Portfolio Net

CHAPTER-I INTRODUCTION

CHAPTER-II PROFILE OF ORGANISATION

CHAPTER-III REVIEW OF LITERATURE

CHAPTER-IV DATA ANALYSIS & INTERPRETATION

CHAPTER-V OBSERVATIONS LIMITATION

SUGGESTIONS

BIBILIOGRAPHY

APROJECT REPORT ON PORTFOLIO MANAGEMENT OF LIFE INSURANCE CORPORATION OF INDIA LTD

A Project report Submitted to Osmania University, Hyderabad in Partial fulfillment of the for the Award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

By

MOHD SOHEL JINDANI (05907145)

DEPARTMENT OF MANAGEMENT STUDIES

MRM INSTITUTE OF MANAGEMENT (Affiliated to Osmania University) CHINTAPALLY GUDA, IBRAHIMPATNAM, 501501, R.R.DIST (2007-2009)

DECLARATION I hereby declare that this Project Report titled “ PORTFOLIO MANAGEMENT OF LIFE INSURANCE CORPORATION OF

INDIA LTD ” submitted by me to the Department of Business Management, O.U., Hyderabad, is a bonafide work undertaken by me and it is not submitted to any other University or Institution for the award of any degree diploma / certificate or published any time before.

MOHD SOHEL JINDANI

SIGNATURE OF THE STUDENT

H NO: 18-1-350/22/15, OPP. MASJID-E-ZUL JALAL, GULSHAN-E-IQBAL COLONY, KANCHANBAGH, HYDERABAD-58

ANNEXURE – II CERTIFICATION This is to certify that the Project Report title PORTFOLIOMANAGEMNET

OF

LIFE

INSURANCE

CORPORATION

OF

INDIAsubmitted in partial fulfilment for the award of MBA Programme

of

Department

of

Business

Management, O.U. Hyderabad, was carried out by MR K.RAMAKRISHNA SIR under my guidance. This has not been submitted to any other University or Institution

for

the

award

of

any

degree/diploma/certificate.

Name and address of the Guide

Signature of the Guide

MR K.RAMAKRISHNA

ACKNOWLEDGEMENT

I take the opportunity of thanking Shri

MIR MUSTAFA ALI

KHAN (Chief Life Insurance Advisor) of LIC & Shri MIR DASTAGIR ALI KHAN (Process Trainer) for taking me through the training procedure & valuable suggestions. I am thankful

to my

parents for their love, affection,

blessing and constant encouragement and stood as pillars behind my project ( Principal)

end

work.I would like all

to thank

V.K.MOULI

the faculty members of

MRM

INSTITUTE OF MANAGEMENTfor their kind support end inspiration to complete the project successfully.

It is with great pleasure I expres my gratitude to Mr RAMAKRISHNASIR

Under whose inspiring guidance and

advice this study has been carried out.

MD SOHEL JINDANI

CONTENTS PAGE NO

List of Tables List of Figures

. CHAPTER 1:

INTRODUCTION MEANING OF TITLE METHODOLOGY

CHAPTER 2:

PROFILE OF ORGANISATION

3-7

CHAPTER 3: 8-81

REVIEW OF LITERATURE

1-2

CHAPTER 4

CHAPTER 5:

DATA ANALYSIS & INTERPRETATION 82-84

OBSERVATIONS, & SUGSSIONS

85-87 BIBLIOGRAPHY 88

LIST OF TABLES TABLE NO

TITLE

PAGE NO

1.

WHOLE LIFE PLAN

12-14 2.

WHOLE LIFE PLAN-LIMITED PAYMENTS

19-21 3. 25-26

WHOLE LIFE PLAN-SINGLEPAYMENTS

4.

MONEY BACK POLICY-20 YEARS

28-35 5.

MONEY BACK POLICY-25 YEARS

37-43 6.

FORTUNE PLUS

49-56 7.

CDA ENDOWEMENT VESTING AT 18

61-62 8.

GROUP GRATUITY SCHEME

65 9.

EDUCATION INSURANCE PLAN

68 10.

WEALTH CREATION PLUS

70-72 11.

PREMIUM GUARANTEE PLUS

73 12.

PROTECTION PLAN

75 13.

LIFE STAGE PENSION PLAN

76 14.

PREMIER LIFE PENSION

77 15. 79

LIFE TIME SUPER PENSION

16.

LIFE LINK SUPER PENSION

80

LIST OF FIGURES FIGURE NO

TITLE

PAGE NO

1.

GRAPH ANALYSIS

82-84 2.

Product profile

24-35

RESEARCH METHODOLOGY

The plan of the study of portfolio management of life insurance corporation. is described as follows. The information has gathered from the two main sources of data collection. They are-

1. Primary Data 2. Secondary Data

Primary Data: it

has been collected through the guidance of our

trainer with through knowledge of life insurance and their terminology of product in detail with each and every insurance products terms and tenure.

Secondary Data:

it has been collected through the websites,

books,

newspaper,

magazines,

journals

for

information regarding project under study.

collecting

MEANING OF PORTFOLIO MANAGEMENT Portfolio management is the selection and management of all of

an

organization’s

projects,

programmes

and

related

business-as-usual activities taking into account resource constraints. A portfolio is a group of projects and programmes carried

out

under

the

sponsorship

of

an

organization.

Portfolios can be managed at an organizational, programme or functional level. The process of managing the assets of a insurance policy or policy holder, including choosing and monitoring appropriate investments and allocating funds accordingly.It has often been said that portfolio management is not a science, but an art. Certainly,

the human

factor

manifesting

in a

portfolio

manager’s ability to create outperformance bears out this truism. Computer system can pick and run to some extent, portfolio which will provide a return equal to an index, but the possibilities

of higher fund

outperformance

(and

under

performance) are presented by actively managed funds. With the more actively managed funds, portfolio managers can demonstrate their experience and expertise in picking assets, countries, sectors’, and companies that will generate positive returns. If you own more than one security, you have an investment portfolio. You build the portfolio by buying additional stocks, bonds, mutual funds, or other investments. Your goal is to

increase the portfolio's value by selecting investments that you believe will go up in price. According to modern portfolio theory, you can reduce your investment risk by creating a diversified portfolio that includes enough different types, or classes, of securities so that at least some of them may produce strong returns in any economic climate. Note that this explanation contains a number of important ideas:

Over time, other industry sectors have adapted and applied these ideas to other types of "investments," including the following:

COMPANY PROFILE’S LIFE INSURANCE COMPANY OF INDIA LTD It was established in the year 1956 on September 1. The Life Insurance Corporation of India(LIC) is the largest life insurance company in India and also the country's largest investor. It is fully owned by the Government of India. It also funds close to 24.6% of

the Indian Government's expenses. it is 53 years old organization. Its Headquartered is in Mumbai, which is considered the financial capital of India, the Life Insurance Corporation of India currently has 8 zonal Offices and 101 divisional offices located in different parts of India, at least 2048 branches located in different cities and towns of India along with 500 satellite Offices attached to about some 50 Branches, and has a network of around one million and 200 thousand agents for soliciting life insurance business from

the

public.

Indian

Insurance

Industry

has

conceived Life Insurance Industry. CORPORATE OFFICE:LIC’s corporate office is in Mumbai and it is headed by chairman along with 3 Executives directors who are incharge of their portfolios. Executive Director – Marketing and Sales. Executive Director – Finance and Accounts. Etc – Etc.

ZONA LOFFICE:LIC’S Zonal Office is located at various zones in India. One of the most important South Central Zone of LIC is located at

Hyderabad (Opposite Secretariat). Zonal Office is headed by Zonal Manager and his/her team.

LIC’S DIVISIONAL OFFICE:LIC’S Divisional Office is the 3rdin the administrative system and it is headed by person called as “Senior Divisional Manager”. The Senior Divisional Manager head’s

his team

which is consisting of Divisional Manager and Marketing Managers.

LIC’S BRANCH OFFICE:LIC in its administrative setup has got maximum to maximum its branch offices all over India encounting 2048. The Branch Office is headed by a Branch Manger and in some of the branches LIC has also the concept of “Chief Manager”. Chief Manager has his team of Development Officers and Agents to do the business

LIC’S WORK FORCE:At the Administrative Level LIC has a employee force of 2,00,000 at various- various designations. At the Marketing Force LIC works with 12,00, 000. Agents and more than 2,00,000 Development Officers for achieving the LIC’S life

insuring target. Appraisals and Promotions are from time to time in this organization.

LIC’S PORTFOLIO:- LIC’S main initiative was mainly to provide Life Insurance to each and every person of an Indian Origin. LIC when it comes to Life Insurance has plans on Need level basis.LIC has conventional plans and non conventional plans. LIC MF started in the year 1989 on 19th June with a corpus of 2,00,00,000. LIC in the mutual fund industry has got 20 open ended funds and 25 closed ended funds. LIC on Mutual Funds set up has got 4 Independent Directors for running the admin. Started in the year 1989 on 19th June.LIC HFL has also started Public Deposit Schemes. LIC HFL promotes Housing Finance for purchase of apartments or independent flats. LIC also has share pattern as it invests in housing finance. In the year 2009

LIC

will

enter

into

Venture

capital

industry.

LIC

introduced health insurance in the year 2008 with Health Plus as its product. Health Plus is a product of health + stock market. Health Insurance has got health benefits such as MSB and HCB and also stock market.

ICICI PRUDENTIAL LIFE INSURANCE COMPANY ROFILE

ICICI Prudential Life Insurance is a joint venture between the ICICI Group and Prudential plc, of the UK. ICICI started off its operations in 1955 with providing finance for industrial development, and since then it has diversified into housing finance, consumer finance, mutual funds to being a Virtual Universal Bank and its latest venture Life Insurance.

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. 47.80 billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%.We began our operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). Today, our nation-wide team comprises of over 2000 branches (inclusive of 1,100 micro-offices), over 258,000 advisors; and 24 banc assurance partners. ICICI Prudential is 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 - AC Nielsen ORG Marg survey of 'Most Trusted Brands'. As we grow our distribution, product range and customer

base, we continue to tirelessly uphold our commitment to deliver world-class financial solutions to customers all over India. Established in 1848, Prudential plc. of U.K. has grown to be the largest life insurance and mutual fund company in U.K. Prudential plc. has had its presence in Asia for the past 75 years catering to over 1 million customers across 11 Asian countries. Prudential is the largest life insurance company in the United Kingdom (Source : S&P's UK Life Financial Digest, 1998).ICICI and Prudential came together in 1993 to provide mutual fund products in India and today are the largest private sector mutual fund company in India. Their latest venture ICICI Prudential Life plans to take care of the insurance needs at various stages of life. ICICI is the no.1 private player in Insurance market in term of the premium share, 7913 crores (approx) was the total [premium by ICICI Prudential in the year 2006, which is 28% of the total premium contribution by all private players in the market. 2,34,460 is the number of the Life Advisors that ICICI PRUDENTIAL was having till 2006-2007, and the number of branches that they are having is 583 which ahs drastically changed from year 2005- 2006 to 2006-2007. This magic number 583 has turned from the number 175.

So, here we have the marketing strategy for the ICICI Prudential that it is playing on the numbers of Life Advisors and widening its network to increase its market share. Contact Information ICICI Prudential Life Insurance Company Limited Registered Office ICICI Towers 9th floor, Bandra-Kurla Complex Mumbai - 400 051. Tel: 494 3232 Delhi office: 3rd floor Videocon Towers

FINANCIAL PRODUCT OF LIFE INSURANCE COMPANY OF INDIA

1)

WHOLE LIFE PLAN:-

This plan is mainly devised to create an estate for the heirs of the policy holder as the plan basically provides for payment of sum assured plus bonuses on the death of the policyholder. However, considering the increased

longevity of the Indian population, the Corporation has amended the above provision, thereby providing for payment of sum assured plus bonuses in the form of maturity claim on completion of age 80 years or on expiry of term of 40 years from date of commencement of the policy whichever is later.The premiums under the policy are payable up to age 80 years of the policyholder or for a term of 35 years whichever is later. If the payment of premium ceases after 3 years, a paid-up policy for such reduced sum assured will be automatically secured provided the reduced sum assured exclusive of any attached bonus is not less than Rs.250

Suitable For:This policy is suitable for people of all ages who wish to protect their families from financial crises that may occur owing to the policyholder’s premature death. BENEFITS:Insurance Regulatory & Development Authority (IRDA) requires all life insurance companies operating in India to provide official illustrations to their customers. The illustrations are based on the investment rates of return set by the Life Insurance Council (constituted under Section 64C(a) of the Insurance Act 1938) and is not intended to reflect the actual investment returns achieved or may be achieved in future by Life Insurance Corporation of India (LICI).For the year 2004-05 the two rates of investment return declared by the Life Insurance Council are 6% and 10% per annum.

