RESEARCH REPORT ON

Comparative Study of ULIP Products

Of

TATA-AIG LIFE INSURANCE

Submitted in Partial Fulfillment of the Requirement for Master of Business Administration

PREFACE

There are number forces that make marketing an endlessly changing activity. The constantly activity sociological, psychological and political environment may represent the uncontrollable marketing factors. To understanding these factors in better way marketing research is of most importance. This Project Report has been completed in Partial fulfillment of my Management Program, Master of Business Administration (MBA) in the company Tata-AIG Life Insurance. The objective of my project was Comparative Study of ULIP Products of Tata-AIG Life Insurance is the name which is working as one of the best private insurance company in insurance sector. With such large population and the untapped market of populations insurance happens to be very big opportunity in India. Today it stands as a business growing at the rate of 15-20 percent annually. Together with banking services, It adds about 7 percent to the countrys GDP. In spite of all this growth the statistics of the penetration of the insurance in the country is very poor. Nearly 70% of Indian populations are without Life Insurance cover and the Health Insurance. This is an indicator that growth potential for the insurance sector is immense in India.

ACKNOWLEDGEMENT
On the successful completion of this project I would like to express my gratitude to all the people who have helped me throughout the project work. At first, I owe my debt of thanks to Tata-AIG Life, which gave me an opportunity to do this project work. I wish to extend my deep and sincere gratitude to *********** who provided me with their guidance from day one and also helped me whole heartedly to achieve the ultimate goal of the project. I am also indebted to the Institute, *********** and its staff members for providing me with this learning opportunity.

- INDEX CHAPTER NO.

CONTENTS
Introduction

Page No. 01 02 03 04 05

Chapter 1. 1.1 1.2 1.3 1.4

Object of the Project Objective of the Study Scope of the Study Limitation of the Study
Industry Profile Insurance Sector Important Milestone In Life Insurance in INDIA) Current Scenario of Insurance Industry Swot analysis of Insurance industry Knowledge Management Unit Linked Insurance Plans (ULIPs) How Does ULIP wWork? (Chart)

Chapter 2. 2.1 2.2 2.3 2.4 2.5 2.6

06 07-16 17-18 19-20 21-23 24-27 28-33 34

Chapter 3 3.1 3.2 3.3 3.4 3.5 3.6

Company Profile About the Company Company Mission Organisation Chart Products of Organisation ULIP Products Competitors of Tata-AIG Life Insurance

35 36-38 39-40 41 42 43-44 45-55

Chapter 4

Comparative Study of ULIP Produt Of Tata-AIG

56

4.1 4.2 Chapter 5 5.1 5.2 5.3 5.4 Chapter 6 6.1 6.2 6.3 6.4 6.5 6.6

Detail of ULIP Products of Other Companies Comparative chart Research Methodology Data Collection Data analyzing Interpretation Limitation of Research Methodology Annexure Conclusion Recommendation Executive Summary Glossary Bibliography Questionnaire

57-66 67-68 69-70 71-73 72-78 79 80 81 82-84 85-88 89 90-97 98 99101

EXECUTIVE SUMMARY
Overall, the life insurance and pension sector is set for rapid changes and growth in the years ahead. Delivering service, building trust and being innovative are key areas in which any company will have to excel in order to do well in the long road ahead. Different companies will take different approaches and it would be myriad of solutions that will be found to delight the Indian customer. During the first part, I was given complete classroom training about the various unit linked as well as the traditional plans and solutions which the company offers. Later, Market Research was done through various activities and telecalling which are discussed further in the report. Activities led to practical exposure and taught me the aspects of customer dealing. Finally, interesting conclusions were drawn out of the data collected regarding the Awareness of Financial Planning among the people in todays environment. It was great experience because selling an insurance product demands a great deal of confidence and product knowledge.

OBJECTIVE OF STUDY
Every study has certain objective there is no study without the objective, because objective are the purpose of study. No study serves any existence without its significant thus; they are the backbone on which the body study stands. To find out the awareness of TALIC product among the customers. To find out the factors affecting the purchase of TALIC products. To find out from where the customer prefer to buy the TALIC products. To find out which bank is being preferred by the customer. To find out the purpose of taking TALIC products. To find out the better funds (ULIP) available in the market through comparative study of the funds ( NAV ) of HDFC SLIC, Bajaj Allianz, Birla Sunlife, ICICI Prudential etc . To be one of the top private life insurers in terms of new business premium& profitability. To provide products with maximum values to customers in accordance & consistent with Govt rules/ policies.

 To

create

strong

position

in

field

of

insurance

sector

&

development of new products. Ensure to retain staffs that are key resource. To further enhance the distribution network for provide the service to customers throughout the country through the expansion of network.

Scope of the Project

This project gives interesting and challenging task to acquire the knowledge of Mutual Funds and ULIP product with the help of different plans and schemes of TATA AIG. This project gives information to the individual investor about the ULIP product and guides them while taking any product of TATA AIG. This report provides the sufficient knowledge about the product portfolio and its asset allocation. Analyzing various funds and their growth .

INDUSTRY PROFILE
Overview
With largest number of life insurance policies in force in the world, Insurance happens to be a mega opportunity in India. Its a business growing at the rate of 15-20 per cent annually. Together with banking services, it adds about 7 percent to the countrys GDP .In spite of all this growth the statistics of the penetration of the insurance in the country is very poor. Nearly 80 per cent of Indian population is without life insurance cover while health insurance and non-life insurance continues to be below international standards. And this part of the population is also subject to weak social security and pension systems with hardly any old age income security. This it-self is an indicator that growth potential for the
insurance sector is immense.

Historical Perspective
The insurance came to India from UK; with the establishment of the Oriental Life insurance Corporation in 1818.The Indian life insurance company act 1912 was the first statutory body that started to regulate the life insurance business in India. By 1956 about 154 Indian, 16 foreign and 75 provident firms were been established in India. Then the central government took over these companies and as a result the LIC was formed. Since then LIC has worked towards spreading life insurance and building a wide network across the length and the breath of the country.

Important milestones in the life insurance business in India:

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1956: 245 Indian and foreign insurers and provident societies were taken over by the central government and nationalized. LIC formed by an Act of Parliament- LIC Act 1956- with a capital contribution of Rs.5 cr. from the Government of India.

Important milestones in the general insurance business in India

1907: The Indian Mercantile Insurance Ltd. set up- the first company to transact all classes of general insurance business. 1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1972: The general insurance business in India nationalized through The General Insurance Business (Nationalization) Act, 1972 with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companiesthe National Insurance Company Limited, the New India Assurance Company Limited, the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.

Insurance Sector Reforms

Prior to liberalization of Insurance industry, Life insurance was monopoly of LIC.

In 1993, Malhotra Committee headed by former Finance Secretary and RBI Governor R.N. Malhotra was formed to evaluate the Indian insurance industry and recommend its future direction. The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector. The reforms were aimed at creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms. In 1994, the committee submitted the report and some of the key recommendations included:

Structure
Government stake in the insurance Companies to be brought down to 50%. Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations.

Competition
Private Companies with a minimum paid up capital of Rs.1 billion should be allowed to enter the sector. No Company should deal in both Life and General Insurance through a single entity. Foreign companies may be allowed to enter the industry in collaboration with the domestic companies.

Regulatory Body
The Insurance Act should be changed. An Insurance Regulatory body should be set up. Controller of Insurance- a part of the Finance Ministry- should be made independent

Investments
Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50%. GIC and its subsidiaries are not to hold more than 5% in any company (there current holdings to be brought down to this level over a period of time)

Customer Service
LIC should pay interest on delays in payments beyond 30 days. Insurance companies must be encouraged to set up unit linked pension plans. Computerization of operations and updating of technology is to be carried out in the insurance industry

NATURE OF INDUSTRY
The insurance industry provides protection against financial losses resulting from a variety of perils. By purchasing insurance policies, individuals and businesses can receive reimbursement for losses due to car accidents, theft of property, and fire and storm damage; medical expenses; and loss of income due to disability or death. The insurance industry consists mainly of insurance carriers (or insurers) and insurance agencies and brokerages. In general, insurance carriers are large companies that provide insurance and assume the risks covered by the policy. Insurance agencies and brokerages sell insurance policies for the carriers.

Insurance companies assume the risk associated with annuities and insurance policies and assign premiums to be paid for the policies. In the policy, the companies states the length and conditions of the agreement, exactly which losses it will provide compensation for, and how much will be awarded. The premium charged for the policy is based primarily on the amount to be awarded in case of loss, as well as the likelihood that the insurance carrier will actually have to pay. In order to be able to compensate policyholders for their losses, insurance companies invest the money they receive in premiums, building up a portfolio of financial assets and income-producing real estate which can then be used to pay off any future claims that may be brought. There are two basic types of insurance carriers : Direct and Reinsurance. Direct carriers are responsible for the initial underwriting of insurance policies and annuities, while Reinsurance carriers assume all or part of the risk associated with the existing insurance policies originally underwritten by other insurance carriers.

Direct insurance carriers offer a variety of insurance policies.

Life insurance provides financial protection to beneficiariesusually

spouses and dependent childrenupon the death of the insured. Disability insurance supplies a preset income to an insured person who is unable to work due to injury or illness Health insurance pays the expenses resulting from accidents and illness.

An Annuity (a contract or a group of contracts that furnishes a periodic income at regular intervals for a specified period) provides a steady income during retirement for the remainder of ones life. Property-casualty insurance protects against loss or damage to property resulting from hazards such as fire, theft, and natural disasters. Liability insurance shields policyholders from financial responsibility for injuries to others or for damage to other peoples property. Most policies, such as automobile and homeowners insurance, combine both propertycasualty and liability coverage. Companies that underwrite this kind of insurance are called property-casualty carriers.

What is Life Insurance?

Human life is subject to risks of death and disability due to natural and accidental causes. When human life is lost or a person is disabled permanently or temporarily, there is a loss of income to the household. The family is put to hardship. Risks are unpredictable. Death/disability may occur when one least expects it. There are a number of life insurance products which offer protection and also coupled with savings. A Term insurance product provides a fixed amount of money on death during the period of contract. A Whole Life insurance product provides a fixed amount of money on death.

An Endowment Assurance product provided a fixed amount of money either on death during the period of contract or at the expiry of contract if life assured is alive. A Money Back Assurance product provides not only fixed amounts which are payable on specified dates during the period of contract, but also the full amount of money assured on death during the period of contract. An Annuity product provides a series of monthly payments on stipulated dates provided that the life assured is alive on the stipulated dates. A Linked product provides not only a fixed amount of money on death but also sums of money which are linked with the underlying value of assets on the desired dates. There are a variety of life insurance products to suit to the needs of various categories of peoplechildren, youth, women, middle-aged persons, old people; and also rural people, film actors and unorganized laborers. Life insurance products could be purchased from registered life insurers notified by the IRDA. Insurers appoint insurance agents to sell their products. As per regulations, insurers have to give the various features of the products at the point of sale. The insured should also go through the various terms and conditions of the products and understand what they have bought and met their insurance needs. They ought to understand the claim procedures so that they know what to do in the event of a loss.

KNOWLEDGE MANAGEMENT
When Should One Go For Insurance?
Your insurance need will change as your life does, from starting to work to enjoying your golden years and all the stages in between. Each one of these stages may pose a different insurance need/cover for you. In this section, we have drawn up the basic life stages and help you analyze various insurance needs accordingly.

