Comparative+analysis+of+ulips

A REPORT ON

“A Comparative Study and Analysis of Unit Linked
Insurance Plans (ULIPs)-An IDBI FORTIS Perspective”

BY
C. JOHN WILLIAMS
(08BSHYD0323)

IDBI FORTIS LIFE INSURANCE COMPANY

Submitted to: Prof.S.Subramanian

Date of Submission: 16th May 2009

AUTHORISATION

This report “A Comparative Analysis of Unit Linked Insurance Plans (ULIPs) – An IDBI FORTIS
Perspective” done during my Summer Internship Program (SIP) is submitted as a partial
fulfillment of the requirement of MBA program of ICFAI Business School (IBS), Hyderabad.

16th May 2009

C.JOHN WILLIAMS

ICFAI BUSINESS SCHOOL-HYDERABAD Page 2

ACKNOWLEDGEMENTS

I would like to express my sincere gratitude to my company guide Ms.Shanthi Yagyanath,
Agency Manager -IDBI Fortis Life Insurance Company, Coimbatore for guiding me throughout
my summer internship and research project. Her encouragement, time and effort are greatly
appreciated.

I would then like to thank my faculty guide, Prof. S Subramanian, for all his valuable inputs and
constant support towards me throughout my project and providing me an opportunity to learn
outside the class room. It was a truly wonderful learning experience.

I would like to thank the training heads Mr.Anand, Ms Sudha and Sales executive Ms Priya for
helping me with the training and other activities and constantly motivating me to give my best.

I would like to dedicate this project to my parents. Without their help and constant support this
project would not have been possible.

I would like to thank all my friends who did their SIP from IDBI FORTIS for their valuable
suggestions and support.

Last but not the least I would like to thank all the respondents who offered their opinions and
suggestions and sometimes critical views throughout the survey which made me constantly
update myself come out with a successful project.


TABLE OF CONTENTS
AUTHORISATION ..........................................................................................................................2
ACKNOWLEDGEMENTS ................................................................................................................3
ABSRACT .......................................................................................................................................6
LIST OF ILLUSTRATIONS ................................................................................................................8
INTRODUCTION ..........................................................................................................................10
PURPOSE ....................................................................................................................................12
SCOPE OF THE STUDY .................................................................................................................12
OBJECTIVES OF THE PROJECT .....................................................................................................12
LIMITATIONS OF THE STUDY ......................................................................................................12
METHODOLOGY .........................................................................................................................13
SOURCES OF DATA .....................................................................................................................14
LITERATURE STUDY ....................................................................................................................14
INSURANCE.................................................................................................................................15
CHARACTERISTICS OF INSURANCE .............................................................................................15
HISTORY OF INDIAN INSURANCE ...............................................................................................15
INSURANCE MARKET - PRESENT ................................................................................................16
CAPITAL REQUIREMENTS AND FOREIGN PARTICIPATION .........................................................17
LIFE INSURANCE .........................................................................................................................18
COMPANY PROFILE ....................................................................................................................21
ABOUT IDBI FORTIS ....................................................................................................................21
PRODUCT RANGE OF IDBI FORTIS ..............................................................................................23
UNIT LINKED INSURANCE PLANS................................................................................................24
STRUCTURE OF ULIPs .................................................................................................................24
TYPES OF FUNDS UNDER ULIPs ..................................................................................................27
ADVANTAGES OF ULIPS ..............................................................................................................28
FACTORS INFLUENCING THE BUYING OF UNIT LINKEDINSURANCE PLAN (ULIPs) .....................29
UNIT LINKED INSURANCE PLANS (ULIPs) OF DIFFERENT COMPANIES.......................................30
IDBI FORTIS LIFE INSURANCE COMPANY ...................................................................................30
COMPARITIVE SECONDARY DATA ANALYISIS.............................................................................31


TATA AIG LIFE INSURANCE COMPANY .......................................................................................31
BAJAJ ALLIANZ LIFE INSURANCE COMPANY ...............................................................................33
LIFE INSURANCE CORPORTAION (LIC) OF INDIA ........................................................................35
HDFC STANDARD LIFE INSURANCE COMPANY ..........................................................................37
ICICI PRUDENTIAL LIFE INSURANCE COMPANY .........................................................................39
PERFORMANCE OF ULIPs OF THE SELECTED COMPANIES .........................................................44
PRIMARY DATA ANALYSIS ..........................................................................................................48
MERITS AND DE-MERITS OF IDBI FORTIS LIFE INSURANCE COMPANY ......................................57
MERITS .......................................................................................................................................57
DEMERITS ...................................................................................................................................57
POSITIONING ..............................................................................................................................59
POSITIONING STRATEGIES..........................................................................................................59
POSITIONING STRATEGIES OF IDBI FORTIS ................................................................................60
FINDINGS ....................................................................................................................................63
RECOMMENDATIONS .................................................................................................................64
MY EXPERINECES AND LEARNINGS ............................................................................................66
CONCLUSION ..............................................................................................................................66
ANNEXURE - I (QUESTIONNAIRE) ...............................................................................................69
ANNEXURE - II (FACTOR ANALYSIS OUTPUT [SPSS]) ..................................................................73
ANNEXURE - III (SCHEDULE OF THE PROJECT) ...........................................................................79
REFERENCES ...............................................................................................................................80


ABSRACT

The project aims to make a detailed study of Unit Linked Insurance Plans (ULIPs) in the Indian
context, a comparative analysis of ULIPs of some well known selected companies and in the
process identify the strengths and weaknesses of IDBI FORTIS.
The different selected companies apart from IDBI FORTIS on which the project is entirely
focused are namely:
a. ICICI PRUDENTIAL
b. BAJAJ ALLIANZ
c. TATA AIG LIFE
d. LIFE INSURANCE CORPORATION OF INDIA
e. HDFC STANDARD LIFE

The comparative study is primarily based in terms of the various benefits offered viz. Death
Benefits, Health benefits, Maturity Benefits, financial benefits & other benefits. The various
parameters taken into consideration were flexibility, transparency, liquidity and the number of
funds options available.

The project consists of a detailed analysis of the comparison of various ULIPs of IDBI FORTIS
with that of the selected major players in the market. The results of the project have been an
outcome of a detailed analysis of collected secondary data and well supported by analysis of
primary data collected through a survey in the Hyderabad city. The project required me to
design a questionnaire and conduct a primary survey. The survey was mainly conducted to
study the consumer perception, opinion and awareness of various insurance products. The
number of respondents targeted was 133.The sample of respondents included was carefully
selected targeting respondents from all age groups. Also the preferences of the respondents
towards these selected insurance companies have been noted and the reasons analyzed. The
data gathered from the primary survey was coded in a statistical tool called as Statistical
Package for Social Science (SPSS) for analysis and to find various factors that affect an investor
decisions while choosing an investment option in this vast market.

Finally we interpreted the results of the project by combining both the primary and the
secondary data analyses then identified the areas where the company is really strong and the
areas where it needs to have a second look.

We have also found out the amount to which each of the selected companies was affected due
to the market slow down in the last one year

The project also involved a complete study of the positioning strategies adopted by IBDI FORTIS
in general. This includes a detailed study of the various advertising strategies as well.


The sole objective of this study was to understand the strategies being adopted by the company
to counter the highly efficient stronger players in the market and survive with success.

Finally after a detailed study we have found out the merits and demerits of the IDBI FORTIS and
based on those we have given some recommendations to the company in areas where the
company to has to really work on.

