Exam No.: MBA06004046 Roll No.

KARNATAK UNIVERSITY

DHARWAD
Shri. B.V.V.Sangha’s

INSTITUTE OF MANAGEMENT STUDIE’S, BAGALKOT

2006-2007
PROJECT TITLE

“A STUDY ON LIFE TIME SUPER PLAN OF ICICI PRUDENTIAL

LIFE INSURANCE CO. LTD”.

External Guide: Internal Guide:

Mr. Naveen Kumar Naidu Mr. Subramaniam

SUBMITTED BY

Miss. Sapna N Pattanshetti

SHRI B.V.V.SANGHA’S

B.V.V.Sangha’s Institute Of Management Studies, Bagalkot 1

INSTITUTE OF MANAGEMENT STUDIES BAGALKOT-02

CERTIFICATE OF APPROVAL

PROJECT REPORT
2006-2007

This is to certify that the project report entitled “A

Study on LIFE TIME SUPER plan of ICICI Prudential

Life Insurance Co.Ltd.”. Is being submitted by Miss. Sapna

N.Pattanshetti ,a student of MBA first year. She has

satisfactorily completed the project work for the partial

fulfillment of MBA Course under Karnataka University,

Dharwad.

INTERNAL: DIRECTOR:
Prof. SUBRAMANIAM Prof. SUBRAMANIAM

Examiners:

1.

2.

B.V.V.Sangha’s Institute Of Management Studies, Bagalkot 2

 DECLARATION

I here by declare that this project report titled “ A study on Life Time Super plan of ICICI
Prudential Life Insurance Co.Ltd.”, under taken at ICICI Prudential Life Insurance Co,
LTD, Hubli, submitted by me in partial fulfilment for the degree of “ Master of
Business Administration” of Karnataka University ,Dharwad for the academic year
2006- 07 is genuine and bonfied work.

To the best of my knowledge and belief the matter is not submitted earlier for the
award of any degree either to Karnataka University, Dharwad or any other University.

DATE:
PLACE:

SAPNA N. PATTANSHETTI
MBA II Semester

B.V.V.Sangha’s Institute Of Management Studies, Bagalkot 3

 ACKNOWLEDGEMENT

This project gives me an opportunity to express my heartly thanks to those who helped
me directly or indirectly in the completion of project report.

I would like to express my gratitude Mr. SHRINIVAS JANGAL for their kind
permission to take this project at their esteemed organization. I express my sincere
gratitude to Mr. Naveen Kumar Naidu, UNIT MANAGER of ICICI Prudential Life
Insurance Company Ltd. Hubli.They guided me in each and every step, and also helped to
make the project report successfully and I also thank the Staff of ICICI Prudential Life
Insurance Company.

I would like to express my deep sense of gratitude to our beloved director and my
guide Prof. SUBRAMANIAM ,for his excellent guidance and constant inspiration and
support. And also I would like to thanks all the faculties of the institute.

I express my sincere thanks and dedicate my work to my parents and friends who
have been always a moral support and strong pillars at all works of my life.

SAPNA N. PATTANSHETTI
MBA II Semester

B.V.V.Sangha’s Institute Of Management Studies, Bagalkot 4

 CONTENTS
Part-I
i. Executive summary
Industry Profile
ii. Company Profile
iii. Objective of the study

Part-II

Functional Analysis
Plan Analysis

Part- III
1. Findings
2. Suggestions
3. Conclusion.
4. Annexure

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 PART I

B.V.V.Sangha’s Institute Of Management Studies, Bagalkot 6

 EXECUTIVE SUMMARY

India's Number One private life insurer, ICICI Prudential Life Insurance Company is a
joint venture between ICICI Bank-one of India's foremost financial services companies
and Prudential plc- a leading international financial services group headquartered in the
United Kingdom. Total capital infusion stands at Rs. 20.60 billion, with ICICI Bank
holding a stake of 74% and Prudential plc holding 26%.

Life Time Super policy is a regular-premium unit-linked policy, which offers

potentially higher returns that systematically enable to meet long-term financial
objectives. In addition, Life Time Super also provides the protective benefit of an
insurance cover, which keeps family secure, always. In this plan the policy holder has the
flexibility to do withdrawal at the different lifestages depending upon the needs.

From the study suggest the investors that , as the Life Time Super is a better tool
for integrated financial planning investing in Life Time Super creates asset by providing
flexible choice of funds to invest, it accumulates the asset by having the flexibility of
increasing investor accumulation by putting in extra premium whenever investor have
some money to put in. It also provides some other features like riders which protects the
health of the investor and meets the needs of Life stages. It has different benefits like
switching options, maturity benefit and death benefits.

From the study conclude that Life Time Super is a better as compared to any other
plans. It takes care of the investment and provides the protection against the health
hazards. Thus Life Time Super is the product that satisfies totally a different set of needs
and death benefit as a multiple of the annual premium .Thus, this is how Life Time Super
helps an investor to create, protect, and accumulate his investments.

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OBJECTIVE
To study how Life Time Super plan is an Asset Creation,Asset
Protection and Asset Accumulation for investor.
DATA COLLECTION APPROACH:
Primary Sources:
a) Interaction with policyholder
Secondary Sources:
a) Company Websites
b) Company Magzines , reports and publications

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 INDUSTRY PROFILE

Life Insurance Market in India

Many may not be aware that the life insurance industry of India is as old as it is in
any other part of the world. The first Indian life insurance company was the Oriental Life
Insurance Company, which was started in India in 1818 at Kolkata.

