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3.1 3.2 3.3
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4.1 4.2
Analyze of Study
Comparative analysis of ULIPs Understanding the working of ULIPs of Kotak Mahindra Life Insurance Market Survey on ULIPs Integrated Financial Planning for Life Insurance
41
42 60
4.3 4.4
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Questionnaire Annexure
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Executive Summary
1. Executive Summary
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The project aims at comparative study of Unit Linked Insurance Plans and also a detail study of some of the major plans of Kotak Mahindra Life Insurance Limited. It also analyse insurance as an investment opportunities/Avenue. The project had a detailed study of Unit Linked Insurance Plans (ULIPs) with reference to Kotak Mahindra Life Insurance Limited, The role of private insurance companies comparison to public sector companies. It also reflect the basic distinction between Mutual Funds and ULIPs, in form of structure as well as return. It provides the role Insurance Regulatory Development Authority (IRDA) as a regulator and its functions. The above project also signifies the recent dispute between Market regulator SEBI and IRDA with relate to Unit Linked Insurance Plan products. The project aims to help and understand the consumer behaviour towards insurance as an investment purpose with life cover, perception of consumers towards ULIPs investment. At the atmost the project also provides the knowledge about detailed investment of fund under ULIPs in various sectors including Equity and Debt. It provides the detailed knowledge about various charges implemented under ULIPs scheme. The internship is a bridge between the institute and the organization. This made me to be involved in a project that helped me to employ my theoretical knowledge about the insurance sector both in public as well as private, with reference to ULIPs Investment. The internship period of two month in Kotak Mahindra Life Insurance provided me a opportunity to learn some basic concepts of insurance which was not up to date for me. By preparing the project I also got a chance to recommend my opinions and views regarding ULIPs investment for a better future and necessary changes in it.
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2. Introduction
The insurance plays a major role in the life of the humanity. Slowly people stared to realize the necessity of the insurance and these needs are unending as long as life exists. In fact insurance is not restricted for any category neither of the society nor in term of cast, ages or life styles. Also many people have a notion that Insurance is very good form of an investment, which is not right. Insurance is just creating a protection for you and your family. As Indian investors are now more exposed to the capital markets and have started understanding its working, they want to multiply their money rapidly. This can be done through Unit Linked Insurance Plans (market linked Plans) introduced by the Insurance Players. Therefore the only reasons for selecting this topic are
This project is about studying the insurance industry which is on the boom. The introductory part contains the meaning of insurance, its evolution, some, Statistics of Indian insurance Industry. The project deals the comprehensive analysis of the ULIP schemes, what is ULIP all about, its NAV performance, the Growth, performance of the policies since their inception, its working, its popularity and a market survey.
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The project contains various graphs, tables and questionnaire to further. Elaborate on the explanations.
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Getting associated with a brand like Kotak Insurance for just 2 months was really a Prestigious and a memorable period in my MBA tenure. Growth has been the main objective of the company and will continue to be the driving force in the years to come by spreading the wings wider in India and contribute in the economic and social development.
Kotak group was established in 1985. Kotak Mahindra bank is a parent company of the group. Kotak group entered into life insurance business in 2001.Kotak Mahindra old mutual life insurance ltd is a joint venture between Kotak Mahindra bank ltd (76 %) and Old mutual plc. (24%). Old mutual plc is a world class international financial services company. It was established in South Africa before 160 years. Old mutual is the largest financial services in South Africa, through its life insurance, Asset management, banking and general insurance operations. About Kotak and Mahindra what we understand the mutual partnership between these two. The remaining 76% which is retained with kotak is again distributed into two parts between kotak (70%) and Mahindra (30%). Under this distribution kotak act as an active partner and Mahindra as a sleeping partner respectively.
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MISSION
At Kotak life insurance, we aim to help customers take important financial decisions at every stage in life by offering them a wide range of innovative life insurance product, to make them financially independent.
VISION
Kotak Life insurance has deep rooted commitment to improve the quality of life of its customer, employees and stakeholders. We aim to improve the long term value in our relationships by continuous innovation and improvements.
PRODUCT PORTFOLIO
Kotak Mahindra Old Mutual Life Insurance has humble portfolio which includes retirement plans, child plan, term plans, savings & investment plans.
Retirement Plan
With rising inflation, its absolutely necessary to make provisions for the future which makes retirement plan an important financial decision. Better known as Pension plan, this plan takes
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care of financial needs after retirement by investing a part of your savings for limited period. Pension plan provides steady income after retirement and takes care of daily needs. The pension plans offered by Kotak Life are Capital Multiplier Plan and Retirement Income plan
Child Plan
Parenthood brings responsibilities and no one is better judge of that than you. Child Plan is a plan specifically designed to take care of financial needs of your child. Child plan provides with necessary funds that will take care of childs education, marriage etc. By investing small portion of your savings you secure the financial end of your child. Child plan of Kotak Life is called Child Advantage Plan.
Term Plan
A risk plan which provides comprehensive cover for your family in the unfortunate event of untimely demise. A term life insurance plan provides good cover at relatively nominal cost and has no survival benefits. Kotak Life term plans are Term, Preferred term Plan, e-Term, ePreferred term Plan and Eternal Life Plan.
Investment Plan
Popularly known as ULIP, an investment plan invests part of your savings in equity or debt market as per your preference. The objective of investment plan is to give you returns which easily beat the rising costs since the usual returns in a bank are extremely low. ULIPs offered by Kotak Life are Ace Investment, Wealth Insurance, Secure Invest Insurance, Endowment Plan, Money Back Plan, Surakshit Jeevan, Premium Return Plan, Gramin Bima Yojana, Platinum and Single Invest Advantage.
DISTRIBUTION NETWORK
Kotak Life Insurance employs around 5,565 people in its various businesses and has 197
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Kotak Life also distributes its products like e-Preferred, term plan online.
FINANCIAL INFORMATION The total premium earned for the half year ended September 30, 2010 was Rs 12,925 million. The profit after tax for the same period is Rs 102 million. There have been 1414 death claims reported during the period out of which 971 claims were settled and 32 claims were rejected.
MARKETING CAMPAIGNS Kotak Life launches different campaigns from time to time. Initially their campaign was around the theme Zindagi se ek kadam aage which implied being ahead of uncertainties with well thought out financial planning. Recently, the campaign was changed to Faidey ka Insurance which reflects that investments made in Kotak Life will have good returns because of their expertise in finance. This idea will be projected through TVC, radio, print and other outdoor mediums.