PRODUCT SUMMARY :This is a whole of life assurance plan that provides financial protection against death through out the lifetime of the Life Assured. Premiums: Under Table Nos 2 & 5 the premiums are payable yearly, half-yearly, quarterly, monthly or through Salary deductions, as opted by you. Under Table

No 8 the premium is payable in one lump sum (Single Premium). Under Table No 2 the premiums are payable for a period of 35 years or up to age 80 years, whichever is later. Under Table No 5 the premiums are payable up to the selected premium paying period. Under Table No 2 the premiums are payable for a period of 35 years or up to age 80 years, whichever is later. Under Table No 5 the premiums are payable up to the selected premium paying period. The premiums are payable for the periods as specified above or up to earlier death Bonuses: This is a with-profit plan and participates in the profits of the Corporation’s life insurance business. It gets a share of the profits in the form of bonuses. Simple Reversionary Bonuses are declared per thousand Sum Assured annually at the end of each financial year. Once declared, they form part of the guaranteed benefits of the plan. A Final (Additional) Bonus may also be payable provided a policy has run for certain minimum period.

Death Benefit : The Sum Assured plus all bonuses to date is payable in a lump sum upon the death of the life assured. Maturity Benefit :

This is a whole of life assurance plan and hence does not have a

maturity

date. You, however, have the option to take the Sum Assured plus all bonuses declared under the policy anytime after 40 years from the date of commencement of the policy provided you have attained, at least, 80 years of age.

Supplementary/Extra Benefits : These are the optional benefits that can be added to your basic plan for extra protection/option. An additional premium is required to be paid for these benefits. Surrender Value : Buying a life insurance contract is a long-term commitment. However, surrender value is available under the plan on earlier termination of the plan. Guaranteed Surrender Value : The policy may be surrendered after it has been in force for 3 years or more. The guaranteed surrender value is 30% of the basic premiums paid excluding the first year’s premium. In case of a single premium policy the guaranteed surrender value is 90% of the single premium paid excluding any extra/additional premium. CORPORATION’S POLICY ON SURRENDERS : In practice, the Corporation will pay a Special Surrender Value – which is either equal to or more than the Guaranteed Surrender Value. The benefit payable on surrender reflects the discounted value of the reduced claim amount that would be payable on death. This value will depend on the duration for which premiums have been paid and the policy duration at the date of surrender. In some circumstances, in case of early termination of the policy, the surrender value payable may be less than the total premiums paid.The Corporation reviews the surrender value payable under its plans from time to time depending on the economic environment, experience and other factors.

SURVIVAL BENEFIT:Sum assured plus accrued bonuses and the terminal bonuses, if any, on the policyholder attaining age 80 years or on expiry of term of 40 years from the date of commencement of the policy whichever is later.

DEATH BENEFIT Sum assured plus accrued bonuses and the terminal bonuses, if any, on the death of the policyholder are paid to his/her nominees/heirs. BENEFIT ILLUSTRATION Statutory warning “Some benefits are guaranteed and some benefits are variable with returns based on the future performance of your insurer carrying on life insurance business. If your policy offers guaranteed returns then these will be clearly marked “guaranteed” in the illustration table on this page. If your policy offers variable returns then the illustrations on this page will show two different rates of assumed future investment returns. These assumed rates of return are not guaranteed and they are not upper or lower limits of what you might get back as the value of your policy is dependent on a number of factors including future investment performance.”

Table No 2 Age at entry: 35 years Sum Assured: Rs.1,00,000/Premium Paying term: 45 years Mode of premium payment: Yearly Annual Premium: Rs.2917/-

En d of yea r

1 2 3 4 5 6 7

Total Benefit payable on death / maturity at premiu the end of year ms paid Variable Total till end Guarante Scena Scena Scena Scenar of year ed rio 1 rio 2 rio 1 io 2

2917 5834 8751 11668 14585 17502 20419

100000

3900 10800

10390 11080 0 0

100000

7800 21600

10780 12160 0 0

100000 11700 32400

11170 13240 0 0

100000 15600 43200

11560 14320 0 0

100000 19500 54000

11950 15400 0 0

100000 23400 64800

12340 16480 0 0

100000 27300 75600

12730 17560 0 0

8 9

23336 26253

10 29170 15 43755 20 58340 25 72925 30 87510 35 102095 40 116680 45 131265

100000 31200 86400

13120 18640 0 0

100000 35100 97200

13510 19720 0 0

100000 39000

10800 13900 20800 0 0 0

100000 58500

16200 15850 26200 0 0 0

100000

10400 28800 20400 38800 0 0 0 0

100000

13000 36000 23000 46000 0 0 0 0

100000

15600 43200 25600 53200 0 0 0 0

100000

18200 50400 28200 60400 0 0 0 0

100000

20800 57600 30800 67600 0 0 0 0

100000

23400 64800 33400 74800 0 0 0 0

Table No 5 Age at entry: 35 years Sum Assured: Rs.1,00,000/Premium Paying term: 15 years Mode of premium payment: Yearly Annual Premium: Rs.4,444/End Total Benefit payable on death / maturity at the end of premium of year yea s paid till Variable Total r end of Guarantee year Scenari Scenari Scenari Scenari d o1 o2 o1 o2 1

4444

100000

3900

10800

103900 110800

2

8888

100000

7800

21600

107800 121600

3

13332

100000

11700

32400

111700 132400

4

17776

100000

15600

43200

115600 143200

5

22220

100000

19500

54000

119500 154000

6

26664

100000

23400

64800

123400 164800

7

31108

100000

27300

75600

127300 175600

8

35552

100000

31200

86400

131200 186400

9

39996

100000

35100

97200

135100 197200

10

44440

100000

39000

108000 139000 208000

15

66660

100000

58500

162000 158500 262000

20

66660

100000

104000 288000 204000 388000

25

66660

100000

130000 360000 230000 460000

30

66660

100000

156000 432000 256000 532000

35

66660

100000

182000 504000 282000 604000

40

66660

100000

208000 576000 308000 676000

45

66660

100000

234000 648000 334000 748000

Note This illustration is applicable to a non-smoker male/female standard (from medical, life style and occupation point of view) life.The non-guaranteed benefits (1) and (2) in above illustration are calculated so that they are consistent with the Projected Investment Rate of Return assumption of 6% p.a. (Scenario 1) and 10% p.a. (Scenario 2) respectively. In other words, in preparing this benefit illustration, it is assumed that the Projected Investment Rate of Return that LICI will be able to earn throughout the term of the policy will be 6% p.a. or 10% p.a., as the case may be. The Projected Investment Rate of Return is not guaranteed. The main objective of the illustration is that the client is able to appreciate the features of the product and the flow of benefits in different circumstances with some level of quantification. Future bonus will depend on future profits and as such is no guaranteed. However, once bonus is declared in any year and added to the policy, the bonus so added is guaranteed. The Maturity Benefit is the amount shown at the end of 45 years.

Age at entry:

Minimum - 15 years last birthday Maximum - 60 years

Sum Assured:

Minimum - Rs.50,000/- Maximum - No limit

Mode of payment:

Yearly, half-yearly, quarterly, monthly and SSS

Policy Loan:

Yes

1.)WHOLE LIFE POLICY-LIMITED PAYMENT:This is the best form of life assurance for family provision since it enables the Life Assured to pay all the premiums during the ordinarily vigorous and most productive

years of life. He need not pay any premium in the later stages of life if and when his conditions might become adverse. With Profits Limited Payments Policies do not cease to participate in profits after completion of the premium paying period but continue to share in the periodical Bonus Distribution until the death of the Life Assured.The WithoutProfit option is available under Table no. 3. If the policyholder pays at least 3 years' premiums and then discontinues paying any more premium, a reduced paid-up assurance policy comes into force. Such a reduced paid-up Policy will not be entitled to participate in the profits declared thereafter, but such Bonus as has already been declared on the Policy will remain attached thereto. The premium paying term under this plan is five years minimum and 55 years maximum. BENEFITS:Insurance Regulatory & Development Authority (IRDA) requires all life insurance companies operating in India to provide official illustrations to their customers. The illustrations are based on the investment rates of return set by the Life Insurance Council (constituted under Section 64C(a) of the Insurance Act 1938) and is not intended to reflect the actual investment returns achieved

or may be achieved in future by Life Insurance Corporation of India (LICI).For the year 2004-05 the two rates of investment return declared by the Life Insurance Council are 6% and 10% per annum.

Product-summary:- This is a whole of life assurance plan that provides financial protection against death through out the lifetime of the Life Assured. Premiums: Under Table Nos 2 & 5 the premiums are payable yearly, halfyearly,

quarterly, monthly or through Salary

deductions, as opted by you. No

8

the

premium

is

Under Table payable

in

one

lump

sum

(Single Premium). Under Table No 2 the premiums are payable for a period of 35 years or up to age 80 years, whichever is later. Under Table No 5 the premiums are payable up to the selected premium paying period. The premiums are payable for the periods as specified above or up to earlier death Bonuses: This is a with-profit plan and participates in the profits of the Corporation’s life insurance business. It gets a share of the profits in the form of bonuses.

Simple Reversionary

Bonuses are declared per thousand Sum Assured annually at the end of each financial year. Once declared, they form

part of the

guaranteed benefits of the plan. A

Final (Additional) Bonus may also be payable provided a policy has run for certain minimum period. Death Benefit : The Sum Assured plus all bonuses to date is payable in a lump sum upon the death of the life assured. Maturity Benefit : This is a whole of life assurance plan and hence does not have a maturity date. You, however, have the option to take the Sum Assured plus all bonuses declared under the policy anytime after 40 years from the date of commencement of the policy provided you have attained, at least, 80 years of age.

Supplementary/Extra Benefits : These are the optional benefits that can be added to your basic plan for extra protection/option. An additional premium is required to be paid for these benefits. Surrender Value : Buying a life insurance contract is a long-term commitment. However, surrender value is available under the plan on earlier termination of the plan. Guaranteed Surrender Value : The policy may be surrendered after it has been in force for 3 years or more. The guaranteed surrender value is 30% of the basic premiums paid excluding the first year’s premium. In case of a single premium policy the guaranteed surrender value is 90% of the single premium paid excluding any

extra/additional-premium. Corporation’s policy on surrenders : In practice, the Corporation will pay a Special Surrender Value – which is either equal to or more than the Guaranteed Surrender Value. The benefit payable on surrender reflects the discounted value of the reduced claim amount that would be payable on death. This value will depend on the duration for which premiums have been paid and the policy duration at the date of surrender. In some circumstances, in case of early termination of the policy, the surrender value payable may be less than the total premiums paid. The Corporation reviews the surrender value payable under its plans

from time to time depending

on the economic

environment, experience and other factors.

SURVIVAL BENEFIT Sum assured plus accrued bonuses and the terminal bonuses, if any, on the policyholder attaining age 80 years or on expiry of term of 40 years from the date of commencement of the policy whichever is later. DEATH BENEFIT

Sum assured plus accrued bonuses and the terminal bonuses, if any, on the death of the policyholder are paid to his/her nominees/heirs. Benefit Illustration Statutory warning “Some benefits are guaranteed and some benefits are variable with returns based on the future performance of your insurer carrying on life insurance business. If your policy offers guaranteed returns then these will be clearly marked “guaranteed” in the illustration table on this page. If your policy offers variable returns then the illustrations on this page will show two different rates of assumed future investment returns. These assumed rates of return are not guaranteed and they are not upper or lower limits of what you might get back as the value of your policy is dependent on a number of factors including future investment performance.”

