RESEARCH PROJECT REPORT

ON

National Distribution of Financial ServicesLife Insurance & Mutual Funds

SUBMITTED FOR THE PARTIAL FULFILLMENT OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION

of

PUNJAB TECHNICAL UNIVERSITY

By ANITA RANI MBA 3rd SEMESTER UNDER THE SUPERVISION OF MRS. GAURAV KHURANA

CHANAKYA INSTITUTE OF MANAGEMENT,GHARUAN 2010-12

Certificate of Supervisor
This Is To Certify That Ms. Anita Rani D/O sh. Rajinder pal,student of chanakya institute of management village Gharuan,near kharar tehsil distt. Mohali 140413 Punjab, has undergone 6 weeks training with LEAP FINANCIAL SERVICES{WWW.DAIABANK.COM} at Mohali, from 2nd june 2011 to 13th may 2011.she has worked on the project national distribution of financial services life insurance and mutual funds. Supervisors signature: Supervisors name: Supervisors Designation: Date: Place:

Declaration

I, hereby declare that the research project report titled NATIONAL DISTRIBUTION OF FINANCIAL SERVICES LIFE INSURANCE AND MUTUAL FUNDS is my own original research work and this report has not been submitted to any University/Institute for the award of any professional degree or diploma.

ANITA RANI

M.B.A (Sem.) :- 3 Rd ROLL NO. : -

CHANAKYA INSTITUTE OF MANAGEMENT, GHARUAN

Date: Place:

OBECTIVES OF THE PROJECT

The objective behind the conducting project exercise was to get useful insight about the insurance sector. I have prepared this report with some specific objectives. The objective is as under: 1. Proper understanding and analysis of life insurance industry. 2. Conduct market survey on sample selected from the entire population and derive opinion on that research. 3. To help company in establishing a network of life insurance advisor and to promote the benefits those are provided by ICICI Prudential Life Insure. Co. ltd to its life insurance advisor.

Acknowledgement
I Anita Rani, from Chanakya Institute of Management, Gharuan would express my sincere gratitude to all those who have helped me directly or indirectly in this summer internship project. First, I thank my Project Supervisor Mr. Gaurav Khurana for his continuous support in my Summer Internship Project. Mr. Gaurav Khurana was always there to listen and to give advice. Without Ms. Manpreet kaur, this project could not be completed as She guided me at every level and provided relevant study material and data. I owe a lot to him as he gave me a chance of practical experience. A Special thanks go to my faculty Mr.Navdeep Kaur who is most responsible for helping me in framing my Summer Internship Project as well as guided me on structuring my research. Last but not the least, I acknowledge my deep sincere regards and respect to my parents and friends whose support was the main source of my energy behind this project. It was there blessings that make this project successful. Thanks to All Anita Rani

PREFACE
For management career, it is very important to develop managerial skills. In order to achieve positive and concrete results, along with theoretical concepts, the exposure to real life situation, existing in a corporate world is very much needed. To fulfill this need, practical training is required. I underwent summer training in LEAP FINANCIAL SERVICES{WWW.DAIABANK.COM},MOHALI. It was my fortune to get training in this organization. I got great opportunity to view the overall working of the organization. In the forthcoming pages, I have attempted to present a report covering different aspects of my training.

TABLE OF CONTENTS
CHAPTER NO. 1. CONTENTS INTRODUCTION TO BANKING SECTOR PAGE NO

INSURANCE SECTOR
INTRODUCTION TO INSURANCE SECTOR
Insurance is a cover used for protecting oneself from the risk of a financial loss. It is important to understand that risk is a part of any persons life and that it increases as a person increases in age, responsibility and wealth. Insurance is risk coverage against financial losses and should not be taken as an investment instrument. There are mainly two parties involved in this the insurer and the insured. The insurer is the insurance company who will provide the cover to the insured against any financial losses. The insured may be an individual person or a group of people like an employer, members of a society, etc. A policy is the contract between the insurer and the insured, which states the risks covered, the exclusions, if any, and the benefits reimbursed on the happening of an event like death, illness etc. The policy is paid through what is called a premium, which is a set amount that must be paid by the insured on a monthly, semi-annual or annual basis. On the happening of an event like death, disability, fire, etc, for which the insured is covered, the benefit amount stated in the policy contract can be claimed by the insured.

Classification of Insurance
There are mainly two broad classes of Insurance Life and Non Life.

Life insurance products include Term Life policies, which give a pure risk coverage of only the death benefit, whereas endowment or money back policies have a risk as well as savings component i.e. death as well as maturity benefit. Also coming under the life insurance umbrella are the Unit Linked Policies in which there is a risk component and a savings component, which is invested in equity, debt or gilt funds, depending on the insurance company. Non Life insurance products include property or casualty, health insurance or house, fire, marine insurance etc. This insurance class deals with all the non-life aspects of an insured like his/her house, health, land, office, cargo, etc which might bring financial loss.

Life Insurance Process Flow

The simplest life insurance business cycle looks like this:

The client approaches the insurer through an agent with a proposal containing his personal details, income details, medical history, products ( the product describes the features provided by the insurer like maturity bonus, claims allowed etc. These features vary from product to product), sum assured (the amount for which the client is covered), term (number of years for which the client is to be covered) and premium amount

(installment amount to be paid by the client to the insurer). The agent who brings this proposal is termed as a base/servicing agent for the proposal. The proposal will go through various stages of approval and risk evaluation by the Central Processing Centre of the Insurance Company. Upon final approval, a legal agreement, termed as policy, between the insurer and the client is prepared whereby the insurer covers the client for the sum assured. The client is also entitled for some additional benefits, if any, depending on the features of the product taken in the policy. The base agent gets a commission for the policy. The client pays a premium at regular intervals. These subsequent premiums are termed as renewal premiums. The base agent gets a commission on the renewal premium also. The client may come back with some alterations to the policy viz. increase/decrease in sum assured, increase/decrease of the term of policy etc. The insurer will make the relevant changes to the policy and will issue endorsements stating the alterations made and their effect on the policy. During the term of the policy, the client can submit claims. The insurer makes payment against the claim after verification. Depending on the type of claim the policy is either terminated or is kept in force. At the end of the term of the policy, the client gets the sum assured as part of the maturity benefit under life insurance policies. In addition to this the client will get the maturity bonus and any other benefits depending on the product feature.

Insurance History
The story of insurance is probably as old as the story of mankind. The same instinct that prompts modern businessmen today to secure themselves against loss and disaster existed in primitive men also. They too sought to avert the evil consequences of fire and flood and loss of life and were willing to make some sort of sacrifice in order to achieve security. Though the concept of insurance is largely a development of the recent past, particularly after the industrial era past few centuries yet its beginnings date back almost 6000 years. Life Insurance in its modern form came to India from England in the year 1818. Oriental Life Insurance Company started by Europeans in Calcutta was the first life insurance company on Indian Soil. All the insurance companies established during that period were brought up with the purpose of looking after the needs of European community and Indian natives were not being insured by these companies. However, later with the efforts of eminent people like Babu Muttylal Seal, the foreign life insurance companies started insuring Indian lives. But Indian lives were being treated as sub-standard lives and heavy extra premiums were being charged on them. Bombay Mutual Life Assurance Society heralded the birth of first Indian life insurance company in the year 1870, and covered Indian lives at normal rates. Starting as Indian enterprise with highly patriotic motives, insurance companies came into existence to carry the message of insurance and social security through insurance to various sectors of society. Bharat Insurance Company (1896) was also one of such companies inspired by nationalism. The Swadeshi movement of 1905-1907 gave rise to more insurance companies. The United India in Madras, National Indian and National Insurance in Calcutta and the Co-operative Assurance at Lahore were established in 1906. In 1907, Hindustan Co-operative Insurance Company took its birth in one of the rooms of the Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta. The Indian Mercantile, General Assurance and Swadeshi Life (later Bombay Life) were some of the companies established during the same period. Prior to 1912 India had no legislation to regulate insurance business. In the year 1912, the Life Insurance Companies Act, and the Provident Fund Act were passed. The Life Insurance Companies Act, 1912 made it necessary that the premium rate tables and periodical valuations of companies should be certified by an actuary. But the Act discriminated between foreign and Indian companies on many accounts, putting the Indian companies at a disadvantage.