MANAGEMENT
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Mr.Gaurang shah is the Director of Kotak Life Insurance. Mr. Pankaj Desai is the Managing Director of Kotak Life Insurance .Mr. G Muralidhar is the CEO of Kotak Life Insurance Mr.Sudhakar Shanbag is the CIO of Kotak Life Insurance. Mr.Andrew Cartwright is the Appointed Actuary of Kotak Life Insurance.
Registered Office
9th Floor, Godrej Coliseum Behind Everard Nagar Sion (East) Mumbai 400 022 India
Corporate Office
Kotak Infiniti, 5th Floor Zone 2 Bldg No.21 Infinity Park, Off. Western Express Highway General A K Vaidya Marg Malad (East) Mumbai 400 097 India
Clientservicedesk@kotak.com
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PRODUCT Retirement/Pension Plan Retirement/Pension Plan Child Plan Child Plan Term Plan Term Plan Term Plan Term Plan Savings & Investment Plan Savings & Investment Plan Savings & Investment Plan Savings & Investment Plan Savings & Investment Plan Savings & Investment Plan Savings & Investment Plan Savings & Investment Plan Savings & Investment Plan Savings & Investment Plan
PLAN Kotak Capital Multiplier Plan Kotak Retirement Income Plan Kotak Child Advantage Plan Kotak Head start Child Assure Kotak Term/Preferred Plan Kotak e-Term/e-Preferred Plan Kotak Loan Protection Plan Kotak Eternal Life Plan Kotak Ace Investment Kotak Wealth Insurance Kotak Secure Invest Insurance Kotak Endowment Plan Kotak Money Back Plan Kotak Surakshit Jeevan Kotak Premium Return Plan Kotak Gramin Bima Yojana Kotak Platinum Kotak Single Invest Advantage
Today, only one business, which affects all walks of life, is insurance business. Thats why insurance industry occupies a very important place among financial services operative in the world. Owing to growing complexity of life, trade and commerce, individuals as well as business firms are turning to insurance to manage various risks. Therefore a proper knowledge of what insurance is and what purpose does it serve to individual or an organization is therefore necessary.
Insurance, essentially, is an arrangement where the losses experienced by a few are extended over several who are exposed to similar risks. Insurance is a protection against financial losses arising on the happening of an unexpected event. Insurance companies collect premium to provide security for the purpose. In simple words it is spreading of risks amongst many people.
i) LIFE INSURANCE: It is a fundamental part of a sound financial plan which helps to insure your loved ones
Life insurance the only instrument that takes care of These 3 probabilities and 2 priorities. Priorities = Childrens education and marriage Probabilities = Dying too soon, Living death and Living too long
ii) BENEFITS :
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1) SAVINGS
2) EDUCATION
3) RETIREMENT
The earliest transaction of insurance as practiced today can be traced back to the 14th century AD. The business of insurance started with marine business by Traders who used to gather in the Lloyds coffee house in London, wherein they had agreed to insure their ships in transit.
The 1st Life Insurance Policy was issued on 18th June, 1583, on the life of William Gibbons for a period of 12 months.
Life Insurance in its current form came in India from the UK, with the Establishment of British firm, Oriental Life insurance Company, in 1818 The 1st Indian insurance company was the Bombay Mutual Assurance Society Ltd, formed in 1870.
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By the year 1956, when the life insurance business was nationalized and the Life Insurance Corporation Of India ltd (LIC) was formed on 1st September, 1956 and there were 245 companies existing at that time in India.
By 31.3.2002, eleven new insurers had been registered and had begun to transact Life insurance business in India.
1) India is developing nation where still 20% of population are covered under various life insurance policies as on 2011. 2)The Life Insurance Industry has grown by 36% p.a. from last five consecutive years, with a premium business of Rs 1.29 lakh crores in FY 2010-2011 over Rs1.09 lakh crores in FY 20092010. Source IRDA Journal (April 2010 3) Global Life Insurance Market: $1,521 billion, Global Non-Life Insurance Market: $922 billion 4) India is 11th largest in insurance business with 2.7 % world market share as on 2011. Times of India.
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5) Out of one billion people in India, only 35 million people are covered by insurance. 6) Indias life insurance premium as a percentage of GDP is just 2.5% as on 2011. 7) Indian insurance market is set to touch $350- $400 billion by 2020, with assumption of 8% of GDP.
Private Sector insurance company has shown a decline percentage from 40% in 2008-2009 to 20% up to May 2011.Private companies also showing negative growth rate in range of 20-50%, as people are showing faith in government sector insurance companies.
PRIVATE PLAYERS
2. Kotak Mahindra Old Mutual Life Insurance Ltd 3. Tata AIG Life Insurance Company Ltd 4. Birla Sun Life Insurance 5. ICICI Prudential Life Insurance 6. Aviva Life Insurance 7. Bajaj Allianz 8. Max New York Life Insurance 9. Bharti Axa Life Insurance 10. SBI Life Insurance 11. Reliance Life Insurance 12. ING Vysya Life Insurance 13. Sahara India Life Insurance 14. HDFC Standard Life Insurance 15. Shriram Group
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Data Collection:
Primary Data: 1) Use of a Questionnaire for carrying out a survey 2) Presentation given by the Advisors of Tata AIG life. 3) Data explaining the working of the ULIPs.
Secondary Data: 1) Books 2) Newspapers 3) Magazines 4) Newsletter 5) Internet 6) Television 7) Booklet 8) Policy Brochures
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IRDA is Insurance Regulatory Development Authority, that has been set up to protect the interests of the policy holders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental there to. Role of IRDA in insurance sector To protect the interest and secure fair treatment to policyholders. To bring about (speedy) and orderly growth of the insurance industry (including annuity and superannuation payments), for the benefit of the common man, and to provide long term funds for accelerating growth of the economy. To set promote, monitor and enforce high standards of integrity, financial soundness, fair dealing and competence of those it regulates. To ensure that insurance customers receive precise, clear and correct information about products and services and make them aware of their duties and responsibilities in this regard. To ensure speedy settlement of genuine claims , to prevent insurance frauds and other malpractices and put in place effective grievances redressal machinery. To promote fairness, transparency and orderly conduct in financial markets dealing with insurance and build a reliable management information system to enforce high standards of financial soundness amongst market players. To take action where such standards are inadequate or ineffective enforced. To bring about optimum amount of self regulation in day to day working of the industry consistent with the requirements of prudential regulation.
