Comparative Analysis between Products of Reliance Life and other Life Insurance Companies

Posted Date: Singh Total Responses: 0 Posted By: Dharmendra Kumar Member Level: Gold Points/Cash: 10

CONTENTS

1. Introduction Insurance Principles of Insurance History Types of Insurance

2. Company Overview Reliance Life in India Products 3. Comparative Analysis ING Vysya Life, Products 4. Comparative Analysis ICICI Pru Life, Products 5. Comparative Analysis HDFC Standard Life, Products

6. Research Methodology Sampling Plan Data Sources Data Collection Instruments 7. Analysis of Data Comparative Analysis between Products of Reliance Life and other Life Insurance Companies 8. Summary of Findings 9. SWOT Analysis 10. Conclusions 11. Bibliography

COMPANY OVERVIEW Reliance Life Insurance

COMPANY OVERVIEW 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. Reliance Capital sees immense potential in the rapidly growing financial services sector in India and aims to become a dominant player in this industry and offer fully integrated financial services. Reliance Life Insurance is another step forward for Reliance Capital Limited to offer need based Life Insurance solutions to individuals and Corporates.

Few men in history have made as dramatic a contribution to their countrys economic fortunes as did the founder of Reliance, Sh. Dhirubhai H Ambani. Fewer still have left behind a legacy that is more enduring and timeless. As with all great pioneers, there is more than one unique way of describing the true genius of Dhirubhai: The corporate visionary, the unmatched strategist, the proud patriot, the leader of men, the architect of Indias capital markets, the champion of shareholder interest. But the role Dhirubhai cherished most was perhaps that of Indias greatest wealth creator. In one lifetime, he built, starting from the proverbial scratch, Indias largest private sector enterprise. When Dhirubhai embarked on his first business venture, he had a seed capital of barely US$ 300 (around Rs 14,000). Over the next three and a half decades, he converted this fledgling enterprise into a Rs 60,000 crore colossusan achievement

which earned Reliance a place on the global Fortune 500 list, the first ever Indian private company to do so. Dhirubhai is widely regarded as the father of Indias capital markets. In 1977, when Reliance Textile Industries Limited first went public, the Indian stock market was a place patronised by a small club of elite investors which dabbled in a handful of stocks.

Reliance Life Insurance: Products Endowment Plan Reliance Life Insurances Reliance Endowment Plan is the key to all your financial needs. It is an inexpensive and easy way to protect you, your family or your business. In a nutshell this plan will keep you financially prepared for all the special occasions in your life - your daughters wedding, your childs university education or even a new office for your business - by eliminating the burden that a shortage of money creates. In the event of your untimely death, Reliance Endowment Plan will also assist your loved ones through this difficult time by the financial support that it provides. Reliance Endowment Plan also gives you the additional benefit of participating in the companys profits, which you will receive at the end of the policy period. Why is Reliance Endowment Plan right for me? Reliance Endowment Plan is an endowment plan, where you decide how much you would like to set as your sum assured based on your current financial position and your expected future expenses. You also get to choose how long you would like your policy to operate. Then all you need to do is pay your single premium or regular premium for the policy term. You may choose to pay your regular premiums yearly, half-yearly, quarterly or monthly for the policy term.

How does Reliance Endowment Plan work? As soon as you pay your single premium, or as long as you continue to pay your regular premiums, your policy will participate in the profits of our company. This means that each year, we will declare a bonus, the amount of which may vary from one year to the next. The cash value of the bonuses which you accumulate over the policy term will be paid to you along with the basic sum assured when it falls due. Am I eligible for this policy? Any healthy male or female, who has completed the age of 5 years and is not older than 65 years can avail of this policy. Are there any limiting conditions? Yes, there are limiting conditions as given in the table below:

Minimum Maximum Entry Age 5 65 Maturity Age 18 75 Policy Term 5 35 (regular premium) 15 (single premium) Sum Assured Rs 25,000or as determined by the minimum premium Rs 5,00,000(entry age below . 18 years)No Limit(entry age 18 . and above) Premium Rs 2,000 for annualRs 1,500 for half-yearlyRs 750 for quarterly andRs 250 for monthly *premium frequencyRs 25,000 for single premium No limitNo limit

What are the different modes (frequency) of payment of Regular Premiums? The modes of payment of premiums permitted are yearly, half-yearly, quarterly and monthly. The policy can also be availed under salary deduction scheme. When the mode of payment of premium is half-yearly, quarterly and monthly, the premiums will be rated up. The rating up factors are: Half-yearly 1.02 Quarterly and Monthly 1.04 Is there any premium rebates for high sum assured? Premium rebate is allowed on high sum assured policy.

Sum Assured Premium Rebate per 1,000 Sum Assured Rs 1,00,000 - Rs 2,49,000 Re 1 Rs 2,50,000 - Rs 4,99,000 Rs 2 Rs 5,00,000 - Rs 9,99,000 Rs 3 Rs 10,00,000 and above Rs 4

What are my benefits? On the maturity date of your policy, you will receive your full sum assured plus your accumulated bonuses till that date. In the unfortunate event of loss of life before the maturity date, your family will receive your full sum assured plus your accumulated bonuses till that date.

What are my benefits?

On the maturity date of your policy, you will receive your full sum assured plus your accumulated bonuses till that date. In the unfortunate event of loss of life before the maturity date, your family will receive your full sum assured plus your accumulated bonuses till that date. Are there any additional benefits that go with this policy? Yes, for a marginal additional premium payment, you can opt to have the Accidental Death & Total and Permanent Disablement Benefit, the Critical Condition Benefit and/or Term Life Insurance Benefit. These riders may be attached to your policy at the beginning or at any policy anniversary during the term of your policy, subject to under-writing conditions prevailing at that time. Please note that these riders are not available if you choose our single premium plan. What is a Term Life Insurance Benefit Rider? If you would like to increase the sum assured payable to your family in the unfortunate event of loss of life, all you have to do is add this rider to your policy. This rider will provide an additional sum assured payable in the event of death before the rider benefit expiry date. This rider has no maturity benefits and is available only on policies with a basic sum assured of at least Rs 1,00,000.

Minimum Maximum Entry Age 18 59 Expiry Age 23 64 Policy Term 5 30 Sum Assured Rs 1,00,000 Basic sum assured

What is an Accidental Death & Total and Permanent Disablement Benefit Rider? If the life assured becomes totally and permanently disabled or dies due to an

accident, then this rider will give you additional protection. By selecting this rider you will safeguard yourself against any unexpected expenditure that an accident could cause. In case of death due to an accident, your family will receive an additional benefit equal to the Accidental Death & Total and Permanent Disablement sum assured that you selected. In case of total and permanent disability of the life assured, you will receive the Accidental Death & Total and Permanent Disablement sum assured in 10 equal, annual installments for 10 years. Your future premiums will be waived subject to a maximum of Rs 40,000 per annum. On the maturity date or on the unfortunate death of the life assured, the remaining unpaid installments, if any, will be paid in a lumpsum. The accident cover component will cease if the life assured is totally and permanently disabled.