Table No 2 Age at entry: 35 years Sum Assured: Rs.1,00,000/Premium Paying term: 45 years Mode of premium payment: Yearly Annual Premium: Rs.2917/End Total of premiums year paid till end of year

Benefit payable on death / maturity at the end of year

Variable Guaranteed

Total

Scenario 1 Scenario 2 Scenario 1 Scenario 2

1

2917

100000

3900

10800

103900

110800

2

5834

100000

7800

21600

107800

121600

3

8751

100000

11700

32400

111700

132400

4

11668

100000

15600

43200

115600

143200

5

14585

100000

19500

54000

119500

154000

6

17502

100000

23400

64800

123400

164800

7

20419

100000

27300

75600

127300

175600

8

23336

100000

31200

86400

131200

186400

9

26253

100000

35100

97200

135100

197200

10

29170

100000

39000

108000

139000

208000

15

43755

100000

58500

162000

158500

262000

20

58340

100000

104000

288000

204000

388000

25

72925

100000

130000

360000

230000

460000

30

87510

100000

156000

432000

256000

532000

35

102095

100000

182000

504000

282000

604000

40

116680

100000

208000

576000

308000

676000

45

131265

100000

234000

648000

334000

748000

Table No 5 Age at entry: 35 years Sum Assured: Rs.1,00,000/Premium Paying term: 15 years Mode of premium payment: Yearly Annual Premium: Rs.4,444/-

End Total of premiums year paid till end of year

Benefit payable on death / maturity at the end of year Variable Guaranteed

Total

Scenario 1 Scenario 2 Scenario 1 Scenario 2

1

4444

100000

3900

10800

103900

110800

2

8888

100000

7800

21600

107800

121600

3

13332

100000

11700

32400

111700

132400

4

17776

100000

15600

43200

115600

143200

5

22220

100000

19500

54000

119500

154000

6

26664

100000

23400

64800

123400

164800

7

31108

100000

27300

75600

127300

175600

8

35552

100000

31200

86400

131200

186400

9

39996

100000

35100

97200

135100

197200

10

44440

100000

39000

108000

139000

208000

15

66660

100000

58500

162000

158500

262000

20

66660

100000

104000

288000

204000

388000

25

66660

100000

130000

360000

230000

460000

30

66660

100000

156000

432000

256000

532000

35

66660

100000

182000

504000

282000

604000

40

66660

100000

208000

576000

308000

676000

45

66660

100000

234000

648000

334000

748000

Note: i) This illustration is applicable to a non-smoker male/female standard (from medical, life style and occupation point of view) life.

ii) The non-guaranteed benefits (1) and (2) in above illustration are calculated so that they are consistent with the Projected Investment Rate of Return assumption of 6% p.a. (Scenario 1) and 10% p.a. (Scenario 2) respectively. In other words, in preparing this benefit illustration, it is assumed that the Projected Investment Rate of Return that LICI will be able to earn throughout the term of the policy will be 6% p.a. or 10% p.a., as the case may be. The Projected Investment Rate of Return is not guaranteed. iii) The main objective of the illustration is that the client is able to appreciate the features of the product and the flow of benefits in different circumstances with some level of quantification. iv) Future bonus will depend on future profits and as such is not guaranteed. However, once bonus is declared in any year and added to the policy, the bonus so added is guaranteed. v) The Maturity Benefit is the amount shown at the end of 45 years. PLAN PARAMETERS:Minimum

Maximum

Entry age

12 (nearer birthday)

60

Sum assured (Rs.)

50000

NO LIMIT

Term (years)

5

55(Max. Prem. ceasing age is 70)

Mode of Payment Yearly, half yearly, quarterly, monthly, salary saving scheme

Maximum premium paying Policy loan available period 80 yrs. of age or 40 yrs. of premium paying term from the date of commencement whichever is later.

Yes

2.) WHOLE LIFE POLICY-SINGLE PREMIUM:This is the best form of life assurance for family provision since it enables the Life Assured to pay the premium during the ordinarily vigorous and most productive years of life, relieving him from the necessity of making payments later in life when they might become a burden. With Profits Single Premium policies do not cease to participate in profits after completion of the period for which premium has been paid ,but continue to share in the periodical Bonus Distribution until the death of the Life Assured. SUITABLE FOR:Being a limited-payment life assurance policy, this plan is suitable for people of all ages and social groups who wish to protect their families from a financial setback that may occur owing to their demise. BENEFITS:Insurance Regulatory & Development Authority (IRDA) requires all life insurance companies operating in India to provide official illustrations to their customers. The illustrations are based on the investment rates of return set by the Life Insurance Council (constituted under Section 64C(a) of the Insurance Act 1938) and is not intended to reflect the actual investment returns achieved or may be achieved in future by Life Insurance Corporation of India (LICI).For the year 2004-05 the two rates of investment return declared by the Life Insurance Council are 6% and 10% per annum.

Product summary This is a whole of life assurance plan that provides financial protection against death through out the lifetime of the Life Assured. Premiums: Under Table Nos 2 & 5 the premiums are payable yearly, half-yearly, quarterly, monthly or through Salary deductions, as opted by you. Under Table No 8 the premium is payable in one lump sum (Single Premium). Under Table No 2 the premiums are payable for a period of 35 years or up to age 80 years, whichever is later. Under Table No 5 the premiums are payable up to the selected premium paying period.

The premiums are payable for the periods as specified above or up to earlier death Bonuses: This is a with-profit plan and participates in the profits of the Corporation’s life insurance business. It gets a share of the profits in the form of bonuses. Simple Reversionary Bonuses are declared per thousand Sum Assured annually at the end of each financial year. Once declared, they form part of the guaranteed benefits of the plan. A Final (Additional) Bonus may also be payable provided a policy has run for certain minimum period. Death Benefit : The Sum Assured plus all bonuses to date is payable in a lump sum upon the death of the life assured. Maturity Benefit : This is a whole of life assurance plan and hence does not have a maturity date. You, however, have the option to take the Sum Assured plus all bonuses declared under the policy anytime after 40 years from the date of commencement of the policy provided you have attained, at least, 80 years of age.

Supplementary/Extra Benefits:These are the optional benefits that can be added to your basic plan for extra protection/option. An additional premium is required to be paid for these benefits. Surrender-Value:Buying a life insurance contract is a long-term commitment. However, surrender value is available under the plan on earlier termination of the plan. Guaranteed-Surrender-Value:The policy may be surrendered after it has been in force for 3 years or more. The guaranteed surrender value is 30% of the basic premiums paid excluding the first year’s premium. In case of a single premium policy the guaranteed surrender value is 90% of the single premium paid excluding any extra/additional-premium.

Corporation’s policy on surrenders:- : In practice, the Corporation will pay a Special Surrender Value – which is either equal to or more than the Guaranteed Surrender Value. The benefit payable on surrender reflects the discounted value of the reduced claim amount that would be payable on death. This value will depend on the duration for which premiums have been paid and the policy duration at the date of surrender. In some circumstances, in case of early termination of the policy, the surrender value payable may be less than the total premiums paid. The Corporation reviews the surrender value payable under its plans from time to time depending on the economic environment, experience and other factors. SURVIVAL BENEFIT:Sum assured plus accrued bonuses and the terminal bonuses, if any, on the policyholder attaining age 80 years or on expiry of term of 40 years from the date of commencement of the policy whichever is later. DEATH BENEFIT:-Sum assured plus accrued bonuses and the terminal bonuses, if any, on the death of the policyholder are paid to his/her nominees/heirs. Benefit Illustration

STATUTORY WARNING :-“Some benefits are guaranteed and some benefits are variable with returns based on the future performance of your insurer carrying on life insurance business. If your policy offers guaranteed returns then these will be clearly marked “guaranteed” in the illustration table on this page. If your policy offers variable returns then the illustrations on this page will show two different rates of assumed future investment returns. These assumed rates of return are not guaranteed and they are not upper or lower limits of what you might get back as the value of your policy is dependent on a number of factors including future investment performance.

Table No 2 Age at entry: 35 years Sum Assured: Rs.1,00,000/Premium Paying term: 45 years Mode of premium payment: Yearly Annual Premium: Rs.2917/End Total of premiums year paid till end of year

Benefit payable on death / maturity at the end of year Variable

Total

Guaranteed

Scenario 1

Scenario 2

Scenario 1

Scenario 2

1

2917

100000

3900

10800

103900

110800

2

5834

100000

7800

21600

107800

121600

3

8751

100000

11700

32400

111700

132400

4

11668

100000

15600

43200

115600

143200

5

14585

100000

19500

54000

119500

154000

6

17502

100000

23400

64800

123400

164800

7

20419

100000

27300

75600

127300

175600

8

23336

100000

31200

86400

131200

186400

9

26253

100000

35100

97200

135100

197200

10

29170

100000

39000

108000

139000

208000

15

43755

100000

58500

162000

158500

262000

20

58340

100000

104000

288000

204000

388000

25

72925

100000

130000

360000

230000

460000

30

87510

100000

156000

432000

256000

532000

35

102095

100000

182000

504000

282000

604000

40

116680

100000

208000

576000

308000

676000

45

131265

100000

234000

648000

334000

748000

Table No 5 Age at entry: 35 years Sum Assured: Rs.1,00,000/Premium Paying term: 15 years Mode of premium payment: Yearly Annual Premium: Rs.4,444/End Total of premiums year paid till end of year

Benefit payable on death / maturity at the end of year Variable Guaranteed

Total

Scenario 1 Scenario 2 Scenario 1 Scenario 2

1

4444

100000

3900

10800

103900

110800

2

8888

100000

7800

21600

107800

121600

3

13332

100000

11700

32400

111700

132400

4

17776

100000

15600

43200

115600

143200

5

22220

100000

19500

54000

119500

154000

6

26664

100000

23400

64800

123400

164800

7

31108

100000

27300

75600

127300

175600

8

35552

100000

31200

86400

131200

186400

9

39996

100000

35100

97200

135100

197200

10

44440

100000

39000

108000

139000

208000

15

66660

100000

58500

162000

158500

262000

20

66660

100000

104000

288000

204000

388000

25

66660

100000

130000

360000

230000

460000

30

66660

100000

156000

432000

256000

532000

35

66660

100000

182000

504000

282000

604000

40

66660

100000

208000

576000

308000

676000

45

66660

100000

234000

648000

334000

748000

B) MONEY BACK PLAN:1.)THE MONEY BACK POLICY-20 YEARS:Unlike ordinary endowment insurance plans where the survival benefits are payable only at the end of the endowment period, this scheme provides for periodic payments of partial survival benefits as follows during the term of the policy, of course so long as the policy holder is alive. In the case of a 20-year Money-Back Policy (Table 75), 20% of the sum assured becomes payable each after 5, 10, 15 years, and the balance of 40% plus the accrued bonus become payable at the 20th year. For a Money-Back Policy of 25 years (Table 93), 15% of the sum assured becomes payable each after 5, 10, 15 and 20 years, and the balance 40% plus the accrued bonus become payable at the 25th year. An important feature of this type of policies is that in the event of death at any time within the policy term, the death claim comprises full sum assured without deducting any of the survival benefit amounts, which have already been paid. Similarly, the bonus is also calculated on the full sum assured.

BENEFITS:INTRODUCTION:Insurance Regulatory & Development Authority (IRDA) requires all life insurance companies operating in India to provide official illustrations to their customers. The illustrations are based on the investment rates of return set by the Life Insurance Council (constituted under Section 64C(a) of the Insurance Act 1938) and is not intended to reflect the actual investment returns achieved or may be

achieved in future by Life Insurance Corporation of India (LICI). For the year 2004-05 the two rates of investment return declared by the Life Insurance Council are 6% and 10% per annum. Product summary :-These are Money Back type Assurance plans that provide financial protection against death throughout the term of plan along with the periodic payments on survival at specified durations during the term. Premiums:Premiums are payable yearly, half-yearly, quarterly, monthly or through salary deductions as opted by you throughout the term of the policy, or till the earlier death. This is a with-profit plan and participate in the profits of the Corporation’s life insurance business. It gets a share of the profits in the form of bonuses. Simple Reversionary Bonuses are declared per thousand Sum

Assured annually at the end of each

financial year. Once declared, they

form part of the

guaranteed benefits of the plan. Final (Additional) Bonus may also be payable provided policy has run for certain minimum period. Death Benefit: The Sum Assured plus all bonuses to date is payable

in a lump sum upon the death of the

life assured during the policy term the Survival benefit /benefits paid earlier

irrespective of

SURVIVAL BENEFITS: The percentage of Sum Assured as mentioned below will be paid on survival to the end of specified durations : % of Sum Assured paid at the end of specified duration Plan Duration

75

93

5

20%

15%

10

20%

15%

15

20%

15%

20

40%

15%

25

-

40%

All bonuses declared upto the maturity date will also be paid along with the final survival benefit. Supplementary/Extra Benefits : These are the optional benefits that can be added to your basic plan for extra protection/option. An additional premium is required to be paid for these benefits. Surrender Value: Buying a life insurance contract is a long-term commitment. However, surrender values are available under the plan on earlier termination of the contract. Guaranteed Surrender Value: The policy may be surrendered after it has been in force for 3 years or more. The guaranteed surrender value is 30% of the basic premiums paid excluding the first year’s premium and all survival benefits paid earlier. Corporation’s policy on surrenders: In practice, the Corporation will pay a Special Surrender Value – which is either equal to or more than the Guaranteed Surrender Value. The benefit payable on surrender is the discounted value of the reduced claim amount that would be payable on death or at maturity.

This value will depend on the duration for which

premiums have surrender. early termination of the policy,

been paid and the policy duration at the date of In some circumstances, in case of the surrender value payable

may be less than the total premiums paid. The Corporation reviews the surrender value payable under its plans from time to time depending on the

economic environment, experience and other factors.