Stage 1 : Young and Single

This is an important stage where one lays down the foundation of a successful life ahead. Take advantage of the time and power of compounding to ensure that you build up your dreams, so start saving early. Your needs: o Save for a home and wedding o Tax Planning o Save for Golden years

Stage 2 - Just Married

Marriage

brings

about

significant

change.

New

dreams

and

new

opportunities also bring in additional responsibilities. While both of you look forward to a happy and secure life , it is equally important to ensure that eventualities dont come in the way of shaping your dreams. Your needs: o Planning for home / securing your home loan liability o Save for vacation o Save for your first child

Stage 3 - Proud Parents

Once you have children, your need for life insurance is even more. You need to protect your family from an untoward incident. Ensure your protection umbrella takes into account the future cost of securing your childs dream. You will want life to go on for your loved ones, and having enough life insurance is a way to help ensure that. Your needs: o Provide for childrens education o Safeguarding family against loan liabilities o Savings for post-retirement

Stage 4 - Planning for Retirement

While you are busy climbing the ladder of success today, it is important for you to take time and plan for your life after retirement. Having an early start for retirement planning can make a significant difference to your savings. Think about your golden years even before you have reached them. The key is to think ahead and plan well using your time and money. Your needs: o Provide for regular income post retirement o Immediate Tax benefits o Lead a secure, independent and comfortable life style after retirement

Unit Linked Insurance Plans (ULIPs)

For the generation of insurance seekers who thrived on insurance policies with assured returns issued by a single public sector enterprise, unit-linked insurance plans are a revelation. The subsequent softening of interest rates introduced a degree a muchneeded rationality to insurance products like endowment plans; attractive returns at low risk became a thing of the past. The same period also coincided with an upturn in equity markets and the emergence of a new breed of market-linked insurance products like ULIPs. While in conventional insurance products the insurance component takes precedence over the savings component, the opposite holds true for ULIPs. More importantly ULIPs (powered by the presence of a large number of variants) offer investors the opportunity to select a product which matches their risk profile; for example an individual with a high risk appetite can shun traditional endowment plans (which invest about 85% of their funds in the debt instruments) in favour of a ULIP which invests most of its corpus in equities. In traditional insurance products, the sum assured is the corner stone; in ULIPs premium payments is the key component. ULIPs are remarkably alike to mutual funds in terms of their structure and functioning; premium payments made are converted into units and a net asset value (NAV) is declared for the same. Investors have the choice of enhancing their insurance cover, modifying premium payments and even opting for a distinct asset allocation than the one they originally opted for. This calls for enhanced flexibility in ULIPs. Also if an unforeseen eventuality were to occur, in case of traditional products, the sum assured is paid along with accumulated bonuses; conversely in ULIPs, the insured is paid either the sum assured or corpus amount whichever is higher. Insurance seekers have never been exposed to this kind of flexibility in traditional insurance products and it would be fair to say that ULIPs represent the new face of insurance. While few would dispute the value-add that ULIPs can provide to one's insurance portfolio and financial planning; the same is not without its flipside.

For the uninitiated, understanding the functioning of ULIPs can be quite a handful! The presence of what seem to be relatively higher expenses, rigidly defined insurance and investment components and the impact of markets on the corpus clearly make ULIPs a complex proposition. Traditionally the insurance seeker's role was a passive one restricted to making premium payments; ULIPs require greater participation from the insured.

Charges and Expenses

ULIPs work very similar to a mutual fund with an added benefit of life cover and tax deduction. They have a mandate to invest the premiums in varying proportions in gsecs (government securities), bonds, the money markets (call money) and equities. The primary difference between conventional savings-based insurance plans like endowment and ULIPs is the investment mandate- while ULIPs can invest up to 100% of the premium in equities, the percentage is much lower (usually not more than 15%) in case of conventional insurance plans. ULIPs are also available in multiple options like aggressive ULIPs (which can invest upto 100% in equities), balanced ULIPs (which invest 40-60% in equities) and debt ULIPs (which invest only in debt and money market instruments). Broadly speaking, ULIP expenses are classified into three major categories: 1) Mortality charges Mortality expenses are charged by life insurance companies for providing a life cover to the individual. The expenses vary with the age, sum assured and sum-at-risk for the individual. There is a direct relation between the mortality expenses and the above mentioned factors. In a ULIP, the sum-at-risk is an important reference point for the insurance company. The sum-at-risk is the difference between the sum assured and the investment value the individuals corpus as on a specified date. Usually, the mortality charges are levied on the per thousand sum assured. 2) Sales and Fund Administration expenses Insurance companies incur these expenses for operational purposes on a regular basis. The expenses are recovered from the premiums that individuals pay towards their insurance policies. Agent commissions, sales and marketing expenses and the overhead costs incurred to run the insurance business on a day-to-day basis are examples of such expenses.

3) Fund management charges (FMC) These charges are levied by the insurance company to meet the expenses incurred on managing the ULIP investments. A portion of ULIP premiums are invested in equities, bonds, g-secs and money market instruments. Managing these investments incurs a fund management charge, similar to what mutual funds incur on their investments. FMCs differ across investment options like aggressive, balanced and debt ULIPs; usually a higher equity option translates into higher FMC. Apart from the three expense categories mentioned above, individuals may also have to incur certain expenses, which are primarily optional in naturethe expenses will be incurred if certain choices that are made available to individuals are exercised. a) Switching charges Individuals are allowed to switch their ULIP options. For example, an individual can switch his fund money from 100% equities to a balanced portfolio, which has say, 60% equities and 40% debt. However, the company may charge him a fee for switching. While most life insurance companies allow a certain number of free switches annually, a switch made over and above this number is charged. b) Top-up charges ULIPs allow individuals to invest a top-up amount. Top-up amount is paid in addition to the premium amount for a particular year. Insurance companies usually deduct a certain percentage from the top-up amount as charges. These charges are usually lower than the regular charges that are deducted from the annual premium. c) Cancellation charges Life insurance companies levy cancellation charges if individuals decide to surrender their policies before the mandated lock-in period which is usually three years. These charges are levied as a percentage of the fund value on a particular date

REASON FOR POPULARITY OF ULIPs

ULIPs offer a twin benefit: ULIPs serve the purpose of providing life insurance combined with savings at market-linked returns. This is more beneficial to the investor as compared to his investment in a mutual fund which does not offer a life cover. Moreover, they offer transparent disclosure, monthly portfolios and daily NAVs (net asset values). ULIP became popular mostly on account of Sensex northward journey. ULIPs have multiple investment options: The individuals have an option of investing based on his market analysis and his risk profile. Generally there are three categories of ULIPs. Aggressive ULIPs (which can typically invest 80%-100% in equities, balance in debt) Balanced ULIPs (can typically invest around 40%-60% in equities) Conservative ULIPs (can typically invest upto 20% in equities) ULIPS are Flexible: The individuals are allowed to switch between the ULIP variants outlined above to capitalize on investment opportunities across the equity and debt markets. Free switches are an important feature that allows the informed individual/investor to benefit from the vagaries of stock/debt markets. For instance, when stock markets were on the brink of 7,000 points (Sensex), the prudent investor would prefer to shift his assets from an Aggressive ULIP to a low-risk Conservative ULIP.

INDIAN INSURANCE SECTOR

REGULATORY BODY Insurance is a federal subject in India. The primary legislation that deals with insurance business in India is: Insurance Act, 1938, and Insurance Regulatory & Development Authority Act, 1999. The Insurance Regulatory and Development Authority (IRDA) 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 decision 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. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations.

MISSION-IRDA
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 thereto.

CURRENT SCENARIO OF THE INDUSTRY

INSURANCE MARKET IN INDIA India with about 200 million middle class household shows a huge untapped potential for players in the insurance industry. Saturation of markets in many developed economies has made the Indian market even more attractive for global insurance majors. The insurance sector in India has come to a position of very high potential and competitiveness in the market. Innovative products and aggressive distribution have become the say of the day. Indians, have always seen life insurance as a tax saving device, are now suddenly turning to the private sector that are providing them new products and variety for their choice. Life insurance industry is waiting for a big growth as many Indian and foreign companies are waiting in the line for the green signal to start their operations. The Indian consumer should be ready now because the market is going to give them an array of products, different in price, features and benefits. How the customer is going to make his choice will determine the future of the industry.

CUSTOMER SERVICE Consumers remain the most important centre of the insurance sector. After the entry of the foreign players the industry is seeing a lot of competition and thus improvement of the customer service in the industry. Computerization of operations and updating of technology has become imperative in the current scenario. Foreign players are bringing in international best practices in service through use of latest technologies. The one time monopoly of the LIC and its agents are now going through a through revision and training programs to catch up with the other private players. Though lot is being done for the increased customer service and adding technology to it but there is a long way to go and various customer surveys indicate that the standards are still below customer expectation levels. DISTRIBUTION CHANNELS Till date insurance agents still remain the main source through which insurance products are sold. The concept is very well established in the country like India but still the increasing use of other sources is imperative. It therefore makes sense to look at well- balanced, alternative channels of distribution. LIC has already well established and have an extensive distribution channel and presence. New players may find it expensive and time consuming to bring up a distribution network to such standards. Therefore they are looking to the diverse areas of distribution channel to have an advantage. At present the distribution channels that are available in the market are:

 Direct selling/Retail Corporate agents Group selling Brokers and cooperative societies Bancassurance DIRECT SELLING/RETAIL Direct selling or retail business is carried out by Agents of the company. This is the main distribution channel due to the complexity of most insurance products (Endowment, Whole of Life, Unit Linked). This tends to be the focus of most companies due to its past success as well as its ability to deliver the right advice. However, this channel can be expensive and it is a time consuming sales process. An agent is the public face of an Insurance company. Hence it is important that this face is always smiling and presentable and the facts and figures at his/ her command are updated and correct. An agent should be a pleasing personality with complete knowledge about the various plans and solutions which the company has to offer and must also understand the customers psychology well to deal in an efficient manner. BANCASSURANCE Bancassurance is the distribution of insurance products through the bank's distribution channel. It is a phenomenon wherein insurance products are offered through the distribution channels of the banking services along with a complete range of banking and investment products and services. To put it

simply, Bancassurance, tries to exploit synergies between both the insurance companies and banks. Advantages to banks Productivity of the employees increases.

By providing customers with both the services under one roof, they can improve overall customer satisfaction resulting in higher customer

retention levels.

Increase in return on assets by building fee income through the sale of insurance products. Can leverage on face-to-face contacts and awareness about the financial conditions of customers to sell insurance products. Banks can cross sell insurance products e.g.: Term insurance products with loans.

Advantages to insurers Insurers can exploit the banks' wide network of branches for distribution of products. The penetration of banks' branches into the rural areas can be utilized to sell products in those areas.

Customer database like customers' financial standing, spending habits, investment and purchase capability can be used to customize products and sell accordingly. Since banks have already established relationship with customers, conversion ratio of leads to sales is likely to be high. Further service aspect can also be tackled easily.

Advantages to consumers

Comprehensive

financial

advisory services

under one

roof.

i.e.,

insurance services along with other financial services such as banking, mutual funds, personal loans etc.

Enhanced convenience on the part of the insured Easy accesses for claims, as banks are a regular go.

SWOT ANALYSIS OF INSURANCE INDUSTRY

STRENGTH:

1. Best returns with the added advantage of 100% life insurance coverage. 2. Good option for new investors into the market as all the money is invested by best fund managers so with less knowledge also they can earn good returns. 3. Best commission charges paid to the agents which vary from 12% to 35% which is much higher as compared to mutual funds i.e. , only 2-2.5%.