The first two decades of the twentieth century saw lot of growth in insurance business. From 44 companies with total business-in-force as Rs.22.44 crores, it rose to 176 companies with total business-in-force as Rs.298 crore in 1938. During the mushrooming of insurance companies many financially unsound concerns were also floated which failed miserably. The Insurance Act 1938 was the first legislation governing not only life insurance but also non-life insurance to provide strict state control over insurance business. The demand for nationalization of life insurance industry was made repeatedly in the past but it gathered momentum in 1944 when a bill to amend the Life Insurance Act 1938 was introduced in the Legislative Assembly. However, it was much later on the 19th of January, 1956, that life insurance in India was nationalized. About 154 Indian insurance companies, 16 non-Indian companies and 75 provident were operating in India at the time of nationalization. Nationalization was accomplished in two stages; initially the management of the companies was taken over by means of an Ordinance, and later, the ownership too by means of a comprehensive bill. The Parliament of India passed the Life Insurance Corporation Act on the 19th of June 1956, and the Life Insurance Corporation of India was created on 1st September, 1956, with the objective of spreading life insurance much more widely and in particular to the rural areas with a view to reach all insurable persons in the country, providing them adequate financial cover at a reasonable cost. LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its corporate office in the year 1956. Since life insurance contracts are long term contracts and during the currency of the policy it requires a variety of services need was felt in the later years to expand the operations and place a branch office at each district headquarter. Re-organization of LIC took place and large numbers of new branch offices were opened. As a result of re-organisation servicing functions were transferred to the branches, and branches were made accounting units. It worked wonders with the performance of the corporation. It may be seen that from about 200.00 crores of New Business in 1957 the corporation crossed 1000.00 crores only in the year 1969-70, and it took another 10 years for LIC to cross 2000.00 crore mark of new business. But with reorganisation happening in the early eighties, by 1985-86 LIC had already crossed 7000.00 crore Sum Assured on new policies. Today LIC functions with 2048 fully computerized branch offices, 109 divisional offices, 8 zonal offices, 992 satallite offices and the Corporate office. LICs Wide

Area Network covers 109 divisional offices and connects all the branches through a Metro Area Network. LIC has tied up with some Banks and Service providers to offer on-line premium collection facility in selected cities. LICs ECS and ATM premium payment facility is an addition to customer convenience. Apart from online Kiosks and IVRS, Info Centres have been commissioned at Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune and many other cities. With a vision of providing easy access to its policyholders, LIC has launched its SATELLITE SAMPARK offices. The satellite offices are smaller, leaner and closer to the customer. The digitalized records of the satellite offices will facilitate anywhere servicing and many other conveniences in the future. LIC continues to be the dominant life insurer even in the liberalized scenario of Indian insurance and is moving fast on a new growth trajectory surpassing its own past records. LIC has issued over one crore policies during the current year. It has crossed the milestone of issuing 1,01,32,955 new policies by 15th Oct, 2005, posting a healthy growth rate of 16.67% over the corresponding period of the previous year. From then to now, LIC has crossed many milestones and has set unprecedented performance records in various aspects of life insurance business. The same motives which inspired our forefathers to bring insurance into existence in this country inspire us at LIC to take this message of protection to light the lamps of security in as many homes as possible and to help the people in providing security to their families.

LIFE INSURANCE IN INDIA

The British companies started life insurance business in India, by issuing policies exclusively on the lives of European soldiers and civilians. They sometime issued policies on the lives of Indians by charging extra. Different insurance companies like Bombay Insurance Company Ltd. (1793) and Oriental Life Assurance Company (1818) was formed to issue life assurances policies in India. Gradually, the first Indian Company named as Bombay Mutual Life Insurance Society Ltd. Was formed in Dec. 1870. By 1971, the total number of companies working in India was 15, out of which 7 were Indians and the remaining were British companies.

During the period from 1870 to 1900, a large number of Indian Companies were formed under the Indian Companies Act; 1866. The business was confined to few communities and occupations only. During the period from 1900 to 1913, the insurance business attracted attention among middle class people. As a result Government of India passed the Insurance Act on the model of British Assurance Act. During the period from 1912-1930, the insurance business witnessed a set back. After several changes have been made for the period from 1930 to 1938, the government of India passed Insurance Act; 1938. The act still applies to all kinds of insurance business by instituting necessary amendments from time to time. The act was amended in 1950 resulting in far reaching changes in the insurance sector . By 1956, 154 Indian insurers 16 foreign insurers and 75 provident society were carrying on life insurance business in India then it was taken over by central govt. life insurance corporation (LIC) was formed in sept. 1956 by an act of parliament with a capital contribution of Rs. 50 mn. India already boasts of a good GDS rate of about 22% but less then 5% of it is spend on insurance. & Premium as a share of GDP is 2 %.

CURRENT SCENARIO IN INDIA

The privatization of insurance sector in 2008 has ushered in dynamism in the field. The life insurance corporation of India has been shaken up from its deep slumber and has been on guard to gear up for competition. Private companies have entered into the fray with joint ventures with foreign companies. This has been done to utilize their expertise in the field and give an opportunity to professionally managed companies to win the confidence of the people. These companies have launched a number of innovative products after carrying out deep research on the requirement of the prospective customers.

TYPES OF LIFE INSURANCE

Term insurance plans Term insurance plans are commonly known as pure protection plans. This is a pure insurance cover where only the risk of death is covered for a specified period. If the insured does not die within the specified period, then no payment is made under the term insurance plan. This is also the cheapest form of life insurance as mortality charges and administration expenses incurred in booking the policy are the only components of the premium. Being the cheapest life insurance policy, one can get a substantially high life cover (sum assured) with a nominal premium amount. Therefore, a person gets to protect his family's financial security at a very low cost. By paying an amount as low as Rs.6000 per year, one can secure their family's future to the tune of 50lakhs. Whole life insurance Whole life insurance policies are very similar to term insurance plans. This is a term plan with an unlimited term. As the name suggests, a whole life

policy is an insurance cover against death, where the sum assured is payable only on death, whenever it may occur. Under this plan, the policyholder pays regular premiums until his death (till a claim arises), following which the payment is made to the nominee or the claimant. Although, in the case of Whole Life policies, the sum assured is payable only on death, many insurance companies pay the sum assured, when the life insured reaches a particular age. Earlier a lot of insurance companies used to make this payment at the age of 100 years and recently many have dropped it down to 75 years. Premium is usually paid till the sum assures becomes payable but many insurers provide an option to pay premiums for a limited period. Such policies would be called as Limited payment policies. People who are skeptical of the consistency of their earnings and expect it to discontinue or drop substantially over a period of time may prefer limited payment policies. This is often the case with professionals like sports personalities, skilled artists and armed forces personnel. Many a times, a person has or receives a lump sum amount from somewhere and is not sure whether he will be able to pay the same amount every year. For such customers, there is an option to pay the premium only once. Such a policy where the premium is payable only for one year at the beginning of the policy is called as a single premium policy. The premium for a whole life insurance policy would surely be higher than a pure term insurance plan and unlike a term plan where the cover is for a specific period, a whole life insurance policy doesnt attach a policy term and is valid till the death of the policy holder, whenever it may occur.

Endowment assurance policy Endowment assurance policy is a combination of term insurance plan and a pure endowment plan, under which the sum assured, is paid on survival of the specified period or on earlier death. In this type of life insurance policy there is both a death benefit or the maturity benefit. In an endowment assurance policy, the sum assured is payable on survival to the end of the term or on earlier death. Like in the case of the whole life insurance policy, the premium in an endowment plan is also payable till the sum assured becomes payable that is, till a claim arises.