A number of players (over 250 in life and about 100 in non-life) mainly with
regional focus flourished all across the country. However, the Government of India,
concerned by the unethical standards adopted by some players against the consumers,
nationalised the industry in two phases in 1956 (life) and in 1972 (non-life).

The insurance business of the country was then brought under two public sector
companies, Life Insurance Corporation of India (LIC) and General Insurance Corporation
of India (GIC).

In line with the economic reforms that were ushered in India in early nineties, the
Government set up a Committee on Reforms (popularly called the Malhotra Committee)
in April 1993 to suggest reforms in the insurance sector. The Committee recommended
throwing open the sector to private players to usher in competition and bring more choice
to the consumer.

The objective was to improve the penetration of insurance as a percentage of

GDP, which remains low in India even compared to some developing countries in Asia.
Reforms were initiated with the passage of Insurance Regulatory and Development
Authority (IRDA) Bill in 1999. IRDA was set up as an independent regulatory authority,
which has put in place regulations in line with global norms. So far in the private sector,
12 life insurance companies and 9 general insurance companies have been registered.

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 COMPANY OVERVIEW

India's Number One private life insurer, ICICI Prudential Life Insurance Company
is a joint venture between ICICI Bank-one of India's foremost financial services
companies-and Prudential plc- a leading international financial services group
headquartered in the United Kingdom. Total capital infusion stands at Rs. 20.60 billion,
with ICICI Bank holding a stake of 74% and Prudential plc holding 26%.

They began their operations in December 2000 after receiving approval from
Insurance Regulatory Development Authority (IRDA). Today, their nation-wide team
comprises of over 580 offices, over 234,000 advisors; and 22 bancassurance partners.

ICICI Prudential was the first life insurer in India to receive a National Insurer
Financial Strength rating of AAA (Ind) from Fitch ratings. For three years in a row, ICICI
Prudential has been voted as India's Most Trusted Private Life Insurer, by The Economic
Times. As they grow their distribution, product range and customer base, they continue
to tirelessly uphold their commitment to deliver world-class financial solutions to
customers all over India.

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 ABOUT THE PROMOTERS

ICICI BANK
It is India's second largest bank and largest private sector bank with over 50 years
presence in financial services and with assets of over Rs 3446.58 bn as on March 31,
2007. The 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
specialised subsidiaries in the areas of investment banking, life and non-life insurance,
private equity and asset management. ICICI Bank is a leading player in the retail banking
market and services its large customer base through a network of over 950 branches and
extension counters, 3300 ATMs, call centers and internet banking to ensure

that customers have access to its services at all times.

PrudentialPlc

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 20 million customers, policyholder and unit holders and manages over £251
billion of funds worldwide (as of 31 December 2006).

In Asia, Prudential is the leading European life insurance company with life
operations in China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the
Philippines, Singapore, Taiwan, Thailand, Vietnam. Prudential is the second largest retail
fund manager for Asian as at June 2006.

Its fund management business has expanded into a total of ten markets : China,
Hong Kong, India, Japan, Korea, Malaysia, Singapore, Taiwan, Vietnam and United Arab
Emirates.

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What makes ICICI Prudential No. 1

The ICICI Prudential edge comes from their commitment to their customers, in all
that they do - be it product development, distribution, the sales process or servicing.
Following are the important points to know what makes ICICI Prudential No.1

1. Their products have been developed after a clear and thorough understanding of
customers' needs. It is this research that helps them develop Education plans that
offer the ideal way to truly guarantee child's education, Retirement solutions that
are a hedge against inflation and yet promise a fixed income after retire, or Health
insurance that arms customer with the funds they might need to recover from a
dreaded disease.

2. Having the right products is the first step, but it's equally important to ensure that
their customers can access them easily and quickly. To this end, ICICI Prudential
has an advisor base across the length and breadth of the country, and also partners
with leading banks, corporate agents and brokers to distribute their products

3. Risk management and underwriting practices form the core of their business.
With clear guidelines in place, they ensure equitable costing of risks, and thereby
ensure a smooth and hassle-free claims process.

4. Entrusted with helping customers meet their long-term goals, they adopt an
investment philosophy that aims to achieve risk adjusted returns over the long-
term.

5. Last but definitely not the least, their 16,000 plus strong team is given the
opportunity to learn and grow, every day in a multitude of ways. They believe this
keeps them engaged and enthusiastic, so that they can deliver on their promise to
cover customer, at every step in life.

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 VISION OF COMPANY

To make ICICI Prudential the dominant Life and Pensions player built on trust by
world-class people and service.

VALUES OF COMPANY :

Every member of the ICICI Prudential team is committed to 5 core values: Integrity,
Customer First, Boundaryless, Ownership, and Passion.

The success of the company will be founded in its unflinching commitment to these 5
core values. Each of the values describe what the company stands for, the qualities of
company people and the way they work

Customer First

Own the customer, deliver the promise

1. Keep customer interest in the center of the all delusions.
2. Promise what customer can deliver it to finish.
3. Proactively seek voice of customer and act on it.

Boundaryless

Never say “its not my job”

1. Offer help and ensure business success functions to ensure business
success.
2. Seek and shall ideas freely
3. Recognize and respect internal customers.

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 Ownership
It is to be , it is up to me
1. Take responsibility and see tasks through to completion.
2. Own mistakes, learn from failures.
3. Be a team player ownership for team performance.

Passion
Boundless energy and enthusiasm
1. Exhibit winning instinct.
2. Demonstrate speed and urgency for achieving result.
3. Challenge status quor do things differently.