WEAKNESS
1. TALIC could not able to match LIC in remote areas services. 2. Misleading facts given by life advisors about the returns of ULIPs. 3. Hidden charges taken by the companies. 4. Less Promotional Campaigns.

OPPORTUNITY
1. 80 percent of Indian population is still under insured. So there is a big opportunity for insurance companies. 2. As the stock market can be under the mark any time so it can bring loss to the investors but as in ULIPs there is proper mixture of debt securities and equity so the loss is incurred during dark trading days also. 3. Unit-linked products are exempted from tax and they provide life insurance. 4. Increasing consumer awareness about Insurance and its use.

THREAT

1. Cannibalism within the industry by providing misleading figures to the investors. 2. Govt.s instability has a long term repercussions affecting companys policies and its growth

COMPANYS PROFILE

About Company
Tata-AIG Life Insurance Company Limited (Tata-AIG Life) is a joint venture company, formed by the Tata Group and American International Group, Inc. (AIG). Tata AIG Life combines the Tata Groups pre-eminent leadership position in India and AIGs global presence as the worlds leading international insurance and financial services organization. The Tata Group holds 74 per cent stake in the insurance

venture with AIG holding the balance 26 percent. Tata AIG Life provides insurance solutions to individuals and corporates. Tata AIG Life Insurance Company was licensed to operate in India on February 12, 2001 and started operations April 1, 2001. on

THE TATA GROUP

The Tata Group is one of India's largest and most respected business conglomerates, with revenues in 2004-05 of $17.8 billion (Rs. 799,118 million), the equivalent of about 2.8 per cent of the country's GDP. Tata companies together employ some 215,000 people. The Group's 32 publicly listed enterprises - among them standout names such as Tata Steel, Tata Consultancy Services, Tata Motors and Tata Tea - have a combined market capitalisation that is the highest among Indian business houses in the private sector, and a shareholder base of over 2 million. The Tata Group has operations in more than 40 countries across six continents, and its companies export products and services to 140 nations.

AIG
American International Group, Inc. (AIG), world leaders in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most

extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG's common stock is listed on the New York Stock Exchange as well as the stock exchanges in London, Paris, Switzerland and Tokyo

Management
TrevorBull Managing Director Mr. Trevor Bull joined Tata-AIG Life as Managing Director in January 2006. Prior to this, Trevor was Senior Vice President and General Manager at American International Assurance in Korea. Trevor has over 28 years of experience in the life insurance industry and has spent considerable time working in Japan and Britain. His experience covers an array of skills at various authority levels including Director, Regional Executive, Senior Line Management and Project Management. Additionally, Trevor has acquired keen insights into Unit Linked, conventional life and health insurance/ reinsurance and all major products & distribution channels. A proud father of two boys and one girl, he aligns his hobbies with theirs and connects with them through a game of tennis or football regularly

ORGANISATION STRUCTURE

Mr. Trever Bull Mr.Fhill Heman Ms. Vijay Singha Mr.Sanjiva Gorihatta Mr. Ashwani khosa Mr. Mudit Mathur

MD CEO VP ZM RM Area Manager

Mr. Anurag Shrivastava-

- Branch Manager

Mr. Jitendra Dhiman sales manager Mr.Deepak Sharma - SBDM Mr. Ashawani Sharma BDM Mr. Vivek Singh Mr. Saurabh Gupta Ms. Deepika - ABDM -MBA -SBA

TATA-AIG LIFE has a staff strength of 1029, which includes professionals from the fields of finance, law, accountancy, engineering and marketing.

COMPANYS MISSION:
To be the top life insurance company in the market. This not only means being the largest or the most productive company in the market, but a combination of several things like

Customer service of the highest order Value for money for customers Professionalism in carrying out business Innovative products to cater to different needs of different customers Use of technology to improve service standards Increasing market share

COMPANYS VALUES:

SECURITY: Providing long term financial security to our policy holders will be our constant endeavor. This is done by offering life insurance and pension products. TRUST: Company appreciates the trust placed by our policy holders in us. Hence, company will aim to manage their investments very carefully and live up to this trust. INNOVATION: Recognizing the different needs of our customers, company will be offering a range of innovative products to meet these needs.

Competitors of Tata-AIG life insurance

ICICI prudential:
ICICI prudential insurance is a joint venture of ICICI bank and prudential plc a leading financial service group in the UK. Total capital stands for Rs. 37.72 billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%. ICICI begin their operations in December 2000 after receiving approval from IRDA. Now ICICI prudential is having over 1000 offices, over 270000 advisors and 21bancassurance partners. ICICI Prudential was the first life insurer in India to receive a National Insurer Financial Strength rating of AAA from Fitch ratings. ICICI prudential is working on the base of five core values1 2 3 4 5 Integrity Customer first Boundary less Ownership Passion

Key features: 1 Understanding the needs of customers and offering them superior products and service. 2 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 policyholders.

Providing an enabling environment to foster growth and learning for employees.

HDFC standard life insurance:

HDFC Standard Life Insurance Company Ltd. is one of India's leading private insurance companies. It is a joint venture of Housing Development Finance Corporation Limited, India's leading housing finance institution and a Group Company of the Standard Life in UK. HDFC as on March 31, 2007 holds 81.9 per cent of equity venture. Gross premium income of the HDFC for the year ending March 31, 2007 was Rs. 2, 856 crores and new business premium income was Rs. 1,624 crores. The company has covered over 8, 77,000 lives year ending March 31, 2007. HDFC standard is having 1000 advisors in 11 towns. Key features: 1 2 3 Creating corporate agents through HDFC bank in India. Creating agents to provide total financial consultancy. Introducing low cost group schemes for companies and NGOs.

Reliance life insurance

Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of Indias leading private sector financial services companies, and ranks among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Capital has interests in asset management and mutual funds, stock broking, life and general insurance, proprietary investments, private equity and other activities in financial services. Reliance Capital Limited (RCL) is a Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India under section 45-IA of the Reserve Bank of India Act, 1934 .

Aviva life insurance

Aviva is UKs largest and the worlds fifth largest insurance Group. It is one of the leading providers of life and pensions products to Europe and has substantial businesses elsewhere around the world. Aviva has a joint venture of Dabur, one of India's oldest, and largest Group of companies. And country's leading producer of traditional healthcare products. In accordance with the government regulations Aviva holds a 26 per cent stake in the joint venture and the Dabur group holds the balance 74 per cent share. Aviva has 193 Branches in India (including rural branches) supporting its distribution network. Through its Banc assurance partner locations, Aviva products are available in more than 2,795 locations across India. Aviva has a sales force of over 30000 financial planning advisors.

Key features: 1 Through the Financial Health Check (FHC) Avivas sales force has been able to establish its credibility in the market. The FHC is a free service administered by the FPAs for a need-based analysis of the customers long-term savings and insurance needs. Depending on the life stage and earnings of the customer, the FHC assesses and recommends the right insurance product for them. 2 3 Introduced the concept of Banc assurance in India. Products to provide customers flexibility, transparency and value for money. 4 Differentiation in fund management operations.

MetLife insurance:
MetLife India Insurance Company Limited is an affiliate of MetLife, Inc. and was incorporated as a joint venture between MetLife International Holdings, Inc.and The Jammu and Kashmir Bank, M. Pallonji and Co. Private Limited and other private investors. MetLife is one of the fastest growing life insurance companies in the country. It offers a range of innovative products to individuals and group customers at more than 600 locations through its bank partners and company-owned offices. MetLife has more than 32,000 Financial Advisors. It has approximately 70 million customers all over world. MetLife is working on the base of six core values1 2 Innovation Long term relationship

3 4 5 6

Customer centered and result focused vision Creating high performance organization Working with integrity, fairness and financial prudence Partnering with internal and external customers

Max New York life insurance:

Max New York Life Insurance Company Ltd. is a joint venture between New York Life, a Fortune 100 company and Max India Limited, one of India's leading multi-business corporations The Company's paid up capital is Rs. 907.4 crore. Max New York life is working on the base of six core values1 2 3 4 5 Excellence, Honesty, Knowledge, Caring, Integrity

The Company practices a lot of importance on its selection process of insurance advisors which comprises four stages - screening, psychometric test, career seminar and final interview . 337 agent advisors have qualified for the Million Dollar Round Table (MDRT) membership in 2007 and Max New York Life has moved up to 21st rank in MDRT global list.

Key features: 1 Max New York Life has adopted prudent financial practices to ensure

safety of policyholder's funds.

2 Investing significantly in its training programme and each agent is trained for 152 hours as opposed to the mandatory 100 hours stipulated by the IRDA before beginning to sell in the marketplace. 3 Using a five-pronged strategy to pursue alternative channels of distribution which include the franchisee model, rural business, direct sales force involving group insurance and telemarketing opportunities, banc assurance and corporate alliances.

Bharti Axa life insurance: Bharti Axa life insurance is a joint venture between Bharti, one of Indias leading business groups with interests in telecom, agri business and retail, and Axa world leader in financial protection and wealth management. The joint venture company has a 74% stake from Bharti and 26% stake of Axa. The company started its operations in December 2006. Now company is having over 5200 employees across over 12 states in the country. Company is working on the base of five core values1 2 3 4 Professionalism Innovation Team Spirit Pragmatism

Integrity

Key features: 1 2 Using multi-distribution, multi product platform techniques. Adapting AXA's best practices as a sound platform for profitable growth. 3 Leveraging Bharti's local knowledge, infrastructure and customer base. 4 5 Delivering high levels of shareholder return. Building long term value with business partners by enhancing the proposition to their customers. 6 Retaining the best talent in India.

Bajaj Allianz life insurance:

Bajaj Allianz life insurance company ltd. Is a joint venture of Allianz AG, one of the worlds largest insurance companies and Bajaj auto, one of the biggest two and three wheeler manufacturing companies in the world. Company is having over 440000 satisfied customers in India. Company is having 550 branches across the country and over 60000 advisors. Key features: 1 Tying up with seven regional rural banks sponsored by Syndicate Bank to tap the rural market. 2 Introducing micro-insurance products and coming out with a new

capital guarantee product.

Expanding its agency force from 1.60 lakh to 2 lakh and the branch network will also be increased from 900 to 1400.

ING Vysya Life Insurance Company Limited a part of the ING group the worlds largest financial services provider entered in the private life insurance industry in India in September 2001.ING Vysya Life is currently present in 246 cities and has a network of over 300 branches, staffed by 7,000 employees and over 51,000 advisors, serving over 5.5 lakh customers. ING Vysya Life has a diversified distribution channels,. While Tied Agency remains the strongest channel, the Alternate Channels business within ING Vysya Life is one of the fastest growing distribution channels. ING Vysya Life has strengthened its position as the unparallel leader in the life insurance industry in cooperative banks tie ups. The company currently has tie ups with 130 cooperative banks across the country. The Alternate Channels division has Banc assurance, ING Vysya Bank, Corporate Agents and SMINCE. ING Vysya is working on the base of five core values1 2 Professionalism Entrepreneurial

3 4 5

Trustworthy Approachable Caring

Birla sun life insurance

Birla Sun Life Insurance Company Limited (BSLI) is a joint venture between the Aditya Birla Group and the Sun Life Financial Services of Canada. It started operations in March 2001 after receiving its registration license from IRDA in January 2001. Company is having more than 45 branches across India. Key features: 1 Focus on unit linked insurance products supported with protection products to maintain leadership in product innovation. 2 Use of multi distribution channels - Direct Sales Force, Alternate Channels and offering convenient channels of purchase to customers. 3 Web-enabled IT systems for superior customer services and issuing policies on the internet. 4 High degree of transparency in all business practices and procedures.

