
Table 4.3 Performance of different funds of ICICI Pru Life Stage Assure
Yrs R I C H
II
Flexi
Growth
II
Multiplier
II
Flexi
Balanced
II
Balancer
II
Protector
II
Preserver
II
2007-08 NA 29.7% NA 19.9% 19.8% 3.5% 9.1%
2008-09 -27.15% -32.1% -30.6% 14.08% -8.9% 10.8% -9.04%
2009-10 69.8% 70.8% 68.02% 8.9% 33.27% 8.9% 7.3%
Table 4.4 Performance of different funds of Life Time Plus
Yrs Opportunities Fund Dynamic Bond
Fund
Dynamic Floor
Fund
2007-08 NA 11.4% 21.5%
2008-09 NA 14.77% 10.6%
2009-10 92.02% 9.1% 22.4%
Table 4.5 Performance of different funds of Kotak Smart Advantage Plan
Yrs Classic
Opportunities
Fund
Frontline
Equity Fund
Dynamic
Floor FundII
Bond Fund
2009-10 4.3% 1.3% 1.07% 1.4%
Table 4.6 Performance of different funds of Kotak Super Advantage Plan
Yrs Equity
Fund
Bond
Fund
Money
Market
Fund
Growth
Fund
Balanced
Fund
Equity
Optimise
r
2007-08 27.5% 10.8% 5.5% 24.7% 25.1% NA
2008-09 -37.8% 13.2% 9.9% -36.05% -16.4% -33.1%
2009-10 79.2% 8.2% 3.9% 55.9% 38.7% 79.3%
Table 4.7 Performance of different funds of Unit Plus III
Yrs Equity Fund Bond Fund Money
Market Fund
Balanced
Fund
2007-08 27.54% 10.8% 5.6% 25.1%
2008-09 -37.8% 13.2% 9.9% -16.4%
2009-10 79.2% 8.3% 3.9% 38.7%
Table 4.8 Performance of different funds of Horizon III
Net change in NAV
Year LIC ICICI Prudential Kotak SBI Life
Money Plus
Market Plus I
Life Stage Assure
Life Time Plus
Kotak Smart
Kotak Super
Unit III Horizon III
2007-08 8.6% 13.3% 9% 29.7% NA NA 27.5% 27.5%
2008-09 -21.9% 21.7% -31.3% -30% NA NA -36% -38%
2009-10 38.2% 13.95% 69.33% 69.5% 92.02% 2.8% 79.3% 79.2%
Table 4.9 Comparison of Equity Funds
Net change in NAV
LIC ICICI Prudential Kotak SBI Life
Money Plus
Market Plus I
Life Stage Assure
Life Time Plus
Kotak Smart
Kotak Super
Unit III Horizon III
2007-08 7.1% 8.2% 5.4% 3.5% 21.5% NA 10.8% 10.8%
2008-09 11.6% 12.3% 16.2% 10.8% 14.8% NA 13.2% 13.2%
2009-10 5.9% 3.8% 8.6% 8.9% 9.1% 1.4% 8.2% 8.3%
Table 4.10 Comparison of Bond Funds
Net change in NAV
Year LIC ICICI Prudential
Kotak SBI Life
Money Plus
Market Plus I
Life Stage Assure
Life Time Plus
Kotak Smart
Kotak Super
Unit III Horizon III
2007-08 8% 11.24% 5.7% 14.4% 11.4% NA 25.1% 25.1%
2008-09 -2.2% 4.3% -3.73% -1.3% 14.8% NA -16% -16%
2009-10 20.5% 33.3% 26.78%
16.47%
9.1% 1.04% 38.7% 38.7%
Table 4.11 Comparison of Balanced Funds
Year SBI Life
Unit III Horizon III
2007-08 5.5% 5.6%
2008-09 9.9% 9.9%
2009-10 3.9% 3.9%
Table 4.12 Comparison for Cash Funds
Years No. of Respondents Percentage
1-5 yrs 18 72%
6-10 yrs 5 20%
11-15yrs 2 8%
More than 15 0 0%
Total 25 100%
Data Analysis for LIC
4.16 Time of purchase of ULIP Plan
Name of Plans No. of Respondents Percentage
Wealth Creation Plan 18 72%
Child Plans 5 20%
Pension Plans 2 8%
Others 0 0%
Total 25 100%
Table 4.19 Type of ULIP Plan Purchased
Funds No. of Respondents Percentage
Balanced Fund 10 40%
Equity Fund 13 52%
Fixed Interest & Bond
Funds
1 4%
Cash Funds 1 4%
Total 25 100%
Table 4.20 Funds used for investment
Features Mean
Returns 1.24
Tenure of Investment .64
Tax Benefit 1.04
Insurance Coverage .80
Riders .16
Brand Value .84
Table 4.22 Features required while purchasing ULIP Plans
Charges No. of Respondents Percentage
0%-5% 2 8%
6%-10% 6 24%
11%-15% 7 28%
More than 15% 10 40%
Total 25 100%
Table 4.23 Premium Allocation Charges paid in 1st year
Charges No. of Respondents Percentage
Nil 3 12%
1%-2% 8 32%
