Name – Subham Choudhury

Roll No – 19DM017
Sec – (B)
Submission Date – 06/05/2020

IRM ASSIGNMENT
Topic – Term Insurance

Guided by-
Shib Prasad Padhi
(a)HDFC Life Term Plan

HDFC Life is one of the largest and most successful life insurance companies in India. It has a wide
range of life insurance policies on offer, including the best-selling term insurance plans. The HDFC Life
term plan and policies are much sought after because they offer wholesome coverage at a very
affordable rate.

What is HDFC Life term insurance plan?

The term plan from HDFC Life is life insurance policies that offer coverage for your life. They offer a
pure life cover. You compare life insurance and buy the best term insurance plan in India from HDFC
Life. The HDFC Life Click 2 Protect Plus insurance plan and the Click 2 Protect Health insurance plan are
among the very best available in the country. You choose an appropriate policy period and a suitable
coverage amount. You pay the premiums on time. If you happen to die within the policy period, your
family receives a death benefit and the policy end.

Features of these plans:

The HDFC Life Click 2 Protect Plus provides you with 4 different cover options:
 Life Cover option: the option gives the nominee of the payout on the death of the policyholder.
 Extra Life with accidental death benefit option: The nominee of the policy will receive a lump
sum payout as a death benefit in addition an extra sum assured is paid in case of death due to
accident.
 Income option: Under this the nominee will receive a sum assured payout as well as the
remaining amount divided into monthly incomes for the next 15 years.
 Income Plus option: Under this option the nominee will receive the sum assured paid on the
death of the policyholder and for the next 10 year will receive a monthly income. This monthly
income can be even chosen as a normal or increasing income at a rate of 10% p.a.
Benefits of this plan:

 Death benefit: In the unfortunate death of the policyholder, the nominee will receive benefits
as per the premiums policies chosen, if a single premium policies is chosen then the nominee
will receive 125% of a single premium and the sum assured. If the premiums are other than
single premiums then the nominee will receive 10 time the annualized premium, 105% of all
premiums paid as on the date of demise of the policyholder, sum assured.
 Maturity benefit: There isn’t a maturity benefit for this policy.
 Life stage protection: This option is available when the policyholder has taken the Life option
with an additional premium. This increases the sum assured cover, and reduces the additional
cover, which later on can lead to reduction in future premiums.
 Tax benefits: Avail of tax benefits under section 80C and 10 (10D) of the Income Tax Act 1961
SBI Term Insurance

SBI Term Insurance is an individual, non-participating, non-linked plan. It is customized especially to

provide the best financial protection for your loved ones at an affordable cost. The plan can be
purchased directly from the SBI Life Insurance website. In 2016, SBI Life Insurance was awarded as 'Life
Insurance Company of the Year' and ‘Banc assurance Leader Life Insurance (Large Category)' at the
Indian Insurance Awards. SBI Life has received AA rating by Standards and Poor's and offers both
Individual and Group plans to cater different needs.

The SBI Life e-Shield Insurance Plan is one of the best-selling term life insurance plans in India. It has a
very wide range of covers. When a policyholder gets this plan, he gets a comprehensive life cover at a
very affordable rate. In this article, we discuss the many features and benefits of this useful term life
insurance plan and also mention some of its notable exclusions. Take a look and decide whether this
life insurance cover is well suited for you.