Note: The above is the product summary giving the key features of the plan. This is for illustrative purpose only. This does not represent a contract and for details please refer to your policy document. Plan/ Term

75/ 20 Years

93/ 25 Years

At the end of 5 years

20%

15%

At the end of 10 years

20%

15%

At the end of 15 years

20%

15%

At the end of 20 years

balance 40% + bonus

15%

At the end of 25 years

NIL

balance 40% + bonus

Age at entry : 35 years Policy Term : 20 Years Mode of premium payment : Yearly Sum Assured : Rs. 1,00,000 /Annual Premium : Rs. 6564 /-

End Total of premiums year paid till end of year

Benefit on Death during the year (Rs.) Variable

Total

Guaranteed Scenario 1 Scenario 2 Scenario 1 Scenario 2

1

6564

100000

2400

4800

102400

104800

2

13128

100000

4800

9600

104800

109600

3

19692

100000

7200

14400

107200

114400

4

26256

100000

9600

19200

109600

119200

5

32820

100000

12000

24000

112000

124000

6

39384

100000

14400

28800

114400

128800

7

45948

100000

16800

33600

116800

133600

8

52512

100000

19200

38400

119200

138400

9

59076

100000

21600

43200

121600

143200

10

65640

100000

24000

48000

124000

148000

15

98460

100000

36000

72000

136000

172000

20

131280

100000

48000

96000

148000

196000

End Total of premiums year paid till end of year

Benefit on survival / maturity at the end of year Variable

Total

Guaranteed Scenario 1 Scenario 2 Scenario 1 Scenario 2

1

6564

0

0

0

0

0

2

13128

0

0

0

0

0

3

19692

0

0

0

0

0

4

26256

0

0

0

0

0

5

32820

20000

0

0

20000

20000

6

39384

0

0

0

0

0

7

45948

0

0

0

0

0

8

52512

0

0

0

0

0

9

59076

0

0

0

0

0

10

65640

20000

0

0

20000

20000

15

98460

20000

0

0

20000

20000

20

131280

40000

53000

106000

93000

146000

Age at entry : 35 years Policy Term : 25 Years Mode of premium payment : Yearly Sum Assured : Rs. 1,00,000 /Annual Premium : Rs. 5507 /End Total of premiums year paid till end of year

Benefit on Death during the year (Rs.) Variable

Total

Guaranteed Scenario 1 Scenario 2 Scenario 1 Scenario 2

1

5507

100000

2700

4800

102700

105800

2

11014

100000

5400

9600

105400

111600

3

16521

100000

8100

14400

108100

117400

4

22028

100000

10800

19200

110800

123200

5

27535

100000

13500

24000

113500

129000

6

33042

100000

16200

28800

116200

134800

7

38549

100000

18900

33600

118900

140600

8

44056

100000

21600

38400

121600

146400

9

49563

100000

24300

43200

124300

152200

10

55070

100000

27000

48000

127000

158000

15

82605

100000

40500

72000

140500

187000

20

110140

100000

54000

116000

154000

216000

25

137675

100000

67500

145000

167500

245000

End Total of premiums year paid till end of year

Benefit on survival / maturity at the end of year Variable

Total

Guaranteed Scenario 1 Scenario 2 Scenario 1 Scenario 2

0

0

0

0

0

11014

0

0

0

0

0

3

16521

0

0

0

0

0

4

22028

0

0

0

0

0

5

27535

15000

0

0

15000

15000

6

33042

0

0

0

0

0

7

38549

0

0

0

0

0

8

44056

0

0

0

0

0

9

49563

0

0

0

0

0

10

55070

15000

0

0

15000

15000

15

82605

15000

0

0

15000

15000

20

110140

15000

0

0

15000

15000

25

137675

40000

74500

161000

114500

201000

1

5507

2

i) This illustration is applicable to a non-smoker male/female standard (from medical, life style and occupation point of view) life. ii) The non-guaranteed benefits (1) and (2) in above illustration are calculated so that they are consistent with the Projected Investment Rate of Return assumption of 6% p.a.(Scenario 1) and 10% p.a. (Scenario 2) respectively. In

other words, in preparing this benefit illustration, it is assumed that the Projected Investment Rate of Return that LICI will be able to earn throughout the term of the policy will be 6% p.a. or 10% p.a., as the case may be. The Projected Investment Rate of Return is not guaranteed. iii) The main objective of the illustration is that the client is able to appreciate the features of the product and the flow of benefits in different circumstances with some level of quantification. iv) Future bonus will depend on future profits and as such is not guaranteed. However, once bonus is declared in any year and added to the policy, the bonus so added is guaranteed.

PLAN PARAMETERS:Minimum

Maximum

Entry age

13 (lbd)

50

Sum assured (Rs.)

50,000

NO LIMIT

Term (years)

Fixed at 20 for plan 75 and 25 for plan 93

-

Mode of Payment

Maximum Maturity Age

Policy loan available

Yearly, Halfyearly,Quarterly, Monthly, Salary Saving Scheme

70 years

No

2.)THE MONEY BACK POLICY-25 YEARS:Unlike ordinary endowment insurance plans where the survival benefits are payable only at the end of the endowment period, this scheme provides for periodic payments of partial survival benefits as follows during the term of the policy, of course so long as the policy holder is alive. In the case of a 20-year Money-Back Policy (Table 75), 20% of the sum assured becomes payable each after 5, 10, 15 years, and the balance of 40% plus the accrued bonus become payable at the 20th year. For a Money-Back Policy of 25 years (Table 93), 15% of the sum assured becomes payable each after 5, 10, 15 and 20 years, and the balance 40% plus the accrued bonus become payable at the 25th year. An important feature of this type of policies is that in the event of death at any time within the policy term, the death claim comprises full sum assured without deducting any of the survival benefit amounts, which have already been paid. Similarly, the bonus is also calculated on the full sum assured. BENEFITS:INTRODUCTION:-Insurance Authority

(IRDA)

requires

operating in India to provide

Regulatory all

life

&

Development

insurance

companies

official illustrations to

their customers. The illustrations are based

on the

investment rates of return set by the Life Insurance Council (constituted under Section 64C(a) of the Insurance Act 1938)

and is not intended to reflect the actual investment returns achieved or may be achieved in future by Life Insurance Corporation of India (LICI). For the year 2004-05 the two rates of investment return declared by the Life Insurance Council are 6% and 10% per annum These are Money Back type Assurance plans that provide

financial

protection

against

death

throughout the term of plan along with the periodic payments on

survival at specified durations during the term.

Premiums are

payable yearly, half-yearly,

quarterly, monthly or through salary deductions as opted by you throughout the term of the policy, or till the earlier death. BONUSES:-This is a with-profit plan and participate in the profits of the Corporation’s life insurance business. It gets a share

of

the

Reversionary

profits Bonuses

in are

the

form

of

declared

per

bonuses.

Simple

thousand

Sum

Assured annually at the end of each financial year. Once declared, they form part of the guaranteed benefits of the plan. Final (Additional) Bonus may also be payable provided policy has run for certain minimum period. The Sum Assured plus all bonuses to date is payable in a lump sum upon the death of the life assured during the policy term irrespective of the Survival benefit /benefits paid earlier.

Survival Benefits: The percentage of Sum Assured as mentioned below will be paid on survival to the end of specified durations :

% of Sum Assured paid at the end of specified duration Plan Duration

75

93

5

20%

15%

10

20%

15%

15

20%

15%

20

40%

15%

25

-

40%

All bonuses declared upto the maturity date will also be paid along with the final survival benefit. Supplementary/Extra Benefits : These are the optional benefits that can be added to your basic plan for extra protection/option. An additional premium is required to be paid for these benefits. Surrender Value: Buying a life insurance contract is a long-term commitment. However, surrender values are available under the plan on earlier termination of the contract. Guaranteed Surrender Value: The policy may be surrendered after it has been in force for 3 years or more. The guaranteed surrender value is 30% of the basic premiums paid excluding the first year’s premium and

all survival benefits paid earlier. Corporation’s policy on surrenders: In practice, the Corporation will pay a Special Surrender Value – which is either equal to or more than the Guaranteed Surrender Value. The benefit payable on surrender is the discounted value of the reduced claim amount that would be payable on death or at maturity. This value will depend on the duration for which premiums have been paid and the policy duration at the date of surrender. In some circumstances, in case of early termination of the policy, the surrender value payable may be less than the total premiums paid.The Corporation reviews the surrender value payable under its plans from time to time depending on the economic environment, experience and other factors. Note: The above is the product summary giving the key features of the plan. This is for illustrative purpose only. This does not represent a contract and for details please refer to your policy document.

Plan/ Term

75/ 20 Years

93/ 25 Years

At the end of 5 years

20%

15%

At the end of 10 years

20%

15%

At the end of 15 years

20%

15%

At the end of 20 years

balance 40% + bonus

15%

At the end of 25 years

NIL

balance 40% + bonus

Benefit Illustration : Statutory warning : “Some benefits are guaranteed and some benefits are variable with returns based on the future performance of your insurer carrying on life insurance business. If your policy offers guaranteed

returns

then

these

will

be

clearly

marked

“guaranteed” in the illustration table on this page. If your policy offers variable returns then the illustrations on this page will show two different rates of assumed future investment returns. These assumed rates of return are not guaranteed and they are not the upper or lower limits of what you might get back as the value of your policy is dependent on

a

number

performance.”

of

factors

including

future

investment

Age at entry : 35 years Policy Term : 20 Years Mode of premium payment : Yearly Sum Assured : Rs. 1,00,000 /Annual Premium : Rs. 6564 /End Total of premiums year paid till end of year

Benefit on Death during the year (Rs.) Variable

Total

Guaranteed

Scenario 1

Scenario 2

Scenario 1

Scenario 2

1

6564

100000

2400

4800

102400

104800

2

13128

100000

4800

9600

104800

109600

3

19692

100000

7200

14400

107200

114400

4

26256

100000

9600

19200

109600

119200

5

32820

100000

12000

24000

112000

124000

6

39384

100000

14400

28800

114400

128800

7

45948

100000

16800

33600

116800

133600

8

52512

100000

19200

38400

119200

138400

9

59076

100000

21600

43200

121600

143200

10

65640

100000

24000

48000

124000

148000

15

98460

100000

36000

72000

136000

172000

20

131280

100000

48000

96000

148000

196000

End of

Total premiums

Benefit on survival / maturity at the end of year

year

paid till end of year

Guaranteed

Scenario 1

Scenario 2

Scenario 1

Scenario 2

1

6564

0

0

0

0

0

2

13128

0

0

0

0

0

3

19692

0

0

0

0

0

4

26256

0

0

0

0

0

5

32820

20000

0

0

20000

20000

6

39384

0

0

0

0

0

7

45948

0

0

0

0

0

8

52512

0

0

0

0

0

9

59076

0

0

0

0

0

10

65640

20000

0

0

20000

20000

15

98460

20000

0

0

20000

20000

20

131280

40000

53000

106000

93000

146000

Variable

Total

Age at entry : 35 years Policy Term : 25 Years Mode of premium payment : Yearly Sum Assured : Rs. 1,00,000 /Annual Premium : Rs. 5507 /End Total of premiums year paid till end of year

Benefit on Death during the year (Rs.) Variable

Total

Guaranteed Scenario 1 Scenario 2 Scenario 1 Scenario 2

1

5507

100000

2700

4800

102700

105800

2

11014

100000

5400

9600

105400

111600

3

16521

100000

8100

14400

108100

117400

4

22028

100000

10800

19200

110800

123200

5

27535

100000

13500

24000

113500

129000

6

33042

100000

16200

28800

116200

134800

7

38549

100000

18900

33600

118900

140600

8

44056

100000

21600

38400

121600

146400

9

49563

100000

24300

43200

124300

152200

10

55070

100000

27000

48000

127000

158000

15

82605

100000

40500

72000

140500

187000

20

110140

100000

54000

116000

154000

216000

25

137675

100000

67500

145000

167500

245000

End Total of premiums year paid till end

Benefit on survival / maturity at the end of year

of year

Variable

Total

Guaranteed

Scenario 1

Scenario 2

Scenario Scenario 2 1

1

5507

0

0

0

0

0

2

11014

0

0

0

0

0

3

16521

0

0

0

0

0

4

22028

0

0

0

0

0

5

27535

15000

0

0

15000

15000

6

33042

0

0

0

0

0

7

38549

0

0

0

0

0

8

44056

0

0

0

0

0

9

49563

0

0

0

0

0

10

55070

15000

0

0

15000

15000

15

82605

15000

0

0

15000

15000

20

110140

15000

0

0

15000

15000

25

137675

40000

74500

161000

114500

201000

i) This illustration is applicable to a non-smoker male/female standard (from medical, life style and occupation point of view) life. ii) The non-guaranteed benefits (1) and (2) in above illustration are calculated so that they are consistent with the Projected Investment Rate of Return assumption of 6% p.a.(Scenario 1) and 10% p.a. (Scenario 2) respectively. In other words, in preparing this benefit illustration, it is assumed that the Projected Investment Rate of Return that LICI will be able to earn throughout the term of the policy will

be 6% p.a. or 10% p.a., as the case may be. The Projected Investment Rate of Return is not guaranteed. iii) The main objective of the illustration is that the client is able to appreciate the features of the product and the flow of benefits in different circumstances with some level of quantification. iv) Future bonus will depend on future profits and as such is not guaranteed. However, once bonus is declared in any year and added to the policy, the bonus so added is guaranteed.