2.1%-3% 13 52%
More than 3% 1 4%
Total 25 100%
Table 4.24 Premium Allocation Charges to be paid after 5th year
No. of Switches No. of Respondents Percentage
Less than 4 7 28%
4 13 52%
More than 4 5 20%
Unlimited 0 0%
Total 25 100%
Table 4.25 No. of free switches
Charges No. of Respondents Percentage
100-200 19 76%
201-300 6 24%
301-400 0 0%
More than 400 0 0%
Total 25 100%
Table 4.26 Cost of every extra switch
Returns No. of
Respondents
Percen
tage
No. of
respond
ents
Percentage
After 1st yr After 3rd yr
0%-9% 23 92% 21 84%
10%-12% 2 8% 4 16%
13%-15% 0 0% 0 0%
Above 15% 0 0% 0 0%
Total 25 100% 25 100%
Table 4.28 Returns they actually got
Features Mean
Risk 1.40
Flexibility 0.96
Return 1.04
Liquidity 0.56
Transparency 0.32
Table 4.29 Features present in the ULIP Plans of the investors (N=25)
Services Mean
Employee’s Behavior 1.24
Premium Collection Procedure 1.24
Providing Latest Information 1.2
Claim Settlement Procedure 0.4
Grievance Handling Time 0.72
Table 4.30 Satisfaction from their company(N=25)
Response No. of Respondents Percentage
Yes 16 64%
No 9 36%
Total 25 100%
Table 4.31 Continuation with same company
Years No. of Respondents Percentage
1-5 yrs 19 76%
6-10 yrs 5 20%
11-15yrs 0 0%
More than 15 1 4%
Total 25 100%
Data Analysis for ICICI Prudential
Table 4.35 Time of purchase of ULIP Plan
Name of Plans No. of Respondents Percentage
Wealth Creation Plan 17 68%
Child Plans 5 20%
Pension Plans 3 12%
Others 0 0%
Total 25 100%
Table 4.38 Type of ULIP Plans
Name of Plans No. of Respondents Percentage
Wealth Creation Plan 17 68%
Child Plans 5 20%
Pension Plans 3 12%
Others 0 0%
Total 25 100%
Table 4.38 Type of ULIP Plans
Funds No. of Respondents Percentage
Balanced Fund 5 20%
Equity Fund 18 76%
Fixed Interest & Bond
Funds
1 4%
Cash Funds 1 4%
Total 25
Table 4.39 Funds used for investment
Features Mean
Returns 1.4
Tenure of Investment .84
Tax Benefit .88
Insurance Coverage 1.08
Riders .56
Brand Value .92
Table4.41 Features required while purchasing ULIP Plans (N=25)
Charges No. of Respondents Percentage
0%-5% 5 20%
6%-10% 6 24%
11%-15% 7 28%
More than 15% 7 28%
Total 25 100%
Table4.42 Premium Allocation Charges paid in 1st year
Charges No. of Respondents Percentage
Nil 7 28%
1%-2% 12 48%
2.1%-3% 6 24%
More than 3% 0 0%
Total 25 100%
Table4.43 Premium Allocation Charges to be paid after 5th year
No. of Switches No. of Respondents Percentage
Less than 4 2 8%
4 16 64%
More than 4 7 28%
Unlimited 0 0%
Total 25 100%
Table4.44 No. of free switches
Charges No. of Respondents Percentage
100-200 19 76%
201-300 3 12%
301-400 2 8%
More than 400 1 4%
Total 25 100%
Table4.45 Cost of every extra switch
Returns No. of
Respondents
Percentage No. of
Respondents
Percentage
After 1st yr After 1st yr After 3rd yr After 3rd yr
0%-9% 21 84% 13 52%
10%-12% 3 12% 11 44%
13%-15% 0 0% 0 0%
Above 15% 1 4% 1 4%
Total 25 100% 25 100%
Table4.47 Returns they actually got
Features Mean
Risk 1.4
Flexibility 0.84
Return 1
Liquidity 0.72
Transparency 0.92
Table4.48 Features present in the ULIP Plans of the investors(N=25)
Services Mean
Employee’s Behavior 1
Premium Collection Procedure 1.04
Providing Latest Information 0.92
Claim Settlement Procedure 0.60
Grievance Handling Time 0.56
Table4.49 Satisfaction from their company(N=25)
Response No. of Respondents Percentage
Yes 14 56%
No 11 44%
Total 25 100%
Table4.50 Continuation with same company