The Project helped me enhance my knowledge on various technicalities of the Indian insurance
industry and gave me a broader prospective of various investment opportunities available in
the market. Marketing concepts learnt in the classroom were implemented in a real life
environment.


LIST OF ILLUSTRATIONS

Figure 1: The trend of the Indian insurance industry ($Bn) 2000-2011 .................................17
Table 1 : The list of life insurance companies in India ............................................................18
Figure 2 : The market share of the Indian Life Insurance industry ........................................19
Figure 3 : Premium break -up under ULIPs .............................................................................. 24
Table 2 : Types of funds under ULIPs ...................................................................................... 26
Figure 4 : Advantages of Unit Linked Insurance Plans ............................................................31
Table 3 : NAVs of HDFC Standard Life .................................................................................... 43
Figure 5 : NAVs of HDFC Standard Life ..................................................................................... 43
Table 4 : NAVs of Bajaj Allianz ................................................................................................ 44
Figure 6 : NAVs of Bajaj Allianz .................................................................................................. 44
Table 5 : NAVs of ICICI Prudential ........................................................................................... 44
Figure 7 : NAVs of ICICI Prudential ......................................................................................... 44
Table 6 : NAVs of LIC ............................................................................................................... 45
Figure 8 : NAVs of LIC ............................................................................................................... 45
Table 7 : NAVs of IDBI FORTIS ................................................................................................. 45
Figure 9 : NAVs of IDBI FORTIS ................................................................................................. 45
Table 8 : NAVs of Tata-AIG ..................................................................................................... 46
Figure 10 : NAVs of Tata-AIG .................................................................................................... 46
Table 9 : Percentage change in NAVs of various companies due to recession ...................... 46
Figure 11 : Percentage change in NAVs of various companies due to recession ..................... 46
Figure 12 : Break-up of respondents between different age groups ....................................... 47
Figure 13 : Break-up of respondents by their occupations ........................................................ 48
Figure 14 : Break-up of respondents based on their preferences for various savings
instruments .............................................................................................................................. 48
Figure 15 : Break-up of respondents based on factors influencing their decision ................. 49
Figure 16 : Break-up of respondents based on preferences for various forms of investment ... 49
Figure 17 : Break-down of respondents based on their frequencies of investment ............50
Figure 18 : Break-down of respondents who own/do not own an insurance policy ................ 50


Figure 19 : Break-down of respondents who rated risk involved in ULIPs ............................... 50
Figure 20 : Break-down of respondents who own insurance policies in various life insurance
companies ............................................................................................................................ 51
Figure 21 : Rating scale of selected insurance companies ...................................................... 52
Figure 22 : Break-down of respondents with different perceptions about the term
“WEALTHSURANCE” .............................................................................................................. 52
Figure 23 : Break-down respondents with various responses about the future of
IDBI Fortis ..............................................................................................................................53
Table 10 : Average frequency of investments among different age groups ............................ 353
Figure 24 : Average frequency of investments among different age groups ........................54
Table 11 : Age and Frequency of investment (Chi-Square table) ........................................54
Table 12 : KMO and Bartlett’s test of sphericity ..................................................................55
Table 13 : The prominent factors influencing the consumer’s investment decision ........... 55
Table 14 : List of the cities with IDBI Fortis presence ..............................................................59


INTRODUCTION

In the commercial arena, the choice of an effective strategy is perhaps the most important and
the toughest decision to take. The decision to select among the grand strategies and deciding
upon which strategy will best meet the enterprise’s objectives is rendered complex by multiple
considerations. The same is also true with the insurance companies in India who are constantly
revamping their strategies and coming out with innovative options to stay in the competition.
There were days when Life Insurance Corporation of India (LIC) was the only insurance company
available to people in India and where people synonymised Insurance to LIC. Also since it was a
Public Sector Undertaking (PSU) it has a great support from people. But now times have
changed a lot of private players have entered into the fray. There have been a lot of Indian
companies collaborating with foreign insurance giants like ICICI Prudential, Bajaj Allianz etc
who have already made their presence felt in the Indian Insurance industry.

Even though LIC is still the market leader with more than over 60% of the market share, the
private players are giving it a tough time. Since the last decade the market share of LIC had
fallen down by about more than 20%.

The new private players have started offering a variety of unlimited schemes right from
insurance plans for a 30 day old baby to that of a 70 year old senior citizen. Also the private
companies have started creating the importance and need of insurance in today’s life. They
have started positioning their brands and are marketing their products in such a way the
people have started feeling the need of security in their lives.

Taking into account the huge population and growing per capita income besides several other
driving factors, a huge opportunity is in store for the insurance companies in India. According to
the latest research findings, nearly 80% of Indian population are without life insurance cover
while health insurance and non-life insurance continues to be below international standards.
And this part of the population is also subjected to weak social security and pension systems
with hardly any old age income security. As per our findings, insurance in India is primarily used
as a means to improve personal finances and for income tax planning; Indians have a tendency
to invest in properties and gold followed by bank deposits. They selectively invest in shares also
but the percentage is very small (4-5%). This in itself is an indicator that growth potential for
the insurance sector is immense. It's a business growing at the rate of 15-20% per annum and
presently is of the order of around more than $55 billion.

India is a vast market for life insurance that is directly proportional to the growth in premiums
and an increase in life density. With the entry of private sector players backed by foreign
expertise, Indian insurance market has become more vibrant.


Competition in this market is increasing with companys’ continuous effort to lure the
customers with new product offerings. However, the market share of private insurance
companies remains low in the 25-35% range. Even to this day, Life Insurance Corporation (LIC)
of India dominates Indian insurance sector. The heavy hand of government still dominates the
market, with price controls, limits on ownership, and other restraints. They private players are
still in their initial days and would take some more time to capture a good market share. At
present they are coming up with new and innovative ideas.

Since the last decade the life insurance industry in India has been growing very fast and many
new companies have entered this business insurance. The Indian life insurance industry has
recorded a robust growth of more than 16 per cent for the nine-month period which ended on
December 31, 2008.It is expected to grow at an amazing rate of 20 per cent this year Also in
the present scenario the most sought after insurance plans are the Unit Linked insurance Plans
(ULIPs).

A ULIP is a life insurance policy which provides a combination of risk cover and investment.
ULIPs have gained high acceptance due to attractive features they offer like flexibility,
transparency, liquidity and a vast variety of fund option. Unit linked plans are suitable for all
customer profiles; however as a general belief the risk averse investors tend to choose
traditional plans and an informed customer prefers a ULIP. ULIPs offer the kind of flexibility
that no insurance product can. ULIPs essentially combine the benefits of an insurance policy
and a market-linked investment. Investors can select a ULIP with an equity-debt combination
that is in line with their risk profile. A risk-taking investor would typically select one with a high
equity component, while a risk-averse investor would opt for a debt-heavy one. Simply
put, ULIPs are structured in such a way that the protection element and the savings element
are distinguishable, and hence managed according to your specific needs. In this way,
the ULIP plan offers unprecedented flexibility and transparency.

So with many players around for a company to really be successful it has to really be very
efficient on all fronts. It has to constantly adapt to the changing consumer preferences with a
lot of new innovations and implementing new technology try to different from the lot.
Especially if it is a new player in the market the company has to really work very hard to get
into the completion and stay afloat.