Working on operational Bus

The ideal solution

A unit linked insurance plan gives you the best of both worlds:
Protection of an Insurance cover

Power of the Equity Market

ULIP
11

New ULIP offerings from Tata AIG Life

InvestAssure Flexi

Unit Linked Pension Plan

Flexible Unit Linked Investment Plan

12

NAME OF THE INSURANCE COMPANY Tata-AIG Life

POLICY NAME MINIMUM PREMIUM FUND ALLOCATION INVEST ASSURE FLEXI 15,000(annually) 1)WL MID CAP EQUITY FUND 2)LARGE CAP EQUITY FUND 3)CAPITAL GUARANTEE FUND 4) WL STABLE FUND 5)WL AGGRESSIVE FUND 6)WL SHORT TERM FIXED INCOME FUND 7) WL INCOME FUND PREMIUM MODE MINIMUM TERM(yrs) MAXIMUM TERM(yrs) NO. OF FREE SWITCES PER YR MINIMUM LOCK IN PERIOD(yrs) CHARGES PREMIUM CHARGE ( in %age) ALLOCATION 15000-24999 25000-4,99,999 5,00,000-9,99,999 10,00,000-99,99,999 10,000,000 & Above 16%(1st&2nd yr) 15%(1st&2nd yr) 13%(1st&2nd yr) 9%(1st&2nd yr) 1.5%(1st&2nd yr) 3%(3yrs) 3%(3yrs) 3%(3yrs) 3%(3yrs) 1.5%(3yrs) Annual/Semi-annual/Quartely/Monthly 5 yrs 40 yrs 12 3yrs

MORTALITY & OTHER BENEFITS CHARGES

NA RISK

FUND MANAGEMENT CHARGE WL MID CAP EQUITY FUND LARGE CAP EQUITY FUND CAPITAL GUARANTEE FUND 1.20% 1.20% 1.50%

NAME OF COMPANY

THE

INSURANCE BAJAJ ALLIANZ CAPITAL UNIT GAIN 10,000(annually) 1000(monthly) 1)LIQUID FUND(low risk profile) 100% in bank deposits 2)BOND FUND(moderate risk profile) 20% in money market instruments, 80%in G-sec bonds 3)EQUITY GROWTH FUND(very high risk profile) 20% in bank deposits and money market instruments, 80% in equity 4)EQUITY INDEX FUND-II (high risk profile) 15% in bank deposits and money market instruments , 85% in equity 5) ACCELERATOR MID-CAP FUND(very high) 20% in bank deposits and money market instruments, 80% in equity

POLICY NAME MINIMUM PREMIUM FUND ALLOCATION

MINIMUM TERM(yrs) MAXIMUM TERM(yrs) NO. OF FREE SWITCES PER YR MINIMUM LOCK IN PERIOD(yrs) CHARGES

10 yrs 30 yrs 3 3yrs

PREMIUM ALLOCATION CHARGE( in %age) Rs 10,000-Rs1999,999 Rs 2000,000-Rs999,999 Rs 1,000,0000

5% 4% 3%

POLICY ADMINISTRATION CHARGE MORTALITY & OTHER BENEFITS CHARGES

Rs 600 per annum per policy

AGE(yrs) RISK <7yrs 20 30 40 50

amount(Rs) 0 1.12 1.29 2.37 6.08

FUND MANAGEMENT CHARGE

1.75% p a of NAV for equity growth fund

NAME OF COMPANY

THE

INSURANCE ICICI PRUDENTIAL INVEST SHIELD LIFE 8,000(annually) INVEST SHIELD LIFE(moderate risk profile) 60% debt, 40% equity

POLICY NAME MINIMUM PREMIUM FUND ALLOCATION

MINIMUM TERM(yrs) MAXIMUM TERM(yrs) NO. OF FREE SWITCES PER YR MINIMUM PERIOD(yrs) CHARGES LOCK IN

10 yrs 30 yrs NONE 3yrs

PREMIUM ALLOCATION CHARGE( in %age) year 1 year 2 year 3

35% 15% 3%

POLICY ADMINISTRATION CHARGE

Rs 40 per month

MORTALITY & OTHER BENEFITS CHARGES

AGE(yrs) RISK <7 20 30 40 50

amount(Rs) 0 1.33 1.46 2.48 5.91

FUND MANAGEMENT CHARGE

1.25 p a of NAV

PARTIAL WITHDRWAL SWITCHING CHARGE SURRENDER CHARGE

NA no switches per year no, of yrs of policy 3 yrs 4 yrs 5 yrs 6 yrs 7 yrs 8 yrs 9 yrs 10 yrs and above surrender value as a % of fund value 50% 60% 70% 80% 85% 90% 95% 100%

MISCELLANEOUS CHARGE

surrender value is available after deducting surrender charges NA

NAME OF COMPANY

THE

INSURANCE KOTAK LIFE SAFE INVESTMENT PLAN II 18,000(annually) AGGRESSIVE GROWTH 60-100 IN EQUITY,0-40 IN DEBT 2)DYNAMIC GROWTH 40-80 IN EQUITY,20-60 IN DEBT 3)DYNAMIC BALANCED GROWTH 30-60 IN EQUITY,20-70 IN DEBT

POLICY NAME MINIMUM PREMIUM FUND ALLOCATION

MINIMUM TERM(yrs) MAXIMUM TERM(yrs) NO. OF FREE SWITCES PER YR MINIMUM LOCK IN PERIOD(yrs) CHARGES

10 YRS 30 yrs 4 3 YRS

PREMIUM ALLOCATION CHARGE( in %age) year 1 year 2 onwards

14% 3.5%

POLICY CHARGE

ADMINISTRATION Rs 40 per month there are charges for any alteration in policy contract revival charge is Rs 500 preminum redirection is Rs 100 1.6% for aggressive growth

MORTALITY & OTHER RISK BENEFIT CHARGE

FUND MANAGEMENT CHARGE

PARTIAL WITHDRWAL SWITCHING CHARGE SURRENDER CHARGE MISCELLANEOUS CHARGE

3% in yr 4,2% in yr 5,1% in yr 6 and 0% from yr 7 onwards Rs 500 after 4 free switches 3% in yr 4,2% in yr 5,1% in yr 6 and 0% from yr 7 onwards annual fund management charges would not increase 40% of the initial level policy administration charges would not increase 5% from the original level

NAME OF COMPANY

THE

INSURANCE HDFC STANDARD LIFE UNIT LINKED ENDOWMENT 10,000(annually) 1)LIQUID FUND(low risk profile) 100% in bank deposits 2)SECURE MANAGED FUNDS(low moderate) 100% in govt. securities and bonds 3)DEFENSIVE MANAGED FUND(moderate) 70-85% in govt securities and bonds,15-30% in equity 4)BALANCED MANAGED FUND(high risk profile) 40-70% in govt securities and bonds, 30-60% in equity 5)EQUITY MANAGED FUND(very high risk profile) 0-40% in govt securities and bonds, 60-100% in equity 6)GROWTH FUND(very high risk profile) 100% in equity

POLICY NAME MINIMUM PREMIUM FUND ALLOCATION

MINIMUM TERM(yrs) MAXIMUM TERM(yrs) NO. OF FREE SWITCES PER YR MINIMUM LOCK IN PERIOD(yrs) CHARGES PREMIUM CHARGE ( in %age) ALLOCATION

10 yrs 30 yrs 24 3yrs

upto 1,99,999 30%(1st&2nd yr) 1%(>3yrs) 2,00,000-4,99,999 20%(1st&2nd yr) 1% (>3yrs) 5,00,000-9,99,999 15%(1st&2nd yr) 1% (>3yrs) 10,00,000-19,99,999 10%(1st&2nd yr) 1% (>3yrs)

>20,00,000 (>3yr) POLICY ADMINISTRATION CHARGE Rs 20 per month

5%(1st&2nd yr)

1%

MORTALITY & OTHER BENEFITS CHARGES

NA RISK 0.80% of fund value

FUND MANAGEMENT CHARGE

PARTIAL WITHDRWAL SWITCHING CHARGE SURRENDER CHARGE

6 partial withdrawls free and additional will cost Rs250per request after the 24 free charges additional charges will cost Rs100 per switch 30% of the difference between regular premiums expctd& received in the first 2 yrs

MISCELLANEOUS CHARGE

after 12 free premium redirection requests additional will be charged Rs 250 per request after 6 free policy serving requests additional will be charged Rs 250 per requests

COMPARISON OF TALIC WITH OTHERS

PENSION PLAN (SINGLE PREMIUM)

PENSION PLAN (REGULAR PREMIUM)

Around InvestAssure Future

REGULAR PREMIUM ULIP PENSION PLAN COMPARISON

Part
Plan Name

I-Pru
Life time Super pension(RP)

LIC
Market Plus (RP)

HDFC SL
ULIP Pension(RP)

Aviva
Pension Plus (RP)

TALIC
InvestAssure Future

Issue Age

Min - 18 years Max 65 years Min 10 years Rs. 10,000/- annually; 5000 half yearly; 834 monthly/Min - 45 years Max 75 years

Min Age - 18 Max Age - 70(with life cover 65) Min 5 years Annual - 5,000/-

Min Age - 18 Age - 65 Min - 10 yrs yrs

Max

Min Age 18 yearMax Age:65 Min5 ; max upto vesting age chosen Annual- 6,000/- for RP; 1Lakh for Single premium Min 40years; max 70 years

RP Min Age-18 Max age - 65

Term Min Prem

Max - 40

Term: RP - 10yrs -35 RP - 10,000

or term/2

Min Annual Prem 10,000/Min Vesting Age - 50 Max Vesting Age 75

Vesting Period Life Cover Option- With / Without Life Cover

Min Vesting Age - 40 Max Vest Age 75 Both options (with /without life cover)available Min SA - Rs. 50,000 Max SA - 20 times Annual Prem ADB rider, equal to Life Cover, sub to min 25,000 and max 50 lakhs. 4 , Bond Fund / Secured Fund / Balanced Fund / Growth Fund

Min - 45 years Max - 75 years

Both options avl (With / Without Life Cover) Max of annual premium multiplies by policy term or 100,000 /Riders avl. ADB / WOP.

Without life cover

Without life cover

Without life cover

Min & Max SA Rider Option

N/A No Rider options available. No options

N/A

N/A No rider options available

Fund options

4 funds Pension Maximiser II/ Pension Balancer II / Pension Protector II/ Pension Preserver.