UNIT LINKED INSURANCE PLAN:FORTUNE PLUS:It is a unit linked assurance plan where premium payment term (PPT) is 5 years and the premium payable in the first year will be 50% of total premium payable under the policy. The level of cover will depend on the level of premium you agree to pay. Four types of investment funds are offered. Premiums paid after allocation charge will purchase units of the Fund type chosen. The Unit Fund is subject to various charges and value of the units may increase or decrease, depending on the Net Asset Value (NAV). The plan therefore serves the purpose of insurance-cum-investment. Payment of Premiums: You may pay premiums regularly at yearly, halfyearly, quarterly or monthly (ECS) intervals for 5 years. The minimum First year premium will be Rs.20,000/- and you may pay any amount exceeding it. From second year onwards each year’s premium will be 25% of the first year premium. Other Features: i) Partial Withdrawals: You may encash the units partially after the third policy anniversary subject to the following:

i) In case of minors, partial withdrawals shall be allowed from the policy anniversary coinciding with or next following the date on which the life assured attains majority (i.e. on or after18th birthday). ii) Partial withdrawals may be in the form of fixed amount or in the form of fixed number of units. iii) For 2 years’ period from the date of withdrawal, the Sum Assured under the Basic plan shall be reduced to the extent of the amount of partial withdrawals made. iv) Under policies where less than 3 years’ premiums have been paid and further premiums are not paid, the partial withdrawals shall not be allowed. v) Under policies where atleast 3 years’ premiums have been paid, partial withdrawal will be allowed subject to Policyholder’s Fund Value being atleast Rs. 10,000/-.

ii) Switching: You can switch between any fund types for the entire Fund Value during the policy term subject to switching charges, if any. iii) Discontinuance of premiums: If premiums are payable either yearly, half-yearly, quarterly or monthly (ECS) and the same have not been duly paid within the days of grace under the Policy, the Policy will lapse. A lapsed policy can be revived during the period of two years from the due date of first unpaid premium. I) Where atleast 3 years’ premiums have been paid, the Life Cover and Accident Benefit rider, if any, shall continue during the revival period. During this period, the charges for Mortality and Accident Benefit cover, if any, shall be taken, in addition to other charges, by canceling an appropriate number of units out of the Policyholder’s Fund Value every month. This will continue to provide relevant risk covers for: i. two years from the due date of first unpaid premium, or ii. till the date of maturity, or iii. till such period that the Policyholder’s Fund Value reduces to Rs. 5,000/-, whichever is earlier. The benefits payable under the policy in different contingencies during this period shall be as under:

A. In case of Death: Higher of Sum Assured under the Basic Plan or the Policyholder’s Fund Value. The Sum Assured shall be subject to provisions of Partial Withdrawals made, if any. B. In case of Death due to accident: Accident Benefit Sum Assured in addition to the amount under A above, if Accident Benefit is opted for. C. On Maturity: The Policyholder’s Fund Value. D. In case of Surrender (including Compulsory Surrender): The Policyholder’s Fund Value. The Surrender value, however, shall be paid only after the completion of 3 policy years. E. In case of Partial Withdrawals: For 2 years period from the date of withdrawal, the sum assured under the basic plan shall be reduced to the extent of the amount of partial withdrawals made. II) Where the policy lapses without payment of at least 3 years’ premiums, the Life Cover and Accident Benefit rider cover, if any, shall cease and no charges for these benefits shall be deducted. However, deduction of all the other charges shall continue. The benefits under such a lapsed policy shall be payable as under: F. In case of Death: The Policyholder’s Fund Value. G. In case of death due to accident: Only, the amount as under F above. H. In case of Surrender (including Compulsory Surrender): Policyholder’s Fund Value / monetary value as the case may be, shall be payable after the completion of the third policy anniversary. No amount shall be payable within 3 years from the date of commencement of policy. I. In case of Partial withdrawal: Partial Withdrawals shall not be allowed under such a policy even after completion of 3 years period. iv) Revival: If due premium is not paid within the days of grace, the policy lapses. A lapsed policy can be revived during the period of two years from the due date of first unpaid premium or before maturity, whichever is earlier. The period during which the policy can be revived will be called “Period of revival” or “revival period”. If premiums have not been paid for at least 3 full years, the policy may be revived within two years from the due date of first unpaid premium. The revival shall be made on submission of proof of continued insurability to the

satisfaction of the Corporation and the payment of all the arrears of premium without interest. If atleast 3 full years’ premiums have been paid and subsequent premiums are not paid, the policy may be revived within two years from the due date of first unpaid premium but before the date of maturity. No proof of continued insurability shall be required but all arrears of premium without interest shall be required to be paid. The Corporation reserves the right to accept the revival at its own terms or decline the revival of a lapsed policy. The revival of a lapsed policy shall take effect only after the same is approved by the Corporation and is specifically communicated in writing to the Proposer / Life Assured Irrespective of what is stated above, if less than 3 years’ premiums have been paid and the Policyholder’s Fund Value is not sufficient to recover the charges, the policy shall be terminated and thereafter revival will not be entertained. If 3 years’ or more than 3 years’ premiums have been paid and the Policyholder’s Fund Value reduces to Rs. 5000/-, the policy shall terminate and Policyholder’s Fund Value as on such date shall be refunded to the Life Assured and thereafter revival will not be allowed. Settlement Option: When the policy comes for maturity, you may exercise “Settlement Option” and may receive the policy money in instalments spread over a period of not more than five years from the date of maturity. There shall not be any life cover during this period. The value of installment payable on the date specified shall be subject to investment risk i.e. the NAV may go up or down depending upon the performance of the fund. Reinstatement: A policy once surrendered will not be reinstated. Risks borne by the Policyholder: i) LIC’s Fortune Plus is a Unit Linked Life Insurance product which is different from the traditional insurance products and are subject to the risk factors. The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. Life Insurance Corporation of India is only the name of the Insurance Company and LIC’s Fortune Plus is only the name of the unit linked life insurance contract and does not in any way indicate the quality of the contract,

its future prospects or returns. Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document of the insurer. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns. All benefits under the policy are also subject to the Tax Laws and other financial enactments as they exist from time to time. Cooling off period: If you are not satisfied with the “Terms and Conditions” of the policy, you may return the policy to us within 15 days. Loan: No loan will be available under this plan. Assignment: Assignment will be allowed under this plan. Exclusions: any amount exceeding it. From second year onwards each year’s premium will be 25% of the first year premium. In case the Life Assured commits suicide at any time within one year, the Corporation will not entertain any claim by virtue of the policy except to the extent of the Policyholder’s Fund Value on death. Benefits: A) Death Benefit: Higher of Sum Assured or the Policyholder’s Fund Value shall be available as death benefit. B) Maturity Benefit: On the Life Assured surviving the maturity date of the contract, an amount equal to the Policyholder’s Fund Value is payable. 3.Options: ACCIDENT-BENEFIT-OPTION: If you are above 18 years of age, you may opt for Accident Benefit equal to the amount of life cover subject to minimum of Rs. 25,000/- and maximum of Rs. 50 lakh (taken all policies with LIC of India and other insurers). In

case of death by Accident, an additional sum equal to Accident Benefit sum assured shall be payable. Eligibility Conditions and Other Restrictions: (a) Minimum Age at 12 years (age last birthday) entry (b) Maximum Age at 60 years (age nearer birthday) entry (c) Minimum Maturity 18 years (completed) Age (d)

Maximum Maturity Age

(e)

Minimum Policy Term

(f)

Maximum Policy 20 years Term

(g)

Minimum Premium

(h)

Sum Assured under the Basic Plan

65 years (age nearer birthday) 5 years

Rs.20,000/- for first Premium Higher of 5 times the first year’s annualized premium or half of the policy term times the first year’s annualized premium.

Where the minimum Sum assured is not in the multiples of Rs. 5,000/-, it will be rounded off to the next multiple of Rs. 5,000/-. Method of Calculation of Unit price: Units will be allotted based on the Net Asset Value (NAV) of the respective fund as

on the date of allotment. There is no Bid-Offer spread (the Bid price and Offer price of units will both be equal to the NAV). The NAV will be computed on daily basis and will be based on investment performance, Fund Management Charge and whether fund is expanding or contracting under each fund type and shall be calculated as under:

Investment of Funds: Plan offers following four Funds detailed below: 5.

Fund Type

Investment in Government / Government Guaranteed Securities / Corporate Debt

Short-term Investment such as money market Instruments (Including Govt. Securities & Corporate Debt)

Investme nt in Listed Equity Shares

Details and objective of the fund for risk/return

Bond Fund

Not less than 60%

100%

Nil

Low risk

Secur Not less than ed 45% Fund

Not less than 15% Not more than 85% & Not more than 55%

Steady Income Lower to Medium risk

Balan Not less than ced 30% Fund

Not less than 30% Not more than 70% & Not more than 70%

Balanced Income and growth Medium risk

Growt Not less than h 20% Fund

Not less than 40% Not more than 60% & Not more than 55%

Long term Capital growth High Risk

The Policyholder has the option to choose any ONE of the above 4 funds.

Appropriation price is applied (when fund is expanding): Market value of investments held by the fund plus the expenses incurred in the purchase of the assets plus the value of any current assets plus any accrued income net of fund management charges less the value of any current liabilities less provisions, if any divided by the number of units existing at the valuation date (before any new units are allocated).

Expropriation price is applied (when fund is contracting): Market value of investments held by the fund less the expenses incurred in the sale of assets plus the value of any current assets plus any accrued income net of fund management charges less the value of any current liabilities less provisions, if any divided by the number of units existing at the valuation date (before any units redeemed). Applicability of Net Asset Value (NAV): The premiums received up to a particular time (presently 3 p.m.) by the servicing branch of the Corporation through ECS or by way of a local cheque or a demand draft payable at par at the place where the premium is received, the closing NAV of the day on which premium is received shall be applicable. The premiums received after such time by the servicing branch of the Corporation through ECS or by way of a local cheque or a demand draft payable at par at the place where the premium is received, the closing NAV of the next business day shall be applicable. Similarly, in respect of the valid applications received for surrender, partial withdrawal, death claim, switches etc up to such time by the servicing branch of the Corporation closing NAV of that day shall be applicable. For the valid applications received in respect of surrender, partial withdrawal, death claim, switches etc after such time by the servicing branch of the Corporation the closing NAV of the next business day shall be applicable. In respect of maturity claim, NAV of the date of maturity shall be applicable. The timing given is as per the existing guidelines and changes

in this regard shall be as per the instruction from IRDA. 7.CHARGES UNDER THE PLAN:A) Premium Allocation Charge: This is the percentage of the premium deducted from the premium received. The balance constitutes that part of the premium which is utilized to purchase (Investment) units for the policy. The allocation charges are as below Allocation Charge

Premium Band (per annum)

First year

thereafter

20,000 to 2,00,000

15.00 %

2.50 %

2,00,001 to 3,00,000

14.50 %

2.50 %

3,00,001 to 6,00,000

13.00 %

2.50 %

6,00,001 and above

13.50 %

2.50 %

Charges for Risk Covers:

i) Mortality Charge - This is the cost of life insurance cover which is age specific and will be taken every month. The life insurance cover is the difference between Sum Assured under Basic plan and the Fund Value after deduction of all other charges. The charges per Rs. 1000/- life insurance cover for some of the ages in respect of a healthy life are as under: Age

25

35

45

55

Rs.

1.42

1.73

3.89

10.76

ii)

Accident Benefit Charge - It is the cost of Accident Benefit rider (if opted for) and will be levied every month at the rate of Rs. 0.50 per thousand Accident Benefit Sum Assured per policy year. C) Other Charges: i) Policy Administration Charge - Rs. 60/- per month during the first policy year and Rs. 20/- per month thereafter, throughout

the term of the policy. ii) Fund Management Charge - It is the charge levied as a percentage of the value of units at following rates: 0.75% p.a. of Unit Fund for “Bond” Fund 1.00% p.a. of Unit Fund for “Secured” Fund 1.25% p.a. of Unit Fund for “Balanced” Fund 1.50% p.a. of Unit Fund for “Growth” Fund Fund Management Charge shall be appropriated while computing NAV. iii) Switching Charge - This is a charge levied on switching of monies from one fund to another. Within a given policy year 4 switches will be allowed free of charge. Subsequent switches in that year shall be subject to a switching charge of Rs. 100 per switch. iv) Bid/Offer Spread - Nil. v) Surrender Charge - Nil. vi) Service Tax Charge - A service tax charge shall be levied on the Mortality Charges and Accident Benefit rider charges, if any, on a monthly basis. The level of this charge will be as per the rate of service tax as applicable from time to time. Presently, the rate of Service Tax is 12% with an educational

cess at the rate of 3% thereon and hence effective rate is 12.36%. vii) Miscellaneous Charge - This is a charge levied for an alteration within the contract, such as reduction in policy term, change in premium mode, etc. An alteration may be allowed subject to a charge of Rs.50/-. D) Right to revise charges: The Corporation reserves the right to revise all or any of the above charges except the Premium Allocation charge and Mortality charge. The modification in charges will be done with prospective effect with the prior approval of IRDA. Although the charges are reviewable, they will be subject to the following maximum limit: - Policy Administration Charge Rs.150/- per month during the first policy year and Rs. 50/per month thereafter, throughout the term of the policy. - Fund Management Charge: The Maximum for each Fund will be as follows: i. Bond Fund: 1.5% p.a. of Unit Fund ii. Secured Fund: 2.0% p.a. of Unit Fund iii. Balanced Fund: 2.5% p.a. of Unit Fund iv. Growth Fund: 3.0% p.a. of Unit Fund - Switching Charge shall not exceed Rs. 200/- per switch.