PURPOSE

The project is being done as a part of summer internship program of ICFAI Business School-
Hyderabad. The completion of the project is a partial fulfillment requirement for being awarded
the Masters in Business Administration (MBA) degree from the university.

SCOPE OF THE STUDY

This study aims to make a comparative study of the Unit Linked Insurance Plans (ULIPs) of IDBI
FORTIS Life Insurance Company with that of some major selected players in the Indian
insurance market and study the consumer perception towards various insurance products. The
comparative analysis is based on the empirical data collected from the Hyderabad city. The
study also aims to discuss in detail the various positioning strategies adopted by IDBI FORTIS in
general.

OBJECTIVES OF THE PROJECT

a. To compare the Unit Linked Insurance Plans (ULIPs) of IDBI FORTIS with that of some
other selected companies.
b. To identify the strengths and weaknesses of IDBI FORTIS and suggest areas where it
could focus more and improve upon.
c. To study the consumer perception towards various insurance products.
d. To study in detail the positioning strategies of brand IDBI FORTIS in general.

LIMITATIONS OF THE STUDY

a. The study is confined only to a small segment of the entire population due to
monetary and time constraints and hence the results are applicable only to the city of
Hyderabad.
b. The scope of the project is limited to conceptual and marketing aspects of Life
Insurance Companies and doesn’t include Claim Settlement and the underwriting
part of the operations which are equally important aspect of learning.
c. It is not always possible to evaluate companies under similar parameters since many
companies deal with various businesses thus clubbing all the companies on the same
parameters is not always possible.


METHODOLOGY

The techniques used for data collection are:

A. Internet surveys and
B. Questionnaire method

The following methodology has been followed to achieve the objectives of the project.

Step: 1
Developing a right research design and timeline for the project.

Step: 2
Collecting Secondary data of the insurance Industry

Step: 3
Designing of the Questionnaire

Step: 4
Analysis of secondary data

Step: 5
Pilot Study

Step: 6
Collection of primary data-Questionnaires and internet surveys

Step: 7
Analysis of primary data

Step: 8
Study of positioning strategies of IDBI FORTIS

Step: 9
Interpretation of the results

Step: 10
Preparation of the final report


SOURCES OF DATA

In the data collection method, we have collected both primary and secondary data to meet our
objectives

Primary Data

The primary data was collected by a survey based on the questionnaire. It was formulated on
the basis of information carefully gathered by me about the various mindsets of the people.
This questionnaire was mainly formulated to target the common man to see his perception and
awareness of various investment options available. The number of respondents targeted was
around 150 and the survey was confined to Hyderabad city.

Secondary Data

The secondary data was collected directly from the companies and their websites and internet
surveys. Also a lot of similar research studies and journals have been referred to.

LITERATURE STUDY

Till today a lot of research has been done on the Indian insurance industry especially the life
insurance sector. The material for this study was collected from various internet sites, journals
and books by various authors. Similar research has been carried out by Sathak Mohanty who
worked on the risk profile of ULIPs and analyzed insurance as an investment option. He says
that Life Insurance Corporation of India (LIC) is still the undisputed leader in the Indian context.

According to Anita Gupta-director, marketing and communication, ING Vysa Life insurance
ULIPs are suitable for all types of customers, right from the lower class to the premium class.
Also according to the Financial express (Dated 12th April, 2009) ULIPs are flexible to the core.

During the course of the project some official studies on the products of Tata-AIG and HDFC
standard Life have been referred to. Also the books on Marketing Management by Philip Kotler
and that of Marketing Research by Naresh Malhotra were referred to gain a deeper insight on
positioning strategies and marketing research techniques. A lot of groundwork has also been
done by studying the vast range insurance products before taking up this research.


INSURANCE

Insurance may be described as a social device to reduce or eliminate risk of loss to life and
property. Under the plan of insurance, a large number of people associate themselves by
sharing risks attached to individuals. The risks which can be insured against include fire, the
perils of sea, death and accidents and burglary. Any risk contingent upon these, may be insured
against at a premium commensurate with the risk involved. Thus collective bearing of risk is
insurance.

CHARACTERISTICS OF INSURANCE

1. Sharing of risks
2. Cooperative device
3. Evaluation of risk
4. Payment on happening of a special event
5. The amount of payment depends on the nature of losses incurred.

HISTORY OF INDIAN INSURANCE

Insurance has a long history in India. Life Insurance in its current form was introduced in 1818
when Oriental Life Insurance Company began its operations in India. General Insurance was
however a comparatively late entrant in 1850 when Triton Insurance company set up its base in
Kolkata.

History of Insurance in India can be broadly bifurcated into three eras:

a. Pre Nationalization
b. Nationalization and
c. Post Nationalization

Life Insurance was the first to be nationalized in 1956. Consolidating the operations of various
insurance companies formed Life Insurance Corporation of India. General Insurance followed
suit and was nationalized in 1973. General Insurance Corporation of India was set up as the
controlling body with New India, United India, National and Oriental as its subsidiaries. The
process of opening up the insurance sector was initiated against the background of Economic
Reform process, which commenced from 1991. For this purpose Malhotra Committee was
formed during this year who submitted their report in 1994 and Insurance Regulatory
Development Act (IRDA) was passed in 1999. Resultantly Indian Insurance was opened for
private companies and Private Insurance Company effectively started operations from 2001.
(Source: www.irdaindia.org)


INSURANCE MARKET - PRESENT

The insurance sector was opened up for private participation a decade back. For years now, the
private players are active in the liberalized environment. The insurance market has witnessed
dynamic changes, which include presence of a fairly large number of insurers both life, and
non-life segment. Most of the private insurance companies have formed joint venture
partnering well-recognized foreign players across the globe.

The Indian life insurance market generated total revenues of $41.36 billion in 2007, thus
Representing a compound annual growth rate (CAGR) of 11.84% for the period spanning 2000-
2007. Life insurance market had a growth of $22.46 billion within a period of 7 years with a
growth rate of 118.24%. Estimated life premiums rose to INR 1,470,800 million ($36.77 billion)
in 2006 from INR 1,301,540 million ($32.54billion) in 2005. We envisage that life premiums in
2011 will be $65.96 billion, a growth larger than they were in 2007. The performance of the
market is forecast to accelerate, with an anticipated CAGR of 9.78% for the four-year period
2007-2011 expected to drive the market to a value of $65.96 billion by the end of 2011. There
would be a growth of $24.6 billion i.e. 59.48% in the next 4 years.

Non-life premiums in India were $6.53 billion in 2007. Gross written premium (GWP) in the
Indian non-life insurance market reached a value of $5.75 billion in 2006, this representing an
annual growth of 13.55% for the period spanning 2006-2007. Estimated non-life premiums rose
from INR230 billion ($5.75 billion) in 2006 to INR261 billion ($6.53 billion) in 2007.
We anticipate that non-life premiums will grow by a CAGR of 9.40% between 2007-2011. We
are looking for non-life premiums to rise by $405 million over the five years to the end of 2011
with a growth rate of 62.02%. (Source: http://www.scribd.com/doc/4996143/OVERVIEW-OF-
INSURANCE-SECTOR-INDIA,http://www.indiaprwire.com/pdf/pressrelease/200805079347.pdf)

With a huge population base and large untapped market, insurance industry is a big
opportunity area in India for national as well as foreign investors. India is the fifth largest life
insurance market in the emerging insurance economies globally and is growing at 32-34%
annually. This impressive growth in the market has been driven by liberalization, with new
players significantly enhancing product awareness and promoting consumer education and
information. The strong growth potential of the country has also made international players to
look at the Indian insurance market.