In this plan, if the policy holder dies before the maturity of the policy, then his nominee would get the sum assured or the death benefit and the policy terminates. However, if the policy holder survives till the end of the term, then he gets the maturity benefit according to the terms and conditions of the policy. So he stands to gain in both ways. An endowment policy is also a form of financial saving, as in if the person covered remains alive beyond the term of the policy. he gets investment benefits, usually referred to as guaranteed additions, in addition to the sum assured. A term insurance plan with a pure endowment plan of double the value is called a Double Endowment Assurance plan. Then there are other types of endowment, like a marriage endowment plan, which stipulates the date on which the sum assured will be pad if the life insured dies early. This policy enables the policy holder to choose the date of maturity to coincide with a specific age of his/ her child, to make available the sum assured at a particular time for their marriage. Another endowment plan option is the Educational Annuity plan, where the sum assured would be paid in installments, commencing from a date which may be chosen as the likely date when the child is pursuing higher or professional education. Earlier, the maturity period of the endowment policy used to be at a certain age say 75, but of late insurance companies have come out with a fixed term endowment policy or limited term endowment plans, for example a 20-year endowment policy or a 25-year endowment assurance plan. Often, insurance companies introduce an endowment assurance plan in 2 variants, that is, a with profit or without profit policy. With profit policy also known as participating policy enjoys the right to participate in the growth of the insurance company and is eligible for bonuses. On the other hand, Without profit or Non-participating policy is not entitled to any bonus declared by the insurance company and hence are not very popular too. But one has to pay an extra premium in the participating endowment policy as compared to the nonparticipating endowment policy.

Money back insurance policy Money back insurance policy In the insurance terminology this is called Anticipated Endowment Plan, meaning that the customer can anticipate when the sum assured would be paid to him. In money back

insurance policy, a certain percentage of the sum assured comes back to the policy holder on survival after say every 3 or 5 years, as predetermined. This is also referred to as a survival benefit. The common example used is, consider 20% of the sum assured is paid every 5 years and 40% on survival for a 20-year term and full sum assured is paid in case of death at any time during the 20 years. If the policy holder dies before the policy matures, then the entire sum assured is paid to the family as death benefit, irrespective of the survival benefits paid or not. It is effectively a combination of a term insurance plan for 20 years for full sum assured and 4 different pure endowment plans, that is, 20% sum assured for 5 years, 20% sum assured for 10 years, 20% sum assured for 15 years and 40% sum assured for 20 years.

children plans As the name suggests, child insurance policy or children plans means an insurance policy on the lives of children, who are not majors. Since the age of child is below 18 years, the proposal will have to be made by a parent or a guardian. One of the advantages of child insurance plans is that the premium which will be considered at the commencement of the policy is relatively lower because of the young age. Usually, a child insurance plan can be purchased when the child is 3 months old (or 91 days of age). However, the risk cover on the life of the insured child will commence only when the child attains a specified age. This clause is according to the rules of IRDA (Insurance Regulatory and Development Authority). Such a time gap between the date of commencement of the insurance policy and the commencement of the risk is called the Deferment period. The date, on which the risk will commence, at the end of the deferment period is called the Deferred Date. Let us explain the basic concept of a child plan with Ranjans example. He is 27 years old, married with a 2-year old daughter. He purchases a child plan for his daughter Sameera. Ranjan has now covered his daughter under the child insurance plan but her life cover doesnt start till she is 7 years old. However, the plan continues as usual and no mortality charge is deducted till Sameera reaches 7 years of age; this is because her life cover doesnt start till such time. The day her life cover starts, i.e. the first policy anniversary after her 7th birthday, is called the Deferred Date. From this

day onwards the life cover of the child Sameera starts, i.e. if she dies after the deferred date her family would get the entire sum assured. But if she had died before the deferred date, her family would only get back the premiums paid and no sum assured would be payable. When Sameera attains 18 years of age or any later date as may be chosen, the title of the policy automatically passes on to her name. This process is called as Vesting. Therefore, the day on which the policy contract is transferred from Ranjan to Sameera, i.e. the first policy anniversary after her 18th birthday, is called the Vesting Date. After vesting, the insurance policy becomes a contract between the insurance company and Sameera. This life insurance policy covers the risk of the childs life. This is a distinctive plan as the entire amount payable gets transferred in the name of the child once he/ she is 18 years old. Thus it becomes a big asset for the childs future to take care of various financial commitments and pursue higher education, professional courses, develop skill sets, travel places, plan other investments and many others.

Retirement plan Retirement plan Pension plan or retirement plan is useful to save money during a persons income-earning days to provide for regular periodical payments during his/ her retirement days. Pension payments are also known as annuities and are paid as long as the recipient is alive. In certain policies, even after the pensioners or the recipients death, the pension or annuity is paid to the spouse or nominee. In an annuity, the insurer agrees to pay the insured a certain sum of money at regular intervals. The purpose of an annuity is to protect against the risk of living too long as well as provide money in the form of pension periodically. In practice, there is no medical underwriting done in case of annuity contact since there is no death risk cover attached. One may interpret the concept of annuity as a reverse of life insurance contract. In a life insurance contract, the person agrees to pay regular payments, that is, premiums, in consideration for a lump sum amount to him on maturity or his nominee on death. On the contrary, in a retirement plan (annuity contract), the person agrees to pay a specific amount (also referred to as capital) to the insurance company and in return the

insurance company promises to make regular periodic payments to him as long as he/ she is alive. A lot of basic policy formations discussed theoretically may have many variations in actual practice. For example, the capital for a retirement plan need not be paid in lump sum at the start of the policy; it can also be paid in installments like insurance premiums over a period of time before the vesting date or start receiving annuity and continue paying premiums.

Unit linked Insurance Plan (ULIP) Unit linked Insurance Plan (ULIP) is a type of life insurance plan that provides benefits of protection against risks and flexibility to manage the investments of premiums. Part of the premium paid by the customer goes towards the sum assured and the balance is invested in venues of investment desired by the policy holder. There are usually three different venues for investment which are equities, debt instruments and liquid assets; the policy value at anytime keeps varying as per the value of the assets chosen by the insured or insurance company. Based on the combination of assets invested in, the investment corpus after deducting the charges is broken into smaller units and these units carry a price or a value which it has attained called as the Net Asset Value (NAV). Thus NAV is the price per unit. The net investment corpus which remains after deducting the various charges from premiums and adding returns, if any, is called as the Fund value When people see how investments in the capital market have grown in the last few years, they prefer to use their funds to participate in the boom of the capital market. With ULIP plans, Insurance companies combine the benefits of life insurance as well as give options to reap benefits from the growth of the capital market. ULIPs are basically insurance plans along with an investment component. The investment is done according to the risk profile of the customer and the choice of the customer. The risk of investment is borne by the customer and the returns are marked to the market and hence are not guaranteed.

Usually, every ULIP has at least 4 funds to choose from. The most common fund options are - Equity/ Growth, Balanced, Debt and Secure/ Liquid Fund. The objective of each fund would differ and you as a customer would get to choose from one or more funds. The equity fund would have about 60 to 100% exposure in equity depending on the speculation of the fund

managers about the markets. The debt fund invests primarily in government bonds, securities and fixed deposits, and other fixed interest securities. The balanced fund is a combination of equity and debt instruments. Finally, the liquid or secure fund invests in the money market. It invests in instruments like commercial papers, treasury bills etc.

The policy holder also has the option to partially withdraw money from his fund after completion of 3 years. Every year the policy holder also gets the option to contribute extra money over and above his premiums to his investment corpus, referred to as top-up premium. There are many flexible features offered to the policyholder to allow him derive maximum from his investments.

Some plans offer a minimum guarantee of return on death or maturity but most of the plans dont offer any guaranteed benefit. The death benefit in ULIPs is equal to the sum assured, where the minimum return is the sum assured but the maximum return may vary according to the fund performance.

Advantages of Life Insurance

Risk Cover - Life today is full of uncertainties; in this scenario Life Insurance ensures that your loved ones continue to enjoy a good quality of life against any unforeseen event. Planning for life stage needs - Life Insurance not only provides for financial support in the event of untimely death but also acts as a long term investment. You can meet your goals, be it your children's education, their marriage, building your dream home or planning a relaxed retired life, according to your life stage and risk appetite. Traditional life insurance policies i.e. traditional endowment plans, offer in-built guarantees and defined maturity benefits through variety of product options such as Money Back, Guaranteed Cash Values, Guaranteed Maturity Values. Protection against rising health expenses - Life Insurers through riders or stand alone health insurance plans offer the benefits of protection against critical diseases and hospitalization expenses. This benefit has assumed critical importance given the increasing incidence of lifestyle diseases and escalating medical costs. Builds the habit of thrift - Life Insurance is a long-term contract where as policyholder, you have to pay a fixed amount at a defined periodicity. This builds the habit of long-term savings. Regular savings over a long period ensures that a decent corpus is built to meet financial needs at various life stages. Safe and profitable long-term investment - Life Insurance is a highly regulated sector. IRDA, the regulatory body, through various rules and regulations ensures that the safety of the policyholder's money is the primary responsibility of all stakeholders. Life Insurance being a long-term savings instrument, also ensures that the life insurers focus on returns over a long-term and do not take risky investment decisions for short term gains. Assured income through annuities - Life Insurance is one of the best instruments for retirement planning. The money saved during the earning life span is utilized to provide a steady source of income during the retired phase of life. Protection plus savings over a long term - Since traditional policies are viewed both by the distributors as well as the customers as a long term commitment; these policies help the policyholders meet the dual need of protection and long term wealth creation efficiently.