6 Funds Liquid Fund / Secure Managed Fund/ Defensive Managed Fund / Balanced Managed Fund / Equity Managed Fund/ Growth Fund

Pension with Profits Fund \ Pension Growth Fund / Pension Secure Fund /Pension Balance Fund

5 Funds: Future Equity Pension / Future Growth pension / Future Balanced Pension / Future Income Pension/ Future Capital Guarantee Pension fund

39

Bajaj Allianz New UnitGain

Everything changes with time. At Bajaj Allianz Life Insurance, its no different. Keeping in line with changing trends and new horizons, Bajaj Allianz Life Insurance presents Bajaj Allianz New UnitGain Plan. Presenting an investment plan that provides the best returns possible for every rupee you invest. The plan is structured to provide a secure life cover and extraordinary benefits aligned with our commitment to give you the ultimate investment plan. Key highlight of Bajaj Allianz New UnitGain Your investment, apart from normal allocation, receives Loyalty Units equivalent to 51% of First Years Annualized Premium over a period of 10 years. Seven investment funds to choose from with unmatched flexibility to manage your investments better. You policy continues to participate in investment performance of the fund(s). Even if you are not able to pay 3 full years premium Maximum flexibility Option to increase premium. Partial withdrawals anytime after three years from the commencement of policy, provided three full years premiums are paid. Three free switches every year. Option to pay unlimited top up premiums anytime during the tenure of your policy to further enhance your savings. You have three simple terms to choose from 15, 20 and 25 yrs. Guaranteed Life Cover, with a flexibility to choose insurance cover according to your changing needs. How does the plan work? Premiums paid by you, net of premium allocation charge, are invested in fund(s) of your choice and units are allocated depending on the unit price of the fund(s). The value of your policy is the total value of units that you hold in the fund(s). The insurance cover charges, policy administration charges and the additional rider benefit charges (if any) are deducted through monthly cancellation of units. Fund Management Charge is priced in the unit value.

Death Benefit
On death occurring before the age of 7 years: The death benefit will be the fund value as on date of receipt of intimation of death at the office. On death after the age of 7 years and before the age of 60 years: The benefit payable would be the sum assured less value of partial withdrawals made in the last 24 months prior to the date of death or the fund value as on date of receipt of intimation of death at the Companys office, whichever is higher. The death benefit payable would be calculated separately for regular premiums and top up premiums. On death of the life assured on or after attaining the age of 60 years: The benefit payable would be the sum assured less value of partial withdrawals made, within 24 months before attaining age 60 years and all partial withdrawals made after attaining age 60 years or the fund value as on the date of receipt of intimation of death at the office, whichever is higher. The death benefit would be calculated separately for regular premiums and top up premiums. If three years regular premium has not been paid and the policy has lapsed, fund value as on date of receipt of intimation of death at the Companys office will be paid on death of the life assured. The policy will terminate upon payment of death benefit.

Maturity Benefit
On Maturity, the Fund Value in respect of regular premium and top up premium, if any, will be paid and the policy will terminate.

Surrender Benefit
The surrender value of the policy will be equal to the fund value less surrender charge, if any. Anytime after three years from the date of commencement of the policy, you have the option to avail of surrender benefit by complete surrender of units. The policy will terminate upon payment of surrender value.

Additional Rider Benefits available

The following additional rider benefits in the form of rider can be availed at the option of the policyholder. UL Accidental Death Benefit Rider (UL ADB) UL Accidental Permanent Total/ Partial Disability Benefit Rider (UL APT/PDB) UL Critical Illness Benefit Rider (UL CI) UL Hospital Cash Benefit Rider (UL HCB) UL Waiver of Premium Benefit (UL WOP) UL Family Income Benefit (UL FIB) (Please refer to the additional rider benefits brochure for more details.) You have the flexibility to add or remove the riders at any policy anniversary subject to rider terms and conditions.

Fund Value:
The fund value is equal to the number of units under this policy multiplied by the respective unit price on the relevant valuation date

Unit Price:
The unit price of each fund is arrived at by dividing the Net Asset Value (NAV) of the fund by the number of units existing in the fund at the valuation date (before any new unit is allocated or cancelled)

Valuation Date:
The Company aims to value the Funds on each day the financial markets are open. However, the Company reserves the right to value less frequently in extreme circumstances, where the value of the assets may be too uncertain. In such circumstances, the Company may defer valuation of assets until a certainty on the value of assets is resumed. The deferment of valuation of assets will be subject to prior consultation with IRDA. Currently, the cut-off time is 3.00 p.m. for applicability of Unit Price of a particular day for switches, redemptions and publication of Unit Price.

Computation of NAV:

When Appropriation price is Applied:

The NAV of a fund shall be computed as Market value of investment held by the fund plus the expenses incurred in the purchase of the assets plus the value of any current assets plus any accrued income net of fund management charges less the value of any current liabilities less provision, if any. This gives the net asset value of the fund. Dividing by the number of units existing at the valuation date (before any new units are allocated), gives the unit price of the fund under consideration. This is applicable when the company is required to purchase assets to allocate units at the valuation date.

When Expropriation price is applied:

The NAV of a fund shall be computed as Market value of investment held by the fund less the expenses incurred in the sale of the assets plus the value of any current assets plus any accrued income net of fund management charges less the value of any current liabilities less provision, if any. This gives the net asset value of the fund. Dividing by the number of units existing at the valuation date (before any units are redeemed), gives the unit price of the fund under consideration. This is applicable when the company is required to sell assets to redeem units at the valuation date.

Investment Options:
Bajaj Allianz offers you a choice of seven (7) investment funds as given below Asset Allocation Fund Risk Profile High Liquid Fund - Risk profile Low Bond Fund - Risk profile Moderate Equity Growth Fund - Risk profile - Very High Equity Index Fund II - Risk profile High Accelerator Mid-Cap Fund - Risk profile - Very High

 Pure Stock Fund - Risk profile - Very High

Bajaj Allianz New UnitGain Easy Pension Plus RP Plan

With Bajaj Allianz New UnitGain Easy Pension Plus RP you can take control of your future and ensure a retirement you can look forward to. Early retirement from work is every ones dream; you want your saving and investment to grow fast so you dont have to work for money anymore and enjoy every moment of being with your loved ones. The New UnitGain Easy Pension Plus RP is a retirement plan that helps you retire with laughter lines. This unitlinked pension plan gives you the advantage of investing in securities making your savings grow faster so you can retire earlier.

What are the benefits available?

The plan works in two parts the deferment period and the annuity period. During the deferment period, the plan builds up the funds. The deferment period ends at the vesting date. You are free to choose your age of retirement (vesting date) between 45 and 70 years. After the vesting date, the annuity payments begin. The benefits on Vesting Date (the date you choose to retire) The Fund Value as on the vesting date will be used to purchase an immediate annuity, at rates prevailing at that point of time. Option to take lump sum: You have the option to take up to 1/3rd of the Fund Value as a lump sum. This amount would be tax free in your hand, as per current tax laws. The balance amount will be used to purchase an immediate annuity. Open Market Option: You have the option to purchase an immediate annuity

 from Bajaj Allianz or from any other life insurer as recognised by IRDA. If the immediate annuity is purchased from Bajaj Allianz, the amount available for purchase of the annuity will be marked up as applicable in the immediate annuity product available on that time. There will be a minimum instalment of annuity from Bajaj Allianz depending on the immediate annuity product available on that time. The annuity frequency may be changed to make each instalment more than the minimum requirement. If it still below the minimum, the Fund Value may be paid in a lump sum, if permissible, subject to applicable tax laws.

Assurance for your family

In the unfortunate event of death during the deferment period, your spouse will have the option to take the Fund Value as a lump sum or purchase an annuity to get regular income for life. For the immediate annuity, your spouse will have the Open Market Option as well. The immediate annuity from Bajaj Allianz will be available only if the spouse is above 45. If age were below 45, the Fund Value would be paid out. Annuity options: You will be able to choose from all immediate annuity products offered by Bajaj Allianz Life insurance at the vesting date. The annuity products currently available are: Annuity for Life Annuity for Life with 5, 10, 15 or 20 years certain payout Annuity for Life with Return of Capital You also have the open market option to purchase immediate annuity.

How does the Bajaj Allianz New UnitGain Easy Pension Plus RP Plan work?
The premiums paid are invested in a fund(s) of your choice (depending on the allocation rate) & units are allocated depending on the price of units for the fund(s). The value of your policy is the total value of units that you hold in the fund(s). The policy administration charges are deducted through cancellation of units. The Fund Management Charge is priced in the unit value. Fund Value : The Fund Value is equal to the number of units under this policy multiplied by the unit price of the units on the relevant valuation date. Unit Price: The unit price of each fund is arrived at by dividing the Net Asset Value (NAV) of the fund by the number of units existing in the fund at the valuation date (before any new unit is allocated or cancelled) Valuation Date: The Company aims to value the Funds on each day the financial markets are open. However, the Company reserves the right to value less frequently in extreme circumstances, where the value of the assets may be too uncertain. In such circumstances, the Company may defer valuation of assets until a certainty on the value of assets is resumed. The deferment of valuation of assets will be subject to prior consultation with IRDA. Currently, the cut-off time is 3 p.m. for applicability of Unit Price of a particular day for switches, redemptions and publication of Unit Price. Computation of NAV: When Appropriation price is Applied: The NAV of a Unit Linked Life Insurance Product shall be computed as: Market value of investment held by the fund plus the expenses incurred in the purchase of the assets plus the value of any current assets plus

any accrued income net of fund management charges less the value of any current liabilities less provision, if any. This gives the net asset value of the fund. Dividing by the number of units existing at the valuation date (before any new units are allocated), gives the unit price of the fund under consideration. This is applicable when the company is required to purchase assets to allocate units at the valuation date. When Expropriation price is Applied: The NAV of a Unit Linked Life Insurance Product shall be computed as: Market value of investment held by the fund less the expenses incurred in the sale of the assets plus the value of any current assets plus any accrued income net of fund management charges less the value of any current liabilities less provision, if any. This gives the net asset value of the fund. Dividing by the number of units existing at the valuation date (before any units are redeemed), gives the unit price of the fund under consideration. This is applicable when the company is required to sell assets to redeem units at the valuation date. Investment Options: Bajaj Allianz offers you a choice of 6 funds. You can choose to invest fully in any one fund or allocate your premiums into the various funds in a proportion that suits your investment needs. All the funds will be managed by asset managers of Bajaj Allianz, backed with the rich experience of Allianz SE, one of the largest asset managers in the world today, managing assets worth over a Trillion Euros (over Rs. 55,00,000 crores). The six funds offered are as under: Liquid Pension Fund- Risk Profile Low : Bond Pension Fund- Risk Profile Moderate : Equity Growth Pension Fund- Risk Profile Very High Equity Index Pension Fund II- Risk Profile High Pure Stock Pension Fund Risk Profile Very High :

Flexibility - to pay top ups:

 You may have received a bonus or some lump sum money. You can use that to increase your investments in your policy provided you have paid all due regular premiums.. 98% of any amount paid as top-up is allocated to your funds.

Flexibility to increase the level of Regular Premium Payment: Your earnings grow over time, and so does your savings potential. With Bajaj Allianz, you have the flexibility to increase your regular premium amount Fund Management Charge will be 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 the NAV for Equity Index Pension Fund II, 0.95% p.a. of the NAV for Bond Pension Fund and 0.95% p.a. of NAV for Liquid Pension Fund. 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 Allocation: A portion of the premium paid will be charged towards expenses in the initial years. Accordingly, the allocation to your fund will be will be as follows: Annual Premium size Premium Payment due in Policy Year 1 Policy Year 2 onwards 10,000 24,999 84% 98% 25,000 49,999 86% 98% 50,000 99,999 88% 98% 100,000 499,999 90% 98% 500,000 and above 92% 98% The allocation of top ups would be 98%.