- Miscellaneous Charge shall not exceed Rs. 100/- each time when an alteration is requested. 8. Surrender: The surrender value, if any, is payable only after the completion of the third policy anniversary. The surrender value will be the Policyholder’s Fund Value at the date of surrender. There will be no Surrender charge. If you apply for surrender of the policy within 3 years from the date of commencement of policy, then the Policyholder’s fund value

of units shall be converted into

monetary terms. No charges shall be thereafter

and

this

monetary

value

deducted shall

be

paid

on

completion of 3 years from the date of commencement of policy. In case of death of life assured after the date of surrender but before

the

completion

commencement of

of

3

years

from

the

date

of

policy the monetary value

payable on the completion of 3 years

shall be

payable to the nominee/ legal heir immediately on death. Compulsory Surrender: The policy shall be surrendered compulsorily in following cases:

i) where the policy is not revived during the period of revival, the

policy shall be terminated after completion of

3 years from the date of commencement of the policy or on expiry of revival period, whichever is later. However, if the date of maturity falls before the expiry of revival period, then the policy shall be terminated on the date of maturity. ii) where premiums have been paid for less than 3 years and the balance in policyholder’s fund value is not sufficient to recover the relevant charges; iii) where premiums have been paid for at least 3 years and the

balance in policyholder’s fund value falls

below Rs. 5,000/-. The conversion in monetary value shall be as under: The NAV on the date of application for surrender or on the date when revival period is over (in case of compulsory surrender), as the case may be, multiplied by the number of units in the Policyholder’s Fund as on that date.

FREQUENCY OF PREMIUM PAYMENT : ANNUAL BASIC PLAN AGE AT ENTRY: 35 years TERM: 20 years PPT: 5 years FIRST YEAR PREMIUM: 20000 SUM ASSURED UNDER BASIC PLAN: 200000

End Total Of Premi Poli um cy Paid Year

SURRENDER/ MATURITY VALUE

DEATH BENEFIT PAYABLE AT END OF YEAR OF DEATH

Payab Guarant Varia Varia le eed ble ble Amou nt

Payab le Amou nt

Payab le Amou nt

Payabl e Amoun t

Scena Scena Scena Scena Scena Scenari rio 1 rio 2 rio 1 rio 2 rio 1 o 2 1

2000 1673 1738 2000 20000 200000 0 0 2 4 00 0

0

2

2500 2204 2360 2000 20000 200000 0 0 8 2 00 0

0

3

3000 2761 3036 2000 20000 2761 200000 30360 0 0 0 00 0 0

4

3500 3342 3770 2000 20000 3342 200000 37706 0 9 6 00 0 9

5

4000 3951 4569 2000 20000 3951 200000 45692 0 8 2 00 0 8

6

4000 4075 4904 2000 20000 4075 200000 49048 0 2 8 00 0 2

7

4000 4200 5267 2000 20000 4200 200000 52671 0 7 1 00 0 7

8

4000 4328 5659 2000 20000 4328 200000 56592 0 9 2 00 0 9

9

4000 4459 6083 2000 20000 4459 200000 60838 0 7 8 00 0 7

10

4000 4592 6543 2000 20000 4592 200000 65433 0 4 3 00 0 4

11

4000 4726 7040 2000 20000 4726 200000 70403 0 0 3 00 0 0

12

4000 4859 7577 2000 20000 4859 200000 75778 0 7 8 00 0 7

13

4000 4992 8159 2000 20000 4992 200000 81591 0 4 1 00 0 4

14

4000 5123 8788 2000 20000 5123 200000 87884 0 2 4 00 0 2

15

4000 5251 9470 2000 20000 5251 200000 94702 0 1 2 00 0 1

16

4000 5375 1020 2000 20000 5375 200000 102096 0 0 96 00 0 0

17

4000 5493 1101 2000 20000 5493 200000 110129 0 9 29 00 0 9

18

4000 5606 1188 2000 20000 5606 200000 118870 0 7 70 00 0 7

19

4000 5712 1283 2000 20000 5712 200000 128399 0 1 99 00 0 1

20

4000 5809 1388 2000 20000 5809 200000 138809 0 0 09 00 0 0

Reduction in yield @ 6% 3.99% Reduction in yield @ 10% 3.17%

CHILDREN PLANS:1.) CHILD FORTUNE PLUS:Introduction: All of us wish to ensure the best possible future for our children. With the cost of education sky rocketing, it is all the more important that an early provision is made to ensure that your loved ones get a good head start in life. LIC’s Child Fortune Plus is a total solution to their education and other needs. The

plan is a unit linked one offering the prospects of long term capital appreciation. Benefits: On Maturity: The maturity benefit will be payable on the earlier of; either the child attaining 25 years of age or the life assured attaining 75 years. On the date of maturity, an amount equal to the policy holder`s fund value is payable. On Death: In the unfortunate event of death of the policy holder, the nominee child will be paid the Sum Assured under the policy. Further all future premiums will be waived and units equivalent thereof shall be credited to the policy fund account at the applicable unit price. Am I eligible? A parent, with a child aged 17 years or less can go in for Child Fortune Plus. The policy will cover the life of the parent. Partial Withdrawal/Surrender: A Policyholder can partially withdraw the units at any time after the third policy anniversary subject to certain conditions. There will be no bid offer spread i.e. the sale and purchase price of units will be the same. The NAV shall be declared on day to day basis. Premium Payment options: The policy can be taken under the lumpsum option or the regular premium option. ECS payment is also available. Revival: In case the policy is lapsed, it can be revived within a period of 2 years (Revival Period), from the date of First Unpaid Premium. If the premiums have been paid for a minimum period of three years, the Life cover will continue during the Revival Period. A unique feature of the plan is that a policyholder can opt for continuation of cover even beyond the Revival Period, without reviving the policy or paying any further premiums by exercising the option at least one month prior to the completion of the Revival Period. The policy cover continues by deduction of relevant charges from the policy fund till the fund value reaches one annualized premium. Other Features:

The plan has other highlights like payment of additional amounts(top ups), attractive Fund Management/other charges and liberalized conditions for continuance of the policy in event of lapsation. The minimum Sum Assured is five times the annualized premium and the maximum Sum Assured can go upto 25 times the annualized premium, depending on age at entry. Premium can be paid in yearly, half yearly, quarterly or monthly( ECS ) modes and the minimum annualized premium is Rs.10,000/-. The plan offers upto four switches free of charge every year, between the different types of funds. With many attractive features, Child Fortune Plus is an ideal solution to meet the financial requirements arising at various stages like higher education and start up in life, etc.

2.) CDA ENDOWMENT VESTING AT 18 :CHILDREN DEFFRED ENDOWEMENT ASSURANCE PLANS:-

Product Summary: This is an Endowment Assurance plan designed to enable a parent or a legal guardian or any near relative of the child (called proposer) to provide insurance cover on the life of the child (called life assured). The plan has two stages, one covering the period from the date of commencement of policy to the Deferred Date (called deferment period) and the other covering the period from the Deferred Date to the date of maturity. The insurance cover on the child’s life starts from the Deferred Date and is available during the latter period. The Deferred Date in case of Plan No 41 is the policy anniversary date coinciding with or next following the date on which the child completes 21 years of age. In case of Plan No 50 it is the policy anniversary date coinciding with or next following the 18th birthday of the child. Premiums: Premiums are payable yearly, half-yearly, quarterly or monthly and this shall cease on the death of the life assured . Premiums are waived on death of Proposer provided this benefit is availed. Bonuses: This is a with-profits plan and participates in the profits of the Corporation’s life insurance business after the deferred date. It gets a share of the profits in the form of bonuses. Simple Reversionary Bonuses are declared per thousand Sum Assured annually at the end of each financial year. Once declared, they form part of the guaranteed benefits of the plan. Death Benefit:

The Sum Assured along with vested bonuses is payable in a lump sum upon the death of the life assured after the defrayments period. If death occurs before the defrayments period all premiums paid is refunded. Maturity Benefit: Sum assured along with all bonuses declared up to maturity date is payable in lump sum. Supplementary/Extra Benefits: These are the optional benefits that can be added to your basic plan for extra protection/option. An additional premium is required to be paid for these benefits. Surrender Value: Buying a life insurance contract is a long-term commitment. However, surrender values are available on the plan on earlier termination of the contract. Guaranteed Surrender Value: The policy may be surrendered after it has been in force for 3 years or more. The minimum surrender value allowable under this policy is as under: (a) Before the Deferred date : 90% of the premiums paid excluding the premium for the first year. (b) After the Deferred date: i)If deferment period is less than 10 years: 90% of the premiums paid before the deferment date excluding the premiums for the first year plus 30% of premiums paid after the deferred date. (ii) If deferment period is 10 years or more: 90% of a cash option plus 30% of premiums paid after the deferred date. Corporation’s Policy On Surrenders: In practice, the Corporation will pay a Special Surrender Value – which is either equal to or more than the Guaranteed Surrender Value. The benefit

payable on surrender is the discounted value of the reduced claim amount that would be payable at death or maturity. This value will depend on the duration for which premiums have been paid and the policy duration at the date of surrender. The Corporation reviews the surrender value payable under its plans from time to time depending on the economic environment, experience and other factors. The above is the product summary giving the key features of the plan. This is for illustrative purpose only. This does not represent a contract and for details please refer to your policy document. STATUTORY WARNING: “Some benefits are guaranteed and some benefits are variable with returns based on the future performance of your insurer carrying on ife insurance business. If your policy offers guaranteed returns then these will be clearly marked “guaranteed” in the illustration table on this page. If your policy offers variable returns then the illustrations on this page will show two different rates of assumed future investment returns. These assumed rates of return are not guaranteed and they are not the upper or lower limits of what you might get back as the value of your policy is dependent on a number of factors including future investment performance. Table 41 Age at entry: 10 years Policy Term: 25 Years Deferment period: 11 years Premium Paying Term: 25 Years Mode of premium payment: Yearly Sum Assured: Rs. 1,00,000 /Annual Premium: Rs. 2673 /-

End Total of premiums year paid till end of year

Benefit payable on death / maturity at the end of year Variable Guaranteed

Total

Scenario 1 Scenario 2 Scenario 1 Scenario 2

1

2673

2673

-

-

2673

2673

2

5346

5346

-

-

5346

5346

3

8018

8018

-

-

8018

8018

4

10691

10691

-

-

10691

10691

5

13364

13364

-

13364

13364

6

16037

16037

-

-

16037

16037

7

18709

18709

-

-

18709

18709

8

21382

21382

-

-

21382

21382

9

24055

24055

-

-

24055

24055

10

26728

26728

-

-

26728

26728

12

2073

100000

2100

5500

102100

105500

15

40092

100000

8400

22000

108400

122000

20

53456

100000

18900

49500

118900

149500

25

66819

100000

46400

122000

146400

222000

Note: The proposer will have the option to take a cash payment of Rs.39,890/- on the Deferred Date on cancellation of the policy contract entirely.

Table 50) Age at entry: 10 years Policy Term: 25 Years Deferment period: 8 years Premium Paying Term: 25 Years Mode of premium payment: Yearly Sum Assured: Rs. 1,00,000 /Annual Premium: Rs. 2924 /End Total of premiums year paid till end of year

Benefit payable on death / maturity at the end of year

Variable Guaranteed

Total

Scenario 1 Scenario 2 Scenario 1 Scenario 2

1

2924

2924

-

-

2924

2924

2

5848

5848

-

-

5848

5848

3

8772

8772

-

-

8772

8772

4

11696

11696

-

-

11696

11696

5

14620

14620

-

14620

14620

6

17544

17544

-

-

17544

17544

7

20468

20468

-

-

20468

20468

8

23392

23392

-

-

23392

23392

9

26316

100000

2100

5500

102100

105500

10

29240

100000

4200

11000

104200

111000

12

35087

100000

8400

22000

108400

122000

15

43859

100000

14700

38500

114700

138500

20

58479

100000

25200

66000

125200

166000

25

73099

100000

46700

124500

146700

224500

i)This

illustration is applicable to a non-smoker male/female

standard (from medical, life style and occupation point of

view) life. ii) The non-guaranteed benefits (1) and (2) in above illustration are calculated so that they are consistent with the Projected Investment Rate of Return assumption of 6% p.a.(Scenario 1) and 10% p.a.(Scenario 2) respectively. In other words, in preparing this benefit illustration, it is assumed that the Projected Investment Rate of Return that LICI will be able to earn

throughout the term of the

policy will be6% p.a. or 10% p.a., as the be.