Integrity
Be honest and fair in what you say and do
1. Practice what you preach.
2. Stand up honesty and fearlessly for what is right.
3. Act in a consistent and aquitable manner.

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 Company hopes to Achieve

• Understanding the needs of customers and offering them superior products and
service

• Leveraging technology to service customers quickly, efficiently and conveniently

• Developing and implementing superior risk management and investment

strategies to offer sustainable and stable returns to our policyholders

• Providing an enabling environment to foster growth and learning for our

employees

• And above all, building transparency in all our dealings.

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 Organization chart of
ICICI Prudential Life Insurance

Branch manager

Sales Manager Sales Manager

Unit Unit Unit Unit Unit Unit

Manager Manager Manager Manager Manager Manager

Advisor Advisor Advisor Advisor Advisor Advisor

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 MANAGEMENT COMMITTEE

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. Barry Stowe

Mrs. Chanda Kochar

Mrs. Kalpana Morparia

Mr. H.T. Phong

Mr. M. P. Modi

Mr.R Narayanan

Mr. Keki Dadiseth

Mrs. Shika Sharma, Managing Director

Mr. N.S.Kannan, Executive Director

Mr. Bhargav Dasgupta, Executive Director

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 Management Team

Mrs. Shika Sharma , Managing Director & CEO

Mr. N.S. Kannan Executive Director

Mr. Bhargav Dasgupta Executive Director

Mrs. Anita Pai , Chief customer service And Techonology

Mr. Azim Mithani , Chief Actuary

Mr. Puneet Nanda Chief Investments Officer

Mr. Binayak Dutta, Chief – Sales And Distribution

Distribution

ICICI Prudential has one of the largest distribution networks amongst private life insurers
in India. As of January 31, 2007 the company has over 540 offices across the country and
over 200,000 advisors.

The company has over 20 bancassurnace partners, having tie-ups with ICICI
Bank, Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank, Idukki
District Co-operative Bank, Jalgaon Peoples Co-operative Bank, Shamrao Vithal Co-op
Bank, Ernakulam Bank and 9 Bank of India sponsored Regional Rural Banks (RRBs). It
has also tied up with NGOs MFIs and corporates for the distribution of rural policies

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 PART II

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 DEPARTMENTS OF ICICI PRUDENTIAL

1.1 Sales & Distribution

This section is divided into four parts:
• Managers Utilities – in section one will find important announcements for
managers, tools like pre-recruitments profiling, managers related initiatives, etc.
• Advisor Utilities – this section will hold advisor related tools like,
electronic benefits illustration, advisor Initiatives, Important announcements,
statutory changes that affect advisor, etc.
• Contests – details off all current contests that are running will be found
under this heading.
• Contests Updates & Results – Updates of all contest & results declare will
be available for view in this section
• Group – information on the group products, printable pre quote &
application forms, etc.will be hosed in this section.

1.1. Bancassurance & Alliances

Bancassurance or Banca as is it is commonly known includes our Bank

partners. The corporate agents and the alliance partners from the other member of
the team. The business philosophy at B&A is to leverage distribution synergies
with their partners and value to the business of both.

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 1.2 Finance
MIS reviews current roles,
Planning evaluation next goals,
Internal audit assesses that rules are met,
Compliance handles the Regulatory net,
CCU advisor cost trends,
Distribution payouts handles Sales spends,
EPU keeps customers thrilled,
Investments Operation measured the coffers filled,
Accounts provides the overall view,
That’s the 9-jewels team for you;
The CFO is at the helm,
Now, let’s get to know each of them!!!

Planning & MIS – monitoring of Organization performer Sales, Quality, trends –

on a continuous basis. With insights into MIS, socio economic factors & competitors
behavioral patterns, they contribution to sales targets, strategic initiatives, projected
branches, projected work force …the ahead!!!

Internal Audit – Risk Management, Business Continuity Plan, Best practices,

policy manuals are not mere words on paper ….adhere to them.
We ensure ‘practice what you preach’!!!!

Compliance –‘We ensure that every action is within the regulator framework!!!’

CCU-‘we ensure that every rupee is spent economically, prudently, cost effectively!!!’

Distribution payouts – ‘we roll out commission payouts, referral, bonuses, contest spends
& effectiveness…. Basically the sales goodies!!!’

EPU- Cost discipline, expense processing vender payments, reimbursement, salary

payouts….they handles E-TRACK!!!

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 Investment operation –they being the custodian of investments, benchmark our
performance with the best in the industry. They manage the cash flow!!!

Accounts – financial Accounting, Expense provisioning, Income Accruals…they strive

on the excellence & transparency of our systems & controls, to keep the auditors,
customers & shareholders assured that the financial story is said right!!!

‘Driven by sheer professionalism, we strive relentlessly towards our Organization

Vision.’

Together we can….and will make a difference!!!

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1.4 Human Resource:

• Performance Management

They are committed to creating a performance driven culture through effective

management of performance of all staff members in a way that is mutually
beneficial. They drive the same by linking individual performance objectives to
business objectives and evaluating performances consistently and fairly.

• Training & capability Development Programs

The focus of training & capability Development Programs is to develop key

competencies & skill among staff members so as to facilitate attainments of full
people potential. The various capability Development programs are fast tax.
Advantages, Grand Slam specifically designed for UMS, FSCs and Executives
respectively.