Moreover, saturation of insurance markets in many developed economies has made the Indian
market more attractive for international insurance players, according to "Booming Insurance
Market in India (2008-2011)”.


 Total life insurance premium in India is projected to grow Rs 1,230,000 crore by
2010-11.

 Total non-life insurance premium is expected to increase at a CAGR of 25% for the
period spanning from 2008-09 to 2010-11.

 With the entry of several low-cost airlines, along with fleet expansion by existing ones
and increasing corporate aircraft ownership, the Indian aviation insurance market is all
set to boom in a big way in coming years.

 Home insurance segment is set to achieve a 100% growth as financial institutions have
made home insurance obligatory for housing loan approvals.

 Health insurance is poised to become the second largest business for non-life insurers
after motor insurance in next three years.

 A booming life insurance market has propelled the Indian life insurance agents into the
‘top 10 country list’ in terms of membership to the Million Dollar Round Table (MDRT)
— an exclusive club for the highest performing life insurance agents.

(Source: http://www.marketsmonitor.com/Report/IM588_related.htm)

CAPITAL REQUIREMENTS AND FOREIGN PARTICIPATION

Minimum capital requirement for direct life and Non-life Insurance company is INR1000 million
and that for reinsurance company is INR2000 million. A maximum 26% foreign equity stake is
allowed in direct insurance and reinsurance companies. In the 2004-05 budget, the Government
proposed for increasing the foreign equity stake to 49%.



LIFE INSURANCE

As is evident from its very name, it deals with insurance of human life. “Life insurance
corporation of India”- a public sector undertaking has the monopoly in this sector since its
nationalization.

In our wordily life, whenever there is uncertainty, there is an involvement of risk. The instinct
for security against such risk is one of the basic motivating forces determining human attitudes.
As a squeal to this quest for Security, the concept of insurance must have been born. The urge
to provide insurance or protection against the loss of life & property must have prompted
people to make some sort of sacrifice willingly in order to achieve security through
“COLLECTIVE CO-OPERATION”, in this sense; story of insurance is probably as old as the story of
mankind.
All life insurance companies in India have to comply with the strict regulations laid out by
Insurance Regulatory and Development Authority of India (IRDA). Therefore there is no risk in
going in for private insurance players. In terms of being rated for financial strength like
international players, only ICICI Prudential is rated by Fitch India at National Insurer Financial
Strength Rating of AAA (Ind) with stable outlook indicating the highest claims paying ability
rating.

90.00
80.00
70.00
60.00
50.00
Life
40.00
Non-life
30.00
20.00
10.00
0.00
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Figure 1: The trend of the Indian insurance industry ($Bn) 2000-2011
(Source: The knowledge Centre)

Life Insurance Corporation of India (LIC), the state owned behemoth, remains by far the largest
player in the market. Among the private sector players, ICICI Prudential Life Insurance(JV
between ICICI Bank and Prudential PLC)is the largest followed by Bajaj Allianz Life Insurance
Company Limited (JV between Bajaj Group and Allianz).


The private companies are coming out with better products which are more beneficial to the
customer. Among such products are the ULIPs or the Unit Linked Insurance Plans which offer
both life cover as well as scope for savings or investment options as the customer desires.
Further, these types of plans are subject to a minimum lock-in period of three years to prevent
misuse of the significant tax benefits offered to such plans under the Income Tax Act.
Unlike the mutual fund product that has a very simple cost structure, ULIPs carry a greater
number of costs (administration and mortality), in addition to the others. So comparing ULIPs
with mutual funds is erroneous.

(Source: http://www.scribd.com/doc/136703/Indian-Insurance-Changing-Trends-and-a-Fresh-
Perspective)

Right now there are a total twenty two life insurance companies operating in India, of which
one (Life Insurance Corporation) is a Public Sector Undertaking and the remaining twenty are
all private sector enterprises. (Source: www.irdaindia.org)

List of life insurance companies in India
1. AEGON RELIGARE
2. AVIVA
3. BAJAJ ALLIAZ
4. BHARATHI AXA
5. BIRLA SUN LIFE
6. FUTURE GENERALI
7. HDFC STANDARD LIFE
8. HSBC
9. ICICI PRUDENTIAL
10. IDBI FORTIS
11. ING VYSYA
12. KOTAK LIFE INSURANCE
13. LIC
14. MAX NEWYORK LIFE
15. MET LIFE
16. RELIANCE LIFE
17. SAHARA INDIA
18. SBI LIFE
19. SHRIRAM LIFE
20. TATA AIG LIFE
21. DLF PRAMERICA
22. CANARA HSBC OBC

Table 1: The list of life insurance companies in India


MARKET SHARE
2% LIC
1%
3% 2% ICICI Prudential
6% Bajaj Allianz
3%
SBI Life
3%
Reliance
7% HDFC Standard Life
Birla Sun Life
9% 64% Max Newyork
Kotak Mahindra
Others

Figure 2: The market share of the Indian Life Insurance industry (figures are approximate)
(Source: As per a report published in 2008 by Ms Pinky Walia-Financial Advisor)


COMPANY PROFILE

ABOUT IDBI FORTIS
IDBI Fortis Life Insurance Co Ltd is a joint venture
between three leading financial conglomerates – India’s premier development and commercial
bank, IDBI Bank, one of India’s leading private sector banks, Federal Bank and Europe’s banking
and insurance giant, Fortis, each of which enjoys a significant status in their respective business
segments. In this venture, IDBI Bank owns 48% equity while Federal Bank and Fortis own 26%
equity each.

IDBI Fortis launched its first set of products across India in March 2008, after receiving the
requisite approvals from the Insurance Regulatory Development Authority (IRDA). The company
offers its services through a vast nationwide network across the branches of IDBI Bank and
Federal Bank in addition to a sizeable network of advisors and partners.

At IDBI Fortis, people endeavor to deliver products that provide value and convenience to the
customer. Through a continuous process of innovation in product and service delivery the
company intends to deliver world-class wealth management, protection and retirement
solutions to Indian customers

IDBI Ltd. continues to be, since its inception, India’s premier industrial development bank.
Created in 1956 to support India’s industrial backbone, IDBI has since evolved into a
powerhouse of industrial and retail finance. Today, it is amongst India’s foremost commercial
banks, with a wide range of innovative products and services, serving retail and corporate
customers in all corners of the country from over 490 branches and more than 600 ATMs. The
Bank offers its customers an extensive range of diversified services including project financing,
term lending, working capital facilities, lease finance, venture capital, loan syndication,
corporate advisory services and legal and technical advisory services to its corporate clients as
well as mortgages and personal loans to its retail clients. As part of its development activities,
IDBI has been instrumental in sponsoring the development of key institutions involved in India’s
financial sector – such as the Securities and Exchange Board of India (SEBI), National Stock
Exchange of India Limited (NSE) and National Securities Depository Ltd.

Federal Bank is one of India’s leading private sector banks, with a national network and
dominant presence in the state of Kerala. It has a strong network of over 550 branches and 450
ATMs spread across India. The bank provides over four million retail customers with a wide
variety of financial products. Federal Bank is one of the first large Indian banks to have an
entirely automated and interconnected branch network. They operate on the core banking
platform and are RTGS/ NEFT enabled through which the Bank offers state-of-the-art
technology enabled products and services.