The

Projected

Investment

Rate

case may of

Return

is

not

guaranteed. iii) The main objective of the illustration is that the client is able to

appreciate the features of the product and

the flow of benefits in

different circumstances

with some level of quantification.

GROUP INSURANCE:GROUP GRATUITY SCHEME:Under the Payment of Gratuity Act, 1972, it is employers statutory liability to pay 15 days salary (15/26 of a month's wages) for every completed years service to each of his employees on their exit, for any reason after five years of continuous service, subject to maximum limit of 3.5 lacs. Higher benefits can be paid if the employer so desires. Gratuity payable to the employees can be paid as and when liability arises and can be claimed as deductable expense under P & L A/c of the relevant financial years. However, the sound system of financial management envisages providing for Gratuity liability every year

and claiming the tax benefits as it is mandatory as per Accounting Standards 15 (AS15) to account for the liability on Actual basis. This can be done by creating a Trust, managed privately or by LIC and paying the amount to the Trust every year. In case of Privately Managed Trust, investment of funds will have to be done as per Income-Tax Act, by the trustees and entire administration of the Trust including Actuarial Valuation will be the responsibility of the Trustees. In case of LIC managed trust, the job of investment and actuarial valuation is taken over by the corporation free of charge and in addition, interest is paid by the Corporation on the accumulated funds. We give below the details as to how the Group Gratuity (Cash Accumulation) Scheme provides for a convenient mode of funding the statutory obligation of an employer under the payment of Gratuity Act: ATTRACTIVE RETURN: 1. LIC offers a very attractive rate of interest depending upon the size of the fund 2. Employers ordinary annual contribution is allowed as deduction in full in computation of business income as per Section 36(1) (v). 3. Employer's initial contribution. No. limit on amount as per Rule 104.It is to be paid on the date of setting upof

fund in full or in 5 yearly equated

instalments from such date. Deduction to be allowed shall not exceed 8 1/3% of the past salaries as per Rule 104.Allowed as a deduction in full in computation of business income as per Section 36 (1)(v).

4. Benefits to employees Employer's initial and ordinary annual contribution are not treated as taxable perquisites. 5. Gratuity is payable in lumpsum only as per Rule 3 of part C of Schedule IV. 6. Gratuity is salary and hence taxable, it is taxed under Sec. 17(i) (iii). 7. Gratuity is tax free upto half month's average salary (of last 10 months) for each year of service, subject to a maximum of Rs. 3.5 lakhs as per Sec. 10(10). 8. While computing tax on gratuity, relief of spreading back available as per Sec. 89(1). 9.

Other matters. a)

Income of fund exempt from tax

: Sec .10(25) (iv)

b) No. deduction is allowed for accounting provision made by Employer for payment of gratuity

: Sec .40A(7) (a)

c)

: Sec. 40 A(7) (b) (i)

Deduction is allowed for provsion made by Employer for payment of contribution to fund for payment for gratuity that has become payable.

d) Contribution by the employer should be paid to the fund for claiming relief

: Sec. 43B

e)

Persons deducting tax to furnish prescribed returns to I.T. authority

: Sec. 206

f)

Investment of fund moneys -

: Rule 67 or LIC's gratuity Scheme Rule 101

g) Admission of director to a fund: Rule 102 restricted to those owing not more than 5% of voting rights

h) Amendment of rules of fund-C.I.T's prior approval required

: Rule 110

Multi-Employer group are not allowed as per CBDT letter addressed to LIC. The above scheme, attractive as it is, can be made a part of overall commitment of any progressive employer wedded to Human Resource Development concept.

GROUP LEAVE ENCASHMENT SCHEME:Many employers are providing Leave Encashment benefit in addition to other retirement benefits to their employees which is a lumpsum amount payable to the employees or their dependants on retirement, death, disablement, voluntary retirement etc. Funding of leave encashment: End-of-the-year leave encashment facility available to employees, can be a huge liability to the company. So can be Medical Leave Encashment, if provided for. To meet this need of entrepreneurs and businesses, LIC has introduced Group Leave Encashment Scheme. Just pay a yearly premium, fund your leave encashment liability and let LIC take care of your worries. Nature of liability: The amount depends upon the leave to the credit of the employee and his/ her salary at the time of exit. Liability is of increasing nature as it is linked with salary as well as leave position. As per the amended section 209 (3) of the Company's Act 1956 and Accounting Standard (AS-15) dated January, 1995, the employers have to account for the liability in respect of leave encashment facility, if any, available to the employees and to provide for the same in their Annual

Accounts. It is, therefore, necessary for the companies to ascertain liability in respect of Leave Encashment facilities, if any, available to the employees and provide for the same in the books of accounts every year. It helps the employers in ascertaining the true cost of their products and services. The Features: Group Leave Encashment Schemes (GLES) of LIC helps the employers in funding of their lave encashment liability. The salient features of the scheme are as follows:1. The Company will submit the employees' data and rules for Leave Encashment. LIC will make actuarial valuation and find out the funding requirements which shall be quoted to the company. The company will contribute as per the advice of LIC. 2. A uniform life cover per employee or graded cover will be provided

under

One

Year

Renewable

Group

Term

Assurance Plan of LIC. A small term insurance premium will be charged in addition to contributions for funding. 3.

A Running Account will be maintained under the scheme and

the

contributions

(excluding

term

assurance

premium) will be credited to this account and all claims except term assurance cover will be settled out of the Running Account. Interest at the rate declared by LIC from time to time will be credited to the Running Account at the end of the financial year. Benefits:

1. On the exit of an employee or encashment of leaves during the service the Leave Encashment amount will be paid from the Fund of the scheme maintained with LIC. 2. On the death of an employee, in addition to his / her leave encashment benefit, his/her family will be entitled to the amount of Insurance Cover, which will be tax-free. 3. The Life Insurance Corporation of India will do the Actuarial Valuation and will provide necessary certificate as per AS-15. 4.

The amount of Term Insurance Premium paid for Life Insurance Cover will be treated as business expenses.

ICICI PRUDENTIAL LIFE INSURANCE FIANNCIAL PRODUCT EDUCATION INSURANCE PLANS:One of your most important responsibilities as a parent is to ensure that your child gets the best possible education that can be provided. ICICI Prudential offers a wide portfolio of education insurance plans that are designed to provide peace of mind to you, as a parent, that your child's education will be secure. These plans ensure that money is made available at the crucial junctures in a child's education - Class X, Class XII, graduation and post-graduation - to fund crucial commitments for the child's future. Importantly, education insurance plans ensure that in the unfortunate event of the death of a parent, the child's education continues unhampered.

Under the education insurance plans platform, ICICI Prudential brings the following products to you. Please click on the product name to know more about the plans.

Plan Name

Plan Type

SmartKid New Unit-linked Regular Premium

Unit Linked

SmartKid New Unit-linked Single Premium

Unit Linked

SmartKid Regular Premium

Traditional

BENEFITS:Life insurance, especially tailored to meet your financial needs Need for Life Insurance Today, there is no shortage of investment options for a person to choose from. Modern day investments include gold, property, fixed income instruments, mutual funds and of course, life insurance. Given the plethora of choices, it becomes imperative to make the right choice when investing your hard-earned money. Life insurance is a unique investment that helps you to meet your dual needs - saving for life's important goals, and protecting your assets. Let us look at these unique benefits of life insurance in detail. Asset Protection From an investor's point of view, an investment can play two roles - asset appreciation or asset protection. While most financial instruments have the

underlying benefit of asset appreciation, life insurance is unique in that it gives the customer the reassurance of asset protection, along with a strong element of asset appreciation. The core benefit of life insurance is that the financial interests of one’s family remain protected from circumstances such as loss of income due to critical illness or death of the policyholder. Simultaneously, insurance products also have a strong inbuilt wealth creation proposition. The customer therefore benefits on two counts and life insurance occupies a unique space in the landscape of investment options available to a customer. Goal based savings Each of us has some goals in life for which we need to save. For a young, newly married couple, it could be buying a house. Once, they decide to start a family, the goal changes to planning for the education or marriage of their children. As one grows older, planning for one's retirement will begin to take precedence. Clearly, as your life stage and therefore your financial goals change, the instrument in which you invest should offer corresponding benefits pertinent to the new life stage. 2. WEALTH CREATION PLAN:-

Wealth Creation Plans give the customer the dual benefit of protection along with the potentially higher returns of market-linked instruments. The most important benefit of ULIPs is the flexibility they give the customer in choosing the premium amount and also choosing the underlying fund in which this money is to be invested. Wealth creation plans also offer the customer more liquidity options as compared to traditional plans. As such, ULIPs are ideal for customers who want the protection of a life cover to be allied to the

returns of market linked instrument – giving them an unmatched combination of benefits. Under the wealth creation platform, ICICI Prudential brings the following products to you. Please click on the product name to know more about the plans. Plan Name

Plan Type

Wealth Advantage

Unit Linked

LifeStage Assure

Unit Linked

LifeTime Gold

Unit Linked

LifeLink Super

Unit Linked

PremierLife Gold

Unit Linked

LifeStage RP

Unit Linked

BENEFITS:Life insurance, especially tailored to meet your financial needs Need for Life Insurance Today, there is no shortage of investment options for a person to choose from. Modern day investments include gold, property, fixed income instruments, mutual funds and of course, life insurance. Given the plethora of choices, it becomes imperative to make the right choice when investing your hard-earned money. Life insurance is a unique investment that helps you to meet your dual needs - saving for life's important goals, and protecting your assets. Let us look at these unique benefits of life insurance in detail. Asset Protection

From an investor's point of view, an investment can play two roles - asset appreciation or asset protection. While most financial instruments have the underlying benefit of asset appreciation, life insurance is unique in that it gives the customer the reassurance of asset protection, along with a strong element of asset appreciation. The core benefit of life insurance is that the financial interests of one’s family remain protected from circumstances such as loss of income due to critical illness or death of the policyholder. Simultaneously, insurance products also have a strong inbuilt wealth creation proposition. The customer therefore benefits on two counts and life insurance occupies a unique space in the landscape of investment options available to a customer. Goal based savings Each of us has some goals in life for which we need to save. For a young, newly married couple, it could be buying a house. Once, they decide to start a family, the goal changes to planning for the education or marriage of their children. As one grows older, planning for one's retirement will begin to take precedence. Clearly, as your life stage and therefore your financial goals change, the instrument in which you invest should offer corresponding benefits pertinent to the new life stage. Life insurance is the only investment option that offers specific products tailor-made for different life stages. It thus ensures that the benefits offered to the customer reflect the needs of the customer at that particular life stage, and hence ensures that the financial goals of that life stage are met.

The table below gives a general guide to the plans that are appropriate for different life stages. Life Stage

Primary Need

Life Insurance Product

Wealth creation plans Wealth creation and mortgage Asset creation & protection protection plans Children's education, Asset Education insurance, mortgage Married with kids creation and protection protection & wealth creation plans Middle aged with Planning for retirement & Retirement solutions & mortgage grown up kids asset protection protection Across all lifeHealth Insurance Health plans stages Young & Single Young & Just married

Asset creation

PREMIUM GUARANTEE PLUS:The latest addition to the life insurance product portfolio of ICICI Prudential is the Premium Guarantee plan – Invest Shield Life New. Premium Guarantee plans are the ideal insurance-cum-investment option for customers who want to enjoy the potentially higher returns(over the long term) of a market linked instrument, but without taking any market risk. Under the Premium Guarantee Plans platform, ICICI Prudential brings to you the following products:

Plan Name

Plan Type

InvestShield Life New

Unit Linked

InvestShield CashBak

Unit Linked

KEY BENEFITS:-

Life insurance, especially tailored to meet your financial needs

Need for Life Insurance Today, there is no shortage of investment options for a person to choose from. Modern day investments include gold, property, fixed income instruments, mutual funds and of course, life insurance. Given the plethora of choices, it becomes imperative to make the right choice when investing your hard-earned money. Life insurance is a unique investment that helps you to meet your dual needs - saving for life's important goals, and protecting your assets. Let us look at these unique benefits of life insurance in detail. Asset Protection From an investor's point of view, an investment can play two roles - asset appreciation or asset protection. While most financial instruments have the underlying benefit of asset appreciation, life insurance is unique in that it gives the customer the reassurance of asset protection, along with a strong element of asset appreciation. The core benefit of life insurance is that the financial interests of one’s family remain protected from circumstances such as loss of income due to critical illness or death of the policyholder. Simultaneously, insurance products also have a strong inbuilt wealth creation proposition. The customer therefore benefits on two counts and life insurance occupies a unique space in the landscape of investment options available to a customer. Goal based savings Each of us has some goals in life for which we need to save. For a young, newly married couple, it could be buying a house. Once, they decide to start a family, the goal changes to planning for the education or marriage of their children. As one grows older, planning for one's retirement will begin to take precedence.