Features of the SBI Life e-Shield Insurance Plan

 Comprehensive cover – The plan offers a comprehensive life cover. You can choose a high
coverage amount, depending on what your needs and requirements are. Every individual
has a different life insurance requirement. Before you select the ideal life insurance
coverage amount, you must see how many dependent family members you have, what the
other sources of income for your family are, etc. You will then be able to fix the correct
amount and cover your loved ones in a proper and adequate manner. The minimum sum
assured available on the SBI Life E-Shield Insurance Plan is Rs 20 lacs and there is no limit
on the maximum amount.
 Affordable price – The plan is very economically priced. Term insurance allows you to get a
wholesome life cover at an affordable rate. The SBI Life E-Shield Insurance Plan also offers this
benefit to you. Since it is a pure life cover and you do not get a maturity benefit if you outlive
the policy period, you get the term life plan at a very cheap rate.
 Choice of riders – Add-on covers are available with this plan. You can choose one or more riders
to make the term life cover for flexible for yourself. The riders are available at an extra cost, so
you must choose the covers wisely.
 Easy premium payment term – The premium needs to be paid for the entire duration of the
term plan. You can pay your premium once a year, twice a year, quarterly or monthly. The plan
can be purchased by anyone who is between the ages of `8 and 65 years. It is a very handy plan
in every way.
 Online plan – And finally, being an online term insurance policy, the SBI Life E-Shield Insurance
Plan is easy to buy, easy to maintain and cheaper as well. You get all the modern facilities of
term insurance online when you purchase this life insurance cover for yourself.

ICICI Pru iProtect Smart Term Plan

Life is an adventure for everyone with constant ups and downs. Insurance is a great concept that helps
us give assurance of financial help if we get struck by an unfortunate event. Term insurance plan is a
pure and basic insurance plan that gives financial protection to our loved ones against life’s biggest risk
 which is death. ICICI Prudential's iProtect Smart term insurance plan is one of the comprehensive term
plans available in the market today. It has lots of features and benefits which makes it a truly smart
and worthy term insurance plan.

Features of ICICI Pru iProtect Smart

• IProtect smart is a pure online term insurance plan.

• Four protection options as per need- Life, Life plus, Life and Health, All in One.
• It provides comprehensive coverage against death, terminal illness, and disability.
• Offers Special discount on premiums for female lives.
• Three payout options lump sum, monthly income and increasing income.
• Special extensive coverage for females by offering coverage for breast cancer and
cervical cancer.
• Option to increase sum assured for key milestone achievements like marriage or
birth/legal adoption of 1st and 2nd child.
• Surrender value applicable for single premium only.
• With ICICI Pru iProtect Smart, along with tax benefits under section 80C for
premium, you can save tax under section 80D if you opt for critical illness benefit
option. The death benefit is also tax free under section 10(10D).

(b) What is claim settlement ratio?

The claim settlement ratio (CSR) reveals the percentage of claims the insurer has paid out during a
financial year. In simple words, CSR is defined as the percentage of insurance claims settled by an
insurer compared to the total number of claims received. For instance, if the death claim settlement
ratio of an insurer is 90 percent, it means that the insurer has settled 90 death insurance claims out of
every 100 insurance claims receive.
The below table shows IRDAI's death claim settlement ratio of life insurers for last three
years

YEAR HDFC LIFE SBI LIFE INSURANCE ICICI PRUDENTIAL

INSURANCE LIFE INSURANCE
2018-19 99.04% 95.03% 98.58%
2017-18 97.80% 96.76% 97.88%
2016-17 97.62% 96.69% 96.68%
COMPARISON ON THE BASICS OF A MAN OF 30 YEARS OLD AND WANT TO HAVE A
TERM INSURANCE OF 20 YEARS

ICICI Prudential SBI Life e-shield HDFC Click 2 Protest

Smart Plan Plan

Life
Sum Assured 1 crore 1 crore 1 crore
Insurance,
one of the
Price 832 / Month 944/ Month 602/ Month most trusted

9739/ year 11092/ Year 11678/ Year

private life

Minimum Sum 10 Lakhs 20 Lakhs 10 Lakhs insurance

Assured companies in
the country,
Maximum Sum No Limits No Limits No Limits
today
Assured
announced a
Maximum Age Entry 65 75 75 net profit
rise of 31%
to Rs. 336
Maximum Age 75 75 75
Maturity crores in Q4
of FY 16-17,
Riders Yes Yes Yes as compared