• HR Policies & Procedures

The Policies and procedures laid down here promote the philosophy of the
Company with regard to standards of excellence; terms of employment;
employment Development; and employment services. The objective of the section
is to inform the policies related to Travel, Compensation, Med claim, Transfers
etc…

1.5 Information Technology

Various IT initiatives under taken at ICICI Prudential are aimed at strengthening
the bond between the business and the use of technology.

There are 4 solution groups which are aligned with the different function of the
company.

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 The Life Asia Solution Group Team managing Life Asia is core policy system.
Life Asia is a proven, reliable system operating on robust software, and on a hardware
platform providing ease of use. It provides the flexibility in designing better product
offerings to end – user. This solution group also, manages the group solution software
packages. A critical aspect of our every day work lives is IT infrastructure and that is
managed by sub group in the Life Asia solution group.

All the forward thinking business are headed for web, as web presence integrated
with back end system allows for a strong self-service paradigm to be built for customers
and partners. We have solutions Group- Web which is constantly trying to provide real-
time information to our CRM initiative using the Goldmine packages, catering to the
Sales Force for lead management, and to customer’s services, for handling
quires/complaints/request.

Our group also has an architect who is in charges of developing and maintaining a
blueprint for the enterprise as a whole. This team works as an in house R&D Solution
group, exploring various tech initiatives for the future. Finally, our Corporate Solution
Group caters to the information needs of the corporate function like HR and financial.
This team also works towards running initiatives to drive up usages and derive returns on
our IT investments.

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 The Insurance Regulatory and Development Authority

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill
in Parliament in December 1999. The IRDA since its incorporation as a statutory body in
April 2000 has fastidiously stuck to its schedule of framing regulations and registering the
private sector insurance companies.

The other decisions taken simultaneously to provide the supporting systems to the
insurance sector and in particular the life insurance companies was the launch of the
IRDA’s online service for issue and renewal of licenses to agents.

The approval of institutions for imparting training to agents has also ensured that
the insurance companies would have a trained workforce of insurance agents in place to
sell their products, which are expected to be introduced by early next year.

Since being set up as an independent statutory body the IRDA has put in a
framework of globally compatible regulations. In the private sector 12 life insurance and
6 general insurance companies have been registered.

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 Insurance plans at a glance

Broadly, insurance plans can be distinctly divided into ULIPs and traditional
plans. A brief detail of both segments.

Unit Linked Insurance Product

ULIPs have gained high acceptance due to attractive features they offer. These
include:

1. Flexibility
• Flexibility to choose Sum Assured.
• Flexibility to choose premium amount.

• Option to change level of Premium /Sum Assured even after the plan has started.
• Flexibility to change asset allocation by switching between funds

2. Transparency

• Charges in the plan & net amount invested are known to the customer
• Convenience of tracking one’s investment performance on a daily basis.

3. Liquidity

• Option to withdraw money after few years (comfort required in case of

exigency)
• Low minimum tenure.
• Partial / Systematic withdrawal allowed

4. Fund Options

• A choice of funds (ranging from equity, debt, cash or a combination)

• Option to choose your fund mix based on desired asset allocation

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Traditional Plans

These are the oldest types of plans available. These plans cater to customers with
a low risk appetite. Some of the common features of traditional plans are:

1. Steady Investment
 Major chunk of investible funds are in debt instruments
 Steady and almost assured returns over the long term
2. Features
 Death benefit is Sum Assured + guaranteed & vested bonus
 Helps in asset creation as they are for a long tenure
 Premium to Sum Assured ratios are fixed for each plan and age.
 Generally withdrawals are not allowed before maturity

Products

Insurance Solutions for Individuals

ICICI Prudential Life Insurance offers a range of innovative, customer-centric products

that meet the needs of customers at every life stage. Its products can be enhanced with up
to 4 riders, to create a customized solution for each policyholder.

Savings & Wealth Creation Solutions

These solutions give the customer the dual benefit of protection along with the potentially
higher returns of market-linked instruments.

CashPlus

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It is a transparent, feature-packed savings plan that offers 3 levels of protection as well
as liquidity options

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Save'n'Protect

It is a traditional endowment savings plan that offers life protection along with
adequate returns.

CashBak

It is an anticipated endowment policy ideal for meeting milestone expenses like a

child's marriage, expenses for a child's higher education or purchase of an asset. It is
available for terms of 15 and 20 years

LifeTime Super & LifeTime Plus

These are unit-linked plans that offer customers the flexibility and control to
customize the policy to meet the changing needs at different life stages. Each offer 4 fund
options - Preserver, Protector, Balancer and Maximiser.

Life Time Super policy is a regular-premium unit-linked policy, which offers

potentially higher returns that systematically enable to meet long-term financial
objectives. In addition, Life Time Super also provides the protective benefit of an
insurance cover, which keeps family secure, always.

LifeTime Plus-is the only unit-linked plan that provides the family with both,
Sum Assured AND Fund Value. Both these amounts ensure customer loved ones remain
financially secure, regardless of life's uncertainties. This ideal wealth creation plan also
serves as a protective insurance cover.

LifeLink Super
It is a single premium unit linked insurance Plan which combines life insurance
cover with the opportunity to stay invested in the stock market. It works best for
investors who have in mind long-term financial goals, such as the education of a
child or the purchase of a larger home.

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Premier Life Gold

It is a limited premium paying plan specially structured for long-term wealth

creation. It Is one of the finest wealth creation plans available, Premier Life Gold
provides with the benefit of paying premiums for a brief period but enjoying the benefits
of cover and potentially higher returns over the long run.

simply, Premier Life Gold ensures customer to enjoy long-term benefits even
when they make short-term investments.