Functions of IRDA
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Protection of the interests of the policy holders in matters concerning assigning of policy, nomination by policy holders, insurable interest, settlement of insurance claim, surrender value of policy and other terms and conditions of contracts of insurance. Specifying requisite qualifications, code of conduct and practical training for intermediary or insurance intermediaries and agents. Specifying the code of conduct for surveyors and loss assessors. Promoting efficiency in the conduct of insurance business. Promoting and regulating professional organizations connected with the insurance and reinsurance business. Levying fees and other charges for carrying out the purposes of the Act. Calling for information from, undertaking inspection of, conducting enquiries and investigations including audit of the insurers, intermediaries, insurance intermediaries and other organizations connected with the insurance business. Control and regulation of the rates, advantages, terms and conditions that may be offered by insurers in respect of general insurance business not so controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance Act, 1938 (4 of 1938). Specifying the form and manner in which books of account shall be maintained and statement of accounts shall be rendered by insurers and other insurance intermediaries. Regulating investment of funds by insurance companies.
Supervising the functioning of the Tariff Advisory Committee. Specifying the percentage of premium income of the insurer to finance schemes for promoting and regulating professional organizations. Specifying the percentage of life insurance business and general insurance business to be undertaken by the insurer in the rural or social sector. Exercising such other powers as may be prescribed.
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ULIPS also known as UNBUNBLED VARIABLE INSURANCE PLANS has possibly been the single largest innovation in the field of life insurance in the past several decades. It wasnt too long back, when the good old endowment plan was the preferred way to insure oneself against an eventuality and to set aside some savings to meet ones financial objectives. Then insurance was thrown open to the private sector. The result was the launch of a wide variety of insurance plans, including the ULIPs.
Two factors were responsible for the advent of ULIPs on the domestic insurance horizon.
First was the arrival of private insurance companies on the domestic scene. ULIPs were one of the most significant innovations introduced by private insurers. The other factor that saw investors take to ULIPs was the decline of assured return endowment plans.
These were the two factors most instrumental in marking the arrival of ULIPs, but another factor that has helped their cause is a booming stock market. While this now appears as one of the primary reasons for their popularity, it is believed that ULIPs have some fundamental positives like enhanced flexibility and merging of investment and insurance in a single entity that have really endeared them to individuals. ULIPs came to play in the 1960s and became very popular in Western Europe and Americas.
MEANING OF ULIPS
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A policy, which provides for life insurance where the policy value at any time varies according to the value of the underlying assets at the time. ULIP is life insurance solution that provides for the benefits of protection and flexibility in investment. The investment is denoted as units and is represented by the value that it has attained called as Net Asset Value (NAV).
In order to offset the erosion of money, ULIPS are introduced. The Sum Assured is expressed in units whose price is linked to an inflation related index. In todays times, ULIP provides solutions for insurance planning, financial needs, financial planning for childrens future and retirement planning.Features of ULIPs distinguish itself through the multiple benefits that it provides to the customer which are as follows Life protection Investment and Savings Flexibility Adjustable Life Cover Investment Options Transparency Options to take additional cover against- Death due to accident- Disability- Critical Illness- Surgeries Liquidity Tax benefits. Today many individuals are adding ULIPs to their portfolios to generate wealth and protection over a long time.
The following points help us to get a better idea how ULIPs differ from Traditional (Endowment Plans)
1) SUM ASSURED
This is the most fundamental difference between ULIPs and the traditional plans. In case of endowment the agent will ask you HOW MUCH INSURANCE COVER DO YOU NEED? & the premium is calculated as per the estimated sum assured.
In case of ULIPs you are asked HOW MUCH PREMIUM CAN YOU PAY? & accordingly the Sum Assured is estimated.
2) INVESTMENTS
Endowment plans investment in: Government Securities Corporate bonds Money market instruments (No investment in the stock market)
3) FLEXIBILITY
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In case of ULIPs the investor can choose the fund in which he wants to Allocate his portfolio. He can go for pure Equity, or a combination of debt equity, depending on his requirements.
The investor also has the option of switching from one fund to another. Usually Free switches are given during the year. This option is not available in case of Endowment.
4) TOP UP FACILITY
A top up is a one time additional investment in the ULIP over and above the annual premium. This feature works well when you have a surplus that you are looking to invest in a market linked avenue, rather than keeping in an FD or Savings account. This feature is not for Endowment.
5) TRANSPARENCY
ULIPs are more transparent than Endowment Plans as their NAV is declared EVERYDAY. As a result you can know how your ULIP has performed.
In case of Endowment, the insurance company sends you an annual statement of bonus declared during the YEAR. , which gives us an idea how our plan is performing.
6) LIQUIDITY
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Since ULIPs investments are NAV based it is possible to withdraw a portion of your investments before maturity (after 3yrs lock in period is over).The withdrawal is possible provided the minimum fund value is maintained. In case of Endowment, you can only surrender your policy, but you wont get everything that you have earned on your policy in terms of premium and bonus. The Surrender Value is much less than the Sum Assured and the Bonus is also not paid. THUS investing in ULIPs or in ENDOWMENT depends on the persons RISK taking ability. A Risk Averse person may go for an Endowment, whereas a person who wants his corpus to appreciate and is ready to take risks can go for ULIPs.
Therefore we can say that investing in ULIPs is the best in a growing Economy as compared to the TRADITIONAL PLANS.
IRDA has played a part in making ULIPs more investor friendly. Today more individuals are opting for ULIPs to create wealth over a long term. Over here I have outlined how ULIPs can help you to fulfill that responsibility. 1.4.1) If you are between 25 35 years of age ULIPs help you to save for your childs education, marriage, planning for your retirement and providing for your family in case of your absence. ULIPs Child plan ------------- --------for your childs education, marriage.
ULIPs Endowment plan------------- for helping you to meet investment objectives like buying a house or setting up a business.
ULIPs Pension plan-------------------for your retirement. A long term retirement planning could be done with an Equity push, as it is necessary to build up a strong corpus to face your rigorous retirement. 1.4.2) If you are between 35 45 years of age If you havent invested in ULIPs, it is not too late even now. You can opt for some ULIPs as mentioned earlier. Remember ,unlike Endowment ,which gets really expensive at an advanced age, ULIPs because of the way they are , do not turn out to be expensive.