Surrender Charge If first three years regular premiums are not paid and the policy is lapsed, the Surrender Charge on regular premium unit value would be 100% of the first years annualised Allocated Premium. If first three years regular premiums have been paid in full, the scale of Surrender Charge applicable on regular premium unit value would be as follows: Policy Year Surrender Charge 4 5% 5 2% 6 and above No Charge The Surrender Value would be payable after three policy years. Further, if first three years regular premiums have not been paid and the policy is lapsed, the Surrender Value, if any, would be payable at the expiry of the revival period or three policy years, whichever is later. No surrender charge will be applied in case of complete surrender of units in respect of Top Up Premium.

IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICY HOLDER

Bajaj Allianz YoungCare Plus

Bajaj Allianz Life Insurance presents a plan that takes care of you and the financial requirements of your loved ones after you. Bajaj Allianz YoungCare Plus offers you a unique way to reassure yourself that you have taken care of the ones you cherish. With this unique policy that allows your loved ones to live comfortably, even if something were to happen to you. . Bajaj Allianz YoungCare Plus insures a safe financial future with prospects of attractive returns and guaranteed life cover. Only to make sure that when your life changes, your plans can still stay the same as always. A plan thats made Just for you Gift of a lifetime to your loved one, who has been nominated by you to receive the benefits under the policy. Loyalty Units to enhance your fund value every year from the sixth policy year.

 Get a guaranteed Sum Assured plus we will continue to pay premium on your behalf, in case of your unfortunate death or on being diagnosed to be suffering from specified Critical Illnesses, whichever occurs first Your policy continues to participate in investment performance of the fund(s) till maturity even after the payment of Sum Assured as part of death or critical illness benefit. An Asset Allocation Fund looks after your investments even when the market conditions change. Our experienced fund managers monitor the mix of assets in the fund and manage the mix in such situations to maximize your returns. Also if you want to manage the mix of assets for your policy on your own, you have a choice of 5 other investment funds, with complete flexibility to switch money from one fund to the other to manage your investments better. Your policy continues to participate in investment performance of the fund(s) even if you are not able to pay the premium for first 3 full years. Flexibility of partial withdrawals at any time after three years from commencement of the policy provided first three full years premiums are paid. Option to pay top up premiums anytime during the tenure of your policy to further enhance your savings Option to choose UL Accidental Permanent Total/Partial Disability Benefit as an additional rider benefit to provide assurance to your family. How does the plan work? Premium paid by you, net of the premium allocation charge, if any, are invested in fund(s) of your choice and units are allocated depending on the unit price of the fund(s). The fund value of your policy is the total value of units that you hold in the fund(s). The insurance cover charges, policy administration charges and the additional rider benefit charges (if any) are deducted through monthly cancellation of units. Fund Management Charge is priced in the unit value. Bajaj Allianz YoungCare Plus offers you the following cover: Your Sum Assured is always equal to Half of the Policy Term times Annualized Premium

Death / Critical Illness Benefit In case of death or diagnosis of critical illness of the life assured, whichever occurs first, the following benefit shall be payable: Sum Assured payable immediately. All future regular premium falling due from the date of death or date of diagnosis of critical illness, whichever occurs first, till the end of the policy term shall be allocated by the company to the various funds, as had been chosen by you, on the premium due dates. The policy will continue with nil Sum Assured till maturity after the death or earlier occurrence of critical illness of the life assured or till early surrender of the Policy. After the death of the life assured, the nominee or appointee, if nominee is minor, shall have right only to receive policy proceeds by way of partial withdrawal, surrender or whole fund value at maturity date. If the company has already paid the above benefits on critical illness, then nothing is payable on death of the life assured. If first three years regular premium has not been paid and the policy has lapsed, then the benefit payable on death or critical illness of the life assured, whichever occurs first, will be the fund value and in such case, the policy will terminate Critical Illness means First Heart Attack, Coronary Artery Disease (requiring Surgery), Stroke, Cancer, Kidney Failure, Major Organ Transplant, Multiple Sclerosis, Aorta Graft Surgery, Primary Pulmonary Hypertension, Alzheimers Disease and Paralysis. Maturity Benefit On maturity, the fund value will be paid to the policyholder, or in case of death of life assured to the nominee. Surrender Benefit The surrender value of the policy will be equal to the fund value less surrender charge, if any. Anytime after three years from the date of commencement of the policy, provided due premiums for first three policy years have been paid, you have the option to avail surrender benefit by complete surrender of units.

 Further, if first three years regular premiums have not been paid and the policy has lapsed, the surrender value, if any, would be payable at the expiry of the revival period or at the end of third policy year, whichever is later.

Computation of NAV:
When Appropriation price is Applied: The NAV of a fund shall be computed as the market value of investment held by the fund plus the expenses incurred in the purchase of the assets plus the value of any current assets plus any accrued income net of fund management charges less the value of any current liabilities less provision, if any. This gives the net asset value of the fund. Dividing by the number of units existing at the valuation date (before any new units are allocated), gives the unit price of the fund under consideration. This is applicable when the company is required to purchase assets to allocate units at the valuation date. When Expropriation price is applied: The NAV of a fund shall be computed as the market value of investment held by the fund less the expenses incurred in the sale of the assets plus the value of any current assets plus any accrued income net of fund management charges less the value of any current liabilities less provision, if any. This gives the net asset value of the fund. Dividing by the number of units existing at the valuation date (before any units are redeemed), gives the unit price of the fund under consideration. This is applicable when the company is required to sell assets to redeem units at the valuation date. Investment Options: We offer you a choice of six (6) investment funds as given below. Asset Allocation Fund Risk Profile High Liquid Fund - Risk profile Low Bond Fund - Risk profile Moderate

 Equity Growth Fund - Risk profile - Very High Equity Index Fund II - Risk profile High Assurance for you Even if you forget to pay your premium, after three years regular premiums are paid, you have an option to continue the policy for full insurance cover. Under this option, the policy will be kept in force by cancellation of units at the prevailing unit price to meet all the charges, provided the value of the units in respect of regular premium less surrender charges does not fall to an amount equivalent to one annual premium under the policy. Partial withdrawal option Anytime after three years from the date of commencement of the policy provided regular premiums for three full years have been paid, you / your nominee have the option to partially withdraw units from fund(s) subject to following conditions: The minimum amount of withdrawal is Rs.5,000. Maximum partial withdrawal allowed shall be equal to fund value minus two annual premiums which means a minimum fund value of two annual premiums needs to be maintained at any given time. All partial withdrawals will be first made from eligible top up premium units, if any. Once the top up premium units are exhausted, further partial withdrawals will be made from regular premiums units. For the purpose of partial withdrawals, each payment of top up premium shall have a lock-in period of three years, unless the payment of top up premium is made in the last 3 policy years. No charge is applicable on partial withdrawals either from top up premium units or from regular premium units We may vary the minimum value of units at NAV to be withdrawn and/or the minimum balance of value of units to be maintained after such partial withdrawals subject to prior approval from IRDA. After the death of life assured, the nominee or appointee if nominee is minor shall be allowedto make one partial withdrawal only during a policy year up to maximum of 25% of the existing fund value.

Important Details of the Bajaj Allianz YoungCare Plan Parameter Details Minimum Age at Entry 18 Maximum Age at Entry Age attained 60 / In case UL APTPDB rider has been chosen, maximum entry age is 50 years attained Maximum Maturity Age 70 years Additional Rider Benefit Ceasing Age 65 years for UL APTPDB Minimum Term 10 years. Maximum Term 30 years or Age at entry less Maximum Maturity Age of 70, whichever is less Minimum Premium Rs 20,000 per yearly installment, Rs 10,000 per half-yearly installment, Rs. 5,000 per quarterly installment Rs 2,000 per monthly mode (Monthly mode is available through ECS and Salary Saving Scheme only). Minimum Top Up Premium is Rs. 5,000. *You can change the premium payment mode on any policy anniversary. Free Look Period Within 15 days from the date of receipt of the policy, you have the option to review the terms and conditions and return the policy, if you disagree to any of the terms & conditions, stating the reasons for your objections. You will be entitled to a refund of the premium paid, subject only to a deduction of a proportionate risk premium for the period on cover and the expenses incurred on medical examination and stamp duty charges. The refund paid to you will also be reduced or increased (as applicable) by the amount of any reduction or increase in the fund value, if any, due to a fall or rise in the unit price between the date of allocation and redemption of units (without reference to any premium allocation rate or charges). Days of Grace A grace period of 30 days for the yearly, half yearly and quarterly modes and of 15 days for the monthly mode is allowed under the policy. Your policy remains in force for all insurance covers, if any, even if the due premiums are not paid during this period.

Revival of the Policy It is possible to revive a policy that has lapsed due to non-payment of premiums within 2 years from such date of lapse. You have to give a written application to the company to revive the policy with all due unpaid regular premiums. The revival will be effected subject to underwriting. We may disallow the revival of the policy on the original terms and conditions Termination Conditions This policy shall automatically terminate on the earlier occurrence of either of the following events: The units in the policy are fully surrendered; The fund value in respect of regular premium less surrender charge falls to an amount equivalent to one annual premium provided regular premiums have been paid for first 3 full years; Upon the policy remaining lapsed for two years or remaining lapsed till the end of the third policy anniversary, whichever is later; On death of the life assured provided the policy has lapsed; On the maturity date. Fund Access Loan Loan is not available under this plan. Tax Benefits Premiums paid and benefits received will be eligible for tax benefits as per applicable tax laws. As per the current tax laws: Premiums payable are eligible for tax benefits as per Section 80C of the Income Tax Act. Partial Withdrawals, Surrender Value, Death Benefit and Maturity Benefit are eligible for tax benefits as per Section 10(10D) of the Income Tax Act. The charge paid for UL APTPDB rider benefit is eligible for tax benefits as per Section 80(D) of the Income Tax Act. In case of change in any tax laws relevant to you or the fund performance, the same will be applied as per regulations prevailing at that point of time

Death Benefit Exclusion

In case the life assured commits suicide within one year of the date of commencement/revival of the policy, the amount payable would be the value of the units in your account.

Charges Under the Plan

Policy Administration Charge: Rs. 630 per annum inflating at 5% every 1st of April will be deducted at each monthly anniversary by cancellation of units. Fund Management Charge 1.75% p. a. of the NAV for Equity Growth Fund and Accelerator Mid-Cap Fund, 1.25% p.a. of the NAV for Equity Index Fund II and Asset Allocation Fund, 0.95% p.a. of the NAV for Bond Fund and Liquid Fund. The Fund Management Charge is charged on a daily basis and adjusted in the unit price. Premium Allocation Charge: Annual Premium size Premium Allocation Charge for Premium Payment due in (Rs.) Policy Year 1 Policy Year 2 to 10 Policy Year 11 and above 20,000 99,999 60% 3% Nil 100,000 1,99,999 55% 3% Nil 2,00,000 4,99,000 50% 3% Nil 5,00,000 9,99,999 35% 3% Nil 10,00,000 and above 25% 3% Nil All Top up premiums have a premium allocation charge of 2%.