Invest Shield Life New

It is a unit linked plan that provides premium guarantee on the invested

premiums and ensures that the customer receives only the benefits of fund appreciation
without any of the risks of depreciation.

InvestShield Cashbak

It is a unit linked plan that provides premium guarantee on the invested

premiums along with flexible liquidity options

Protection Solutions

LifeGuard

It is a protection plan, which offers life cover at low cost. It is available in 3

options - level term assurance, level term assurance with return of premium & single
premium.

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HomeAssure

It is a mortgage reducing term assurance plan designed specifically to help

customers cover their home loans in a simple and cost-effective manner.

Child Plans

Education insurance

Under the SmartKid brand provides guaranteed educational benefits to a child

along with life insurance cover for the parent who purchases the policy. The policy is
designed to provide money at important milestones in the child's life. SmartKid plans are
also available in unit-linked form - both single premium and regular premium.

Features and benefits of SmartKid

SmartKid offers an exclusive choice of 3 education insurance plans: SmartKid

New Unit-linked Regular Premium, SmartKid New Unit-linked Single Premium and
SmartKid Regular Premium.

1. SmartKid New Unit-linked Regular Premium

SmartKid New Unit-linked Regular Premium is a unit-linked plan, which enables parent
and their child to accumulate wealth by virtue of the performance of the underlying
market-linked instrument.

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Features

Premium: The minimum premium to be invested is Rs. 10,000 per annum. After
deducting premium allocation charges from the premium, the remaining amount will be
invested in a fund of their choice.

Sum Assured: The minimum Sum Assured that the policyholder can opt for is Term *
Annual Premium/2, subject to minimum of Rs 1 lac.

Policy term: The term of the policy will be calculated as the difference between child's
current age and the age of child when the policy matures.

Mortality, Policy Administration charges: These and other charges will be deducted
from the units in the fund.

2. SmartKid New Unit-linked Single Premium

SmartKid New Unit-linked Single Premium works in much the same way as
SmartKid New Unit-linked Regular Premium policy mentioned above. The only different
feature is the premium amount will be required to pay only a single premium, which starts
at as low as Rs. 50,000

3. SmartKid Regular Premium

Flexible investment option: Choosing the amount of premium with which you
wish to safeguard child's education.

Flexible policy tenure: The tenure of the plan will be calculated as the
difference between child’s current age and his or her age at which the policy matures.

Flexible premium options: The premium will be calculated based on 3

factors: Sum Assured, policy tenure and your age.
Guaranteed bonus: A guaranteed bonus of 3.5% per annum is declared for the first 4
premium paying years plus an annual vested bonus declared in subsequent years.

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Retirement Solutions

ForeverLife

It is a traditional retirement product that offers guaranteed returns for the first 4 years and
then declares bonuses annually.

LifeTime Super Pension

It is a regular premium unit linked pension plan that helps one accumulate over the long
term and offers an annuity option (guaranteed income for life) at the time of retirement.

LifeLink Super Pension

It is a single premium unit linked pension plan.

Health Solutions

Health Assure and Health Assure Plus:

Health Assure is a regular premium plan which provides long term cover against 6 critical
illnesses by providing policyholder with financial assistance, irrespective of the actual
medical expenses. Health Assure Plus offers the added advantage of an equivalent life
insurance cover.

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Cancer Care:

It is a regular premium plan that pays cash benefit on the diagnosis as well as at different
stages in the treatment of various cancer conditions.

Diabetes Care:

Diabetes Care is the first ever critical illness product specially for individuals with Type 2
diabetes. It makes payments on diagnosis on any of 6 diabetes related critical illnesses,
and also offers a coordinated care approach to managing the condition. Diabetes Care
Plus also offers life cover

Group Insurance Solutions

ICICI Prudential also offers Group Insurance Solutions for companies seeking to
enhance benefits to their employees.

Group Gratuity Plan:

ICICI Pru's group gratuity plan helps employers fund their statutory gratuity obligation
in a scientific manner. The plan can also be customized to structure schemes that can
provide benefits beyond the statutory obligations.

Group Superannuation Plan:

ICICI Pru offers both defined contribution (DC) and defined benefit (DB) superannuation
schemes to optimise returns for the members of the trust and rationalise the cost.
Members have the option of choosing from various annuity options or opting for a partial
commutation of the annuity at the time of retirement.

B.V.V.Sangha’s Institute Of Management Studies, Bagalkot 34

Group Immediate Annuities:

In addition to the annuities offered to existing superannuation customers, we offer

immediate annuities to superannuation funds not managed by us.

Group Term Plan:

ICICI Pru's flexible group term solution helps provide affordable cover to members of a
group. The cover could be uniform or based on designation/rank or a multiple of salary.
The benefit under the policy is paid to the beneficiary nominated by the member on
his/her death.

Flexible Rider Options

Riders are extra benefits attachable with the main policy, which provides added
protection against specific risks at a nominal extra cost.

Features of Riders

 Riders can be attached to policies from the beginning or on policy

anniversary date.
 Once attached, a rider can be discontinued at a later date.
 The combined premiums of all riders attached to a policy cannot be
greater than 30% of the premium of the basic plan
 The sum assured of an individual Rider cannot Exceed Rs.10 Lakh and
cannot exceed the sum assured of the basic plan.
 Riders are pure risk covers and hence have no maturity benefits.

ICICI Pru Life offers flexible riders, which can be added to the basic policy at a
marginal cost, depending on the specific needs of the customer.