In addition to interconnected branches and ATMs, the Bank has a wide range of services like
Internet Banking, Mobile Banking, Tele Banking, Any Where Banking, debit cards, co-branded
credit cards, online bill payment and call centre facilities to offer round the clock banking
convenience to its customers. The Bank has been a pioneer in providing innovative
technological solutions to its customers and the Bank has won several awards and
recommendations.

Fortis, a European financial services provider engaged in banking and insurance with a
presence in over 50 countries, offers its personal, business and institutional customers a
comprehensive package of products and services through its own channels, in collaboration
with intermediaries and through other distribution partners. With a market capitalization of
over EUR 40 billion, Fortis ranks among the 20 largest financial institutions in Europe. Fortis’
sound solvency position and dedicated, professional workforce of over 80,000, enables it to
combine global strength with local flexibility to provide its clients with optimum support and
service.

VISION

To be the leading provider of wealth management, protection and retirement solutions that
meets the needs of our customers and adds value to their lives.

MISSION

To continually strive to enhance customer experience through innovative product offerings,
dedicated relationship management and superior service delivery while striving to interact with
our customers in the most convenient and cost effective manner.

To be transparent in the way we deal with our customers and to act with integrity.

To invest in and build quality human capital in order to achieve the mission.

VALUES
Transparency: Crystal Clear communication to our partners and stakeholders
Value to Customers: A product and service offering in which customers perceive value
Rock Solid and Delivery on Promise: This translates into being financially strong,
operationally robust and having clarity in claims.
Customer-friendly: Advice and support in working with customers and partners.
Profit to Stakeholders: Balance the interests of customers, partners, employees,
shareholder sand the community at large


PRODUCT RANGE OF IDBI FORTIS

IDBI Fortis offers a variety of products targeting every customer right from a 3 month child to a
70 year senior citizen. All the products have been classified majorly under four plans namely

Wealthsurance
Homesurance
Bondsurance
Retiresurance

WEALTHSURANCE
The Wealthsurance Foundation Plan enables the customer to save and build wealth to meet
your financial goals. However, unlike other investment alternatives, it also enables him to
achieve his wealth goals even in the event of unexpected death, accidents, disablement or
serious illness. The Wealthsurance Foundation Plan can ensure that his plans for wealth
creation are achieved by protecting that plan with insurance benefits.

HOMESURANCE
The Homesurance Protection Plan is a reducing term plan, which provides insurance cover
equal to the outstanding balance of your home loan. In the unfortunate event of death of the
home loan borrower, the insurance cover enables repayment of the home loan liability.

BONDSURANCE
Bondsurance is a single premium plan which allows you to make a one-time investment and get
a guaranteed amount on maturity. You can choose a maturity period of 5 or 10 years for your
investment. At the end of the chosen period, you will receive a guaranteed maturity amount.
Besides the guaranteed maturity amount, Bondsurance also provides a life insurance cover. In
case of death before the maturity date, a Death Benefit which is also guaranteed will be paid.
Thus you can get life insurance cover, while earning an assured return on your investment.

RETIRESURANCE
Retiresurance is a pension plan without life cover that allows a longer policy term so that the
customer’s investments can get the benefit of compounding. The customer has to choose any
vesting age between 40-75 yrs. The vesting age chosen can also be postponed or preponed
within the above range by informing the company 30 days in advance. It is especially for people
who wish to lead a happy and prosperous life even after their retirement.

(Source:www.idbifortis.com)


UNIT LINKED INSURANCE PLANS

Unit linked insurance plan (ULIP) is a life insurance solution that provides the client with the
benefits of protection and flexibility in investment. It is a solution which provides for life
insurance where the policy value at any time varies according to the value of the underlying
assets at the time. The investment is denoted as unit and is represented by the value that it has
attained called as Net Asset Value (NAV).

ULIPs are a category of goal-based financial solutions that combine the safety of insurance
protection with wealth creation opportunities. In ULIPs, a part of the investment goes towards
providing a life cover. The residual portion of the ULIP is invested in a fund which in turn invests
in stocks or bonds; the value of investments alters with the performance of the underlying fund
opted by the customer.

Simply put, ULIPs are structured in such that the protection element and the savings element
are distinguishable, and hence managed according to your specific needs. In this way,
the ULIP plan offers unprecedented flexibility and transparency.

ULIPs came into play in 1960s and became very popular in Western Europe and America. The
reason that is attributed to the wide spread popularity of ULIP is because of the transparency
and the flexibility which it offers to the clients.

As time progressed the plans were also successfully mapped along with life insurance needs to
retirement planning .In today’s times ULIP provides solution for all the needs of a client like
insurance planning, financial needs, financial planning for children’s future and retirement
planning.( Source:http://www.scribd.com/doc/7216240/Understand-ULIP-Insurance)

STRUCTURE OF ULIPs

ULIPs offered by different insurers have varying charge structures. Broadly the different types
of fees and charges are given below. However the insurers have the right to revise or cancel the
fees and charges over a period of time
( Source: http://www.scribd.com/doc/7044410/ULIPs)

Premium Allocation charges
This is a percentage of the premium appropriated towards charges before allocating the units
under the policy. This charge normally includes initial and renewal expenses apart from
commission expenses.


Mortality Charges
These are charges to provide for the cost of insurance coverage under the plan. Mortality
charges depend on number of factors such as age, amount of coverage, state of health etc.
Fund Management Charges
These are fees levied for management of the fund(s) and are deducted before arriving at the
Net Asset Value (NAV) .
Policy/ Administration Charges
These are the fees for administration of the plan and levied by cancellation of units. This could
be flat throughout the policy term or vary at a pre-determined rate

PREMIUM

LESS CHARGES

INVESTMENT LIFE COVER
REPRESENTED AS UNITS

Fund
ULIPs Structure Management
Mortality Charges
Administration Charges
Charges

Premium
Allocation
Charges
Invested
Amount

Figure 3 : Premium break -up under ULIPs


Surrender Charges
A surrender charge may be deducted for premature partial or full encashment of units
wherever applicable, as mentioned in the policy conditions.
Fund Switching Charge
Generally a limited number of fund switches may be allowed each year without charge, with
subsequent switches, subject to a charge. But now a days many insurers offer fund switching
free of cost.
Service Tax Deductions
Before allotment of the units the applicable service tax is deducted from the risk portion of the
premium.


TYPES OF FUNDS UNDER ULIPs

Most insurers offer a wide range of funds to suit one’s investment objectives, risk profile and
time horizons. Different funds have different risk profiles. The potential for returns also varies
from fund to fund. The following are some of the common types of funds available along with
an indication of their risk characteristics.


General description Nature of investments Risk category
Equity Funds Primarily invested in company Medium to High
stocks with the general aim of
capital appreciation.

Income, Fixed Interest and Invested in corporate bonds, Medium
Bond Funds government securities and other
fixed income instruments.

Cash Funds Sometimes known as Money Low
Market Funds — invested in
cash, bank deposits and money
market instruments

Balanced Funds Combining equity investment Medium
with fixed interest instruments

Table 2: Types of funds under ULIPs


ADVANTAGES OF ULIPS

ULIP distinguishes itself through the multiple benefits that it provides to the consumer. The plan
is a one stop solution for everything the customers want. Unit Linked Insurance Plans (ULIPs)
are different from traditional plans purely because, they are much more transparent, various
charges are shared with the customer before the sale of the product, so as to enable the
customer to make an informed decision. (Source:www.scribd.com/doc/7044410/ULIPs)

Customers have the flexibility to choose their life cover. Also the customers have the choice of
multiple fund options based on their risk appetite, thereby enabling an investor to make the
desired returns from the investment.