Growth through dividends - Traditional policies offer an opportunity to participate in the economic growth without taking the investment risk. The investment income is distributed among the policyholders through annual announcement of dividends/bonus. Facility of loans without affecting the policy benefits - Policyholders have the option of taking loan against the policy. This helps you meet your unplanned life stage needs without adversely affecting the benefits of the policy they have bought. Tax Benefits-Insurance plans provide attractive tax-benefits for both at the time of entry and exit under most of the plans. Mortgage Redemption- Insurance acts as an effective tool to cover mortgages and loans taken by the policyholders so that, in case of any unforeseen event, the burden of repayment does not fall on the bereaved family. Mental peace-The most important benefit of life insurance is that it assures mental peace. When a person goes for life insurance, he and his family are relieved from worries of future. Thus, it ensures mental peace. Financial Security-The policy of life insurance provides economical security to the family of the policy holder in case of death of the breadwinner. On occurrence of this unfortunate event, the family is forced with a cash crunch. But by availing a life insurance policy, this problem of cash crunch is solved by a lump sum amount paid by the insurer. Loan in case of need-There are circumstances in life when the individual needs funds but is unable to get from various sources. The life insurance policy also provides a solution to this problem as loan can be taken against the policy and need not be repaid as the loan amount is deducted from the police value on maturity. Cover for whole life-The life insurance policy provides coverage for the whole life of the policyholder. It also provides protection in cases of serious illness. Tax-free source of savings-In addition it is a source of savings which is completely tax-free Source of mitigating certain liabilities-The life insurance policy provides a great source to satisfy certain needs and liabilities like loans and mortgages. Maintenance of living standard-The life insurance policy helps in maintaining the living standard of the family even after the death of the breadwinner by providing financial benefits to the family. Enhanced coverage-The policy provides enhanced coverage by providing for medical benefits.

Disadvantages

Expensive-The life insurance can prove to be a costly affair, particularly when suffering from illness and regarded by insurers as High Risk due to some reasons like old age etc. Irrelevant in case of no-family person-The life insurance policy is irrelevant for an individual who is not having any family or dependents Increasing premiums-The premium payable increases with the increase in age. But the income gradually decreases which makes it difficult to strike a balance. No benefit in case of long life-Some policies do not provide any cash benefit on the policy holder surviving the policy term. In that case, amount paid for premiums is wasted.

Objective

As Income Replacement: In the event of your death, your family will lose their financial support especially if you are the major bread-winner of the family. When you die, you lose the wages as well as the retirement savings contributions which you would get. he role of the life insurance here serves as an income replacement which would get your family to move on with their lives without any financial stress. House mortgage and Debt payoff: Life insurance can be applied to pay off your mortgages, credit card debts or any other types of debts , which will definitely become a burden for your family if you have no plan to settle them after you are gone. Children Education fees: If you have children who will be in college in the next 1020 years, then planning on how you can leverage Life insurance coverage for part of your children's education needs, or all of them are essential. Bear in mind that education is very crucial for anyone in this society. It is the one last thing which you should help your children with if while you still can. Emergency Fund: Emergencies include health and medical expenses, layoffs, retrenchments which are not planned. Life insurance is definitely a great savior here in time of emergencies and critical situation

Charitable Giving: If you don't have any family or any debt obligation, you can always use your permanent life insurance for some great means of yours such as charitable giving. Identify those charity organizations which you would like to make contributions to and identify them as your beneficiaries. Final Expenses for yourself: These can be those final expenses which need to be taken care of even after you are gone from this world. Such as the charges for your funeral and Burial arrangement, your large medical or nursing home bills during the last 2-3 months of your life if you are dying with serious illness. Life insurance is a fine candidate as far as these unexpected bills is concerned.

Guidelines

Calculate the amount of life insurance coverage you and your family would truly need in the event a tragedy occurs. What would be required in order for your dependents to maintain a reasonable standard of living? Buy low-load insurance policies which pay minimal up front commissions to an agent as this will help minimize your overall insurance expenses and keep the ratio of commissions to premiums as low as possible. Work with an independent insurance agent who does not work for only one insurance carrier, youll want an agent who represents many different companies as this will help assure you the least expensive, highest quality policy available. Also take advantage of any online resources to assist you in your shopping and price comparisons and be sure to check insurance company ratings as you want to ultimately buy your policy from a solid highly rated company. Buy a policy of insurance that covers only the period of time during which you are exposed to risk. For a period of 30 years or less, term life insurance is likely your best, most cost-effective coverage option.

When unsure of the time frame you require for coverage, it may be wise to purchase a policy with a conversion option that would allow you to convert from a standard term policy to a policy of whole life. Be aware that the trade off involved in having the conversion option is of course a higher cost. Create and customize your own whole life policy by purchasing a policy of term life and using the savings or spread in your premiums to invest in an IRA or to pay off any high interest debt youve accumulated. Only use whole and universal life as a tax-sheltered investment vehicle if you have exhausted all other sources of tax-advantaged savings (i.e. IRAs, 401(k) and the like). Before purchasing whole or universal life compare the associated investment options of the policy to all other tax-sheltered investment vehicles to determine which options will truly help you meet your long range objectives.

LEAP FINANCIAL SERVICES

FINANCIAL SEARCH.SIMPLIFIED With 96 Banks, 48 Mutual Fund Companies and 23 Life Insurance companies in India, the choice available to a consumer is high and so is the challenge in finding the most suitable product. Dial-A-Bank has been created with the objective of helping clients overcome this challenge and make their Financial Life EASY. Dial-A-Bank is promoted by a group of senior corporate executives having a combined experience of over 45 years in the financial services sector. The understanding of financial products and experience of managing client relationships helps make the offering practical and valuable. The Service is available on Phone and Internet and is backed by a detailed research of the products available from leading providers across Banks, Mutual Funds and Insurance Companies. The Tele Relationship Managers are trained to understand client requirements and provide information on relevant and suitable offers available in the market.

PRODUCTS AND SERVICES PROPERTY PERSONAL BUSINESS LIFE OTHER LOAN LOAN LOAN INSURANCE PRODUCTS

PROPERTY LOAN Types of Home Loans

The Housing Finance Companies (HFCs) now offer individuals with various alternatives to choose from while buying a home loan. And the availability of Home Loans offered is as varied as their requirements. Home Purchase loans: This is a basic type of Home Loan for the purchase of a new home. This type of home loan is for the purpose of buying a flat in a society or purchasing an already built house. Home Construction Loan: these home loans are provided for the construction of a new home. If you have purchased this plot within a period of one year before you started construction of your house, most HFCs will include the land cost as a component, to value the total cost of the property. Home Improvement Loan: These loans are given for implementing repair works and renovations in a home that has already been purchased by you. It may be requested for external works like structural repairs, waterproofing or internal works like tiling and flooring, plumbing, electrical work, painting, etc. Home extension Loan: An extension loan is one which helps you to meet the expenses of any alteration to the existing building like extension/ modification of an existing home; for example addition of an extra room etc.

Home Conversion Loan: This is available for those who have financed the present home with a home loan and wish to purchase and move to another home for which some extra funds are required. Land Purchase Loan: Land Purchase Loans are available for purchase of land for both home construction or investment purposes. So, you can be granted this loan even if you are not planning to construct any building on it in the near future. Stamp Duty Loans: These loans are sanctioned to pay the stamp duty amount that needs to be paid on the purchase of property. Bridge Loans: Bridge Loans are designed for people who wish to sell the existing home and purchase another. The bridge loan helps finance the new home, until a buyer is found for the old home. Refinance Loans: These loans help you pay off the debt you have incurred from private sources such as relatives and friends, for the purchase of your present home. NRI Home Loans: This is tailored for the requirements of Non-Resident Indians who wish to build or buy a home or property in India.