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Accident & disability benefit:

If death occurs as the result of an accident during the term of the policy, the beneficiary
receives an additional amount equal to the rider sum assured under the policy. If the death
occurs while travelling in an authorized mass transport vehicle, the beneficiary will be
entitled to twice the sum assured as additional benefit.

Critical Illness Benefit:

It protects the insured against financial loss in the event of 9 specified critical illnesses.
Benefits are payable to the insured for medical expenses prior to death.

Income Benefit:

This rider pays the 10% of the sum assured to the nominee every year, till maturity, in the
event of the death of the life assured. It is available on SmarKid and CashPlus.

Waiver of Premium:

In case of total and permanent disability due to an accident, the future premiums continue
to be paid by the company till the time of maturity. This rider is available with LifeTime
Super, LifeTime Super Pension and CashPlus.

B.V.V.Sangha’s Institute Of Management Studies, Bagalkot 36

 Life Time Super

Life Time Super policy is a regular-premium unit-linked policy, which offers potentially
higher returns that systematically enable to meet long-term financial objectives. In
addition, Life Time Super also provides the protective benefit of an insurance cover,
which keeps family secure, always.

Key Benefits of LifeTime Super

 Potentially higher returns over the long term by investing in unit-linked

funds
 Additional allocation of units at regular intervals to boost investment
 Option to withdraw money systematically over a period of 5 years on
maturity of the policy
 In case of an unfortunate event of death, the family will receive Sum
Assured or Fund Value, whichever is higher
 Cover Continuance option available which ensures continuance of life
insurance cover, even if customer wish to take a temporary break in
premium payment
 Tax benefits on premiums paid and benefits received under the policy, as
per the prevailing Income Tax Laws

Policy works in the following manner

1. Customer need to choose the premium amount, term and Sum

Assured for which he wishes to take the policy.
2. After deducting premium allocation charges, the balance amount is
invested in the investment fund(s) of their choice.
3. Customer can opt for add-on riders available under the policy.

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 4. On survival, the maturity benefit is paid to the policyholder. In the
unfortunate event of death, the nominee receives the higher of Sum
Assured or the Fund Value.
ICICI Prudential Life insurance Company offer customer 4 investment funds. They have
the option to choose how they want their investments to grow, based on the objectives of
each of the funds. Given alongside are the investment objective and asset allocation of
each of the funds:

Fund name and its Asset allocation Min Max Potential

objective Risk-
Reward
Maximiser: Long Term Equity & Equity 75% 100% High
Capital Appreciation Related Securities 0% 25%
Debt, Money Market &
Cash

Fund name and its Equity & Equity 0% 40% Moderate

objective Related Securities 60% 100%
Balancer: Balance of Debt, Money Market &
growth and steady Cash
returns

Protector: Accumulate Debt Instruments, 100% 100% Low

steady income at a lower Money Market
risk & Cash

Preserver: Protection of Debt Instruments 0% 50% Capital

capital through very low Cash & Money Market 50% 100% Preservation
risk investments
Investments upto 20%
can be allocated to this
fund.

Max.

B.V.V.Sangha’s Institute Of Management Studies, Bagalkot 38

Potential Risk-Reward
Fund name and its objective

SWITCHING OPTION

Under this option you can switch your investment between the funds at any time
(provided the policy is in force), depending on your financial priorities and investment
objective. In any policy year, 4 switches can be done free of charge. The minimum switch
amount is Rs.2,000.

Maturity Benefit

On maturity of this policy, you will be entitled to receive the Fund Value at the time of
maturity. Alternatively, you can opt for the Settlement Options available

Settlement Options

On maturity of the policy, you can choose to take the Fund Value as a structured benefit.
With this facility, you can opt to get payments on a yearly, half-yearly, quarterly or
monthly (through ECS) basis, for a period 3 of 1,2,3,4, or 5 years, post maturity
(settlement period) . At any time during the settlement period, you have option to
withdraw the entire fund value.

Death Benefit

In the unfortunate event of death during the term of the policy, the nominee shall receive
the higher of Sum Assured (net of permissible 1 partial withdrawals) and the Fund Value.

Cover Continuance option

This option ensures that your life insurance cover continues in case you are unable to pay
premiums, any time after payment of first three years' premium. All applicable charges

B.V.V.Sangha’s Institute Of Management Studies, Bagalkot 39

will be automatically deducted from the units available in your fund. You need to opt for
cover continuance, if 4 you wish to avail of this benefit

Additional Protection with Riders

.

Riders
Accident and Disability
Benefit Rider (ADBR)
Critical Illness Benefit
Rider (CIBR)
Waiver of Premium
Rider (WOPR)
Benefit
In the event of death or disability due to
an accident, the rider benefit amount
would be paid accordingly
In the event of the Life Assured being
diagnosed for any of the specified critical
illness, the rider benefit amount would be
paid.
In the event of total and permanent
disability due to an accident, all further
premiums till maturity would be paid by
the company.

Rider charges for opted riders will be recovered by cancellation of units.

surrender values

Policyholder can surrender their policy. Surrender values are available to them after
deducting surrender charges and would depend on the number of completed policy years.
Following are the surrender values applicable after payment of full 3 years' premium.