The following are some of the advantages of Unit linked plans:

a. Life protection
b. Investment and Savings
 Market linked fund based on risk profile
 Switch option
 Premium redirection
 Automatic Transfer Plan(ATP)
c. Tax Planning
d. Flexibility of cover continuance
e. Transparency
f. Extra protection with riders
 Death due to accident
 Disability
 Critical illness
g. Liquidity
 Partial withdrawals during the term
 At maturity
h. Variable investment options
i. Premium holiday
j. Allow Top-ups


Insurance +
Investment
Long Term Allow Top Ups
Wealth Creation

Tax Benefits Riders
ADVANTAGES OF
ULIPS

Guaranteed Transparency
Capital Returns

Flexibility Invest as per
your risk appetite
Premium
Holiday

Figure 4: Advantages of Unit Linked Insurance Plans

FACTORS INFLUENCING THE BUYING OF UNIT LINKEDINSURANCE PLAN (ULIPs)

The degree of buying of ULIPs insurance varies from person to person. It depends upon many
factors. The factors can be classified into personal, social, economic, psychological and
company related variables. Age and experience of policyholder are personal factors, while the
co- education is a social factor. Economic factors include occupation, income and wealth, and
the psychological factors consist of perception, satisfaction about the services rendered by
insurance companies, the impact of advertisement and personal selling made by insurance
companies on policyholders. The company related variables are the promotional efforts to sell
the policies to prospective buyers. These include advertisement and personal selling too.


UNIT LINKED INSURANCE PLANS (ULIPs) OF DIFFERENT COMPANIES

IDBI FORTIS LIFE INSURANCE COMPANY

IDBI FORTIS different variety of schemes and a good
range of ULIPs under the flagship banner Wealthsurance. There are a lot of other ULIPs under
Bondsurance, Homesurance and Retiresurance but as our study is only confined to the study
and comparative analysis of ULIPs under Wealthsurance we would just be discussing about the
various plans under Wealthsurance. As discussed earlier the Wealthsurance Foundation Plan
enables the customer to save and build wealth to meet your financial goals. However, unlike
other investment alternatives, it also enables him to achieve his wealth goals even in the event
of unexpected death, accidents, disablement or serious illness.

The Wealthsurance Foundation Plan can ensure that his plans for wealth creation are achieved
by protecting that plan with insurance benefits. Wealthsurance is one of its kind in India. The
company offer 11 investment options and 8 protection benefits under the plan apart from tax
benefits (Source: www.idbifortis.com)
Under Wealthsurance there are a lot of different funds available which are explained below:

WEALTHSURANCE
Min entry age 30 dys
Max entry age 65 yrs
Min premium 10000
Max maturity age 75 yrs
Riders ADBR,ADB,WOPR,MAJOR DISEASES BENIFIT,HOSPITAL CASH
BENEFIT,TERMINAL ILLNESS BENEFIT
Min premium payment term 3 yrs
Types of funds EQUITY,NIFTY,Capital Guarantee, Asset Allocator,
GRF,MONTHLY INT A/C,INCOME,LIQUID

As discussed earlier we would be comparing the Unit Linked Insurance Plans (ULIPs) of the
companies selected initially with those of IDBI FORTIS and then make a detailed analysis. This
analysis would be well supported by the primary data analysis and then the final results would
be interpreted .So here first we would be listing out various ULIPs of the selected companies
and their details. After that we make a detailed comparison with that of the plans under
Wealthsurance of IDBI FORTIS and explain it.

So following are the details of ULIPs of various companies and the comparative analyses.


COMPARITIVE SECONDARY DATA ANALYISIS

TATA AIG LIFE INSURANCE COMPANY

TATA AIG OFFERS FOUR DIFFERENT TYES OF ULIPs

a. INVEST ASSURE CARE
b. INVEST ASSURE FLEXI
c. INVEST ASSURE II
d. INVEST ASSURE EXTRA

INVEST ASSURE CARE INVEST ASSURE FLEXI
Min entry age 30 dys Min entry age 30 dys
Max entry age 45 yrs Max entry age 70 yrs
Max Maturity age 65 Max Maturity age 80
Min premium 12000 Min premium 15000
No of funds 5 No of funds 7
Riders ADBR,CIBR Riders ADBR,CIBR
Min premium payment term NM Min premium payment term NM

INVEST ASSURE II INVEST ASSURE EXTRA
Min entry age 15,20,30 Min entry age 15,20,30
yrs yrs
Riders ADBR,CIBR, Riders ADBR,CIBR
WOP
Min premium payment term NM Min premium payment term NM

ADBR-Accidental Death Benefit Rider, CIBR-Critical Illness Benefit Rider, NM-Not Mentioned

(Source: www.tata-aig-life.com)


COMPARITIVE ANALYSIS

I. Through Wealthsurance a customer can even invest
at the age of 65 where as in this product if the
customer is beyond 45 years he will not be allowed to
invest.
INVEST ASSURE CARE II. Customer can keep his money invested till the age of
75 years and take benefit of the market performance
whereas here the plan matures at the age of 65.
III. In Wealthsurance Free partial withdrawal starts after
completion of 3 years where as in this product the
customer needs to wait for 5 completed years before
he can do a withdrawal
IV. Wealthsurance has a Premium allocation charge of
only 4% as against 50% allocation in this product
V. Through Wealthsurance a customer can even invest
INVEST ASSURE II customer is beyond 45 years he will not be allowed to
invest.
VI. Customer can keep his money invested till the age of

I. Wealthsurance has a Premium allocation charge of
only 4% as against 40% allocation in this product
II. Through Wealthsurance a customer can even invest
INVEST ASSURE EXTRA customer is beyond 45 years he will not be allowed to
invest.
III. Customer can keep his money invested till the age of
IV. Min Entry age in Wealthsurance as 0 Years as
against the Min Entry age of 15 Years
I. In Wealthsurance the Min Premium amount is only
Ten Thousand Rupees in comparison to Fifteen
Thousand Rupees in this Product.
II. Wealthsurance has a 4% allocation charge where as
INVEST ASSURE FLEXI in this product the allocation charge is 16%
III. Wealthsurance has different riders/protection Basket
to choose from including Hospital cash benefit which
gives money on a daily basis if hospitalized.