Dialabank.com helps you find the most suitable offer for Home Loan
Personalised Service: Our trained Relationship Managers will understand your requirements and your profile and help you find the most suitable Home Loan offer. Rate Comparison: We help you understand the details of all costs involved in taking a Home Loan and help you find the Cheapest Offer.

Research: Benefit from our detailed research on all the products from the leading Home Loan players in the market and make the right choice. Zero Charges: Dialabank offers personalised service to its customers at zero fees. Use our services to find the right Home Loan deal at no extra cost. Unbiased and Transparent Search: Our objective is to simplify your Home Loan search and we provide information in an unbiased and transparent manner

Types Of Interest On Home Loan

Fixed interest rate home loans allow the repayment in fixed equal monthly installments over the entire period of the loan. The interest rates in such a case are fixed and dont change with market fluctuations. A fixed rate home loan is excellent for those who are good at budgeting and want a fixed monthly repayment schedule, which is easy to budget and doesn't fluctuate. Floating interest rate home loans are tied up to a base rate plus a floating element thereof. So, if the base rate varies the floating interest rate also varies. If the floating rate goes over the fixed rate, it will be for some period of the loan not for the entire tenure. The interest rates will surely fall over a long period and thus floating interest rate brings a lot of savings.

Income Tax deduction on Interest paid on the Home Loan

As per Sec 24(b) of the Income Tax Act, 1961 a deduction up to Rs. 150,000 towards the total interest payable on the home loan towards purchase / construction of house property can be claimed while computing the income from house property. (The deduction stands reduced to Rs 30,000 in case of loans taken prior to March 1, 1999). The interest payable for the pre-acquisition or preconstruction period would be deductible in five equal annual installments commencing from the year in which the house has been acquired or constructed.

Tenure Of The Home Loan Loans are usually for a maximum period of 15 years (which may go up to 20 years in some cases). Longer tenure loans have smaller monthly installments. You can still get a large loan on a relatively small monthly salary by choosing to take a longer period loan. However, longer period loans maybe more expensive (higher rate of interest) even though the monthly installment payment is lower. Documents Required Most importantly, all Home Loan deals and offers agreed upon are supported by relevant papers. Self employed and salaried require different documents to support the deal. So make sure you always ask for a letter on the banks letterhead mentioning the likes of, exact rate of interest, processing fees, pre-payment charges along with interest-schedule. Before signing the Home Loan documents, make sure you recheck all terms and conditions. Do make sure you understand and agree with each of the clauses in the documents. Do not sign any blank documents. Documents required for Home Loan are different for salaried and self employed:

Salaried Individuals Self-Employed/Businessmen If a flat is purchased from the builder If the property is being purchased is in Cooperative Society If constructing on own land

Home Loan Eligibility When computing loan eligibility, banks take into account the age of the applicant, his salary, repayment/credit history, savings, profession, location of property, and other debts. Some professions are categorized as negative or risky by the lenders while some jobs fall in the preferred list. As a thumb rule, the EMI for your home loan must not exceed 40 percent of your gross monthly income.

Following are other factors helping in evaluation of home loan eligibility:

Nature of Job of Individual: Nature of Job of the Individual: Most home financing companies carry a list of 'negative' professions. This can cause a lot of hassles for the individual coming from such professions before being finally getting the loan amount Location of the Property: Likewise, they may consult another list known to carry 'negative areas'. Any individual applying for the loan to get a home in such areas may not be granted the loan by home finance companies. The same is the case with the property falling within the geographical limits as defined by the home financing institutions. Personal Details of individual: Personal details of the individual are another factor that is taken into account by home finance companies. It may or may not contain credit history of the individual as per the formalities to be filled with the concerned institution. All these factors help the lenders in deciding the individual's home loan eligibility.

Charges For Home Loans

Before applying for home loan, know the rate of charges, penalty or fee charged by your lending company or bank for default in monthly EMI. Know the processing charge and in case you decide to switch your loan from current lender to new lender, current lender will charge penalty or fee for pre-closure of your loan. Name Of The Bank State Bank Of India HDFC Ltd. AXIS Bank ICICI Bank Standard Chartered Bank DHFL Bank Of Baroda Reliance Consumer Finance HSBC 10.00% - 10.75% Citibank Interest Rates 8.75%- 10% 9.75%- 10.25% 9.75%- 10.25% 9.50% - 10.00% 9.75% 10.25%- 11.00% 10.00% - 11.50% 10.25% - 10.50% 10.00% - 13.00% Apply Apply For SBI Home Loan Apply For HDFC Home Loan Apply For AXIS Home Loan Apply For ICICI Home Loan Apply For SCB Home Loan Apply For DHFL Home Loan Apply For BOB Home Loan Apply For Reliance Home Loan Apply For HSBC Home Loan Apply For Citibank Home Loan

PERSONAL LOAN
Dialabank.com helps you find the most suitable offer for Personal Loan
Personalised Service: Our trained Relationship Managers will understand your requirements and your profile and help you find the most suitable Personal Loan offer. Rate Comparison: We help you understand the details of all costs involved in taking a Personal Loan and help you find the Cheapest Offer. Research: Benefit from our detailed research on all the products from the leading Personal Loan players in the market and make the right choice. Zero Charges: Dialabank offers personalised service to its customers at zero fees. Use our services to find the right Personal Loan deal at no extra cost. Unbiased and Transparent Search: Our objective is to simplify your Personal Loan search and we provide information in an unbiased and transparent manner

Types of Personal Loan

Secured Personal Loan A secured loan is guaranteed by property and, therefore, has a lower interest rate. For example, a mortgage is a secured loan, guaranteed by the home itself. If the borrower defaults on the loan, the lender can take possession of the home to recoup the money on the defaulted loan. The fact that the lender has the collateral in case of default is part of what drives down interest rates on secured loans. Unsecured Personal Loan Unsecured personal loans are the loans which are provided by financial institution without any collateral security, this means that there is no risk on owned property. A personal loan -- one without collateral -- for the same amount is not as safe for the lender. Because of this, the lender charges higher interest rates to balance out the greater risk. Even though the interest rates on personal loans are higher than those of secured loans, personal loan interest rates are usually still lower than credit card rates -- at least after the initial teaser rates.

Bad credit Personal Loan This Kind Of Personal Loan is the best option when one is stuck in a bad credit situation. Specially designed for people with blotted credit history, this personal loan option gives them the opportunity to get out of the financial crisis and improve their credit history too, but at higher interest rate and a very stringent repayment plan.

Personal Loan Eligibility

Personal Loan for Salaried: Applicant should be Indian Citizens. Minimum age required is 21 years and Maximum 58/60 years. Minimum work experience of one month in current company and 3 years overall. Minimum net take Home - Rs.20, 000/- per month. Residence-either Owned, rented or company provided. Telephone/ mobile mandatory at residence. Currently most of the banks are providing unsecured personal loans only to employees of Private Ltd, Limited and Multinational Companies.

Personal Loan for Self Employed: Applicant should be Indian Citizens Minimum age required is 23/25 years and Maximum 65 years. Minimum 3 years experience in same business. Minimum income Rs. 2.50lakh per annum. Residence/Office -either Owned, rented or company provided either residence or Office should be self owned. Telephone/ mobile mandatory at residence and office. Partnership firms, Private Ltd. companies and deemed Limited companies are eligible

Personal Loan Documentation Usually the procedure of Approval of personal loans is quick and a loan is approved with simple documentation.

For Salaried Employees Proof of Identity (Passport Copy/ Voters ID card/ Driving Licence). Address Proof (Ration card Tel/elect. Bill/ Rental agreement / Passport copy/Trade licence /Est./Sales Tax certificate) Bank Statements(latest 6 months bank statement /passbook) Latest salary slip or current dated salary certificate with latest Form 16

For Self - Employed Self Employed Persons and Professional ( Doctors / Lawyers / Engineers / Architects ), except for the salary statements above, other documents such as tax return documents, Balance Sheet / Profit Loss Statement of the firm he owns may be required.