Minimum Maximum Entry Age 18 59 Expiry Age n.a. 64 Sum Assured Rs 25,000 Rs 50,00,000* * Subject to a maximum of basic sum assured

What is a Critical Conditions Rider? The sudden onset of a major illness may cause worries and unexpected expenditures. The optional Critical Conditions Rider provides financial relief in such cases. The Critical Conditions Rider benefit is the payment of a lump sum amount chosen by you, while purchasing the Reliance Endowment Plan plan as a cover against major illnesses that can afflict you. Reliance Life Insurances Critical Conditions Rider covers ten major critical conditions-

 Cancer Coronary artery by-pass graft surgery Heart attack Aorta surgery Heart valve replacement Kidney failure Stroke Major organ transplant Coma Paralysis

Minimum Maximum Entry Age 18 55 Expiry Age n.a. 64 Sum Assured Rs 1,00,000 Rs 10,00,000* * Subject to a maximum of basic sum assured

What if I stop paying premiums? As the circumstances in your life change, you may prefer to surrender your policy or make it paid-up. Surrender Value: If you require an immediate source of money, then you may surrender your policy and receive the surrender value of your policy. If your policy has accumulated any bonuses, then you will also receive the cash value of that total amount upon surrendering your policy. Your single premium plan acquires a surrender value as soon as you pay your premium. We guarantee a minimum surrender value of 70% of the single premium paid excluding any extra premium, plus the cash surrender value of any vested

bonuses. Your regular premium plan acquires a surrender value after 3 years premium has been paid. We guarantee a minimum surrender value of 30% of the total premiums paid (excluding any extra premiums and premiums for additional benefits) subsequent to the first year premium, plus the cash surrender value of any vested bonuses. Paid-up Value: If you wish to discontinue the payment of your future regular premiums but at the same time like to retain the cover this policy provides, you may convert your policy to a paid-up policy. On your regular premium plan, after a minimum of 3 years premium has been paid, your policy acquires a paid-up value. The life insurance protection will continue to the extent of the paid-up value until the end of the policy term. (The paid-up sum assured will be equal to the original sum assured multiplied by the ratio of the actual premium paid to the total premium payable.) Any accumulated bonuses attached to this policy will remain attached in full. Once this policy becomes paid-up, it will not participate in future profits. You will receive the paid-up sum assured plus bonuses on the maturity date of the policy or in the event of loss of life. If I put my money in a Bank Fixed Deposit, I can encash it or take a loan any time I want If you need to fund any unexpected requirements, we may grant you a policy loan of up to 90% of the surrender value of the policy, based on the terms and conditions at that time. This facility is available on your regular premium plan once your policy acquires a paid-up value. This facility is available immediately, in case of the single premium plan. Interest will be charged on any outstanding loan at a rate of interest set by us, from time to time. When will my policy lapse?

If your premium payments have been made for a period that is less than 3 years and you have not paid premiums within the grace period, then your policy will lapse. All rider benefits will automatically terminate if the policy lapses, is made paid-up, matures, expires, or is surrendered, provided that termination of these benefits shall be without prejudice to any claim arising prior to such termination.

What else? Undaunted, Dhirubhai managed to convince a large number of first-time retail investors to participate in the unfolding Reliance story and put their hard-earned money in the Reliance Textile IPO, promising them, in exchange for their trust, substantial return on their investments. It was to be the start of one of great stories of mutual respect and reciprocal gain in the Indian markets.

Under Dhirubhais extraordinary vision and leadership, Reliance scripted one of the greatest growth stories in corporate history anywhere in the world, and went on to become Indias largest private sector enterprise.

Through out this amazing journey, Dhirubhai always kept the interests of the ordinary shareholder uppermost in mind, in the process making millionaires out of many of the initial investors in the Reliance stock, and creating one of the worlds largest shareholder families.

Special Endowment Plan This insurance policy is designed for people who wish to combine savings with extended security. The unique feature of this policy is that life protection continues for five years after you have stopped the payment of premium. Payment of sum assured at the end of premium paying term and extension of life cover thereafter for the full sum assured for a period of 5 years, are characteristics of the policy. This plan also participates in the profits. What is special about this policy ? The special benefit under this policy is that it ensures securing a fund for the future when it is most needed and gives much needed financial security for the family. The unique feature of this policy is that the risk cover continues for the full sum assured for an extended period of 5 years even, after payment of the full sum assured at the end of the premium paying term. This policy also participates in the profits. Bonus is compounded yearly (i.e. bonus declared in the previous year earns bonus in the next year) and is payable at the end of the policy term. Am I eligible for this policy? Any healthy male or female, who has completed the age of 12 and is not older than 65 can avail of this policy.

Reliance Cash Flow Plan This insurance policy is designed for those who have a recurring need for reinvestment in business or look for short-term investment channels. The advantage of the policy is that they need not part with a sizable amount of money at any one time, but create, through regular premium payments, a periodic return

of lumpsums which become available for reinvestment at higher returns, while providing simultaneously, substantial life cover. Alternatively, it can be used to meet any immediate financial crisis in the family like your son's college admission, your daughter's engagement, renovation of your home or perhaps, a holiday abroad. The money is payable in instalments. The first instalment is paid at the end of the 4th year and thereafter at the end of every 3rd year. What is special about this policy ? The special benefit under this policy is that it ensures liquidity through a periodical return of a specified amount of money, once in every 3 years. It averts the necessity to look elsewhere for loan facilities. A unique feature of this policy is that the risk cover continues for the full sum assured even though the periodical payments are being made. This policy also participates in the profits and is eligible for bonus. Am I eligible for this policy? Any healthy male or female, who has completed the age of 15 and is not older than 63 can avail of this policy.

Are there any limiting conditions? Yes, the minimum amount for which a Reliance Cash Flow Plan policy can be taken is Rs.25,000. There is also a limitation on the minimum premium paying term which is 7 years, while the maximum term is 34 years. An important point to note is that since periodical payments are available, it will not be necessary for you to raise a loan. Hence, there is no provision for granting a loan under this policy. When and how much will I get if I pay the premiums for the full duration of the policy? You receive the first payment at the end of the 4th year and subsequent payments at intervals of 3 years. The entire vested bonus is paid along with the last instalment on the date of maturity of the policy. What happens if I die during the term of the policy?

The full sum assured under the policy along with accrued bonuses up to the date of death, will be paid immediately. The instalment amounts already paid will not be deducted from the claim amount. Are there any additional benefits that go with this policy? Yes, for a marginal additional premium payment, you can opt to have the Accident benefit and/or the Critical Illness benefit. What is an Accident Benefit? Subject to certain conditions, if death of the policy holder is caused by an accident, an additional lumpsum is payable. What is a Critical illness Benefit? This benefit provides a lump sum payment in the event of a specified serious illness like a stroke or heart attack suffered by the Life Assured.

Reliance Child Plan This insurance policy is designed for people who wish to save money for a future time when there will be a recurring need for substantial amounts of money. This is especially true when it comes to paying large sums of money for higher education as and when your son or daughter is studying to become an Engineer,a Doctor or specialise in some other field,or is perhaps planning to go abroad. This money is payable in equal instalments over the last 4 years of the policy term. What is special about this policy ? A unique feature of this policy is that the risk cover continues for the full sum assured even though the periodical payments are being made. This policy also participates in the profits for the full term of the policy. Am I eligible for this policy? Any healthy male or female with adequate income, who has completed the age of 20 and is not older than 60. Are there any limiting conditions?