 Fund 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, on each such occasion. Miscellaneous Charge: The miscellaneous charge would be Rs.100/- per transaction in respect of reinstatement, alteration of premium frequency or mode, decrease in regular premium or issuance of copy of policy document Surrender Charge: If any due regular premium is not paid within the grace period in the first three policy years, the surrender charge will be 60% of the first years Annualized Premium. If first three years regular premiums have been paid in full, the surrender charge will be as follows: [1 (1/1.10)^N ] * First Years Annualized Premium. where N is 10 years less the elapsed policy duration in years and fraction thereof. This surrender charge is applied during the first 10 policy years only. No Surrender Charge will be applied on units in respect of Top Up Premium. Mortality Charges: The mortality charge would vary according to the gender and attained age of the life assured at the time of deduction of the charge. This charge would be recovered through cancellation of units on a monthly basis and would be applied on sum at risk which is equal to the sum assured plus 0.86364 * sum of future regular premiums falling due till outstanding premium term Sample standard mortality charges per annum per thousand of sum at risk for male lives are given in the table below: Age 20 30 40 50 Mortality Charge per annum per thousand of sum at risk for male lives 1.12 1.29 2.37 6.08

 Rider Premium Charges: The rider premium charge will be deducted for UL Accidental Permanent Total / Partial Disability Benefit Rider (if opted for by you) This charge would be recovered through cancellation of units on a monthly basis Revision of charges After taking due approval from the IRDA, we reserve the right to change the following charges: Fund Management Charge up to a maximum of 2.75% p.a. of the NAV for the Equity Growth Fund and Accelerator Mid-Cap Fund, 2.25% p.a. for the Equity Index Fund II and Asset Allocation Fund, 1.75% p.a. for the Bond Fund and Liquid Fund. Switching charge upto a maximum of Rs.200 per switch or 5% of the switching amount, whichever is lower. Miscellaneous charge upto a maximum of Rs.200/- per transaction If you disagree with the charges, you will be allowed to exit the plan at the prevailing unit price after applying surrender charge, if any. the policy according to your requirements.

BIRLA SUNLIFE INSURANCE PRODUCTS

Birla Sun Life Insurance Simply Life In This Policy, The Investment Risk In Investment Portfolio Is Borne By The Policy holder Highlights Contribution guarantee Market related returns Increasing death benefit Tax benefits under section 80 C and sec 10(10D)

Your dreams are as special as you are. If only an instrument would take care of both, you and your dreams. Helps you increase your savings and at the same time be a safe investment. Also secure your family's future and ensure their well-being. Our Birla Sun Life Insurance Simply Life plan does precisely that and more. It goes a long way in helping you realize your dreams besides being very convenient to buy. It ensures a lifetime of Tax free savings and also offers a life insurance cover that takes care of your near and dear ones. About BSLI Birla Sun Life Insurance Company Limited is a joint venture between The Aditya Birla Group, one of the largest business houses in India and Sun Life Financial Inc., a leading international financial services organisation. The local knowledge of the Aditya Birla Group combined with the expertise of Sun Life Financial Inc., offers a formidable protection for your future. The Aditya Birla Group has a turnover close to Rs. 33000 crores with a market capitalisation of Rs. 53400 crores (as on 31st March 2006). It has over 72000 employees across all its units worldwide. It is led by its Chairman - Mr. Kumar Mangalam Birla. Some of the key organisations within the group are Hindalco, Grasim, Aditya Birla Nuvo etc.

Sun Life Financial Inc. and its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. Sun Life Financial Inc. had assets under management of over US$343 billion, as on 31st March,2006. Sun Life Financial Inc. is a leading performer in the life insurance market in Canada. The Plan Birla Sun Life Insurance SimplyLife Entry Ages Maximum Maturity Age Duration of the Plan Minimum Premium Maximum Premium 8 years - 50 years age as on last birthday 60 years 10 years

Annual Rs. 10,000 Annual Rs. 1,00,000 Monthly (ECS), Quarterly, Semi Annually & Annually The higher of the Fund Value or the aggregate of all the premiums paid subject to following conditions All Premiums are paid; and Each premium is paid on or before the expiry of a period of 60 days from the due date 5 times the annual premium amount Choice of two investment funds Balancer and Enhancer Upon the death of the Life Insured we will pay to the Nominee or the Policy Owner as the case may be an amount equal to the total of the Sum Assured and the

Payment Frequency Maturity Benefit

Face Amount Investment Fund Death Benefit

Fund Value Any time during the tenure of the policy. There are no surrender charges from the 7th policy year onwards. However if the policy is surrendered in the first 3 years the surrender value will be paid out after the third policy year You will have the right to return your policy to us within 15 days from the date of receipt of the policy. We will pay the Fund Value plus all charges levied till date (excluding the Fund Management Charge) once we receive your written notice of cancellation (along with reasons thereof) together with the original policy documents. Under Sec 80(C) and Sec 10(10D) of the Income Tax act

Surrender option

Free Look Period

Tax Benefit How to buy the plan?

The process to buy this plan is very simple and convenient. All you need to do is fill out the application form and submit it to your Insurance advisor along with your age proof and cheque for the first premium. If you are opting for the monthly premium payment mode (compulsorily through ECS or Salary deductions or debit or credit card) then you need to enclose a cheque for the first 2 months premium amount. Premium Discontinuance In case the premium is discontinued within first three Policy Years: If the premium is not received on the premium due date, a grace period of 30 days is given. Even at the end of the grace period if the premium is not received, then the Policy will lapse and all Coverages will terminate immediately. If the Policy is not revived within two years from the lapse date, the Surrender Value as at lapse date will be paid out at the end of the third Policy Year or at the end of the revival period whichever is later. In case the Policy is surrendered during the Revival Period, then the Surrender Value as at lapse date will be paid out at the end of the third

Policy Year or the date of Surrender whichever is later. The Surrender Value will be calculated by deducting the Surrender Charges applicable on the lapse date. The Surrender Value will not be affected by the market fluctuations and will remain constant till the time it is paid out. There will be no deduction of the Policy Charges (as set out in the Policy Charges section) thereafter, from the Surrender Value. If the life insured dies while the policy is not yet revived, we will pay the Fund Value as of the lapse date immediately and terminate the contract. In case the premium is discontinued after the first three Policy Years: If all due premiums have been received for the first three Policy Years and subsequent due premium is not received on the premium due date, a grace period of 30 days is given. At the end of the grace period if the premium is not received, you will be given a period of two years to pay all due and unpaid Policy Premiums. During these two years all Coverages will continue to be in force and all applicable charges will continue to be deducted from the Fund Value till the Surrender Value falls to one Annual Premium. At this time the Policy will be terminated and the Surrender Value will be paid out. At the end of the two-year period we will give you an option to continue the Policy. If you do not opt to continue the Policy, the Policy will be terminated and the Surrender Value will be paid out.

Risk Factors / Disclaimers This is a non-participating unit linked plan. This policy is underwritten by Birla Sun Life Insurance Company Limited (BSLI). Birla Sun Life Insurance, SimplyLife, Balancer and Enhancer are only the names of the Company, Policy and Investment Fund respectively and do not in any way indicate the quality of the Policy, Investment Funds or their future prospects or returns. The charges mentioned above are applicable to the Investment Fund Option offered at present. All the policy Charges (except Premium Allocation, Surrender Charges and Mortality Charge) can be modified by the company subject to approval of the IRDA

 The company reserves the right to introduce new Investment Funds with different charges subject to approval of the IRDA. The value of the Investment Fund Option reflects the value of the underlying investment. These investments are subject to market risks and change in fundamentals such as tax rates etc affecting the investment portfolio. The premium paid in Unit Linked Life Insurance policies are subject to investment risk associated with capital markets and the NAV of the units may go up or down based on the performance of Investment Fund Option and factors influencing the capital market and the insured is responsible for his/her decisions. There is no guarantee or assurance of returns from the Investment Funds except for the guarantee on return of premiums paid on maturity subject to fulfillment of conditions mentioned in maturity benefit. BSLI reserves the right to recover levies such as the Service Tax levied by the authorities on insurance transactions If there be any additional levies, they too will be recovered from you. This brochure contains the salient features of the plan. For further details please refer to the policy contract Insurance is the subject matter of the solicitation For more details and clarification call your BSLI Insurance Advisor or visit our website and see how we can help in making your dreams come true.

RESEARCH MEHODOLOGY
Research is a careful critical enquiry or examination in seeking facts or principles, diligent investigation in order to ascertain something. It is essentially a systematic enquiry seeking facts through objective verifiable methods. The methodology which is used to do research is known as the research methodology. Research design is arrangement of condition for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. In my summer training I have done exploratory research. I have explored the subject with the information provided. The basic objective of my topic was to understand the complete working of the banks. The data which I have presented in this report is of very relevant nature.

Type of research:

EXPLORATORY: Type of research carried out was EXPLORATORY in nature; the objective of such research is to determine the approximate area where the drawback of the company lies and also to identify the course of action to solve it. For this purpose the information proved useful for giving right suggestion to the company.

Data Collection
(A) Primary data (B) Secondary data
Data used for the research work was primary in nature. Sample unit: The research process was done by interacting with number of customers during the activities performed, which included, markets, cold calling, canopies, etc. Sample Design consists of Random Sampling. Sample size: - 50 people Method of collection: Field procedure for gathering primary data included observation and interview schedule in which the questionnaires were filed by the interviewer. Personal interviews through self administered survey was done to collect the data, market research was undertaken, that was accomplished by performing various activities designed. Research Instrument: Questionnaire The questionnaire was formulated by keep in mind the following Points: Giving the respondents clear comprehension of the question. Inducing the respondents to co-operate. Giving instructions as to what is wanted. Identifying the needs to be known.

Limitations:
The following were the limitations that were there during the course of the study: 1. Limited time period. 2. Less number of respondents. 3. Biasness of the respond

AGE DISTRIBUTION

AGE DISTRIBUTION(yrs.)

24%

Below 30 35% 31 - 45 Above 45 41%

Highest number of Respondents (41%) from Age group 31 to 45 yrs. 35% respondents are of age below 30 yrs, small percentage of which is unemployed.

MARITAL STATUS

MARITAL STATUS
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

SINGLE

MARRIED

16 37 19 4
Below 30 31 - 45 Above 45

24

AGE(yrs)

Total number of single respondents 23 Total number of married respondents 77

INCOME DISTRIBUTION

INCOME DISTRIBUTION(Annual in Rs.appx.)

> 5 lacs 1

10

INCOME

3 - 5 lacs

12

12

1.5 - 3 lacs

13

12

<1.5 lacs

16

Below 30

31 - 45

Above 45

Highest, 16 respondents in income bracket below 1.5 lacs, which mainly comprises of age group below 30 years. Respondents of the age group 31-45 yrs, lie in all the income slabs. Minimum, 6 respondents in income bracket of above 5 lacs, which are in age group of above 45 years.

ARE YOU AWARE ABOUT FINANCIAL PLANNING?

DO YOU KNOW WHAT IS FINANCIAL PLANNING ?

100

YES 98% NO

NO OF PEOPLE

90 80 70 60 50 40 30 20 10 0

2%

98% of the respondents were aware about Financial Planning.

INVESTMENT PREFERENCE

INVESTMENT PREFERENCE
Banks & Post office 9% 21% 21% Share Market Insurance 18% 11% 20% Bonds Mutual Funds Real Estate

21% respondents prefer banks and post office schemes as an investment tool preference. Respondents of age group below 30 years prefer Mutual Funds, as they provide higher returns than banking investment tools. Insurance ranks 2nd as an investment tool choice, which itself includes various protection, saving and pension plans. Govt. Bonds & securities are mostly preferred by people of higher age group rather than young generation. Property as an investment option is most lucrative choice. However it is important to mention that majority of respondents are in age group of above 30 years and people with high income bracket prefers to invest in Real Estate.