Accident, Disability, Accidental, Total and Death Benefit, with Rs. 256
Critical illness, Permanent Disability Accidental, Critical crores in the
Terminal illness illness
Payment Option Single, Yearly, Half Limited / Regular Pay Monthly, Quarterly,
yearly, Monthly ,Single, Half Yearly, Yearly

Insurance Time 13 Days 23 Days 13 Days

Free Look Period 30 days 30 Days 30 Days

Claim ratio 98.58% 96.69% 99.04%

Solvency ratio 2.81% 2.04% 1.92%

Performance of SBI LIFE

corresponding quarter last year. SBI Life’s individual new business premium (APE) rose by 40% at Rs. 2,213 crores in Q4
of FY 16-17 as compared with Rs. 1,586 crores for the same period last year. For the financial year 2016-17, SBI Life
reported a Net Profit of Rs. 955 crores, an increase of 11% compared to last year’s Net Profit of Rs 861 crores. SBI Life
also became the first private life insurer to cross Rs. 10,000 crores in New Business Premium. The New Business
Premium for FY 16-17 grew by 43% to Rs. 10,144 crores. The Individual New Business premium (APE Basis) rose to Rs
5,936 crores in FY 16-17, recording a phenomenal growth of 39% compared with Rs. 4,276 crores in FY 2015-16

Key Highlights of SBI Life performance during the Financial Year 2016-17

 Net Worth increased to Rs. 5,552 crores from Rs 4,733 crores in the last fiscal

 The New Business Premium rose by 43% to Rs 10,144 crores as compared to Rs. 7,106 crores in FY
2015-16

 The Gross Total Premium received in FY 2016-17 is Rs. 21,015 crores, of which the New

 Business premium accounted for Rs. 10,144 crores and Renewal Premium accounted for Rs. 10,871
crores. Corresponding figures for last financial year were Rs. 15,825 crores, Rs. 7,106 crores and Rs.
8,719 crores respectively.

 Total Assets Under Management (AUM) has grown by 22% to Rs. 97,737 crores as on 31st March
2017, from Rs. 79,828 crores as on 31st March 2016

 Operating Expense ratio has decreased to 7.8%, from 9.2% in the previous year.

SBI LIFE INSURANCE Performance for the year 3018-19

 New Business Premium (NBP) has increased by 29.9% from ` 42.9 billion in H1 FY 2018 to `
55.7billion in H1 FY 2019.

 Individual rated premium (IRP) has increased by 11.4% from ` 30.6 billion in H1 FY 2018 to ` 34.1
billion in H1 FY 2019.

 Individual New Business Premium has shown consistent growth and is increased by 11.6% from `
33.3billion in H1 FY 2018 to ` 37.2 billion in H1 FY 2019.

 Individual unit linked New Business Premium has increased by 15.0% from ` 23.8 billion in H1 FY
2018 to ` 27.4 billion in H1 FY 2019.
  The Company has registered growth in savings and protection business reflecting balanced product
mix. Total protection new business premium has increased by 141.7% from ` 2.4 billion in H1 FY
2018 to `5.9 billion in H1 FY 2019. The share of total protection NBP (individual and group) has
increased from 5.6% in H1 FY 2018 to 10.5% in H1 FY 2019.

 New Business APE increased by 9.6% in H1 FY 2019 to ` 37.0 billion from ` 33.8 billion for the same
period last year.

 Robust growth in GWP of 34.6% to ` 124.4 billion in H1 FY 2019, due to strong growth in individual
renewal premium by 42.0% to ` 63.62 billion and also due to increase in group single premium by
130.8% from ` 7.8 billion to ` 18.0 billion