Yes, the minimum amount for which a Reliance Child Plan policy can be taken is Rs.25,000. There is also a limitation on the minimum term which is 5 years, while the maximum term is 20 years. When and how much will I get if I pay the premiums for the full duration of the policy? The sum for which you have taken the Reliance Child Plan policy will be paid to you in four equal instalments during the last four years of the policy. You will also get full bonuses along with your final instalment. What happens if I die during the term of the policy? An amount equal to the sum for which you have taken the policy will be paid to your family immediately. This will not be affected by any survival benefits already released. This will also not affect the four instalment amounts and bonus payable and that will be paid as provided for, in case death claim occurs earlier. Are there any additional benefits that go with this policy? Yes, for a marginal additional premium payment, you can opt to have the Accident benefit and/or the Critical Illness benefit. What is an Accident Benefit? Subject to certain conditions, if death of the policy holder is caused by an accident, an additional lumpsum is payable. What is a Critical illness Benefit? This benefit provides a lump sum payment in the event of a specified serious illness like a stroke or heart attack suffered by the Life Assured. What if I stop paying premiums? Provided premiums have been paid for three continuous years, the sum assured as stated above will be reduced in proportion to the premiums paid to the total amount of premiums payable less any instalment benefits paid. The benefits pattern remain the same. Vested bonuses will not reduce but the policy will cease to participate in future profits. If you have opted for additional benefits, these will be available only so long as premiums are paid regularly. In any case, Accident and Critical Illness benefits are not available beyond the age of 64 years.

Reliance Term Plan This insurance policy is designed for those who only want life cover for the protection of their family, and do not wish to save for themselves. It can also be useful to business firms that wish to provide financial security to their business against the sudden loss of partners or valuable manpower. Since there is no saving element or bonus provision, the premium is very low. Hence, this is a high risk plan with a low premium What is special about this policy? The special benefit under this policy is that it ensures protection for you and your family and your business as well at a very low premium. Can I take this policy? If you are a healthy individual with adequate income, and if you are in the age group of 21 to 60, you are eligible for this policy. Are there any limiting conditions? Yes, the minimum amount for which this policy can be taken is Rs.2,50,000. There is also a limitation on the minimum term, which is 5 years, while the maximum term is 30 years. There is no upper limit for the sum assured. Critical Illness Benefit is not permissible as an additional benefit and, no bonuses are payable under this policy. It is also not possible to take loans on the strength of this policy.

Reliance Whole Life Plan This insurance policy is designed for people who do not wish to avail of any benefits

themselves but wish to create an immediate estate to protect their family by availing of insurance cover on their life at a very low cost. What is special about this policy ? This policy ensures security for your family in the unfortunate event of your passing away suddenly and unexpectedly. It provides a high risk cover at a very low cost. The duration for which the premiums are to be paid is decided at the beginning. The longer the duration, the lower is the premium. The unique feature is that risk cover continues throughout your life beyond your premium paying term. This product participates in the profits throughout your life time, provided premiums have been paid up to date. Can I take this policy? Any healthy male or female with adequate income, who has completed the age of 20 and is not older than 60, is eligible to avail of this policy. Are there any limiting conditions? The minimum amount for which a Reliance Whole Life Plan can be taken is Rs.25,000. There is also a limitation on the minimum premium paying term, which is 5 years, while the maximum premium paying term is 40 years.

When and how much will I get if I pay the premiums for the full duration of the policy? Even though you have paid your premiums only over a limited premium paying term, the life cover continues up to age 85. You have the option of extending the cover even after age 85. On attaining your 85th birthday you can choose to terminate the policy. In that case, you will be paid the sum assured as well as the accrued bonuses. If you do not wish to avail of this maturity option at age 85, then the risk cover continues till your 99th birthday, or is terminated earlier in case of death. What happens if I die during the term of the policy? An amount equal to the sum for which you have taken the policy along with the

accrued bonus till date of death will be paid to your family immediately. Are there any additional benefits that go with this policy? Yes, for a marginal additional premium payment, you can opt to have the Accident benefit and/or the Critical Illness benefit. What is an Accident Benefit? Subject to certain conditions, if death of the policy holder is caused by an accident, an additional lumpsum is payable. What is a Critical illness Benefit? This benefit provides a lump sum payment in the event of a specified serious illness like a stroke or heart attack suffered by the Life Assured.

What if I stop paying premiums? Provided premiums have been paid for three continuous years, the sum assured as stated above will be reduced in proportion to the premiums paid to the total amount of premiums payable. Vested bonuses will not reduce but the policy will cease to participate in future profits. The reduced sum assured along with vested bonuses is payable on policy anniversary immediately after age 85 or earlier death. If you have opted for additional benefits, these will be available only so long as premiums are paid regularly. In any case, Accident and Critical Illness benefits are not available beyond the age of 64 years. If I put my money in a Bank Fixed Deposit, I can encash it or take a loan any time I want Loans can be taken against the surrender value of the policy, after three years' premiums have been paid. This benefit comes to you without taking away your valuable life cover.

What else? There is the usual exemption from tax, for premiums paid, as per the IT Act. The money you have invested earns interest and comes to you in the form of terminal benefits and Bonus, without the insecurities attached to the ups and downs of the money market. Further, at Reliance Life Insurance, we offer you the best of courtesy, prompt service and a high level of financial security.

Reliance Market Return Plan You have always aspired for the best in life. And we help you achieve just that. With Reliance Market Return plan you can have the twin advantage of insurance protection as well as reaping the benefits of investment growth. It is a flexible plan which works all through your life and meets the changing requirements like additional protection, liquidity through cash, option to invest in different asset class, steady golden years and many more. Key Features Reliance Market Return Plan: Twin benefit of market linked return and insurance protection A Unit Linked Plan, different form traditional Life Insurance products, with maximum maturity age of 80 years Option to create your own portfolio depending on your risk appetite Choose form 4 different investment funds Flexibility to switch between funds Option to pay regular as well as single premium & Top-ups Option to package with Accidental riders Flexibility to increase the Sum Assured Liquidity through partial withdrawals How does this Plan work? The premium made net of Premium Allocation Charges by you is invested in fund/funds of your choice and units are allocated depending on the price of units for the fund/funds. The value of your Unit Account is the total value of units that you hold in the fund/funds. The Mortality Charges and Policy Administration Charges are deducted

through cancellation of units whereas the Fund Management Charge is priced in the unit value. Benefits: Life Cover Benefit: You can choose the basic Sum Assured within the minimum and maximum levels mentioned below Minimum Sum Assured: Regular Premium: Annualized Premium for 5 years or for half the Policy term Single Premium: 125% of the single premium Maximum Sum Assured: No Limit (Rs 500,000 for age up to 12 years) In case of unfortunate loss of life, your Beneficiary will get sum Assured or Unit Account Value whichever is higher. Maturity Benefit: On survival, at maturity the value of your Unit Account will be paid out. Rider Benefit: You can add the Accidental Death & Accidental Total and Permanent Disablement Benefit Rider (available only with regular premium option). This benefit doubles the life coverage in case of accidental death or accidental total and permanent disablement at a very nominal additional cost. The maximum cover is Rs. 50,00,000 per life. In case of accidental total and permanent disablement, 1/10th of the Sum Assured will be paid at the end of each year for ten years. If the total and permanent disablement has commenced, the Accidental Death Benefit Cover ceases. In case of maturity or on death of the Assured, after payment of installments of Accidental Total and Permanent Disablement Benefit, the remaining unpaid installments if any will be paid in one lump sum. Accidental total and permanent disablement means disability caused by bodily injury, which causes permanent inability to perform any occupation or to engage in any activities for remuneration or profits. This disability should last for at least 6 months before being eligible for Accidental Total and Permanent Disablement Benefits. Total and permanent disablement includes loss of both arms or both legs or one arm and one leg or of both eyes. Loss of arms or legs means dismemberment by amputation of the entire hand or foot. Loss of eyes means entire and irrecoverable