BAJAJ ALLIANZ LIFE INSURANCE COMPANY

BAJAJ ALLAINZ OFFERS FIVE TYES OF ULIPs

a. UNIT GAIN PLUS GOLD
b. UNIT GAIN PREMIER
c. CENTURY PLUS
d. NEW UNIT GAIN PLUS
e. PENSION GUARANTEE

UNIT GAIN PLUS GOLD UNIT GAIN PREMIER
Min entry age 0 yrs Min entry age 0 yrs
Max Maturity age 70 yrs Max Maturity age 70 yrs
Riders 6(after 18) Riders NM
Min premium payment term 3 yrs Min premium payment term 3 yrs

CENTURY PLUS NEW UNIT GAIN PLUS
Max Maturity age 70 yrs Max Maturity age 70 yrs
Riders ADBR Riders ADBR,WOP
CIBR,FIB,HCB
PDB

PENSION GUARANTEE ADBR-Accidental Death Benefit Rider,
Min entry age 45 yrs CIBR-Critical Illness Benefit Rider,
Max entry age 80 yrs NM-Not Mentioned,
Max Maturity age NA WOP-Waiver of Premium,
Min premium 25000- FIB-Family Income Benefit,
purchase HCB-Hospital Cash Benefit,
price PDB-Permanent Disability Benefit
No of funds NM
Riders NM (Source: www.bajajallianz.com)
Min premium payment term NM



I. Wealthsurance only has a allocation charge of only
4% in comparison to 15% in this product
UNIT GAIN PLUS GOLD II. Max Entry age in Wealthsurance is 65 as against 60
of Unit Gain Gold Plus

III. Wealthsurance has an Min Entry Age of 0 Years
against this product where the entry age is 8 Years.
IV. Min Premium in Wealthsurance is only Ten Thousand
CENTURY PLUS Rupees in comparison to Twenty Five Thousand
Rupees of this product.
V. In Wealthsurance there is a choice of 5 riders where
as in this product only one rider is available

I. Wealthsurance only has a allocation charge of only
NEW UNIT GAIN PLUS 4% in comparison to 55% in this product
II. Max Entry age in Wealthsurance is 65 as against 60
of Unit Gain Gold Plus

I. Min Premium in Wealthsurance is only Ten Thousand
Rupees in comparison to Fifty Thousand Rupees of
UNIT GAIN PREMIUM this product.
II. Max Entry age in Wealthsurance is 65 as against this
product which has a cut of 60 years.

I. Wealthsurance can be customized for retirement
planning.
II. Customers can opt for a partial withdrawal without
PENSION GUARANTEE any charges post 3 years from his fund value and use
the money as pension. There is no Tax/Charges on the
money withdrawn/taken as pension


LIFE INSURANCE CORPORTAION (LIC) OF INDIA

LIC OFFERS THREE DIFFERENT TYPES OF ULIPS

a. MARKET PLUS
b. PROFIT PLUS (RP & SP)
c. FORTUNE PLUS

MARKET PLUS PROFIT PLUS(RP&SP)
Max Maturity age 75 yrs Max Maturity age 70,75 yrs
Min premium 5000 RP Min premium 1000 RP
10000 SP 20000 SP
Riders ADBR Riders ADBR,CIBR

FORTUNE PLUS
Min entry age 12 yrs
Max entry age 60 yrs
Max Maturity age 65 yrs
Min premium 20000
No of funds 4
Riders ADBR

ADBR-Accidental Death Benefit Rider, CIBR-Critical Illness Benefit Rider

(Source: www.licindia.com)



I. Premium allocation charge is 16.5% in this product
where as Wealthsurance has a charge of Max 4%.
II. In Wealthsurance there is unlimited switching
redirection and partial withdrawal allowed absolutely
MARKET PLUS free of charge.
III. There are no riders available in this product as
against Wealthsurance has a host of riders to choose
from.
IV. After 3 years we can go for unlimited partial
withdrawals as against in this product there are no
partial withdrawal available
I. Premium allocation charge is 15% min in this product
PROFIT PLUS (RP & SP) II. In Wealthsurance there is unlimited switching
free of charge.
III. There are no riders available in this product as
from.

I. Min Entry age in Wealthsurance is 0 years as against
in this product it is 12 years
FORTUNE PLUS II. Max entry age in Wealthsurance is 65 years as
against in this product it is 60 years only.


HDFC STANDARD LIFE INSURANCE COMPANY

HDFC STANDARD LIFE OFEERS FOUR DIFFERENT TYPES OF ULIPs

a. ENDOWMENT PLUS II
b. ENHANCED LIFE PROTECTION II
c. UNIT LINKED PENSION RP
d. UNIT LINKED PENSION SP

ENDOWMENT PLUS II ENHANCED LIFE
PROTECTION II
Min entry age 18 Min entry age 18
Max entry age 65 Max entry age 45
Riders ADBR,CIBR Riders NO
Min premium payment term TERM Min premium payment term TERM

UNIT LINKED PENSION RP UNIT LINKED PENSION SP
Min premium 12000 Min premium NM
Riders NO Riders NO
Min premium payment term TERM Min premium payment term TERM

ADBR-Accidental Death Benefit Rider, CIBR-Critical Illness Benefit Rider

(www.hdfcstandardlife.com)


COMPARATIVE ANALYSIS

I. Min Entry age in Wealthsurance is 0 years as
against in this product it is 18 years
II. Premium allocation charge is 40% in this product
ENOWMENT PLUS II where as Wealthsurance has a charge of Max 4%.
III. Min Premium in Wealthsurance is 10000 as
against this product.
IV. Min Entry age in Wealthsurance is 0 years as
against in this product it is 18 years
V. Premium allocation charge is 40% in this product
ENHANCED LIFE PROTECTION VI. Min Premium in Wealthsurance is 10000 as
II against this product. Max entry age in this
product is only 45 years where as in
Wealthsurance it is 65 years
VII. In Wealthsurance after 3 years unlimited partial
withdrawals are allowed where as in this product
the customer needs to wait till the 5th year.
I. There are no rider available in this product as
against Wealthsurance has a host of riders to
choose from.
II. Allocation charge of 25% on this product and
Wealthsurance has a 4% charge.
UNIT LINKED PENSION RP III. Annuity is taxable where as all the funds in
Wealthsurance is tax free. Wealthsurance can be
customized to be a tax free retirement plan.
IV. Post 3 years customers can also do unlimited
partial withdrawal whenever there is a need for
money without being charged or taxed.
V. Min Premium in Wealthsurance is 10000 as
I. There is no rider available in this product as
against Wealthsurance has a host of riders to
UNIT LINKED PENSION SP choose from.
II. Allocation charge of 6% on this product and
Wealthsurance has a 4% charge.
III. Post 3 years customers can also do unlimited
partial withdrawal whenever there is a need for
money without being charged or taxed.
IV. Min Premium in Wealthsurance is 10000 as


ICICI PRUDENTIAL LIFE INSURANCE COMPANY

ICICI PRUDENTIAL OFFERS ELEVEN DIFFERENT TYPES OF ULIPs

a. LIFE TIME GOLD
b. LIFE LINK SUPER
c. PREMIER LIFE GOLD
d. LIFE TIME PLUS
e. LIFE STAGE
f. SMART KID CHILD PLAN
g. LIFE TIME SUPER PENSION
h. LIFE STAGE RP PRNSION
i. LIFE STAGE RP
j. LIFE STAGE ASSURE
k. INVEST SHEILD LIFE NEW

LIFE TIME GOLD LIFE LINK SUPER
Riders ADBR,CIBR, Riders NO
WOP
Min premium payment term 3 yrs Min premium payment term SP

PREMIER LIFE GOLD LIFE TIME PLUS
Max entry age 65,69 Max entry age 65
WORP
Min premium payment term 3,5 yrs Min premium payment term 3 yrs


LIFE STAGE SMART KID CHILD PLAN
WOP
Min premium payment term LIFE BASED Min premium payment term 3 yrs

LIFE TIME SUPER PENSION LIFE STAGE RP PENSION
Max Maturity age 45 yrs Max Maturity age 50-80 yrs
vesting age Vesting age
Riders ADBR,CIBR Riders NO