1.4.3) If you are above 45 years of age In this age bracket, you have to review your insurance cover, taking into consideration the changes of your life style, income needs, etc. By this time your ULIP pension plan must have matured, so now you can opt for an Annuity (immediate or deferred) depending on your need.
Unit Linked Insurance Plans were first started by Unit Truat of India, some 8 to 9 years back. A unit-linked insurance plan (ULIP) is a type of life insurance where the cash value of a policy varies according to the current net asset value of the underlying investment assets. It allows protection and flexibility in investment, which are not present in other types of life insurance such as whole life policies. The premium paid is used to purchase units in investment assets chosen by the policyholder. Investments are made majorly in mutual funds and risk-free instruments like government securities . Unit Linked guidelines were notified by IRDA on 21st December 2005. The main intent of the guidelines was to ensure that they lead to greater transparency and understanding of these products among the insured, especially since the investment risk is borne by the policyholder. It is the endeavor of IRDA to enable the buyer to make the most informed decision possible when planning for financial security. The Insurance Regulatory and Development Authority (IRDA) issued circulars on 28 June 2010 outlining fresh guidelines for ULIPs. According to the new norms, the investors who wish to prematurely withdraw now have a reason to be happy as their investments would have some protection. The IRDA capped charges from the sixth year. The charges would be applicable from 1 September 2010.
The circular specified certain clauses to be incorporated in all ULIPs to be sold from 1 September 2010. They are as follows Lock-in period for all ULIPs was changed from three years to five years, including topup premiums and no residuary payments on policies which are lapsed, surrendered or discontinued would be made during this period. Residuary payments for policies arising out of policies which are lapsed, surrendered or discontinued during the lock-in period would be paid on the expiry of the lock-in period.
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Regular premium and limited premium ULIPs would have uniform and level paying premiums and any additional payments made would be treated as single premium for the purpose of insurance cover.
All limited premium ULIPs with the exception of single premium products will have a premium paying term of at least 5 years.
All ULIPs, other than pension and annuity products, to provide a minimum mortality cover or a health cover and the annual health cover at no time would be less than 10.5 % of the total premiums paid.
All ULIPs pension or annuity products would offer a minimum guaranteed return of 4.5% per annum or as specified by IRDA from time to time.
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Aegon Religare Life Insurance Company Limited Aviva Life Insurance Company India Limited Bajaj Allianz Life Insurance Company Limited Bharti AXA Life Insurance Company Limited Birla Sun Life Insurance Company Limited HDFC Standard Life Insurance Company Limited ICICI Prudential Life Insurance Company Limited ING Vyasa Life Insurance Company Limited Kotak Mahindra Old Mutual Life Insurance Limited Max New York Life Insurance Co. Limited Metlife India Insurance Company Limited Reliance Life Insurance Company Limited SBI Life Insurance Company Limited TATA AIG Life Insurance Company Limited
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CONTROVERSY RESULT
Government settles issue by issuing ordinance and it was settled in favour of IRDA as unit Link Insurance Plans are basically life insurance products and provide nature of insurance with risk, the premiums are invested in equity funds, balanced funds, debts funds etc. The government has brought down curtains on the two-month long tussle between two regulators by ruling that Unit-linked Insurance Products (Ulips) will be governed by the Insurance Regulatory and Development Authority (IRDA). Ulips account for more than 50 per cent of the life insurance business in the country. The money collected is invested in equities.An amendment favoring Irda over the Securities and Exchange Board of India was signed by President Pratibha Patil on June 18. The law ministry issued an ordinance amending the RBI Act 1934, Insurance Act 1938, SEBI Act 1992 and Securities Contract Regulations Act 1956, clarifying that life insurance business will include any unit-linked insurance policy or scripts or any such instruments. This has thus settled the issue of regulating Ulips. The two regulators have been warring over the jurisdiction over Ulips after Sebi on April 9 barred 14 life insurance companies from selling or renewing Ulips unless they registered with it. A day later, IRDA struck back telling insurers to ignore the Sebi order on the grounds that the capital markets regulator had no jurisdiction over insurance companies. This resulted in the government intervention and the finance minister asked both the regulators to file a joint application with an appropriate court to resolve the matter. However, SEBI issued a clarification saying that insurance companies need to register with SEBI.
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ULIPs, in contrast, are now positioned as long-term products and going ahead, there will be separate playing fields for ULIPS and MFs, with the product differentiation between them becoming more pronounced.
ULIPs now do not seek to replace mutual funds; they offer protection against the risk of dying too early, and also help people save for retirement. Insurance has to be an integral part of ones wealth management portfolio. ULIPs and mutual funds are, therefore, not likely to cannibalize each other in the long run.
While ULIPs as an investment avenue is closest to mutual funds in terms of their functioning and structure, the first and foremost purpose of insurance is and will always be protection. The value that it provides cannot be downplayed or underestimated. As an instrument of protection, insurance provides benefits that no investment can offer.
It is important for an investor to understand his financial goals and horizon of investment in order to make an informed investment decision. The decision to invest in either a mutual fund or a ULIP should depend on the time period of investment, individual financial goals as well as risk taking appetite, and its about time the industry and customer realize it.
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Points of Difference
MFs(Mutual Funds)
1) Meaning :-
These
are
the
Insurance It
is
an with
investment a main
people and investing the same in a variety of securities. 2) Primary Objective :Its main objective is Its objective is only
Investments.
It works out for long term It works out to medium term, investment only. long term, & short term. Risky for short term investors.
4)Insurance Cover :-
ULIPs cover
provide (except
insurance MF schemes do not cover the annuity life risk and the amount
products which may be issued invested, net of expenses, gets with/ without risk cover) and invested as per the Investment from the amount invested in objective of the scheme. ULIPs after netting out the risk premium for life risk cover and administrative
objective of the specific ULIP product 5) Expenses :Insurance companies have a In MFs, expenses charged for relatively free hand in levying various activities like expenses on their ULIP sales/marketing,
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and
fund
regulator,
Regulatory and Development mutual funds, expenses are Authority (IRDA) capped at 2.5%. per annum) as per the guidelines of the Securities and Exchange Board of India (SEBI). Similarly funds usually charge their investors entry (at the timing of making an investment) and exit (at the time of sale) loads. 6) Flexibility :Flexibility is limited to Very flexible. Plenty of scope
moving across different funds to correct mistakes if offered with policy. Any wrong investment
Correcting mistakes can turn decisions are made. Portfolios out to be expensive. Moving can be easily shuffled in MFs. funds from one ULIP to another ULIP of a different fund house can be expensive. 7) Liquidity :Limited liquidity .It need to Very liquid. MF units can be stay invested for minimum sold any time(except ELSS). years before redeeming. 8) Investment Objective:ULIPs can be used for MFs can be used as vehicle for to achieve
objectives.(E.g.:
marriage, Buying a car three years from now. Down payment for a home five years from now.