loss of sight. Exclusions to Rider Benefit Reliance Life Insurance will not be liable to pay any Accidental Death Benefit Claim or Total and Permanent Disablement Claim which results directly or indirectly from any one or more of the following: An act or attempted act of self injury Participation in any criminal or illegal acts Being under the influence of alcohol or drugs Racing or practicing racing of any kind other than on foot Flying or attempting to fly in, or using or attempting to use, an aerial device of any description, other than as a fare paying passenger on a recognized airline or charter service. Participating in any riot, strike or civil commotion, active military service, naval airforce, police or similar services or War, invasion, act of foreign enemies, hostilities or war like operations (whether war be declared or not), civil war, mutiny, military rising, insurrection, rebellion, military or usurped power or any act of terrorism.

What are the different fund options? Reliance Life Insurance understands the value of your hard earned money and in our endeavour to help you grow your wealth, we offer you 4 different tailor-made investment funds. You have the option to allocate your premium in these funds as you wish. The four different funds offered are 1. Capital Secure Fund: The investment objective of this fund is to maintain the value of all contributions (net of charges) and all interest additions. This Fund offers steady return for very little risk. The risk profile of this fund is low. Your funds are invested 100% in Bank Deposits, Government Bonds and debt instruments that offer financial security. Further, investments in Capital Secure Fund are subject to a maximum limit of 20%

at inception. 2. Balanced Fund: The investment objective of this Fund is to provide you with investment returns which exceed the rate of inflation in the long term while maintaining a low probability of negative investment returns. In this fund, a major portion of your funds are invested in fixed securities while a small percentage is invested in the equity market, which is exposed to market movements. The risk profile of this fund is low to medium. Investment would be at least 80% in fixed interest securities and maximum 20% in equities. 3. Growth Fund: The investment objective of this Fund is to provide you with investment returns which exceed the rate of inflation in the long term while maintaining a moderate probability of negative investment returns. This fund offers a greater portion of your funds are invested in fixed securities while a small percentage is invested in the equity market, which is exposed to market movements. The risk profile of this fund is medium to high. Investment would be at least 60% in fixed interest securities and maximum 40% in equities. 4. Equity Fund: The investment objective of this fund is to provide Policyholders with high exposure to equities and the possibility of investment returns which generate a high real rate of return in the long term while recognizing that there is a significant probability of negative investment returns in the short term. This fund offers a totally equity based investment option. Your returns depend entirely upon the performance of the equity market. The risk profile of this fund is high. The higher risk of this portfolio means that expected returns would also be higher. Investment may be 100% in equities. Value of Units: The unit price of each Fund will be the unit value calculated on a daily basis. When you pay premiums, we will allocate your units using the next following unit price that we determine. When we pay you benefits, we will cancel units at the next available unit price. The market value of assets is arrived at based on the information from stock

exchanges, financial institutions and market makers. Flexibility If you have received a bonus or some lumpsum money you can use that as a topup to increase the investments component in your Policy. Top-ups are allowed only if all premiums due till date are paid. There is no restriction on the maximum amount of top-ups. However top-ups made over and above 25% of the basic regular premium paid till date will lead to an increase in Sum Assured to the extent of 125% of the excess top up premiums. The minimum top-up amount is Rs. 2,500. 98% of any amount paid as top-up is allocated to your funds. Make partial withdrawals After three years, If your Unit Account Value is less than the Sum Assured, then the maximum partial withdrawal can be Rs 5,000 per partial withdrawal. If your Unit Account Value is more than the Sum Assured, then the maximum partial withdrawal is the difference between the Unit Account Value and the Sum Assured plus Rs 5000. Higher amounts of partial withdrawals are allowed subject to underwriting. Two partial withdrawals are allowed every year. Minimum Fund Value after each partial withdrawal should be Rs 10,000. For the purpose of partial withdrawals, top-ups would have a lock-in of three years from the date the top-ups are made until then no partial withdrawals are allowed. This condition is not applicable if the top-ups premiums are paid during the last three years of the Policy term. Where the Life Assured is minor, - partial withdrawals are allowed on or after attainment of age 18 years or after 3 years if later. Increase the Sum Assured You are free to increase the Sum Assured. Once Sum Assured is increased it remains for the entire outstanding Policy term. Increase in Sum Assured is subject to underwriting. Control your investments You have full control on your investments. Depending upon the performance of your

funds you can switch between funds. There will be one free switch in a Policy year. Redirect future premiums Redirection is retaining the units you have already invested and purchasing units using subsequent premium payments in an alternative proportion of your choice. The units you have already purchased with your premiums remain as they are while you redirect your future premium payments to other funds of your choice. (applicable for regular premium payment option only) Settlement Options This option enables you to take the maturity proceeds in the form of periodical payments after the maturity date instead of a lump sum on the maturity date. You can choose to redeem the units in his/her Unit Fund anytime up to 5 years from the date of maturity.

Who can buy this product? Minimum Age at entry 30 days Maximum Age at entry 65 years Maximum Age at maturity 80 years What is the Policy term? Minimum Policy term 5 years Maximum Policy term 40 years Flexible Premium Payment Modes? You have a choice of five premium payment modes Annual Rs. 10,000 Half-yearly Rs. 5,000 Quarterly Rs. 2,500 Monthly Rs. 1,000

Single premium Minimum Premium is Rs. 25,000 What if I want to discontinue the Policy? You may surrender a Policy at any time after three year from commencement. The Surrender Values are detailed below: Regular Premium Policies No of Years premiums paid Surrender Value as percentage of Unit Account Value Less than 1 0% 1 50% 2 80% 3 and more 100% Single premium Policies Under single premium policies, Surrender Value is 100% of Unit Account. Charges Under the plan 1. Premium Allocation Charge For regular premium policies: Term of the Policy Year 5-9 10-14 15+ First Year 10% 15% 20% Thereafter 5% 5% 5% The Premium Allocation Charge for single premium & top-ups is 2%. 2. Policy Administration Charge: Rs 40 will be deducted from your Unit Account each month. This charge will vary in line with a suitable consumer price inflation index.