NAV ANALYSIS
DESCRIPTION ABOUT THE FUNDS ( NAV ) OF BIRLA SUNLIFE INSURANCE:NAME Balancer* Grp FF- | |* Grp F|- |* Grp stable- |* Grp stable- | |* Indv Builder* Indv PP Growth* Indv PP Nourish* Indv Protector* Pletinum Plus 1* Bond Plan | |* CURRENT 12.83 12.81 13.13 28.62 29.64 20.75 16.19 14.23 17.41 09.89 12.39 NAV 1 YEAR AGO NAV 11.89 11.79 12.42 27.08 27.75 19.40 15.89 13.38 16.38 .. 11.31

NAME Gratuity+ Bal Health Plus Jevan+ Bal Market+ Bal | Market+ Bond | Market+ Secure | Market+ Secure Money+ Growth Money+| Bal Money+| Bond Money+ | Growth Profit+ Bal Profit+ Growth Profit+ Secure

CURRENT 10.50 09.88 11.83 10.02 10.01 10.01 11.28 09.93 10.05 10.07 10.19 09.12 09.05 08.73

NAV

1 YEAR AGO 10.50 . 11.64 .. .. .. 11.12 10.11 .. .. .. ... ...

NAV

CONCLUSION
The various conclusions drawn from the project are: There has been a tremendous change in the insurance industry. And with it there has been continuous growth in this sector both in Indian as well as world context. The opening up of the insurance sector has changed the whole look of the industry.New private player TALIC is leading the sector due to their strategic management and tailored made project. The demand for insurance is likely to increase with rising per-capita income, rising literacy rates, and growth of service sector. In-fact opening up of the insurance sector is an integral part of the liberalization process being persued by many developing countries. Life insurance as a form of protection is the single-most important financial product any earning member of a family must have. Having said this, a well-diversified portfolio is one of the first rules of financial planning, and as such one should consider different instruments as the ability to save increases. Possible investment options range from bank deposits and government small saving schemes to mutual funds, stocks and property. Certainly ULIPs successfully combine the first and most important need of protection, with savings, and hence are an excellent addition to your portfolio.

 All financial products have a certain amount of risk and charges, be it a mutual fund, property, or even a bank deposit. It would be unrealistic to assume that the features and benefits of a ULIP come at no cost, though the charges are considerably lower than that of a traditional product. In fact, the very reason the product is transparent is because the customer knows the charges and risks. As i have made comparative study of the ULIP funds (NAV ) of different insurance company, I fund the growth rate of HDFC SLIC is better than other companies , so investment in these ULIP funds or ULIP plans of TALIC can give maximum growth to the customer. During my training, I improved my knowledge about the marketing techniques, which is beneficial for my future. I got the experience from different type of customer. I hope after the study with the help of the recommendations and the suggestion, this project will not only highlight the negative areas of the bank but also help it to satisfy the customers. I hope that this project is complete and satisfactory for my as well as my institution.

RECOMMENDATION
Positioning insurance as a means to fulfilling ones duties during ones lifetime. Fears relating to thefts, ailments, death could be addressed through sensitive communication Fears relating to claims: Need to promote trust. Demonstrating claim testimonials, positioning as worry free. Low returns: Reposition insurance as a risk cover, security instrument rather than a financial investment. Lack of understanding: Training of Channels To provide quality advice on products best suited o Lack of Knowledge: Ease of Process, and the procedure o Need to promote the quality of awareness Need for Branding in Insurance: Branding is more relevant in the Insurance market which not only faces the problem of securing and retaining customers in an increasingly competitive marketplace but also experiences the need for heightened relevance of the brand proposition in a world where brand has been termed the new religion. In rural India, the LIC is especially synonymous with insurance. But in the wake of competition insurance companies have to do a considerable brand building exercise at least in urban India. Adequate time, investment and simplifying the product

 longer-term management of the brand are essential, not only for success but also survival. All brands need to be built around well-differentiated and credible positioning that springs from the organizations history. The brand must not only be believed but lived by management and employees. Focus on different segments to survive and thrive in a competitive environment. Each company has to choose its own unique positioning based on its unique strengths. Below-mentioned positioning alternatives can be worth considering. VARIETY-BASED POSITIONING This type of positioning is based on varieties in products and services rather than customer segments. It is a sensible strategy for those companies who have distinctive advantages or strengths in offering certain products and services. In the insurance industry too, it is possible to achieve a unique position by focusing on certain category of products. NEEDS-BASED POSITIONING This is the most commonly understood positioning and is based on the differing needs of different groups of consumers. This can be done successfully if a company has unique strengths to service a group of customer needs better than others. The insurance needs of customers vary significantly for different groups of customers. The insurance needs of young family with small children will be quite different from that of a family in which the income-earner is close

to retirement. However, in India most of

the life insurance companies

have a wide variety of products tailored for different customer needs and there is no company focusing on a particular customer need. ACCESS-BASED POSITIONING Positioning of customers can also be done by the way they are accessible. That is different groups of customers may be accessible in different ways even though they may have similar needs. Access is typically a function of customer geography or customer scale. There is excellent opportunity in the insurance industry to employ access-based positioning by targeting the rural insurance sector. The rural market for life insurance is very different from the urban market in terms of needs, income levels and distribution (seasonality, for example), penetration of media and so on. Rural market can be a highly profitable position if one is able to carefully plan and tailor an entire set of low-cost activities of advertising, distribution, and product design etc. to successfully exploit the potential.

GLOSSARY
Accident Benefit An add-on with a life policy. It compensates a policyholder in the event of death or injury by accident Annuity An investment option that makes a series of regular payments to an individual in exchange for a premium or a series of premium. Asset allocation How your investments are spread across various asset classes Bonus The amount paid as return in a with-profit policy. The bonus, expressed as a percentage of the sum assured, is generally declared every year. The amount is linked to the profits earned by the insurer. Depending on the time of withdrawal, there are two kinds of bonuses reversionary and cash. A reversionary bonus can be encashed only on maturity of the policy; a cash bonus can be withdrawn when declared Capital gains Profit earned from the sale of stocks, mutual fund units and real estate. Long-term capital gains arise from assets owned for more than a year while short-term capital gains are made from assets owned for less than a year.

Corpus The amount of money available with a scheme for investing. If already invested, the corpus is the current value of the schemes portfolio. Cover Another word for insurance; it also refers to the amount of insurance. Critical illness rider A rider that provides a policyholder financial protection in the event of a critical illness Death benefit The amount payable to the nominee on death of the policyholder. The amount paid is the sum assured plus benefits applicable (if any) less outstanding loans. Endowment plans An insurance plan that provides a policyholder risk cover and some return on investment. Usually suitable for the risk-averse ELSS (equity-linked savings schemes) Diversified equity funds that additionally offer a tax deduction under Section 80C on investments up to Rs.1 lakh.

Financial planning It covers the essential elements of a persons financial affairs and is aimed at achieving a persons financial goals. Group Insurance An insurance policy taken out by employers to provide life cover to their employees. Usually the cheapest form of insurance. Insured The policyholder: The person who buys an insurance policy Insurer The insurance company Investments Assets like fixed deposits, post office savings, bonds and stocks that are acquired for the purpose of earning a return Liquidity The quality of assets that can be easily and quickly converted into cash without any, or significant, loss in value. Lock-in period The period of time for which investments made in an investment option cannot be withdrawn.

Maturity date The date on which a policy term or fixed-income investment like fixed deposit or bond comes to an end. Money-back plans A variant of endowment plans in which survival benefits are disbursed through the policy term, rather than in a lump sum at the end. Net asset value (NAV) The simplest measure of how a scheme is performing, it tells how much each unit of it is worth at any point in time. A schemes NAV is its net assets (the market value of the financial securities it owns minus whatever it owes) divided by the number of units it has issued. Nominee The person(s) nominated by the policyholder to receive the policy benefits in the event of his death. Pension Plan Investment products offered by insurance companies and mutual funds that required the investor to make defined contributions over regular periods, mostly every year. The contributions are invested according to a pre-decided investment plan. At retirement, the accumulation is paid out through regular pay-out options.

Policy The legal document issued by an insurance company to a policyholder that states the terms and conditions of an insurance contract. Policy term The period for which an insurance policy provides cover Post office schemes Also known as Small Savings schemes, they are offered at post offices and carry the highest returns among fixed income instruments. Government backing makes these instruments like Public Provident Fund (PPF), National Savings Certificate (NSC), Kisan Vikas Patra (KVP) and Post Office Monthly Income Scheme (POMIS) risk-free Premium The amount paid by the insured to the insurer to buy cover Riders Additional covers that can be added to a life policy, for a cost Sum assured The amount of cover taken under a life insurance policy, it is the minimum amount that will be paid on death of the policyholder during the policy term. Surrender value The amount payable by the insurer to the owner of an investment-based plan in case he opts to terminate the policy after three years (the mandatory lock-

in period) but before its maturity date. The surrender value will be the premia paid till date minus surrender charges and any outstanding loans due.

Term plans A plan that provides life cover for a specified period of time, but no return on the premium paid Vesting date In pension plans, it is the date from which the policyholder starts receiving pension. In childrens plans, it is the date from which a child becomes the owner of a policy taken out in his name (generally, around his 18th birthday). Waiver of premium rider A rider that waives the premia payable on the base policy and other riders in certain circumstances mostly related to death, disability or injury. An important feature especially for investment products such as childrens policies. Will A document that designates the assets of a person-both financial and physical- to various family members and other heirs. Whole-life plans Class of life insurance policies that provide cover through your lifetime.

QUESTIONNAIRE
We are conducting a survey on the Unit Linked Insurance Plan (ULIP). We request the Respondents to provide their valuable views on the same by answering to this Questionnaire .The information provided by you will be used solely for Academic purpose and to study the present Market Potential of ULIP. NAME: PLACE: b) 21-30 yrs d) 41-50 yrs

AGE:
a) 15-20 yrs c) 31- 40 yrs e) >50 yrs

GENDER:
a) Male b) Female b) Private Service d) Student

OCCUPATION:
a) Government Service c) Business e) Others

ANNUAL INCOME:
a) Up to 2lacs c) 5-7 lacs e) Above 10 lacs b) Between 2-5 lacs d) 7-10 lacs

1. Are you aware about Unit Linked Insurance Plan (ULIP)? a) Yes b) No

2. Have you invested in the ULIP of any company; (i) if yes then please tick the following?

a) ICICI Prudential life insurance c) Bajaj Allianz Life Insurance e) LIC

b) HDFC Standard Life d) Kotak Life Insurance f) Any other (please specify)

(ii) If No, then would you like to invest in ULIP? a) Yes b) No

3. What is the reason for investment in the ULIP? a) Child Education c) Pension e) Tax Rebate b) Child Marriage d) Income Growth f) 2 in 1 benefits

4. What is your time horizon when investing in ULIP? a) Up to 3 yrs c) 7-10 yrs e) Over 15 yrs b) Between 4 7 yrs d) 10-15 yrs

5. When investing in a ULIP, what would be your preference? a) Low Risk, Low Gain c) High Risk, High Gain b) Moderate Risk, Moderate Gain d) No Risk

BIBLIOGRAPHY
Websites:
www.tata-aig.com www.bimadeals.com www.bajajallianzinsurance.com www.irdaindia.org www.birlasunlifeinsurance.com www.hdfcinsurance.com www.businessworldonline.com www.google.com (search engine)

Other References:
Brochures of various plans