Years No. of Respondents Percentage
1-5 yrs 15 60%
6-10 yrs 7 28%
11-15yrs 1 4%
More than 15 2 8%
Total 25 100%
Table4.54 Time of purchase of ULIP Plan
Name of Plans No. of Respondents Percentage
Wealth Creation Plan 16 64%
Child Plans 7 28%
Pension Plans 2 8%
Others 0 0%
Total 25 100%
Data Analysis for Kotak Mahindra Old Mutual
Table4.57 Type of ULIP Plans
Funds No. of Respondents Percentage
Balanced Fund 10 40%
Equity Fund 11 44%
Fixed Interest & Bond
Funds
2 8%
Cash Funds 2 8%
Total 25 100%
Table4.58 Funds used for investment
Features Mean
Returns 1.4
Tenure of Investment 0.44
Tax Benefit 0.52
Insurance Coverage 0.64
Riders -0.8
Brand Value 3.8
Table4.60 Features required while purchasing ULIP Plans
Charges No. of Respondents Percentage
0%-5% 3 12%
6%-10% 12 48%
11%-15% 7 28%
More than 15% 3 12%
Total 25 100%
Table4.61 Premium Allocation Charges paid in 1st year
Charges No. of Respondents Percentage
Nil 9 36%
1%-2% 14 56%
2.1%-3% 1 4%
More than 3% 1 4%
Total 25 100%
Table4.62 Premium Allocation Charges to be paid after 5th year
No. of Switches No. of Respondents Percentage
Less than 4 7 28%
4 12 48%
More than 4 6 24%
Unlimited 0 0%
Total 25 100%
Table4.63 No. of free switches
Charges No. of Respondents Percentage
100-200 11 44%
201-300 10 40%
301-400 4 16%
More than 400 0 0%
Total 25 100%
Table4.64 Cost of every extra switch
Returns No. of Respondents Percent
age
No. of
Responden
ts
Percenta
ge
After
1styr
After 1st yr After 3rd
yr
After 3rd
yr
0%-9% 24 96% 16 64%
10%-12% 1 4% 6 24%
13%-15% 0 0% 1 4%
Above 15% 0 0% 1 4%
Total 25 100% 25 100%
Table4.66 Returns they actually got
Features Mean
Risk 1.04
Flexibility 0.48
Return 0.80
Liquidity 0.44
Transparency 0.24
Table 4.67 Features present in the ULIP plans of the investors(N=25)
Services Mean
Employee’s Behavior 0.92
Premium Collection Procedure 0.84
Providing Latest Information 0.64
Claim Settlement Procedure 0.60
Grievance Handling Time 0.44
Table4.68 Satisfaction from their company(N=25)
Response No. of Respondents Percentage
Yes 15 60%
No 10 40%
Total 25 100%
Table4.69 Continuation with same company
Years No. of Respondents Percentage
1-5 yrs 19 76%
6-10 yrs 5 20%
11-15yrs 1 4%
More than 15 0 0%
Total 25 100%
Data Analysis for SBI Life
Table4.73 Time of purchase of ULIP Plan
Name of Plans No. of Respondents Percentage
Wealth Creation Plan 11 44%
Child Plans 4 16%
Pension Plans 8 32%
Others 2 4%
Total 25 100%
Table4.76 Type of ULIP Plan Purchased
Funds No. of Respondents Percentage
Balanced Fund 6 24%
Equity Fund 13 52%
Fixed Interest Funds 3 12%
Cash Funds 3 12%
Total 25 100%
Table4.77 Funds used for investment
Features Mean
Returns 1.08
Tenure of Investment 0.6
Tax Benefit 1.16
Insurance Coverage 1.00
Riders -0.16
Brand Value 0.64
Table4.79 Features required while purchasing ULIP Plans (N=25)
Charges No. of Respondents Percentage
0%-5% 5 20%
6%-10% 12 48%
11%-15% 5 20%
More than 15% 3 12%
Total 25 100%
Table4.80 Premium Allocation Charges paid in 1st year
Charges No. of Respondents Percentage
Nil 10 40%
1%-2% 9 36%
2.1%-3% 6 24%
More than 3% 0 0%
Total 25 100%
Table4.81 Premium Allocation Charges to be paid after 5th year
No. of Switches No. of Respondents Percentage
Less than 4 6 24%
4 6 24%
More than 4 13 52%
Unlimited 0 0%
Total 25 100%
Table4.82 No. of free switches
Charges No. of Respondents Percentage
100-200 15 60%
201-300 7 28%