3. Fund Management Charge: Unit Linked Funds Annual Rate* Capital Secure 1.50% Balanced 1.50% Growth 1.75% Equity 1.75% Revision of Charges: The Fund Management Charges are subject to revision at any time, but they will not exceed 2% p.a. for the Capital Secure Fund and 2.5% p.a. for the other funds. 4. Partial Withdrawal Charges: Rs 100 per withdrawal will be deducted from your Unit Account. 5. Switching Charge: 1% of the amount switched, with a maximum of Rs.1,000/-. 6. Mortality Charge: The Mortality Charges, based on your attained age, are determined using 1/12th of the charges mentioned in Appendix 1 and are deducted from the Unit Account monthly. 7. Surrender charge: This charge is levied on the Unit Fund at the time of surrender of the Policy as under: Regular Premium Years premiums paid Surrender Charge as percentage of Unit Account Value Less than 1 100% 1 50% 2 20% 3 and more NIL

Single Premium - NIL Any changes made to the charges under this Policy will be subject to IRDA approval

How safe is your investment? The investments made in the Unit Funds are subject to investment risks associated with Capital Markets and the NAVs of the units may go up or down based on the performance of the fund and the factors influencing the Capital Market, and the insured is responsible for his / her decisions. The Unit Price is a reflection of the financial and equity/debt market conditions and can increase or decrease at any time due to this. Benefit payable under the Policy will be made according to the tax laws and other regulations in force at that time. There are no guarantees for any fund of any kind under this Policy. The benefit payable on maturity will be equal to the value of your units. The name in the funds in no way indicates the returns derived from them. What happens if I discontinue paying regular premiums? Within 3 years of the inception of the Policy: If premiums have not been paid for at least three consecutive years the insurance cover will cease immediately. However, you will continue to participate in the performance of Unit Funds chosen by you.. The monthly Policy Administration Charges will be deducted from your account by cancellation of units. You may revive the Policy by re-commencing the premium payment within a period of three years from the date of first unpaid premium or before the maturity date of the Policy whichever is earlier. In case the Contract is not revived during revival period, the Contract shall be terminated and the surrender value, if any, shall be paid at the end of third Policy Anniversary or at the end of the period allowed for revival whichever is later. After paying of at least 3 full years premiums: If premiums have been paid for at least three consecutive years and subsequent premiums are unpaid, the Policy will remains in force with Sum Assured intact. The Mortality and Policy Administration Charges will be deducted from your account by cancellation of units. You will continue to participate in the performance of the Unit Funds chosen by you. You may revive the Policy by re-commencing the premium payment within a period of three years from the date of first unpaid premium or before the maturity date of

the Policy whichever is earlier At the end of the allowed period for revival, if the Policy is not revived, the Policy shall be terminated by paying the surrender value. However, you may opt to continue the Policy even beyond the revival period (but not beyond the maturity date of the Policy). The mortality and administration charges will be deducted from your account by canceling the units. You will continue to participate in the performance of the Unit Funds chosen by you. This option will be available until the Fund Value does not fall below an amount equivalent to one full years premium. If at any point of time, the Fund Value reaches an amount equivalent to one full years premium, the Policy shall be terminated by paying the Fund Value.

Tax Benefit Premiums paid are eligible for tax deduction under Section 80C of the Income Tax Act, 1961. Provided the premium in any years during the term of the Policy does not exceed 20% of the Sum Assured, maturity and withdrawals are eligible for tax benefit under Section 10(10D). Death benefit are tax free under Section 10(10) D of the Income Tax Act, 1961. Under Section 80C premiums up to Rs 100,000 are allowed as deduction from your taxable income. General Exclusion If the Life Assured, whether sane or insane, commits suicide within 12 months from the date of issue of this Policy or the date of any revival of a Policy, the Company will limit the death benefit to the value of the Unit Account and will not pay any insured benefit. 15 day free look period You are entitled to a free look period of 15 days. If during the 15 days period, you do not wish to continue this Policy then you may write to the Company to cancel this Policy. The Company will refund the premium paid by you after deducting a proportionate premium for the cover provided up to the date of cancellation . The Company will also deduct any medical examination costs, stamp duty charges and

other expenses incurred in respect of your Policy. Please note that Reliance Life Insurance Company Limited is only the name of the insurance Company and Reliance Market Return Plan is only the name of the unit linked life insurance Policy and does not in anyway indicate the quality of the Policy or its future prospects or returns.

Prohibition of Rebate: Section 41 of the Insurance Act, 1938 states: 1) No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the Policy, nor shall any person taking out or renewing or continuing a Policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer. 2) Any person making default in complying with the provisions of this section shall be punishable with a fine which may extend to five hundred rupees. Insurance is the subject matter of solicitation UNDER THIS PLAN THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER.

Comparative Analysis ING Vysya Life

ING Vysya Life in India - An Overview ING Vysya Life Insurance Company Private Limited (the Company) entered the private life insurance industry in India in September 2001, and in a short span of 4 years has established itself as a distinctive life insurance brand with an innovative, attractive and customer friendly product portfolio and a professional advisor sales force. It has a dedicated and committed advisor sales force of over 11,000 people, working from 80 branches located in 70 major cities across the country and over 2,600 employees. It also distributes products in close cooperation with the ING Vysya Bank network. The Company has a customer base of over 3,00,000 & is headquartered at Bangalore. In 2005, ING Vysya Life earned a total income in excess of Rs. 400 crore and also has a share capital of Rs. 440 crore. The Company aims to make customers look at life insurance afresh, not just as a tax saving device but as a means to add protection to life. The one thing we hold in highest esteem is 'life' itself. We believe in enhancing the very quality of life, in addition to safeguarding an individual's security. Our core values are therefore defined as Professional, Entrepreneurial, Trustworthy, Approachable and Caring. The Companys portfolio offers products that cater to every financial requirement, at any life stage. We believe in continuously developing customer-driven products and services and value being accessible and responsive to the needs of our customers. In fact, the company has developed the LifeMakerTM. a simple method which can be used to choose a plan most suitable to a specific customer based on his needs, requirments and current life stage. This tool helps you build a complete financial plan for life, whether the requirment is Protection, Savings or Investment,

Retirement

CEO Speak At ING Vysya Life Insurance, in a short span of 4 years of operations, we have established ourselves as a distinctive life insurance brand in India . With an innovative, attractive and customer friendly product portfolio backed by a professional advisor force, we are proudly serving over 3,00,000 customers today. We are a part of the ING Group, the worlds 4th largest financial services group*, trusted by 60 million people across 50 countries, with a heritage of over 150 years. Our cornerstone is the trust that youve invested in us. Weve always designed products with your needs in mind and a communication model that speaks to you. Our new website reflects our openness & dynamism. We speak a language that you will understand, and not complicated jargon. What we tell you, we hope, will make it easier for you to choose from our product portfolio, the policy that suits you best. For instance, we have developed a dynamic new touch point between you and us the LifeMakerTM. The LifeMakerTM is a complete financial planning tool. It takes in basic information from you and offers you the policy that is best suited to your needs. In an interactive way, it gives you results that are customized to you and empowers you to choose for yourself what is best for your requirements. It is our endeavor to serve you better & develop a greater understanding of your needs. And our website is a step in the direction. So please go ahead and explore our site. Celebrate Life! Kshitij Jain MD & CEO, ING Vysya Life Insurance Co Pvt Ltd. Bangalore, INDIA.

Corporate Objective At ING Vysya Life, we strongly believe that as life is different at every stage, life insurance must offer flexibility and choice to go with that stage. We are fully prepared and committed to guide you on insurance products and services through our well-trained advisors, backed by competent marketing and customer services, in the best possible way. It is our aim to become one of the top private life insurance companies in India and to become a cornerstone of INGs integrated financial services business in India. Our Mission To set the standard in helping our customers manage their financial future. Partners A glance at our equity partners: ING Group Exide Industries Limited Gujarat Ambuja Cements Limited Enam Group

Products of ING Vysya Life (Endowment Plan & Child Plan) REASSURING LIFE ENDOWMENT PLAN

_ Lump Sum Benefit At Maturity Customisable Life Covers Enhancing Life Cover (Attractive Reversionary Bonus) The LifeMaker: A tool that assists you in building a complete financial plan for life through the following: It helps you protect your income and your familys financial future in case youre not around. It works as a long term saving. It also gives you tax benefits. Its a safe long term investment. At the end of which, you or your family get an added return on your investment. Depending on your personal needs, you can go for a protection, saving or investment plan or a combination. Additional Benefits Product Features Rider Benefits Increase your coverage at a nominal extra cost by opting for any of our riders Loan Benefit After paying a premium for three years, you will be eligible for a loan. Tax Benefits Tax benefits under Section 88 and Section 10 (10D) are available on all our life insurance plans and riders. Look-in Period This is a 15 day period for you to go through the terms and conditions and decide upon taking or cancelling the policy. Eligibility Minimumentry age: 12 yearsMaximum entry age: 55 yearsMaximum maturity age: 65 years Premium PaymentTerm Based upon your current age, and the life cover period, you can choose paying premium terms from 10-30 years. (i.e. 10,11,12...20...30).