HDFC LIFE INSURANCE PERFORMANCE-

 Y/e 31 Mar ( Mar-2019 Mar-2018 Mar-2017 Mar-2016
In .Cr)
Equity Capital 2,018 2,013 1,998 1,995
Reserves 3,641 2,706 1,840 1,113
Net worth 5,659 4,719 3,839 3,109
Long-term borrowings -- -- -- --
Other Long-term 55,847 43,931 87,447 70,887
liabilities
Long term provisions 63,377 57,185 -- --
Total Non-current 119,224 101,116 87,447 70,887
liabilities
Short Term Borrowings -- -- -- --
Trade payables 1,509 1,178 934 658
Other current liabilities 3,550 3,424 2,840 1,854
Short term provisions 58.50 43.70 46.60 41.50
Total Current liabilities 5,118 4,646 3,820 2,553
 Y/e 31 Mar (In. Cr) Mar- 2019 Mar- 2018
Total Equities and Liabilities 130,001 110,481
Fixed Assets 333 341
Non-current investments 125,552 106,603
Deferred tax assets (Net) -- --
Long-term loans and advances -- --
Other non-current assets 79.60 18.70
Total Non-current assets 125,965 106,963
Current investments -- --

Trade receivables -- --
Cash and cash equivalents 1,240 1,108
Short-term loans and advances 2,796 2,410
Other current assets -- --
Total Current assets 4,036 3,518
Total Assets 130,001 110,481

ICICI PRUDENTIAL LIFE INSURANCE-

Y/e 31 Mar ( In .Cr) Mar-2019 Mar-2018 Mar-2017 Mar-2016
Equity Capital 143,578 14,355 1,435 1,683
Reserves 543,974 514,086 4,973 3,642
Net worth 687,552 528,441 6,408 5,325
Long-term borrowings -- -- -- 1,029
Other Long-term liabilities 15,255,068 13,179,732 115,498 3,966
Long term provisions -- -- -- 92,245
Total Non-current liabilities 15,255,068 13,179,732 115,498 97,240
Short Term Borrowings -- -- -- --
Trade payables 683 646 8.91 131
Other current liabilities 363,179 341,895 2,807 1,690
Short term provisions 2,551 2,218 20.50 380
Total Current liabilities 366,413 344,759 2,836 2,201
Total Equities and Liabilities 16,309,033 14,052,932 124,743 104,766
Fixed Assets 47,562 42,206 214 220
Non-current investments 13,263,628 11,915,662 121,586 103,027
Deferred tax assets (Net) 4 5 0.05 0.07
 Y/e 31 Mar ( In .Cr) Mar-2019 Mar-2018 Mar-2017 Mar-2016
Long-term loans and advances -- -- -- 44.30
Other non-current assets 27,019 14,506 80.60 --
Total Non-current assets 13,338,213 11,972,379 121,880 103,291
Current investments 2,637,226 1,938,349 -- --
Trade receivables -- -- -- 151
Cash and cash equivalents 66,102 20,374 214 200
Short-term loans and advances 267,492 251,026 2,648 1,124
Other current assets -- -- -- --
Total Current assets 2,970,820 2,209,749 2,862 1,475
Total Assets 16,309,033 14,182,128 124,743 104,766

(d)

According to my opinion I will select the ICICI prudential iprotect smart plus because the term plan is a
cheaper option as compared to other life insurance product. The term plan is a cheaper option live coverage in
case update for disability of primary holder ICC has cheaper monthly yearly premium and also take insurance
amount for just 10 lakh compared to SBI which has a minimum 20 lacs ICICI provide add on which can be
purchased by paying additional amount and potential has one of the best claim settlement data consistency
with 98.5% of the claim received you have settled apart from the companies having a solvency ratio 2.81
squad good as the company is in a position to repair the death of the liability that the company owned by the
help of it acid and the insurance can be improved within 7- 13 days when is applied.
Reference

https://www.sbilife.co.in/en/about-us/investor-relations/annual-reports

https://www.bankbazaar.com/hdfc-life-term-plan/click-2-protect-plus-plan.html

https://www.iciciprulife.com/term-insurance-plans/iprotect-smart-term-plan.html

https://www.irdai.gov.in/

https://youtu.be/yM67V7I9IKM

https://youtu.be/YzKwBTGwu-4