Personal Loan - Rate of Interest

SALARIED INDIVIDUALS Name Of The Bank SBI HDFC AXIS Bank Standard Chartered Bank Of Baroda Citibank Fullerton India CAT A 16.75% 15.5%- 19% 16% 16% - 17% 15.50% 16%-17% 19% CAT B 16.75%-20% 15.5%-19% 18% 17% - 18% 16% 17%-18% 21%-23% Others 16.75%-20% 22% 19%-23% 19% - 22% N.A. 18%-19% 21%-28%

Business Loan
Dialabank.com helps you find the most suitable offer for Business Loan Personalised Service: Our trained Relationship Managers will understand your requirements and your profile and help you find the most suitable Business Loan offer. Rate Comparison: We help you understand the details of all costs involved in taking a Business Loan and help you find the Cheapest Offer. Research: Benefit from our detailed research on all the products from the leading Business Loan players in the market and make the right choice. Zero Charges: Dialabank offers personalised service to its customers at zero fees. Use our services to find the right Business Loan deal at no extra cost. Unbiased and Transparent Search: Our objective is to simplify your Business Loan search and we provide information in an unbiased and transparent manner. What is a Business Loan If you own a business, you will need money to run it smoothly. When you run out of money, you might face difficulties to run your business. Business loans are sought for the purpose of expansion and growth of a business.Business loans are provided by various banks to business people for their short or long term financial needs. For any business whether in initial stage or in growth phase, capital is required to keep up the momentum,Acquiring a right kind of office space is essential for the success of the business. And to fulfil these purposes various private and public sector banks provide business loans to facilitate individuals realize their dreams.

Purpose of a Business Loan Businesses raise their capital by inviting shares and debentures or simply borrowing from banks and other lending institutions. And the purpose of doing so could be different Expansion of an existing business Compensating a deficit in the operating capital Designing a new concept or product in a new business Starting a new business Types of Business Loans Secured Business Loans: In secured Business loans, the borrower promises his assets as collateral against the Business loan. In return, the creditor grants the loan. The assets he or she pledges then become a 'secured loan' or In case of a default, the creditor gets the possession of the collateral. As a result, the creditor can recover or regain the amount of the money loaned by selling the collateral. Unsecured Business Loans: Unsecured Business loans are the exact opposite of secured ones. It is a kind of a loan or debt, which is not supported by collateral. It is difficult to get an unsecured Business loan; however, it is cheaper at the same time. Here, the credit rating of the business matters. It is basically an assessment of the repayment capabilities of the business. Professional Loans: Professional loans, as their very name suggests, are provided to self employed professionals like Doctor, Chartered Accountant, Interior Decorator, Architect, Company Secretary, etc. Unsecured in nature, this type of loan is not given to manufacturing, trading or processing units. The amount of loan varies between Rs. 25000 to Rs. 25lakh, considering the age of the applicant, his financial standing, his repayment capacity, tenure of the loan (maximum 5 years), etc. Trade Loans: Trade loans are provided to traders/ businessmen, so as to help them either open a new business or operate/expand an existing one. The amount of loan varies between Rs. 25000 to Rs. 100 lakh, considering

the age of the customer, his financial standing, his repayment capacity, tenure of the loan, etc. Short-term Business Loans: Used for short-term working capital requirements and paid within 1 year. Intermediate Business Loans: Used for new business, to build inventory, buy equipment or increase working capital, and paid between 1 and 3 years. Long-term Business Loans: Used for well established business, to increase fixed assets, for related business acquisitions or expansion, and paid between 3 and 5 years. At times, used for start-up business, to purchase land or buildings, fund construction efforts or finance long-term working capital. Documents Required For Business Loans Business Loan Documents For Professional Loans Proof of Identity (Passport Copy/ Voters ID Card/ Driving License) Address Proof (Ration Card/ Telephone Bill/ /Electricity Bill/ Passport) Bank Statements (latest 6 months bank statement /passbook) Latest ITR, along with computation of income Balance Sheet & P&L Account for the last 2 yrs, certified by a CA Qualification Proof of the Highest Professional Degree Proof of Continuation (Trade license /Establishment /Sales Tax Certificate) Other Mandatory Documents (Sole Proprietorship - Declaration, Partnership - Copy of Partnership Deed, Apart from Copy of MOA, AOA & Board Resolution) Two passport size photographs Business Loan Documents for Sole Proprietorship / Partnership Firm Proof of Identity (Copy of Sales Tax / VAT /Service Tax / Excise Registration Receipt OR Registration under Shops and Establishment Act OR PAN ID / IT Return of the Concern OR Water / Electricity / Municipal Tax Bill in the Name of the Concern OR MAPIN Card in the Name of the Concern) Proof of Individual Identity (Copy of Passport/Voter's Identity Card/Photo PAN Card/Driving License/MAPIN Card)

 Proof of Residence Address (Copy of Passport/Voter's Identity Card/Driving License/Ration Card/Life Insurance Policy/Electricity Bill/Telephone Bill) PAN Number/Form 60 of the Concern Financial Documents (Copy of P & L Account and Balance Sheet for last two years, audited by a CA and Copies of IT returns for the last two years) Bank Statements for last 6 month Partnership Deed (Required only in case of Partnership Firm) Proof of Place of Busine Two passport size photographs

Business Loan Documents for Private Limited Company Proof of Identity (Copy of Sales Tax / VAT /Service Tax / Excise Registration OR Registration under Shops and Establishment Act OR PAN ID / IT Return of the Concern OR Water / Electricity / Municipal Tax Bill in the Name of the Concern OR MAPIN Card in the Name of the Concern) Memorandum and Articles of Association (Copy of Certificate of Incorporation) Board Resolution (Copy of Annual Return establishing the shareholding pattern) Proof of Individual Identity for the authorized signatories and 2 directors, including the managing director (Copy of Passport/Voter's Identity Card/Photo PAN Card/Driving License/MAPIN Card) List of Directors Copy of Form 32 filed with ROC PAN Card / Form 60 of the Concern Financial Documents (Copy of P & L and Balance Sheet for last two years, audited by a CA, and Copies of IT returns for the last two years) Bank Statements for last 6 months Proof of Place of Business Two passport size photographs

Eligibility for a Business Loan

Minimum age: 21 years Maximum age: 65 years Minimum income (annual): Rs. 200,000 Minimum loan amount : Rs. 25,000 Maximum loan amount : Rs. 2,00,00,000 Minimum loan tenure : 1 year Maximum loan tenure : 5 years

Life Insurance Plan

Dialabank.com helps you find the most suitable Life Insurance Plan Personalised Service: Our trained Relationship Managers will understand your requirements and your profile and help you find the most suitable Life Insurance Plan Benefit Comparison: We help you understand the details of the benefits offered by each Life Insurance product and help you find the right product. Research: Benefit from our detailed research on all the products from the leading Life Insurance players in the market and make the right choice. Zero Charges: Dialabank offers personalised service to its customers at zero fees. Use our services to find the right Life Insurance Plan at no extra cost. Unbiased and Transparent Search: Our objective is to simplify your search for the right Life Insurance Plan and we provide information in an unbiased and transparent manner.

Life Insurance Basics Life Insurance is a contract between the policy owner and the insurer, where the insurer agrees to pay a designated beneficiary a sum of money upon the occurrence of the insured individual's or individuals' death or other event, such as terminal illness or critical illness. In return, the policy owner agrees to pay a stipulated amount (at regular intervals or in lump sums). There may be designs in some countries where bills and death expenses plus catering for after funeral expenses should be included in Policy Premium.