SAFAL JEEVAN ENDOWMENTPLAN Low Premium In-built Accident Cover No Medical and Underwriting Our dreams in life never stop growing. And so also, our needs. And to see these dreams turn into a reality we need to build them one by one. And, fulfill them regardless of the risks that we face due to an uncertain future. So whatever your dreams in life, be it towards building your new home, educating your children or even taking that long deserving holiday, ING Vysya Life Insurance can help you and your family reach them. Nomatter what. The unique feature of the Safal Jeevan Endowment Plan is that it provides an opportunity to decide on the cover of your policy. It gives you the option to choose from a convenient range of fixed terms and premiums. The plan ensures an easy and hassle free process, yet offering you a comprehensive protection and savings proposition. Thus making it the simplest life insurance plan. Apart from that it ensures, Premium is payable annually, half-yearly or quarterly during the policy term. The policy coverage terms are fixed at 10,15 and 20 years. This plan is ideal if you are planning on taking your first life insurance policy. It offers you protection in an easy, hassle free way and helps you secure your goals and dreams despite the odds. All you have to do is to choose a suitable policy term and decide on the frequency and amount of premium payment. Under this plan you make payment of a chosen premium for the term opted. The Sum Assured and non-guranteed compound reversionary bonuses if any are payable on maturity or on death, whichever is earlier. The minimum entry age is 18 (last birthday). The maximum entry age is 45 (last birthday).

The maximum premium ceasing/maturity age is 60. Surrender Value (SV) is available after at least 3 full years premiums are paid. You can avail a loan of up to 90% of the Surrender Value. Other Features In-built Accident Cover: SumAssured with non-guaranteed bonuses, if any, payable on death of the Life Assured. In case of death due to accident, an additional benefit equal to the basic Sum Assured is payable. Sum Assured with non-guaranteed bonuses, if any, payable on maturity. After 3 full years premiums are paid, and if policy lapses due to non-payment of premium, the policy becomes paid-up. Exclusions In case of death due to suicide within one year of date of risk commencement benefits under this policy are not payable. In case of death due to reasons other than accident, within 3 months from date of risk commencement, benefits under this policy are not paid and instead all the premiums paid are refunded. In addition the following exclusions will apply on additional sum assured payable on death due to accident. Any disease or infection. Intentional self-inflicted injury, suicide or attempted suicide, while sane or insane. Life Assured being under the influence of drugs, alcohol, narcotics or psychotropic substances unless taken in accordance with the lawful directions and prescription of a qualified and registered medical practitioner. War (declared or undeclared), invasion, civil commotion, riots, revolution or any war-like operations.

Creating Life Money Back Plan Tax Benefit Prohibition of Rebate All Premiums paid under this Plan to effect or to keep in force insurance on the life of eligible persons may be eligible for deduction under Section 80C of the Income Tax Act. Benefits paid under this Plan, including the sum allocated by way of Bonus are exempt from Income Tax under Section 10(10D) of Income Tax Act, 1961. This leaflet aims at providing you a broad overview of the Creating Life Money Back Plan offered by us. However, to choose this or any other life insurance Plan that is to your advantage, ask an ING Vysya Life Insurance Advisor to work out a detailed Financial Plan for you. Section 41 of the Insurance Act, 1938 states: 1. No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the Premium shown on the Policy, nor shall any person taking out or renewing or continuing a Policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer. Provided that acceptance by an insurance agent of commission in connection with a Policy of life insurance taken out by himself on his own life shall not be deemed to be acceptance of a rebate of Premium within the meaning of this subsection if at

the time of such acceptance the insurance agent satisfies the prescribed conditions establishing that he is a bonafide insurance agent employed by the insurer. 2. Any person making default in complying with the provisions of this section shall be punishable with fine that may extend to five hundred rupees. Maturity Benefit Death Benefit Who can opt for the Creating Life Money Back plan? What are the available Policy durations? What is the minimum Premium payable? How often do you pay the Premium? Rider Benefits Exclusions Discontinuance of the Policy Free Look On the Policy Maturity Date, 20% of the Sum Assured along with attached Bonuses will be paid. On death of the Life Assured, an amount equivalent to the Sum Assured is payable and all future Premiums payable are waived and the Policy continues for the entire Policy Term as planned. All those who are aged 18 years or over but less than 45 years (age last birthday) for 25 years Policy Term 50 years (age last birthday) for 20 years Policy Term 55 years (age last birthday) for15 years Policy Term Based on your current age the Policy is available for 15, 20 and 25 years Policy Term.

Comparative Analysis ICICI Prudential Life

Overview: ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse and Prudential plc, a leading international financial services group headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA).

ICICI Prudential's equity base stands at Rs. 11.85 billion with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. In the financial year ended March 31, 2005, the company garnered Rs 1584 crore of new business premium for a total sum assured of Rs 13,780 crore and wrote nearly 615,000 policies. The company has a network of about 56,000 advisors; as well as 7 bancassurance and 150 corporate agent tie-ups. For the past four years, ICICI Prudential has retained

its position as the No. 1 private life insurer in the country, with a wide range of flexible products that meet the needs of the Indian customer at every step in life. Our vision: To make ICICI Prudential the dominant Life and Pensions player built on trust by world-class people and service.

Promoters ICICI Bank ICICI Bank (NYSE:IBN) is India's second largest bank and largest private sector bank with over 50 years of financial experience and with assets of Rs. 1812.27 billion as on 30th June, 2005. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. ICICI Bank is a leading player in the retail banking market and has over 13 million retail customer accounts. The Bank has a network of over 570 branches and extension counters, and 2,000 ATMs. Prudential plc Established in London in 1848, Prudential plc, through its businesses in the UK and Europe, the US and Asia, provides retail financial services products and services to more than 16 million customers, policyholders and unit holders worldwide. As of June 30, 2004, the company had over US$300 billion in funds under management. Prudential has brought to market an integrated range of financial services products that now includes life assurance, pensions, mutual funds, banking, investment management and general insurance. In Asia, Prudential is the leading European life insurance company with a vast network of 24 life and mutual fund operations in twelve countries - China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam.