Retirement planning).
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Childrens education 10 years from now. Childrens marriage 15 years from now. Retirement planning 25 years from now. Medical Expenses after retirement 25 years from now).
9) Flexibility of Switchovers Insurance companies permit In MFs an investor usually is :their ULIP investors usually subjected to exit load 3-4 switch overs free of And/or entry load when he/she charge and thereafter every exercises a switch over option. additional switch over beyond the permissible limit is
permitted at some cost. 10) Minimum Lockin ULIPs currently are with a MF schemes (except ELSS minimum lock-in of three which has a lock-in of years. three years) do not have any such lock in. 11) Investment styles and Portfolio Disclosures :Insurance companies declare Most MFs usually declare their their portfolios once in a portfolios on monthly basis quarter and their investment and MFs are generally known style are less aggressive and to be more active in fund they resort to less churning. 12) Tax benefits and implications :management
Period
Irrespective of the nature of In the case of mutual funds, the plan chosen by the investor, investments all qualify only investments in taxsaving ULIP funds i.e Equity-linked savings for schemes (ELSS) are eligible
under Section 80C of the On the other hand, in the case Income Tax Act. In the case of equity-oriented of ULIPs the maturity mutual funds, if the
investments are held for a period over 12 months, the gains are tax free and if sold within a 12-month period they attract short-term capital gains tax @ 10 percent. Similarly, debt-oriented funds attract long-term capital gains tax @ 10 percent while short-term capital gain is taxed at the investors marginal tax rate.
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Technically, insurance sector should have little to worry about as investors in the policy are long term investors. However, due to the wrong selling strategy of investors and advisors, insurance, in recent times, particularly the ULIPs, have been sold on the basis of shorter tenure. In fact, many insurance companies even launched policies with shorter tenure of as little as 3 years on the premise that policyholders had shrunk their commitment towards their premiums.
While one could get away with shorter tenures during 2003-07, it may not be the case for the coming year and hence, those who signed up for ULIPs may have to hold on to their policies for more than three years. Besides staying invested, ULIP policyholders can also make a better use of their investment through some changes in their investment strategies. Here are some tips for managing your existing ULIPs:
Switch to monthly from annual: if you are an investor with long term focus for your insurance policy, continue with your equity allocation. However, monthly mode for premium may work better than annual premium mode as stock market has been volatile. In the case of monthly premium, investor gets to enjoy the benefits of volatility like SIP (systematic investment plan). The good thing with ULIP is that there is plenty of flexibility with premium payment and investor can change from one mode to another at any time.
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Increase allocation for debt: ULIP, often, is associated with equity though in reality, every insurance company offers at least 4-5 investment options for the premium. As a result, investors who signed up for ULIP more than 4-5 years can look at the option of reducing equity exposure for the next one year. The logic is simple. When these investors signed up for ULIP, the stock market was closer to the present level or slightly lower than the current level. If you have made some gains from your ULIP, protection of profits can be an option and hence reduce your equity exposure. The ratio between equity and debt can be according to your comfort. Those with medium risk appetite can look at 30-40% in favour of debt. If you can't decide for yourself, look at the option of balanced funds which allocate up to 35-40% in favour of debt. You can revert to 100% equity once the stock market stabilises.
Now the question is should everyone review their ULIP premium strategy? The answer is yes if you are not a long term investor. On the other hand, if ULIP is an option to build corpus for your medium term needs or children's education with tenure of over 10 years, you need not worry much about the market volatility. In fact, insurance companies themselves do value picking with their funds as they don't have the pressures of redemptions when compared with mutual funds. That is also the reason why insurance companies managed to post better returns with their ULIPs during the market meltdown.
Hence although in this current market situation it seems more preferable to go in for ULIP's and those who have existing policies to review them.
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4.1
Initially ULIPs were started by a few private players way back in 2001-02. But now almost every Insurance company has got ULIPS suiting the varied requirements of the customers. If one has to choose among the ULIP schemes provided by the insurance, it is necessary to do a through comparison to choose the right one for you.
ULIPs, in contrast, are now positioned as long-term products and going ahead, there will be separate playing fields for ULIPS and MFs, with the product differentiation between them becoming more pronounced.
ULIPs now do not seek to replace mutual funds, they offer protection against the risk of dying too early, and also help people save for retirement. Insurance has to be an integral part of ones wealth management portfolio. ULIPs and mutual funds are, therefore, not likely to cannibalize each other in the long run.
While ULIPs as an investment avenue is closest to mutual funds in terms of their functioning and structure, the first and foremost purpose of insurance is and will always be protection. The value that it provides cannot be downplayed or underestimated. As an instrument of protection, insurance provides benefits that no investment can offer. It is important for an investor to understand his financial goals and horizon of investment in order to make an informed investment decision. The decision to invest in either a mutual fund or a ULIP should depend on the time period of investment, individual financial goals as well as risk taking appetite, and its about time the industry and Customer realize it.
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Insurance companies usually maintain 4 types of funds. Growth Fund Balanced Fund Debt Fund Money Market Fund 100 % Equity 60 % Equity and 40 % Debt 100 % Debt 100 % money market instruments for period of one year
Equity Balance
Risks
Returns
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In case of equity, the risk and return is the highest, and vice verse for Money market instruments. It is a principle of Financial management, the higher the risks you take , the higher the return you get.
STEPS FOR ULIP SELECTION Understand what ULIPs are all about. Focus on your need and risk profile Compare ULIP products from various insurance companies Go for an experienced Insurance advisor It is estimated that Indias economy will become the 3rd largest economy within a few years, with a high GDP growth and a low inflation rate, followed by booming stock market (SENSEX soaring as high as 20,000 points). So right time to increase your wealth and become rich starts from today. And ULIPS are the best to invest in.