Clearly, as your life stage and therefore your financial goals change, the instrument in which you invest should offer corresponding benefits pertinent to the new life stage. Life insurance is the only investment option that offers specific products tailor-made for different life stages. It thus ensures that the benefits offered to the customer reflect the needs of the customer at that particular life stage, and hence ensures that the financial goals of that life stage are met. PROTECTION PLAN:The sole objective of these plans, as their name indicates, is to serve the protection needs of the customer and by doing so, safeguard one’s family from the financial implications of unfortunate circumstances than one cannot foresee.

Under the Protection Plans platform, ICICI Prudential brings to you the following products:

Plan Name

Plan Type

Pure Protect

Traditional

LifeGuard

Traditional

Save'n'Protect

Traditional

CashBak

Traditional

Home Assure

Traditional

UNIT LINKED INSURANCE PLAN:LIFE STAGE PENSION PLAN:Retirement time is the time to live your dream, dream that you have been putting off as you never had the time for it. But your retirement dream has a cost attached to it. We call this your retirement number. To help you achieve your retirement number ICICI Prudential presents to you, LifeStage Pension. One of the most distinguishing features of this policy is that it has no premium allocation charge for regular premiums which means 100% of your money is invested. What’s more, the policy provides you with a unique lifecycle-based strategy that continuously re-distributes your money across various asset classes based on your life stage and risk tolerance, eventually providing you with a customized retirement solution. Invest today to attain your retirement number and fulfill your dreams. Read more about the features and benefits of this unique pension plan

LIFE STAGE PENSION AT GLANCE

Minimum/Maximum 18 years to 70 years Entry Age Maximum Cover 80 years Ceasing Age

Minimum/Maximum Policy Term Minimum/Maximum Vesting Age Premium Payment Frequency Minimum Premium Tax Benefit

10 years to 62 years 50 years to 80 years Monthly, half-yearly, yearly Rs. 15,000 p.a. Under Section 80CCC, as per prevailing Income Tax laws on premium paid for base policy.

BENEFITS:Option to choose a unique and personalised lifecycle based portfolio strategy to create ideal balance between Equity and Debt. This plan invests 100% of your money in the portfolio of your choice Enjoy the flexibility to choose from 5 pension options through which you can receive your pension. Opportunity to earn potentially higher returns by investing in Unit Linked Funds. Receive tax-free commutation up to one-third of the accumulated value on vesting (retirement) date.Avail tax benefits on premiums paid u/s 80CCC. PREMIER LIFE PENSION:You have strived hard to achieve your dreams and have attained the best comforts life could offer. After having reached this enviable and secure position, wouldn’t you like to continue living life on your own terms even after retirement? If you think so, then you need a retirement solution that not only suits your needs but also lets you retire RICH. To help you achieve this, ICICI Prudential Life Insurance presents Premier Life Pension Plan- a limited premium paying, unit-linked pension policy designed for preferred customers like you. This unique policy helps you customize your investments by allowing you to decrease your premium contributions as well as allowing you to boost your investment kitty by making top-ups at any time. Once you arrive at your retirement age the accumulated value of your policy provides you with a regular income (pension) for life.

PremierLife Pension at a glance Premium Payment Term

3 years

5 years

Minimum Premium

Rs 100000

Rs 60000

Minimum Entry Age

18 years

18 years

Maximum Entry Age

70 years

70 years

Minimum Policy Term

10 years

62 years

Maximum Policy Term

10 years

62 years

Maximum/Maximum Age at maturity

50-80 years

50-80 years

Maximum Sum Assured Tax Benefit

Zero Sum Assured Policy Under Section 80 CCC, as per prevailing Income Tax Laws on premium paid

BENEFITS :1. Flexibility of a limited premium payment term: pay premiums for only 3 years or 5 years. 2. Flexibility to decrease your premiums: reduce your premium contribution up to the minimum allowed under the chosen premium payment term from the 2nd year onwards. 3. Flexibility to increase your investment:: invest your surplus money over and above your premiums as top ups, at any time during the policy term. 4. Flexibility to choose your retirement date: choose to start receiving your pension from anytime between 50-80 years, according to your requirement. 5. Choose from 7 investment funds to invest your money: select from 7 funds, based on your financial goals and risk profile. You can switch funds 4 times a year, at no cost. For subsequent switches you will be required to pay a

switch fee of Rs. 100. 6. Enjoy the flexibility to choose from 5 pension options: through which you can receive your pension. 7. Tax benefits: receive up to one-third of the accumulated value as a tax-free lumpsum on your retirement day. Also enjoy tax benefits on the premiums you pay (under u/s 80 CCC) and tax exemptions on death benefits.

LIFE TIME SUPER PENSION:ICICI Prudential's LifeTime Super Pension policy is especially designed to help you systematically save towards a joyful and satisfying retirement. LifeTime Super Pension Plan is a cost-effective pension plan that delivers great value in the long run. A regular-premium unit-linked pension policy, LifeTime Super Pension ensures you earn a fixed income, for your entire life after retirement. So you can relax and live moments that truly matter. Read more about the features and benefits of this unique pension plan.

Premier-Life Pension at a glance Minimum/Maximum 18 years to 65 years Entry Age Maximum Cover Ceasing Age

75 years

Minimum/Maximum 10 years to 57 years Policy Term Minimum/Maximum 45 years to 75 years Vesting Age Premium Payment Frequency Minimum Premium Tax Benefit

Monthly, half-yearly, yearly Rs. 10,000 per annum Under Section 80CCC, as per prevailing Income Tax laws on premium paid for base policy

ICICI Prudential's LifeTime Super Pension policy is a regular-premium unitlinked pension policy. When you invest in this policy, you provide yourself with a guarantee that you will enjoy a fixed income-even when you are no longer working. Take a look at the additional features of ICICI Prudential's LifeTime Super Pension policy: 5 annuity options: Pick one option based on how long you want your annuity to last and the extent of coverage you want. 7 investment funds: Select among Flexi-Growth, R.I.C.H., Multiplier, FlexiBalanced, Balancer, Protector, and Preserver, based on your financial goals and risk profile. You can switch funds 4 times a year, at no cost. For subsequent switches you will be required to pay a switch fee of Rs. 100. 2 variations of Sums Assured: Opt for a Zero Sum Assured or a Sum Assured that can be chosen between a minimum of Rs. 1 lakh and maximum of the annual premium multiplied by the policy term.

Tax benefits: Receive up to one-third of the accumulated value as a tax-free lumpsum on your retirement day. Also enjoy tax benefits on the premiums you pay (under u/s 80 CCC) and tax exemptions on death benefits [under u/s 10 (10 D)].

LIFE LINK SUPER PENSION:ICICI Prudential's LifeLink Super Pension Plan has been especially tailored for individuals who would much rather make a lump-sum investment than pay premiums at regular intervals for their retirement planning. A cost-effective single premium unit-linked pension policy, LifeLink Super Pension Plan provides potentially higher returns that ensure your golden years are secure and peaceful. Invest in LifeLink Super Pension Plan today and watch your money multiply every month, right up to the day you retire. Receive an assured income from your retirement day, for the rest of your life. Read more about the features and benefits of this plan. Read more about the features and benefits of this unique pension plan.

LifeLink Super Pension at a glance Minimum Premium

Rs. 25,000

Minimum/Maximum Entry 18 years – 70 years Age Minimum/Maximum Policy 5 years – 57 years Term Minimum/Maximum Vesting 45 years to 75 years Age Under Section 80 CCC, as per prevailing Income

Tax Benefit Tax Laws on premium paid

BENEFITS:One-time lumpsum payment: Make a single investment of as little as Rs. 25,000. 7 Investment funds: Select among Flexi-Growth, R.I.C.H., Multiplier, Flexi-Balanced, Balancer, Protector, and Preserver, based on your financial goals and risk profile. Pension options: Out of the five annuity options, pick one that will best suit your post-retirement requirements. Pre-decided retirement age: Determine the age at which you want to start receiving your pensions. The minimum age of receiving pensions is 45 years. Switch benefit: Switch between funds anytime to adjust your portfolio, based on your goals and risk profiles. You can switch funds 4 times a year, at no cost. For subsequent switches, you will be required to pay a switch fee of Rs. 100. Tax benefits: Receive up to one-third of the accumulated value as a tax-free lump sum on your retirement day. Also enjoy tax benefits on the premiums you pay (under u/s 80 CCC).

Different policy bought bye customers 35 LIC

30 25 20 15 10 5

Term Plan

Endowment

Whole life

Money Back Retirement

Different Plans

Child Plan

Unit Link Plan

0

No. of Customers

ICICI Birla Sunlife SBI HDFC Bajaj Alliance TATA AIG Kotak Mahindr a ING Vyasya Max Newyork Met Life

Under insurable persons 82%

Fully insurable persons 18%

Potential of life insurance

Under Insured 82%

Fully Insured 18%

Only 42 % people having life insurance but among them 82% people are underinsurance and only 18% people are fully insured according to them income

Insurance Plan Term Plan Money back Plan Endowment Plan Child Plan Unit link Plan

Market Share 39% 14% 15% 8% 24%

Market share of diffrent Insurance plan

Unitlink plan 24%

Child Plan 8% Endownment Plan 15%

Term Plan 39%

Moneyback Plan 14%

SUGGESTION 1.) Life insurance has to expand their financial product

base for service orientation. 2) Any company in life insurance has to come with shorter premium payment term plan related to life insurance investment.

3) Life insurance company have to be periodically monitored by central government officially for a smooth effective running. 4) Brand preference from the customer have to be taken into consideration for achieving customer satisfaction &enhancing the professional service related to life insurance investment. 5) Management has to clear related its investment option when it comes to public investment.

RECOMMENDATION 1) IRDA has to take steps in insuring maximum to maximum safety &clarity when its comes to life insurance investment related to any company operated in India.

2) Company has to take step in order to improve the internal portfolio related to the investment of the public.

3) An insurance company has to improve on outstanding claim settlement ratio when it’s come to policy holder claims.

4) Insurance company has to improve on the internal infrastructure of the organization for giving professional service to policy servicing. 5) Insurance companies have to work on corporate lines with IRDA & set a professional image in front of IRDA

CONCLUSION After Finding’s we can see about LIC features and his The tendency to take the expedient approach and focus on the far right of the LIC spectrum, Peacetime Contingency Operations and conduct training as usual, while briefing that the LIC block has been checked, will lead us to a possibly fatal false sense of security. Instinctive behavior and ingrained training must be adjusted to fit new circumstances. STXs must be developed locally or borrowed from units who have already been through the training.

The probability of becoming involved in a LIC operation is high. The potential to attract international attention, even with limited forces, is also great. Units have demonstrated that with a balanced training focus and proper preparation, many pitfalls outlined above can be avoided. LIC is not conventional warfare. This is critical for the counterinsurgent to understand. The insurgent’s violent and coercive strategy is applied so as to achieve political, civil, military and psychological results. Hence, the counterinsurgent must counter all of these strategic elements individually. In addition, the target of the insurgent’s violence and coercion is the population. This is because the population is the centre of gravity in LIC. Therefore the counterinsurgent must also focus on the population to be successful. In terms of military principles in counterinsurgency, doctrinal precision, professionalism, independence, initiative, force precision, restraint, combined arms, precision engagement, joint force, effective population based intelligence, integrated communications, a civil affairs approach and high levels of training are critical. So we can say that so many merit’s and Demerit’s in life insurance Corporation of India.

LIMITATION The following are the deficiencies or limitations of the study. The study is restricted to only to INSURANCE COMPANIES It is restricted to Life Insurance Corporation Of india and ICICIC PRUDENTIAL LIFE CORPORATION hence the conclusion can be generalised for all the LIFE INSURANCE COMPANY on one hand for the entire INSURANCEsector on the other hand. There can be differences in the monitoring system and policies among the different Insurance Companies even they are following IRDA norms

This study restricted to only for study purposes not for .OTHER PURPOSES. The whole data is collected in 40 DAYS.. This is for COLLEGE PURPOSES ONLY. The whole study is based on LIFE INSURACE CORPORATION OF INDIA LTD AND ICICI PURDENTIAL LIFE INSURANCE COMPANIES DIFFERENT PORTFOLIO And Their Benefits with TAX.

BIBLIGAPHY IMPORTANT WEBSITE: WWW.LICINDIA.COM  WWW.ICICIPRULIFE.COM  WWW.GOOGLE.CO.IN  WWW.WIKIPEDIA.ORG

News Paper  Business standard 

Times of India

 Economic times



Hindustantimes

Magazine  Outlook Express  Business today  Finance & Banking  Money Outlook