Management Board of Directors The ICICI Prudential Life Insurance Company Limited Board comprises reputed people from the finance industry both from India and abroad. Mr. K.V. Kamath, Chairman Mr. Mark Norbom Mrs. Lalita D. Gupte Mrs. Kalpana Morparia Mrs. Chanda Kochhar Mr. HT Phong Mr. M.P. Modi Mr. R Narayanan Mr. Keki Dadiseth Ms. Shikha Sharma, Managing Director Mr. N.S. Kannan, Executive Director

Management Team Ms. Shikha Sharma, Managing Director & CEO Mr. N.S. Kannan, Executive Director Mr. V. Rajagopalan, Chief - Actuary Mr. Sandeep Batra, Chief Financial Officer & Company Secretary Ms. Anita Pai, Chief - Customer Service and Technology Mr. Puneet Nanda, Chief - Investments

Products (Endowment & Child Plan)

Twin Advantage of Saving and Life Cover All through your life, you have certain responsibilities; your children's education, higher schooling, marriage expenses and many more such expenses. As a responsible individual its undoubtedly your foremost concern to ensure that your family's happiness is ensured for the times to come and secured from any eventuality that might come up. For this you need a plan that offers you both, savings and protection. ICICI Prudential Life Insurance Company Limited, India's No.1 private life insurance company, offers you SavenProtect an ideal plan for those who want to accumulate funds on a regular basis while enjoying insurance protection. What does Save'n'Protect offer you? It is a fixed term policy that combines savings with life cover. In this plan, you pay premia regularly during the term. On death of the life assured upto age 7 years, the basic premium paid will be returned without interest. On the death of the life assured after age 7 years, the beneficiary will get the sum assured, the guaranteed additions @ 3.5% compounded annually for the first 4 years and the vested bonuses. Once the policy matures, i.e. at the end of the term, you can get the full sum assured and guaranteed additions @ 3.5% compounded annually for the first 4 years as well as the vested bonuses. This provides you with a unique feature which gives you additional extended term insurance cover for five years after the maturity date of the policy, for 50% of the sum assured, without any fresh evidence of health. You will not have to pay any premia for the same. For protection to your family against any health hazards or unfortunate eventualities we offer you the following riders with this plan:

Extended Life cover:

What are the add-ons you can opt for? Critical Illness Rider: This rider provides protection against 9 critical illnesses, namely: Major organ transplants, Complete renal failure, Stroke, Paralysis, Heart attack, Valve replacement surgery, Major surgery of the aorta, CAGS (Bypass) and Cancer. If you are diagnosed with any of the specified illnesses, then you will be paid the entire Sum Assured under the rider. The policy along with all the riders (to the extent of the Rider Sum Assured) is then terminated. However, the remainder of the base policy continues till the end of the term. You will have to continue paying premiums for the remainder of the policy. Accident and Disability Benefit. Accident Benefit Rider:

Who can apply? Can I take a loan against my policy? On death due to accident, the nominee gets additional sum assured under the rider. In case of accidental death while travelling by mass surface transport, the nominee will get twice the sum assured under the rider. Accidents can also impair one's capacity to earn, in such an event of total and permanent disability 10% of the sum assured is paid out every year for 10 years. Also, the premiums for the base policy are waived upto the extent of rider cover. On death due to accident, the nominee gets additional sum assured under the rider. However, when you avail of extended life cover, no riders are available to you. You can apply if you are no older than 60 years.

SmartKid Regular Premium Plan Regular Premium Plan Advantages of SmartKid Regular Premium Plan at a glance If you can dream it, you can do it Terms you need to know Presenting SmartKid Regular Premium Plan policy and give your nominee an additional sum of money, in the event of that circumstance occurring. We realise that you have multiple roles Premium: The money you will have to pay to play as head of the family. One of your key every year towards the plan, in order to roles is being a responsible, caring parent. subscribe to the plan and to enjoy the You will always do everything you can, to benefits under the plan. make sure your child gets whatever Sum Assured: Amount of life insurance he needs to develop his potential and cover which will be paid in case of death to be successful. Maybe your child aspires to be a pilot one day or even an astronaut. Guaranteed Additions: These He might want to study medicine or will be provided on the Sum become an architect, scientist, Assured at the rate of 3.5% compounded annually for the engineer or software designer. You ! Guaranteed Educational Benefits: have big dreams for your child and you want first 4 policy years, payable on Regular payments at key educational to make those dreams come true. death of the policyholder or milestones in your child's life like maturity of the policy only. graduation, post-graduation, etc. as Vested Bonus: These are additions declared per the schedule selected by you. by the Company from the 5th year onwards ! Lump sum payment of Sum Assured:

To bring your dreams to life, you need an as a percentage of the Sum Assured, and This ensures that your loved ones stay investment that is designed to provide they are compounded annually. financially secure, even in your a regular premium, traditional plan with Rider: This is a nominal amount that you can ! Total Premium Waiver: In the two options to receive guaranteed pay over and above the premium amount unfortunate event of death of parent, all educational benefits, no matter what the that will cover you against other unfortunate future premiums are waived. This means, uncertainties in your life. circumstances during the tenure of the the surviving spouse need not pay the ICICI Prudential Life Insurance - covering you at every step in life. ICICI Prudential Life Insurance is a joint venture between ICICI Bank - a premier financial powerhouse and Prudential plc, a leading international financial services group, headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector life insurance companies to begin operations in India. ICICI Prudential is the No.1 Private Life Insurance Company in India. Our customercentric and flexible plans are tailor-made to take care of the various needs of an individual. In keeping with our innovative thinking and holistic vision, we now present SmartKid, a range of specially designed education plans that safeguard your child's education, no matter what happens.

Comparative Analysis HDFC Standard Life Insurance

Overview HDFC Standard Life Insurance Company Ltd. is one of Indias leading private life insurance companies, which offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.), Indias leading housing finance institution and one of the subsidiaries of Standard Life plc, leading providers of financial services in the United Kingdom. Both the promoters are well known for their ethical dealings and financial strength and are thus committed to being a long-term player in the life insurance industry all important factors to consider when choosing your insurer. Our key strengths Financial Expertise As a joint venture of leading financial services groups, HDFC Standard Life has the financial expertise required to manage your long-term investments safely and efficiently. Range of Solutions We have a range of individual and group solutions, which can be easily customised to specific needs. Our group solutions have been designed to offer you complete flexibility combined with a low charging structure. Track Record so far Our cumulative premium income, including the first year premiums and renewal

premiums is Rs. 1532.21 Crores Apr-Mar 2005 - 06. We have covered over 1.6 million individuals out of which over 5,00,000 lives have been covered through our group business tie-ups.

Board of Directors

Mr. Deepak S Parekh Mr. Keki M Mistry Mr. Alexander M Crombie Ms. Marcia D Campbell Mr. Keith N Skeoch Mr. G N Bajpai Mr. Gautam R Divan Mr. Ranjan Pant Mr. Ravi Narain Mr. Deepak M Satwalekar

Products (Endowment & Child Plan)

Endowment Assurance Plan Secure Your Familys Financial Independence. You have given your family the very best. And there is no reason why they should not get the very best in the future too. As a judicious family man, your priority is to secure the well-being of those who depend on you. Not just for today, but also in the long term. More importantly, you have to guard your loved ones against any eventuality. How will they sustain their way of life, so lovingly built by you, in your absence? With our HDFC Endowment Assurance Plan, you can ensure that your family remains financially independent, even if you are not around. You can ensure that they live a life of respect and dignity. Always.