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EXPENSES IN ULIPs
Following expenses have to be incurred for ULIPs:
a) Mortality charges: charged by the company to cover the risk of an eventuality to an individual.
b) Administration Charges: charged by the company to cover the daily expenses, overhead costs, agents commission etc.
c) Fund Management charges: are levied by Insurance companies to cover the expenses incurred by them in managing ULIP monies. Charges are high for managing monies in an Equity Fund.
d) ULIP Fund switch charges: Such are borne by the individuals when they decide to switch their money form one type of find to another.
e) Top up Charges: A certain % is deducted from the Top up amount to recover the expenses incurred on managing the same.
Cancellation/ Surrender charges: It is charged when an individual wishes to surrender his ULIP policy.
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Kotak Classic opportunity fund guarantees you an additional income every year, for 20 years provided the policy is in force. In addition, on maturity you receive 110% to 104% of Basic Sum Assured. You also enjoy life cover for the entire policy term thereby protecting your family should something happen to you.
Advantages Enjoy Assured Annual Income for 20 years Receive lump sum on maturity Provide protection to your family for 30 years Avail of policy loan to meet sudden expenses Boost your protective cover through optional rider benefits Key Features Enjoy Assured Annual Income for 20 years Maturity Benefit - Receive lump sum on maturity Death Benefit - Provide protection to your family for 30 years Avail of policy loan to meet sudden expenses Boost your protective cover through optional rider benefits Tax Benefits
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As on 31st Aug 2011. Performance Meter Kotak Opportunities Fund Inception(16-09-10) 5 years 4 years 3 years 2 years 1 years 6 month 3 month 1 month -1.3% 9.3% n.a. n.a. n.a. n.a. 3.2% 2.0 % -1.2% 3.9% n.a. n.a. n.a. n.a. - 1.0 % - 0.8 % -4.5% -2.5% Classic Benchmark
Equity Debt
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Equity Infosys Ltd I T C Ltd ICICI Bank Ltd Tata Consultancy Services Ltd HDFC Bank Ltd Larsen And Toubro Ltd Reliance Industries Ltd Housing Development Finance Corp. Ltd Bharti Airtel Ltd Oil & Natural Gas Corporation Ltd Bharat Petroleum Corporation Ltd IndusInd Bank Limited Sun Pharmaceuticals Ltd Coal India Ltd Axis Bank Ltd Mahindra & Mahindra Ltd National Thermal Power Corporation Ltd Idea Cellular Ltd
% to Fund 6.25% 5.39 % 5.14 % 4.59 % 4.48 % 4.16 % 3.55 % 2.64 % 2.53 % 2.48 % 2.05 % 2.00 % 1.81 % 1.71 % 1.63 % 1.62 % 1.60 % 1.54 %
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Kotak Platinum is a unit linked investment plan with low charges along with convenient premium payment options. A great combination of 8 funds and loyalty additions, this plan helps you build substantial wealth for yourself. Advantages Maximize your wealth through a plan with low charges Capitalize on a wide array of funds to build a substantial corpus Enhance your long term savings through loyalty additions Enjoy liquidity through policy loans and partial withdrawals
How Does the Plan Work? You may decide your premium based on how much and for how long you wish to invest. You choose the Basic Sum Assured, depending on your existing insurance cover and need. You can further opt for rider benefits to enhance the protective cover of your plan Premiums paid by you, net of premium allocation charges, are invested in the funds of your choice.
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Now you can sit back and relax. Our investment experts will ensure that your plan earns you handsome returns. Performance Meter Inception (17-Dec-09) 5 years 4 years 3 years 2 years 1 year 6 mth 3 mth 1 mth Kotak Dynamic FloorFund 4.5% n.a. n.a. n.a. n.a. 4.9% 1.1% -0.9% -0.7% Asset class Distribution Benchmark 5.3% n.a. n.a. n.a. n.a. 4.1% 2.0% -0.7% -0.6%
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8.85% SBI Upper Tier II - 04.10.2021 Call 1.78% 04.10.2016 9.95% SBI 2026 - 16.03.2026 Call 16.03.2021 1.56% 2.00% Tata Motors - 31.03.2014 8.45% EXIM Bank - 08.09.2015 9.75% Tata Sons - 19.07.2016 9.15% PNB - 16.04.2016 9.60% HDFC - 07.04.2016 8.48% LIC Housing Finance - 27.09.2013 6.90% OIL SPL - 04.02.2026 10.10% SBH Bank FD - 12.03.2014 9.55% NABARD 12.07.2014 1.50% 1.48% 1.45% 1.45% 1.41% 1.41% 1.39% 1.29% P/C 1.28%
12.07.2013 6.35% OMC GOI BOND - 23.12.2024 IDBI Bank CD - 15.05.12 9.40% NABARD - 19.07.16 1.00% 0.98% 0.96%
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8.26% LIC Housing Finance - 08.07.2015 Indian Overseas Bank CD - 05.03.2012 9.85% REC - 28.09.17 7.59% GOI 2016 Current Asset/Liabilities Others Total
Key Features O Maturity Benefit O Death Benefit O Rider Benefits for boosted protection O Invest surplus capital as Top-Up Premiums Performance Meter Inception (21-Dec-09 5 years 4 years 3 years 2 years 1 year 6 mth 3 mth 1 mth Kotak Balanced Fund 7.0% n.a. n.a. n.a. n.a. 3.4% 2.2% -0.6% -0.9% Benchmark 4.1% n.a. n.a. n.a. n.a. 1.8% 0.7% -2.1% -1.3%
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13.17 %
Equity FD,CD,CP,T BILLS NCD G SEC
23.17 %
53.07%
10.19 %
Banking & Finance Information Tech Oil & Gas FMCG Capital Goods Others Pharma Auto & Auto Ancillary Telecom Metal Utilities 0.00% 2.00% 4.00% 6.00% Series1
8.00%10.00% 12.00%14.00%
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90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Equity G sec NCD FD, CD, Tbills Series1
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Kotak Money Market Fund Fund Strategy: Aims to protect your capital and not have downside risks. Benchmark details: Equity - 0% (NA); Debt - 100%. The Kotak Money Market Fund offers the key benefit of cash lump sums at periodic intervals of five years, ensuring that you are able to meet any of your financial obligations which arise from time to time. This money back plan not only lets you enjoy regular cash flows during the policy term, but it also gets you a substantial life cover, which increases every year. Advantages Guaranteed additions on maturity Earn bonuses on the plan Death benefit increasing at 7% of sum assured at the end of each year
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Key Features Bonus Maturity Benefit Increasing Death Benefit Automatic Cover Maintenance
Performance Meter
Benchmark
Inception (5-Jan-10) 5 years 4 years 3 years 2 years 1 year 6 mth 3 mth 1 mth
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100 % money invested in Short term Debt market. Debt Maturity Profile
120%
100%
80%
60%
Series1
40%
20%
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4.2 Understanding working of ULIPs of Kotak Mahindra Life Insurance ULIPs are said to be the most lucrative from of investment, which not only give you high market returns but also protection from risk, and also secures the livelihood of your loved ones even after your death.