No.of Completed years of the Surrender value as a % of fund

policy value
3 years 98%
4 years 99%
5 years and above 100%

B.V.V.Sangha’s Institute Of Management Studies, Bagalkot 40

Life Time Super at-a-glance

Minimum / Maximum Entry Age 0 - 65 years

Maximum Age at Maturity 18-75 years

Minimum / Maximum Policy 10 - 75 years

Term
Premium Payment Frequency Yearly, Half-yearly, Monthly

Minimum Premium Rs.18,000 per annum

Minimum Sum Assured Annual Premium x Term/2, subject to a

minimum of Rs.1,00,000.

Tax Benefit Premium paid for the policy and critical

illness benefit rider will be eligible for
tax benefit under section 80C & 80D
respectively. Any benefit amount
received under this policy will be
eligible for the tax benefit under section
10 (10D), as per prevailing Income Tax
laws.

B.V.V.Sangha’s Institute Of Management Studies, Bagalkot 41

Positioning Of Life Time Super
It is necessary to understand few terms before going through the various financial
planning ways.

Save : This is an activity that helps in the Asset Accumulation”. It has both short term
and long term perspective. The short term Perspective: is putting aside the extra money
after expenses into one place like a bank. The long-term perspective is when savings is
done keeping in mind certain specific goals.

Invest : This is an activity that focuses “Asset Creation”. It involves making money
from money. The focus here is on capital growth. This has a long –term perspective; for
example the money, which you save after having met your expenses, they put in various
long-term securities to gain returns and thereby creating financial assets. For example
they create assets by putting our savings into equity investments, thereby creating a
financial asset over a long-term or a by buying a property thereby creating a physical
asset. Where they invest depends on the level of risk tolerance.

Spend: This is an activity of using the money for your expenses. This can be done to
meet your day-to-day expenses or to meet any exigencies. A part of your income goes in
spending, which is nothing but protecting your lifestyles. So the act of spending is
nothing but protecting your life styles, your lives and hence your assets.

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To summarize these three activities can look into the following manner

Income

Save Asset Accumulation

Invest Asset Creation

Spend Asset Protection

The following diagram shows, the way to appreciate the need for better and sound
financial planning.

Income
This is situation in most of the house holds,
based on the premises of taking care of all
Customer expenses first before they can save
anything.
Spend
More often than not this results into financial
Failure over the Long-term.
Save

Financial Failure

B.V.V.Sangha’s Institute Of Management Studies, Bagalkot 43

 Income
This is a situation that is an idea one where the
Save
system is to keep aside money for savings and
then spend. This does not take into account
Spend unexpected expenses that may occur time to
time.
Not feasible all the time when laege expenses
occur and this savings gets depleted.
This may lead to a situation of financial
dependency.

Financial Dependency

This is a more independent situation

Income because with savings you are also making
investments. This is the difference between
asset accumulation and asset creation
investments create assets, where as savings
Save
accumulate assets. You use savings to meet
Invest unexpected expenses and investments to meet
your long-term goals
Spend This is the state of financial independence.

Financial Independence

This is assumed to be the best possible form of financial planning. But this does not take
into consideration the one big
Concept-protection.

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 This may lead to the state of financial failure
Life Time provides Asset Protection, Asset Creation And Asset
Accumulation

Income

Save

Invest

Spend

Protection A/c Investment A/c

This is the A/c that provides
Protection by safeguarding
Against the 3D effect
DEATH, DISABILITY
OR CRITICAL DISEASE
Life time super can protect
Assets in case of death, or
On contration of critical
Diseases by paying money
Without affecting
Investments, Also it pays
To spend and save in case
Of disability .It provides
Protection against 9 critical
Diseases.
This is the A/c that provides
financial Freedom with asset accumulation and
asset creation in the long run
A unique combination Life time super offers the
of protection and unique facility of putting
investment, that aside money for asset
provides with the creation. It has the option
benefit of both of investing in 4 fund
thereby acting as a options. It also gives the
complete financial flexibility of withdrawal
solution to meet periodic needs

B.V.V.Sangha’s Institute Of Management Studies, Bagalkot 45

Asset Protection

Life Insurance

The customer has the flexibility of choosing a sum assured that suits his life stage needs.
The customer has the flexibility of increasing the sum assured whenever he wishes. This
gives the customer the control to direct his investment in insurance as per the life stage
depending upon his needs.

Health Protection

The customer has the flexibility of choosing a rider cover that he wishes to take, which
can be a maximum of basic Sum Assured or 10,00,000 whichever is lower. Thus if the
customer is already covered with a medical policy, he can choose to have a lower Sum
Assured under the Health Rider that amount for investment. The customer also avails of
the tax benefits available under section 80D for the Critical Illness Rider Premium. The
riders are in-force till the age of 65 years, which gives the individuals the health
protection in the posy-retirement phase as well.

It provides protection against 9 dreaded diseases. These are

 Major organ Transplant

 Complete renal Failure
 Stroke
 Paralysis
 Heart attack
 Valve Replacement Surgery
 Major Surgery of the Arota
 Coronary Artery Graft Surgery(bypass)
 Cancer

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 In the unfortunate event of
On death, the disability due to accident,
policyholder Life Time Super ensures
would be paid the an annual payment for 10
sum assured or The years for normal
fund value at that 3D sustenance and investment
Death Disability A/c remains intact. Total
point of time Effect
total protection of protection against the
life unforeseen & protection of
assets too.
Dreaded
Disease

Life Time Super

provides protection
This is enabled by against 9 dreaded
the flexible diseases. Life Time Super
feature of the also covers for
product, where on It works separately the unfortunate
death the life from investment a/c event of
assured would get pays more money in permanent
higher of the case of you confront disability with its
chosen Sum any one of these. total ADBR and
Assured or Fund protection against the WOP. This rider
value unfortunate events that pays money for
may leave one as 10 years to take
“Living Dead”. care of expenses
in those years of
loss income

It also covers for the unfortunate event of “Living Dead” with the attachment of CIBR
Rider with it .This rider provides with cover against 9 critical illness without affecting
investment A/c at all. Total protection against the eventualities of your life and yet
keeping investment growing.