The value for the policyholder is derived, not from an actual claim event, rather it is the value derived from the 'peace of mind' experienced by the policyholder, due to the negating of adverse financial consequences caused by the death of the Life Assured. Parties To Life Insurance Contract The parties to a life insurance policy are the following parties, the insured, the beneficiary, the owner and the insurer. The Insured is the person on whom the life insurance is based. Their life is the one that is insured. If they die, or if anything happens to the person that is covered by the insurance then the policy pays out. The beneficiary is the person, or persons, who are paid the money if the event happens. They are the people who will suffer otherwise if the person dies and the monetary compensation is designed to protect them. The owner of the life insurance policy is the person who pays the premiums and is responsible for keeping up payment of the policies. Usually this person is the insured, as they want to take care of the family for which they are the bread winner. Life Insurance Premium and Bonus Premium is the name given to this consideration that the policy holder has to pay in order to Secure the benefits offered by the insurance contract .it can be looked upon as a price of insurance policy , where ,In a contract of insurance , the insurer promises to pay to the policy holder a specified sum of money ,in the event of specified happening. Bonus usually refers to a non-guaranteed benefit added to life insurance policies. A company will usually have a lot of discretion over the level of bonuses it allocates to contracts. Once allocated, bonuses may or may not be reversed by the insurer in case the contract is terminated early. When a traditional life insurance product mentions with profit policy or participating policy, it simply means the policy and thereby the policyholder is eligible to receive a bonus. A bonus is declared out of the surpluses determined after actuarial valuation of the assets and liabilities of the life insurance company. In other words, surpluses (bonus) reflect the profitability of the life insurance company.

Principles of Life Insurance

Consideration: The insureds consideration is the first payment of premium and then after that the continuing payment of premium. The insurers consideration is the offer to pay out the sum insured if the life insured was to die during the policy period. Consensus of agreement: The parties basically must be in agreement about what they are contracting for at the time the agreement comes into force. Insurable interest: The life insurance proposer, the person taking the policy out, must have an insurable interest in the Life Insured. Capacity to contract: Both parties must be able to contract. Minors under the age of 18 years are restricted by the Family law Reform Act 1969. Minors under the age of 18 can enter into a contract but subject to certain restrictions the contract cannot be enforced against them. That is why most insurers will not issue a policy to someone under the age of 18. Offer and acceptance: One party makes an offer and the other party accepts that offer without qualification. If the acceptance is qualified it simply becomes an alternative offer.

Car Loan
Dialabank.com helps you find the most suitable offer for Car Loan

Personalised Service: Our trained Relationship Managers will understand your requirements and your profile and help you find the most suitable Car Loan offer. Rate Comparison: We help you understand the details of all costs involved in taking a Car Loan and help you find the Cheapest Offer. Research: Benefit from our detailed research on all the products from the leading Car Loan players in the market and make the right choice. Zero Charges: Dialabank offers personalised service to its customers at zero fees. Use our services to find the right Car Loan deal at no extra cost. Unbiased and Transparent Search: Our objective is to simplify your Car Loan search and we provide information in an unbiased and transparent manner. Features of Car Loans

In case of a new car, loan amount is up to 90% of cost of the car. In case of used car, loan amount is up to 80% of the car. The maximum loan amount is up to 3 times the annual salary (for salaried professionals) or 6 times the annual income (for self employed professionals). The finance period is usually between 1 to 5 years. Interest is calculated on the basis of compound interest. Equated Monthly Installment (EMI) is worked out for repayment. Early settlement of the pending amount is available.

Documents Required For Car Loans

While availing for instant Car loans some significant documents are required. Some of them are mentioned as under:

Identity Proofs in the form of PAN Card, Driving License, Passport or Voters ID Monthly income evidence in the form of salary receipt for salaried persons and last three years of IT income for businessmen Proof of Address in the form of Electricity Bill, Ration Card, Life Insurance Policy, etc. Bank Passbook transactions of the last 6 months Previous 3 year IT Returns for self employed 2 Passport size photographs Eligibility Criteria for Car Loans

Minimum Age of Applicant While Applying For Loan: 21 years Maximum Age of Applicant at Loan Maturity: 58 years Minimum Employment: 1 year in current employment and minimum 2 years of employment in general Minimum Annual Income: Rs 100,000 (net) Telephone: Must at Residence

Vision
Vision brings together a diverse group of professionals ranging from specialists in investment, pensions, taxation and property to a qualified actuary. It is this blend of skills and insight that allows us to approach financial planning and wealth management in a manner unique to the Northern Ireland market.

Mission

To function as an active forum to aid, advise and assist insurers in maintaining high standards of conduct and service to policyholders. Interact with the Government and other bodies on policy matters. Actively participate in spreading insurance awareness in India. Take steps to develop education and research in insurance.

SWOT ANALYSIS OF LEAP FINANCIAL SERVICES

STRENGTHS

Right products, quality and reliability. Superior product performance vs competitors. Better product life and durability. Some staff have experience of end-user sector. Have customer lists. Direct delivery capability. Product innovations ongoing. Can serve from existing sites. Management is committed and confident.

WEAKNESSES

Customer lists not tested. Some gaps in range for certain sectors. No direct marketing experience. We cannot supply end-users abroad. Need more sales people. Don't have a detailed plan yet. Delivery-staff need training. Customer service staff need training. Processes and systems, etc

OPPORTUNITIES

Could develop new products. Local competitors have poor products. Profit margins will be good. End-users respond to new ideas. Could extend to overseas. New specialist applications. Can surprise competitors. Could seek better supplier deals.

THREATS

Environmental effects would favour larger competitors. Existing core business distribution risk. Market demand very seasonal. Retention of key staff critical. Could distract from core business. Possible negative publicity. Vulnerable to reactive attack by major competitors.

OBJECT OF LEAP FINANCIAL SERVICES

To reduce your income taxes To give you better accessibility over your money To lower your financial costs To provide total needs based and value based insurance protection To lower your financial risk To give you a better understanding of how your money is working for you To provide organization of your financial documents and plans To provide a verifiable financial process

INTRODUCTION TO MUTUAL FUND AND ITS VARIOUS ASPECTS.

Mutual fund is a trust that pools the savings of a number of investors who share a common financial goal. This pool of money is invested in accordance with a stated objective. The joint ownership of the fund is thus Mutual, i.e. the fund belongs to all investors. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciations realized are shared by its unit holders in proportion the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. A Mutual Fund is an investment tool that allows small investors access to a well-diversified portfolio of equities, bonds and other securities. Each shareholder participates in the gain or loss of the fund. Units are issued and can be redeemed as needed. The funds Net Asset value (NAV) is determined each day. Investments in securities are spread across a wide cross-section of industries and sectors and thus the risk is reduced. Diversification reduces the risk because all stocks may not move in the same direction in the same proportion at the same time. Mutual fund issues units to the investors in accordance with quantum of money invested by them. Investors of mutual funds are known as unit holders.

MUTUAL FUND OPERATION FLOW

INVESTORS

PASSED BACK TO

POOL THEIR MONEY WITH

RETURNS

FUND MANAGERS

GENERATES

INVEST IN SECURITIES

When an investor subscribes for the units of a mutual fund, he becomes part owner of the assets of the fund in the same proportion as his contribution amount put up with the corpus (the total amount of the fund). Mutual Fund investor is also known as a mutual fund shareholder or a unit holder. Any change in the value of the investments made into capital market instruments (such as shares, debentures etc) is reflected in the Net Asset Value (NAV) of the scheme. NAV is defined as the market value of the Mutual Fund scheme's assets net of its liabilities. NAV of a scheme is calculated by dividing the market value of scheme's assets by the total number of units issued to the investors.
ADVANTAGES OF MUTUAL FUND

The advantages of mutual funds are given below Portfolio Diversification Mutual funds invest in a number of companies. This diversification reduces the risk because it happens very rarely that all the stocks decline at the same time and in the same proportion. So this is the main advantage of mutual funds Professional Management Mutual funds provide the services of experienced and skilled professionals, assisted by investment research team that analysis the performance and prospects of companies and select the suitable investments to achieve the objectives of the scheme.

 Low Costs Mutual funds are a relatively less expensive way to invest as compare to directly investing in a capital markets because of less amount of brokerage and other fees. Liquidity This is the main advantage of mutual fund, that is whenever an investor needs money he can easily get redemption, which is not possible in most of other options of investment. In open-ended schemes of mutual fund, the investor gets the money back at net asset value and on the other hand in close-ended schemes the units can be sold in a stock exchange at a prevailing market price Transparency In mutual fund, investors get full information of the value of their investment, the proportion of money invested in each class of assets and the fund managers investment strategy.

Flexibility Flexibility is also the main advantage of mutual fund. Through this investors can systematically invest or withdraw funds according to their needs and convenience like regular investment plans, regular withdrawal plans, dividend reinvestment plans etc.