Highlights: Endowment Assurance Plan The HDFCSL Endowment Assurance Plan gives you: An ideal way to secure your long-term financial goals Valuable protection to your family by way of lumpsum payment in case of your unfortunate death within policy term Provides lump sum payment (basic Sum Assured plus any bonus additions) on survival up to maturity date Very flexible benefit options and payment options In case of your unfortunate demise during the policy term, this participating (With Profits) insurance plan will pay your family the Sum Assured (together with the attached bonuses) you had chosen.The plan receives simple Reversionary Bonuses, which are usually added annually. At the end of the term an additional Terminal Bonus may be paid depending on the performance of the underlying investment.

CHILDREN'S PLAN Give your child the perfect start in life. As a parent, your priority is your childs future and being able to meet your childs dreams and aspirations. Today, providing a good education, establishing a professional career or even a modest wedding is expensive. Costs are increasing fast. Just imagine how much youll need when your child takes these important steps in life! Plan today to ensure a bright future for your child. Start building savings today with our HDFC Childrens Plan. So that your child is able to lead a life of respect and dignity with a secured financial future.

HDFC Children's Plan The HDFC Children's Plan gives you: Invaluable financial support to your child Helps you customise an ideal plan for your child Provides you multiple options for multiple benefits The HDFC Childrens Plan is designed to secure your childs future by giving your child (the beneficiary) a guaranteed lump sum, on maturity or in case of your unfortunate demise, early in the policy term. The premiums, paid by you, are invested by the company to give you good long-term returns. The plan receives simple Reversionary Bonuses, which are usually added annually. At the end of the term an additional Terminal Bonus may be paid depending on the performance of the underlying investment (See Bonuses for more details).

Research Methodology

Research Methodology Type of data collection methods The task of data collection begin after a research problem had been defined and research design/plan and checked out while deciding about the method of data collection to be used for study. The researcher should keep in mind two types of data viz., primary and secondary. The primary data are those which collected fresh and for first time, and thus happened to be original character. The secondary data, on the other hand, are those which have already been collected by some one else and which have already have been passed through the statistical process.

Primary Data Primary data may be describe as those data that have been observed and recorded by the researcher for the first time for there knowledge. Secondary Data Secondary data are statistics not gathered for immediate study at hand what for some other purposes. They may be described as those data that have been compiled by some agency other than the user.

o Data Sources Mainly in a research process both, Primary and Secondary types of data sources are used. In this research also we have two kinds of data sources given below: 1) Primary Data: Questionnaire and Interview 2) Secondary Data: Web pages, Company Journals & Brochures Since its a live project considering an intensive survey, questionnaires filled by through an in-depth interview session with the bank cstomers are the key source of information. o Data Collection Instruments: The instruments used for data collection is a Questionnaire which is been filled by a survey team through communication and interactive session with the customers of a particular bank. Each questionnaire represents essence information about a customer. So, a combination of Interview and Questionnaire as a data collection is employed. o NON Probability Sampling Non Probability sampling is that sampling procedure which does not afford any basis for estimating the probability that each item in the population has of being included in the sample. It is also known as deliberate sampling, purposive sampling and judgment sampling.

SUMMARY OF FINDINGS

The summary of Survey conducted for Reliance Life Insurance, Can be listed down in conjunction with the data analysis presented. The survey has been simultaneously taken up by the companys competitors like- ICICI, HDFC but the impact on Reliance Life was positive. The functioning and responses from the respondents were authentic leading to a better view of the market scenario. The findings are listed below:

o The company is targeting on emerging financial market in India with great potential. o Majority of the respondents are from salaried class. o Literacy level of the respondents is high, majority of them are educated. o Mainly, male respondents having Life Insurance then female. o Mostly, married respondents having Life Insurance. o Average annual income of respondents is between 1-1.5 lacs. o Majority of respondents are having a Life Insurance. o Most of respondents are holding a account with ICICI Prudential Life.

SWOT ANALYSIS

SWOT ANALYSIS

STRENGTH 1) A strong brand name with a high degree of financial support which is the back bone of the company. 2) Brand leaders in bringing latest financial services for the common man. 3) An innovator, pre problem seeker and risk taking capabilities. 4) Systematic, planned and quick actions taken up lead to quick reactions by the company ultimately providing a competitive edge to Reliance Life Insurance.

WEAKNESS 1) The data collected cannot be considered as 100% accurate but it is only an estimated figures gathered by the survey. 2) The analysis so done cannot be regarded as the final as change is the only constant thing which happens.

OPPORTUNITIES 1) A huge untapped market. 2) Emerging middle class, a good potential market. 3) Increasing employment rate and income. 4) Increasing financial investments in market.

THREATS 1) Neck to Neck competition with ICICI and HDFC with respect to services and policies. 2) Threats from growing competitors like Bajaj Allianz and Aviva in Insurance sector. 3) New entrant in the market, Sahara India Life, Om KOTHAK MAHINDRA etc, is an area of concern.

CONCLUSION The practicality of being associated with a Live Project was revealed by this survey. Reliance Life Insurance has always been an innovator in the field of Insurance. The

company has a keen interest in the development and enhancement of its products in India. The company focuses in providing quality products to all the areas of our country. Reliance Life Insurance products have tremendous amount of potential and demand in the market. The name speaks for itself and the customer associate themselves with the brand name. Reliance Life Insurance have tight competition with ICICI Prudential. Reliance Life Insurance product quality is good but the technical aspects of its functioning is average. Advertisement of its products is the main area of improvement, which is deviating from the desired level. The various promotional activities been conducted by Reliance Life Insurance in regional languages is an effective tool. The growing demand in the market for Reliance Life Insurance products indicates the prospect of new customers for the company. Finally I conclude that Reliance Life Insurance has built up a brand name, which needs to be maintained through continuous feedback, improvement and proactive actions. The company has already sensed the market potential and now it should focus on coming with schemes and products plans to give the market what they want from Reliance Life Insurance.

ANNEXURE

QUESTIONNAIRE

General Information:-

1. Name: _________________________________________________________ 2. Age: _________ 3. Sex: Male [ ] Female [ ] 4. Marital Status: Single [ ] Married [ ] 5. Educational Background: High School [ ] 10+2 [ ] Graduate [ ] Post Graduate [ ] 6. Employment Category: Self Employed/Professional [ ] Business [ ] Salaried [ ]

7. Annual Income/Salary: <1 lacs [ ] 1 - 1.5 lacs [ ] 1.5 2 lacs [ ] 2 2.5 lacs [ ] 2.5 lacs or above [ ]

Questions:-

8. Sir/Madam, do you have a Life Insurance? Yes [ ] No [ ] 9. Which type of Life Insurance you are having or interested in having? Savings Plan [ ] Investment Plan [ ] Pension Plan [ ] 10. From which of the company you having a Life Insurance? HDFC Standard [ ] ICICI Pru [ ] ING Vysya Life [ ] Reliance Life [ ] SBI Life [ ]

11. Are you interested in Children Plans for Protection & Saving for your child? Yes [ ] No [ ]

12. Sir/Madam, Which type of Life Insurance you are having or interested in having? Endowment Plan [ ] ULIP Plan [ ] Retirement Plan [ ] Child Plan [ ] Term Plan [ ]

13. Rank the services of Relinace Life Insurance? Good [ ] Average [ ] Not Satisfactory [ ]

THANK YOU!!!!

BIBILIOGRAPHY

BIBLIOGRAPHY

WEBPAGES www.reliancelife.co.in www.hdfcinsurance.com www.iciciprulife.com www.ingvysyalife.com http://en.wikipedia.org/wiki/Life_Insurance_-_India"

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