Here is an illustration which explains how a ULIP makes your money work.
SAMPLE SALES ILLUSTRATION OF KOTAK CLASS OPPURTUNITY FUND (KOTAK MAHINDRA LIFE INSURANCE LTD). Name of the Proposed Insured: Mr. Dinesh Behera Age of the proposed insured: 25 yrs Name of the policy holder: Mr. Dinesh Behera Age of the policyholder: 25 yrs Proposal No: 1577 Date: 15/7/11 Currency: Rupees Payment Mode: Annual
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Insurance plan Benefit period Premium Paying period Premium Multiple Annual premium Modal premium Sum Assured (SA) Additional coverage Fund
KOTAK CLASS OPPURTUNITY FUND 30 years 30 years 33.33 15000 15000 500000 500000 Equity 100 %
Note : 1)SA is the multiple of annual premium: 15000*33.33= 5,00,000 2) Additional coverage given as Accident Death Benefit Rider taken by the policy holder. 3) Investment in Equity is 100%. KOTAK CLASS OPPURTUNITY FUND 30 Years Policy Min Return on units=10% CHARGES: 1st year= 50% of premium 2nd year= 25% of premium 3rd year= 1 %of premium Balance invested in the Equity fund 50% 75% 99%
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YEAR 1
YEAR 2
YEAR 3
15000 premium 50% 50%= Rs 7500 Return =Rs 750 Total =Rs 8250 NAV =RS 10
15000 premium 25% 75% = Rs 11250 Return= Rs 1125 Total = Rs 12375 NAV=RS. 20
15000 premium 1% 99%= Rs 14850 Return= Rs 1485 Total = Rs 16335 NAV =RS 30 (16335+20625)=Rs 36960
No. of units = Rs20625/ 20= No of units= Rs 36960/ 1031 units 30=1232 units
TOTAL UNITS IN HAND: 825+1031+1232=3088 UNITS AFTER 3 YEARS Therefore the units keep on increasing with the change in the NAVs. There is an inverse relation between the NAVs and the No. of Units. As the NAVs rises the no of units decrease. & As the NAVs fall, the No of Units increase.
E.g.: In the 3rd year, the investment was Rs 36960. NAV was Rs 30. So the no. of Units was 1234 Now if the NAV Falls to Rs 20. Then the no. of Units would have been 1848. Therefore the rising trend of NAV is not always a good sign, as your no of units decrease. Therefore if Mr. Dinesh Behera continues with his policy for 30 years, He will get a Maturity benefit = existing Fund Value which is the sum of the Regular premium fund value On death = SA Rs 5,00,000 or NAV whichever is higher.
Q 1) What type or class of customers visits your office? a. salaried b. housewives c. self employed d. retired e. pensioner
10 %
salaried
50 % 40 %
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10 %
Traditional
90 %
ULIPS
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Q 4) Are the clients aware of ULIP schemes? a. less than 10% b. 10% --- 30% c. 30%---- 60% d. Above 60%
10 % - 30 %
1
30 % - 60 %
60 % and Abov e
2 3
Q 5) Out of ten, how many clients opt for ULIPs? ANS) on an average 6 clients out of 10 opt for ULIPs.
Q 6) How much commission do you get from the company on ULIP policy? a. 0--- 10% b. 1120% c. 21---30% d. 31--- 40%
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60% 50% 40% 30% 20% 10% 0% 0-10% 11-20% 21-30% 31-40% Series1
Q 7) How many clients have the background of finance? a. 0 30 % b.30 % and above
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120% 100% 80% 60% 40% 20% 0% Cheque Cash Credit Series1
Q9) what is the better positioning for ULIP? a. as a tax saving plan b. as a retirement plan c. as a child education plan d. as a security cum profitable plan.
0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 As a tax saving plan As a retirement plan As a child education plan As a Security cum profitable plan
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60% 50% 40% 30% 20% 10% 0% HSC GRADUATE POST GRADUATE
50 %
30 %
20 %
Q 11) how is ULIP different from the other policies? Please refer to pg 24 ULIPs v/s Endowment. Q 12) how does a client respond, if any new policy is suggested to him? ANS: According to the survey, the clients reaction depends upon the presentation that is by the Advisor. Usually the client shows positive signs of buying the product, sometimes are reluctant to buy due to financial problems. According to most of the advisors the 1st quest asked by the client is about the guarantee and returns. They want to know about the popularity of the policy as well as the insurance company.
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Questionnaire for Investors 1) What is your occupation? Ans) a) Self Employed c) Student
45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Self Employed Service Student Retired
b) Service d) Retired
2) What is your opinion about insurance about investmnent ? Ans) a) Agree c) disagree b) Strongly agree d) Strongly disagree
10 % 20 % 45 %
Agree Strongly agree
25 %
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3) Are you aware about Kotak Mahindra Life Insurance Limited ? Ans) a) Yes
120% 100% 80% 60% 40% 20% 0% Yes no
b) No
4) Are you aware about Unit Linked Insurance Plans? Ans) a) Yes b) No
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5) Which Insurance Company you are familiar about ? Ans) a) LIC c) Kotak b) ICICI d) Others
20 %
LIC ICICI KOTAK OTHERS
60 % 15 %
6)Your Perception towards investment in ULIPs ? Ans) a) Better Investment c) Safe Investment b) Quite Same as Mutual Fund d) Poor Investment
Poor Investment
5%
55%
Safe Investment
10%
Same as Mutual fund
30%
Better Investment
0.1
0.2
0.3
0.4
0.5
0.6
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7) In which Sector would you like to invest ? Ans) a) Equity Market b) Debt Market
60% 50% 40% 30% 20% 10% 0% Equity Market Debt Market
8) Towards which neccesity you look ULIPs as an better investment ? Ans) a) Child Education c) Retirement b) Future Needs d) Others
0.4 0.35 0.3 0.25 0.2 0.15 0.1 0.05 0 Child Education Future Needs
Retirement
Others
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9) How do you rank ULIPs compare to Traditional plans? Ans) a) Good c) Average b) Excellent d) Poor
20% 40%
Good Excellent Average
30% 10%
Poor
10) Are You aware about Kotak ULIPs Plan ? Ans) a) Yes b) No
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Higher Protection, high on asset Creation but steadier expenses. options, liquidity for education
Lump sum money for education, Marriage. Facility to stop premium for 2- 3 yrs for these extra expenses
Safe accumulation for the golden Years. Considerably lower life insurance as The dependencies have decreased.