B.V.V.Sangha’s Institute Of Management Studies, Bagalkot 47

Asset Creation

Lifetime Super provides the opportunity for long=term asset creation along with
protection. This product provides with flexible features so that customer can grow
investments in the long run. It is an established fact that putting aside money regularly
leads to long-term wealth creation.

The regular premium that customer pay is directed into his investment A/c as per the
option chosen by him. The value of this investment grows over time. Customer can track
the portfolio regularly and make changes depending on his needs.
It helps in asset creation in the following manner.

Life Time Super regular Premium

Part of the premium

towards the policy
expenses

This goes to protection

Allotment of A/c to provide a cover
Insurance
UNITS against the 3D effect of
Charges “Death, Disability And
dreaded Diseases.

Various Investment
options, facility of
Withdrawals and Units that build up your
investing back in investment value
investment A/c

This is customer investment A/c.The units that are bought with the premium, which the
customer paid, first take care of their protection and then remaining amount is put into their
investment account. Here they have various options of investments as per their choice and
priorities. This is the account where their money grows over a long period of time.

B.V.V.Sangha’s Institute Of Management Studies, Bagalkot 48

Life Time Super being a regular premium product serves as the right product for
disciplined savings over a long period of time. The other benefit of this disciplined saving
is that it helps in accumulating units over a period of time at an average cost that is lesser
than the average unit value over the same period. This happens because of Rupee-Cost
Averaging. Thus the policyholder over a long-term creates value from his investments.

Concept of Rupee-Cost Averaging

Rupee-Cost Averaging is achieved by regularly investing a fixed amount of money into a

particular fund, over a long-term period, regardless of the state of the market.

By doing so , one would effectively, buy more units when the markets are down and he
prices are low, and fewer units at lower prices. Thus the average cost of acquisition of the
units would be less than the average unit price over the same period.

Rupee-Cost Averaging provides the benefit of regular investment to the policyholders.

This type of an investment pattern is also known as systematic Investment Plan.

This approach helps in decreasing the Cost of acquisition of units as compared to the
average during the same period time, there by creating value in the long-term.

B.V.V.Sangha’s Institute Of Management Studies, Bagalkot 49

 ACCUMULATION

Asset Accumulation is the last key in financial independence and freedom apart from the

other two pillars of Asset Protection and Asset Creation.

Life Time Super works like other Savings Bank A/c. Customer has the flexibility of

accumulating their money in Life Time Super just as they would do in a bank A/c.

He has the flexibility to take out money of their account for any of their requirements

without having to pay any costs, which is how they use their accumulation account.

They also have the flexibility of increasing their accumulation by putting in extra

premium whenever they have the money to put in .This gives them the benefit of getting

all the accumulation, all savings done only in one account, which is what a perfect

accumulation is all about. A unique opportunity for customer to accumulate all their

wealth at one place.

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 Life Time Super would provide the benefit of doing all the three Asset Protection,
Asset Creation and Asset Accumulation in one single policy.

Asset Asset
Protection Creation Asset creation
with Rupee-cost
Cover against
Averaging,
the 3D Effect.
Opportunity to
Provides you
earn reasonably
with Death
high returns.
Benefit+Cover
Opportunity to
Against
invest in various
Disability+Cov
plans of
er Against
customer choice
Critical Asset
Illnesses Accumulation

An ideal accumulation vehicle for policyholder.

Provides the benefit of an account which grows
while taking care of theeir your expenses.
Provides the benefit of investing more amount of
money.

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 PART III

B.V.V.Sangha’s Institute Of Management Studies, Bagalkot 52

 FINDINGS

o It provides the customers, the flexibility of increasing the sum assured

which suits investors life stage needs.

o Life Time Super provides health protection by providing a feature like

rider

o Life Time Super also covers you for the unfortunate event of “Living

dead” with flexible features like 6 choice of funds to grow their

investments in long-run

o This plan has the flexibility to take out money of policyholder account for

any of their requirements without having to pay any costs, which is how

they use their accumulation account.

o The concept of Rupee-cost Average minimizes the timing risk. A sustained

investment plan would always create value in the long-term for the policy

holders, irrespective of the existing investment market conditions.

o The switch option gives the policy holder / investor the control to change

the investment patterns with changing needs at different lifestages.

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 SUGGESTIONS

As the Life Time Super is a better tool for integrated financial planning, investing

in Life Time Super creates asset by providing flexible choice of funds to invest, it

accumulates the asset by having the flexibility of increasing investor accumulation by

putting in extra premium whenever investor have some money to put in. It also provides

some other features like riders which protects the health of the investor and meets the

needs of Life stages.

B.V.V.Sangha’s Institute Of Management Studies, Bagalkot 54

 CONCLUSION

Life Time Super is positioned as a long term wholesome financial products that

takes care of the investment, insurance makes and provides the protection against the

health hazards. Thus Life Time Super is the product that satisfies totally a different set of

needs and death benefit as a multiple of the annual premium. It also provides the

flexibility to control the insurance & savings, according to the needs of the individual at

different life stages.

Thus, this is how Life Time Super helps an investor to create, protect, and

accumulate his investments.

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