301-400 1 4%
More than 400 2 8%
Total 25 100%
Table4.83 Cost of every extra switch
Returns No. of
Respondents
Percentage No. of
Respondents
Percentage
After 1st yr After 1st yr After 3rd yr After 3rd yr
0%-9% 22 88% 16 64%
10%-12% 3 12% 9 36%
13%-15% 0 0% 0 0%
Above 15% 0 0% 0 0%
Total 25 100% 25 100%
Table4.85 Returns they actually got
Features Mean
Risk 1.28
Flexibility 1
Return 1.16
Liquidity 0.68
Transparency 0.48
Table4.86 Features present in the ULIP Plans of the investors (N=25)
Services Mean
Employee’s Behavior 1.32
Premium Collection Procedure 0.96
Providing Latest Information 0.96
Claim Settlement Procedure 0.24
Grievance Handling Time 0.28
Table4.87 Satisfaction from their company(N=25)
Options No. of Respondents Percentage
Yes 17 68%
No 8 32%
Total 25 100%
Table 4.88 Continuation with same company
Features Mean
Return 1.28
Tenure Of Investment 0.62
Tax Benefit 0.76
Insurance Coverage 0.88
Riders 0.12
Brand Value of company 0.8
Table 4.89 Features they look into (N=100)
Features LIC ICICI Kotak SBI Life
Premium Allocation Charge after 1st yr
More than 15%
11%-15% and more than 15%
6%-10% 6%-10%
Premium Allocation Charge after 5th yr
2.1%-3% 1%-2% 1%-2% 1-2% or Nil
No. of free switches 4 4 4 More than 4
Cost of extra switch Rs 100-200 Rs 100-200 Rs100-300 Rs100-200
Return after 1st yr 0%-9% 0%-9% 0-9% 0%-9%
Return after 3rd yr 0%-9% 0%-9% & 9%-12%
0%-9% 0%-09%
Risk Present Present Present Present
Flexibility Present Present Neutral Present
Return Present Present Present Present
Liquidity Present Present Neutral Present
Transparency Neutral Present Neutral Neutral
Table 4.90 Comparison on different parameters
Services LIC ICICI Kotak SBI
Employee’s
Behavior
Satisfied Satisfied Satisfied Satisfied
Premium
Collection
Procedure
Satisfied Satisfied Satisfied Satisfied
Providing latest
information
Satisfied Satisfied Satisfied Satisfied
Claim Settlement
Procedure
Neutral Satisfied Satisfied Neutral
Grievance
Handling Time
Satisfied Neutral Neutral Neutral
Continuation Yes Mix Mix Yes
Table 4.91 Satisfaction from the company
FINDINGS
LIC enjoys credibility over other private players in the industry. People look for security over returns in market linked plans.
People are investing in ULIPs to get high returns
and fulfill family responsibilities. People are showing interest in private companies
because of their services. The premium allocation charges are higher in
the beginning of the policy term.
CONTD, Return, tenure of investment, tax benefit, insurance
coverage and brand name are considered before purchasing any ULIP plan.
People look for returns, tenure of the plan, tax
benefit, sum assured in ULIP plans.
People mostly go for Wealth Creation Plans.
SBI Life Plans give high returns and number of free switches.
SBI Life and LIC customers are satisfied from their
companies.
RECOMMENDATIONS Employees should be given more training about products,
as this will help them to explain and guide the customers better.
Motivation, immediate rewards and better incentive
packages can also help them to do better.
Focus should be given on capital guarantee products.
More promotional activities should be undertaken to make
the investors aware of Money Matter Inc.
Complete information regarding the plans should be given
to the investors at the time of investment. It should include all the hidden charges as well.