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Flexibility Starting a Job, Single individual Choose low death benefit, Choose growth/balanced option for Asset creation. Recently married, no kids Increase death benefit, choose growth/balanced option for asset Creation. Married, with kids Increase death benefit; choose Balanced option for asset creation. Choose riders for enhanced protection. Use top-ups to increase your accumulation. Kids going to school, college Withdrawal from the account for The education expenses of the child. Higher studies for child, marriage Withdrawal from the account for Higher education/marriage expenses of the child. Premium holiday-to stop premium for a Period without lapsing the policy. Children independent, nearing the Golden years. Decrease the death benefit reduce It to the minimum possible. Choose the income investment Option. Top ups form the Accumulation (with reduced expenses) for the golden Yrs cash accumulation.
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5. Findings
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Findings
From the above project, I would point out that the insurance industry is growing at a very fast pace .The Insurance needs of the people are increasing.
ULIPs are simple combination of Term assurance and investment. Synergy, flexibility, durable tax advantages, flexibility in debt- equity ratio, top up facility, transparency, subjected to market conditions, capital appreciation makes ULIPs structurally more effective for achieving long term financial goals.
There is no other investment avenue which provides double the amount invested, in case of death due to accident or on death. Therefore insurance has and should be a part of every persons portfolio which satisfies twin objectives of protection against risks & to increase your wealth.
Putting your money in the ULIP equity fund will give you a good return and capital appreciation.
However there are also some classes of consumers in society who are still unaware of investment plans and strongly rely upon traditional plans. This might be due to unawareness, unwillingness to take or bear risk.
Life Insurance Corporation of India still plays a major role in market, As it is government oriented, major percentages of investors still trust on LIC of India. Only consumers having some prior knowledge about market and investment opportunities and simultaneously returns are ready to willing to invest in private insurance companies. Life advisor plays a crucial role under private insurance companies, as it is totally depend upon the presentation how he or she presents to investor or client. Ultimately its client, who if understand the plan properly, will invest in plan only if they are provided with lucrative returns and risk cover. They should also be made to understand the importance of Insurance Regulatory
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Development Authority (IRDA).As IRDA as a watch dog will regulate the insurance companies and will protect the interest of the investors.
ULIPs are different from Mutual Funds not in Structure but in terms of returns. As ULIPs provide risk cover and death benefit which is unavailable in mutual fund. The charges of ULIPs like Fund Management Charges, Allocation Charges, Mortality charges and Administrative charges are transparent including transaction. So Investor need not have to worry as industry people will manage the premium amount and they will provide switch option too. Switch option is a option where investor can willingly order to diversify fund, if he or she feels insecure in the particular sector.
If you are considering long term investment, ULIP is excellent means to securely invest your savings. ULIP provides insurance cover, investment and tax benefits. ULIP is transparent by nature as you can daily track the net asset value of your fund. ULIP is also flexible as you can manage your systematically manage the invested amount in any type of fund. ULIP does not require your constant attention as your premium is managed by industry professionals.
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6. Recommendations
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Recommendations
For the Company based on the above market survey.
1) The company should now target pensioners & housewives as they constitute less percentage in the selection of ULIPs.
2) The company can arrange a seminar for the existing clients informing them about the progress made by the company, and also give some lessons on understanding the basics of FINANCE.
1. The amount of premium should be reduced in order to cater to the lower income groups. 2. On maturity, the policy holder should receive the Fund value or the Sum Assured whichever is higher, (as in the case of death benefit.) 3. Reduction in the charges. 4. Commission structure to be revised 5. Give a Pure traditional plan along with the ULIPs. 6. Remove the charges on surrender or partial withdrawal. 7. Increase the number of Switch options. As four is not enough. 8. Design ULIPs for meeting short term investment goals. 9. The investment style should be more aggressive.
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7. Bibliography
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BIBLIOGRAPHY
Books
News Paper
The Economic Times The Times of India The Business Standard The Wealth
Brochures
Internet
8. Questionnaire
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Questionnaire
QUESTIONNAIRE FOR ADVISORS
Q 1) What type or class of customers visit your office? Ans salaried housewives self employed retired pensioner
Q 4) Are the clients aware of ULIP schemes? Ans less than 10% 10% --- 30% 30%---- 60% Above 60%
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Q 6) How much commission do you get from the company on ULIP policy? Ans 0--- 10% 1120% . 21---30% 31--- 40%
Q 7) How many clients have the background of finance? Ans 1020% 2040% 40% & above.
Q9) What is the better positioning for ULIP? Ans as a tax saving plan as a retirement plan as a child education plan as a security cum profitable plan.
Q 11) How is ULIP different from the other policies? Q 12) How does a client respond, if any new policy is suggested to him?
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2) What is your opinion about insurance about investmnent ? Ans) a) Agree c) disagree b) Strongly agree d) Strongly disagree
3) Are you aware about Kotak Mahindra Life Insurance Limited ? Ans) a) Yes b) No
4) Are you aware about Unit Linked Insurance Plans? Ans) a) Yes b) No
5) Which Insurance Company you are familiar about ? Ans) a) LIC c) Kotak b) ICICI d) Others
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6) Your Perception towards investment in ULIPs ? Ans) a) Better Investment c) Safe Investment 7) In which Sector would you like to invest ? Ans) a) Equity Market b) Debt Market b) Quite Same as Mutual Fund d) Poor Investment
8) Towards which neccesity you look ULIPs as an better investment ? Ans) a) Child Education c) Retirement b) Future Needs d) Others
9) How do you rank ULIPs compare to Traditional plans? Ans) a) Good c) Average b) Excellent d) Poor
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9. Annexure
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