 Convenient Administration Investing in a mutual fund reduces paperwork and helps investors to avoid many problems like bad deliveries, delayed payments and follow up with brokers and companies. Mutual funds save time and make investing easy. Affordability Investors individually may lack sufficient funds to invest in high-grade stocks. A mutual fund because of its large corpus allows even a small investor to take the benefit of its investment strategy. Well Regulated All mutual funds are registered with SEBI and they function with in the provisions of strict regulations designed to protect the interest of investors. The operations of mutual funds are regularly monitored by SEBI.

DISADVANTAGE OF MUTUAL FUND Mutual funds have their following drawbacks No Guarantees No investment is risk free. If the entire stock market declines in value, the value of mutual fund shares will go down as well, no matter how balanced the portfolio. Investors encounter fewer risks when they invest in mutual funds than when they buy and sell stocks on their own. However, anyone who invests through mutual fund runs the risk of losing the money.

 Fees and Commissions All funds charge administrative fees to cover their day to day expenses. Some funds also charge sales commissions or loads to compensate brokers, financial consultants, or financial planners. Even if you dont use a broker or other financial advisor, you will pay a sales commission if you buy shares in a Load Fund. Taxes During a typical year, most actively managed mutual funds sell anywhere from 20 to 70 percent of the securities in their portfolios. If your fund makes a profit on its sales, you will pay taxes on the income you receive, even you reinvest the money you made Management Risk.

When you invest in mutual fund, you depend on fund manager to make the right decisions regarding the funds portfolio. If the manager does not perform as well as you had hoped, you might not make as much money on your investment as you expected. Of course, if you invest in index funds, you forego management risk because these funds do not employ managers.

HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the initiative of the Government of India and Reserve Bank. Though the growth was slow, but it accelerated from the year 1987 when non-UTI players entered the Industry. In the past decade, Indian mutual fund industry had seen a dramatic improvement, both qualities wise as well as quantity wise. Before, the monopoly of the market had seen an ending phase; the Assets Under Management (AUM) was Rs67 billion. The private sector entry to the fund family raised the sum to Rs. 470 billion in March 1993 and till April 2004; it reached the height if Rs. 1540 billion. The Mutual Fund Industry is obviously growing at a tremendous space with the mutual fund industry can be broadly put into four phases according to the development of the sector. Each phase is briefly described as under.

First Phase 1964-87 Unit Trust of India (UTI) was established on 1963 by an Act of Parliament by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial Development Bank of India (IDBI) took over the regulatory and administrative control in Scheme 1964. At the end of 1988 UTI had Rs.6,700crores of assets under management.

Second Phase 1987-1993 (Entry of Public Sector Funds) 1987 marked the entry of non- UTI, public sector mutual funds set up by public sector banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC). SBI Mutual Fund was the first non- UTI Mutual Fund established in June 1987 followed by Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC established its mutual fund in June 1989 while GIC had set up its mutual fund in December 1990.At the end of 1993, the mutual fund industry had assets under management of Rs.47,004crores.

Third Phase 1993-2003 (Entry of Private Sector Funds) 1993 was the year in which the first Mutual Fund Regulations came into being, under which all mutual funds, except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund registered in July 1993.The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual Fund) Regulations 1996. As at the end of January 2003, there were 33 mutual funds with total assets of Rs. 1,21,805crores.

Fourth Phase since February 200ace of RBI. The first scheme launched by UTI was Unit In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of India with assets under management of Rs.29,835crores as at the end of January 2003, representing broadly, the assets of US 64 scheme, assured return and certain other schemes. The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is registered with SEBI and functions under the Mutual Fund Regulations. consolidation and growth. As at the end of September, 2004, there were 29 funds, which manage assets of Rs.153108crores under 421 schemes.

CATEGORIES OF MUTUAL FUND

BASED ON INVESTMENT OBJECTIVE

BASED ON THEIR STRUCTURE

M U T U A L ENDED
FUNDS

OPEN

EQUITY

Index funds Dividend yield equity funds sector funds ELSS Diversified funds

FUNDS F U N D S
CLOSED DEBT BALANCED FUNDS

Debt oriented Equity funds

Liquid funds Income funds Gilt funds

ENDED

FMPs
FUNDS

Floating rate
FUNDS

MIPs Arbitrage fun

Based on their structure: Open-ended funds: Investors can buy and sell the units from the fund, at any point of time. Close-ended funds: These funds raise money from investors only once. Therefore, after the offer period, fresh investments can not be made into the fund. If the fund is listed on a stocks exchange the units can be traded like stocks (E.g., Morgan Stanley Growth Fund). Recently, most of the New Fund Offers of close-ended funds provided liquidity window on a periodic basis such as monthly or weekly. Redemption of units can be made during specified intervals. Therefore, such funds have relatively low liquidity. Based on their investment objective:

Equity funds: These funds invest in equities and equity related instruments. With fluctuating share prices, such funds show volatile performance, even losses. However, short term fluctuations In the market, generally smoothens out in the long term, thereby offering higher returns at relatively lower volatility. At the same time, such funds can yield great capital appreciation as, historically, equities have outperformed all asset classes in the long term. Hence, investment in equity funds should be considered for a period of at least 3-5 years.

It can be further classified as: i) Index funds - In this case a key stock market index, like BSE Sensex or Nifty is tracked. Their portfolio mirrors the benchmark index both in terms of composition and individual stock weightages. ii) Equity diversified funds 100% of the capital is invested in equities spreading across different sectors and stocks. iii|) Dividend yield funds it is similar to the equity diversified funds except that they invest in companies offering high dividend yields. iv) Thematic funds Invest 100% of the assets in sectors which are related through some theme.e.g. An infrastructure fund invests in power, construction, cements sectors etc. v) Sector funds Invest 100% of the capital in a specific sector. e.g. - A banking sector fund will invest in banking stocks.vi) ELSS - Equity Linked Saving Scheme provides tax benefit to the investors.Balanced fund: Their investment portfolio includes both debt and equity. As a result, on the

risk-return ladder, they fall between equity and debt funds. Balanced funds are the ideal mutual funds vehicle for investors who prefer spreading their risk across various instruments. Following are balanced funds classes: i) Debt-oriented funds -Investment below 65% in equities. ii) Equity-oriented funds -Invest at least 65% in equities, remaining in debt. Debt fund :They invest only in debt instruments, and are a good option for investors averse to idea of taking risk associated with equities. Therefore, they invest exclusively in fixed-income instruments like bonds, debentures, Government of India securities; and money market instruments such as certificates of deposit (CD), commercial paper (CP) and call money. Put your money into any of these debt funds depending on your investment horizon and needs. i) Liquid funds- These funds invest 100% in money market instruments, a large portion being invested in call money market. ii) Gilt funds ST- They invest 100% of their portfolio in government securities of and T-bills. iii) Floating rate funds - Invest in short-term debt papers. Floaters invest in debt instruments which have variable coupon rate. iv) Arbitrage fundThey generate income through arbitrage

opportunities due to mispricing between cash market and derivatives market. Funds are allocated to equities, derivatives and money markets. Higher proportion (around 75%) is put in money markets, in the absence of arbitrage opportunities.

v)

Gilt funds LT- They invest 100% of their portfolio in long-term government securities

vi)

Income funds LT- Typically, such funds invest a major portion of the portfolio in long-term debt papers.

vii)

MIPs- Monthly Income Plans have an exposure of 70%-90% to debt and an exposure of 10%-30% to equities.

viii)

FMPs- fixed monthly plans invest in debt papers whose maturity is in line with that of the fund.

RISK RETURN HIERARCHY OF DIFFERENT FUNDS

H I G H Diversified funds Index funds Sector funds

Balanced funds

Debt funds

GILT funds

0 W

MMMF

LOW RETURNS

HIGH RETURNS

INVESTMENT STRATEGIES
Systematic Investment Plan: Under this a fixed sum is invested each month on a fixed date of a month. Payment is made through post dated cheques or direct debit facilities. The investor gets fewer units when the NAV is high and more units when the NAV is low. This is called as the benefit of Rupee Cost Averaging. Systematic Transfer Plan: Under this an investor invest in debt oriented fund and give instructions to transfer a fixed sum, at a fixed interval, to an equity scheme of the same mutual fund. Systematic Withdrawal Plan: If someone wishes to withdraw from a mutual fund then he can withdraw a fixed amount each month.