LIFE STAGE RP LIFE STAGE ASSURE
Max entry age MAX TERM Max entry age 65
75

INVEST SHIELD LIFE NEW
ADBR-Accidental Death Benefit Rider,
Min entry age 0 CIBR-Critical Illness Benefit Rider,
Max entry age 65 NM-Not Mentioned,
Max Maturity age 75 WOP-Waiver of Premium
Min premium 12000 SP-Single Premium
No of funds 6
Riders NM (Source: www.iciciprulife.com)


COMPARATIVE ANALYSIS

I. Premium allocation charge is premium based in this
product where as Wealthsurance has a charge of Max
4% and with higher premium the allocation charge
LIFE TIME GOLD decreases.
II. Min Premium in Wealthsurance is only Rs.10000 as
against in this product it is 20000
III. In Wealthsurance there is unlimited switching
free of charge.
I. Premium allocation charge is 20% in this product
LIFE LINK SUPER against in this product it is 20000
free of charge.
where as Wealthsurance has a charge of Max 4%
II. There are no riders available in this product as
PREMIER LIFE GOLD against Wealthsurance has a host of riders to choose
from.
free of charge
LIFE TIME PLUS against in this product it is 20000
free of charge.
LIFE STAGE RP redirection and partial withdrawal allowed absolutely
free of charge.
IV. There are only 2 riders available in this product as
from.


LIFE STAGE III. In Wealthsurance there is unlimited switching
free of charge.
IV. There are only 2 riders available in this product as
from.
SMART KID CHILD PLAN
III. Wealthsurance can be beautifully customized to be a
child plan by just adding wavier of premium.

I. Premium payable in this product is Rs.75000 as
against in Wealthsurance it is only Rs.10000
II. There are only two rider available in this product as
from.
III. Allocation charge of 20% on this product and
LIFE TIME SUPER Wealthsurance has a 4% charge.
PENSION IV. Annuity is taxable where as all the funds in
customized to be a tax free retirement plan. 4. Post 3
years customers can also do unlimited partial
withdrawal whenever there is a need for money
without being charged or taxed.

I. Premium payable in this product is Rs.15000 as
against in Wealthsurance it is only Rs.10000
II. There are only two rider available in this product as
from.
LIFE STAGE PR PENSION III. Annuity is taxable where as all the funds in
customized to be a tax free retirement plan.
IV. Post 3 years customers can also do unlimited partial
withdrawal whenever there is a need for money with
being charged or taxed, absolutely free.


I. In Wealthsurance partial withdrawals are allowed
right after 3 years where as in this product the
customer cannot touch his funds till 7th year.
II. First year premium is utilized towards Guaranteed
additions and returned on maturity as a Guarantee.
LIFE STAGE ASSURE III. If you surrender the policy the GA component is not
given to the customer and only the FV which gets
accumulated from 2nd premium is returned after
deducting surrender charges, where as in
Wealthsurance there will not be any other charges
apart from surrender charges that too if applicable

IV. Premium allocation charge is 20% in this product
V. Min Premium in Wealthsurance is only Rs.10000 as
VI. In Wealthsurance there is unlimited switching
INVEST SHEILD LIFE redirection and partial withdrawal allowed absolutely
NEW free of charge.
VII. There are only 2 riders available in this product as
from.
VIII. This product has no top up facility where as in
Wealthsurance tops are allowed any time.

IDBI FORTIS is a new company with over just over one year of operations and so we have very
less information about its past performance. Therefore not many negatives can be found with
the company in regard to the Unit Linked Insurance Plans. Some general demerits with regard
to the distribution network and marketing strategies have been mentioned after the analysis of
the primary data.

As a part of this comparative analysis we have also compared the performance of ULIPs of a
selected fund since the last one year (as the data of IDBI FORTIS is limited only to the last one
year). The comparison has been carried out in the next page.


PERFORMANCE OF ULIPs OF THE SELECTED COMPANIES

Here in order to compare the performances of the ULIPs of the selected five companies with
that of IDBI FORTIS we have selected a particular type of fund called equity growth funds. The
reason for selecting equity growth fund is that we would be very clearly able to understand the
effect of market slowdown on these companies. Here we have considered the Net asset Values
(NAV) of the equity growth funds from April 1st 2008 to April 30th2009.We have then compared
the compared the maximum and minimum NAVs during the period and found out the
percentage change for the NAVs observed for the equity funds of the respective selected
companies selected companies.

We have calculated the average NAV for every month (from April 1st 2008 to April 30th2009) for
all the companies and then plotted them on graphs. We have then found out the extent to
which each company was affected due to the market slowdown. We have also taken into
consideration the latest NAVs of these companies to see the pattern of growth of these funds
post recession. The percentage change (negative) in the Net Asset value for all the companies
has been calculated below and we observe that LIC was the least affected among the selected
companies with only a percentage change of only -23.38% which is quite low compared to
-43.84% of that of Bajaj Allianz.

IDBI Fortis has shown a percentage change of -38.95%.But since IDBI Fortis is a new company
which was started just a year back we can say that it has managed quite well and right now it
is showing a quite good and positive growth as we can see from its present NAV.

Month NAV
Apr-08 8.4099
May-08 7.7124 HDFC STANDARD LIFE
Jun-08 7.5374 9
8
Jul-08 8.1797 7
Aug-08 7.9632 6
5
NAV

Sep-08 5.9740
4
Oct-08 5.7968 3
Nov-08 5.6706 2
1
Dec-08 5.5100 0
Jan-09 5.4479
May-08
Jun-08

Oct-08

Jan-09

Mar-09
Apr-08

Aug-08

Apr-09
Jul-08

Sep-08

Nov-08

Feb-09
Dec-08

Feb-09 5.1516
Mar-09 6.1597
MONTH
Apr-09 6.4646

Table 3 & Figure 5: NAVs of HDFC Standard Life
(Source: wwww.hdfcstandardlife.com)


Month NAV
Apr-08 8.4099
May-08 7.7124 BAJAJ ALLIANZ
Jun-08 7.5374 30
Jul-08 8.1797 25
Aug-08 7.9632 20
Sep-08 5.9740

NAV
15
Oct-08 5.7968
10
Nov-08 5.6706
5
Dec-08 5.5100
0
Jan-09 5.4479

Jun-08

Mar-09
Oct-08

Jan-09
May-08
Apr-08

Aug-08

Nov-08

Apr-09
Jul-08

Sep-08

Feb-09
Dec-08
Feb-09 5.1516
Mar-09 6.1597
Apr-09 6.4646 MONTH

Table 4 & Figure 6: NAVs of Bajaj Allianz
(Source: www.bajajallianz.com)

Month NAV
Apr-08 56.3500
May-08 56.6050 ICICI PRUDENTIAL
Jun-08 48.9250 60
Jul-08 48.8700 50
Aug-08 51.4450 40
Sep-08 49.1450
NAV

30
Oct-08 39.4450 20
Nov-08 35.6850 10
Dec-08 36.4000
0
Jan-09 34.8450
Apr-09
Apr-08
May-08

Aug-08

Nov-08
Jun-08
Jul-08

Sep-08

Feb-09
Mar-09
Dec-08
Oct-08

Jan-09

Feb-09 34.2650
Mar-09 33.4050
Apr-09 39.9150 MONTH

Table 5 & Figure 7: NAVs of Bajaj Allianz
(Source: www.iciciprulife.com)


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