INDUSTRY PROFILE

Introduction
Insurance is a system of spreading the risk of one onto the shoulders of many. While it becomes somewhat
impossible for a man to bear by himself 100% loss to his own property or interest arising out of an
unforeseen contingency, insurance is a method or process which distributes the burden of the loss on a
number of persons within the group formed for this particular purpose. Basic human trait is to be averse to
the idea of risk taking. Insurance, whether life or non-life, provides people with a reasonable degree of
security and assurance that they will be protected in the event of a calamity or failure of any sort.
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.

History of Indian Insurance

The history of life insurance in India dates back to 1818 when it was conceived as a means to provide for
English Widows. Interestingly in those days a higher premium was charged for Indian lives than the non-
Indian lives as Indian lives were considered more risky for coverage. The Bombay Mutual Life Insurance
Society started its business in 1870. It was the first company to charge same premium for both Indian and
non-Indian lives. The Oriental Assurance Company was established in 1880. The General insurance
business in India, on the other hand, can trace its roots to the Triton (Tital) Insurance Company Limited,
the first general insurance company established in the year 1850 in Calcutta by the British. Till the end of
nineteenth century insurance business was almost entirely in the hands of overseas companies. Insurance..

Insurance can be defined as assurance for uncertainty. Insurance is about something going wrong. Its’
often about things going right.; One of the Wonders of human nature is that we never believe anything can
actually go wrong.

The insurance sector in India has come a full circle from being an open competitive market to
nationalization and back to liberalized market again. Tracking the development in Indian insurance sector
reveals the 360 degree turn witnessed over a period of almost two centuries.

The business of life insurance in Indian in its existing form started in India in the year 1818 with the
establishment of Oriental Life. Insurance Company in Calcutta.
Ownership of insurance companies is of two types:

 Shareholder ownership

 Policyholder ownership

Types of Insurance

Life Insurance - Insurance guaranteeing a specific sum of money to a designated beneficiary upon the
death of the insured, or to the insured if he or she lives beyond a certain age.

Health Insurance - Insurance against expenses incurred through illness of the insured.

Liability Insurance - This insures property such as automobiles, property and professional/business
mishaps.

Challenges facing by Insurance Industry

Threat of New Entrants: The insurance industry has been budding with new entrants every other day.
Therefore the companies should carve out niche areas such that the threat of new entrants might not be a
hindrance. There is also a chance that the big players might squeeze the small new entrants.

Power of Suppliers: Those who are supplying the capital are not that big a threat. For instance, if
someone as a very talented insurance underwriter is presently working for a small insurance company,
there exists a chance that any big player willing to enter the insurance industry might entice that person
off.

Power of Buyers: No individual is a big threat to the insurance industry and big corporate houses have a
lot more negotiating capability with the insurance companies. Big corporate clients like airlines and
pharmaceutical companies pay millions of dollars every year in premiums.

Availability of Substitutes: There exist a lot of substitutes in the insurance industry. Majorly, the large
insurance companies provide similar kinds of services – be it auto, home, commercial, health or life
insurance.
KEY MILESTONES

1912: The Indian Life insurance Companies Act enacted as first statue to regulate the life insurance
business.

1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical
information about life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the insurance Act with the objective of
protecting the interests of the insuring public.

1965: 245 Indian and foreign insurers and provident societies take over by the central government and
nationalized. LIC formed by an act of parliament viz. LIC. Act 1956, with a capital contribution of Rs.5
Crores from the government of India.

Indian Insurance Sector Reform

Formation of the Malhotra Committee in 1993 initiated reforms in the Indian insurance sector. The aim of
the Malhotra Committee was to assess the functionality of the Indian insurance sector. This committee
was also in charge of recommending the future path of insurance in India. The Malhotra Committee
attempted to improve various aspects of the insurance sector, making them more appropriate and effective
for the Indian market

In 1994, the committee submitted the report and some of the key recommendations included:

1. Structure

Government stake in the insurance Companies to be brought down to 50%. Government should
take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent
corporations. All the insurance companies should be given greater freedom to operate.

2. Competition

Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the
industry. No Company should deal in both Life and General Insurance through a single entity.
Foreign companies may be allowed to enter the industry in collaboration with the domestic
companies. Postal Life Insurance should be allowed to operate in the rural market. Only One State
Level Life Insurance Company should be allowed to operate in each state.

3. Regulatory Body
 The Insurance Act should be changed. An Insurance Regulatory body should be set up. Controller
of Insurance (Currently a part from the Finance Ministry) should be made independent.

4. Investments

Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to
50%. GIC and its subsidiaries are not to hold more than 5% in any company (There current
holdings to be brought down to this level over a period of time).

5. Customer Service

LIC should pay interest on delays in payments beyond 30 days. Insurance companies must be
encouraged to set up unit linked pension plans. Computerization of operations and updating of
technology to be carried out in the insurance industry The committee emphasized that in order to
improve the customer services and increase the coverage of the insurance industry should be
opened up to competition.

But at the same time, the committee felt the need to exercise caution as any failure on the part of new
players could ruin the public confidence in the industry. Hence, it was decided to allow competition in a
limited way by stipulating the minimum capital requirement of Rs.100 crores. The committee felt the need
to provide greater autonomy to insurance companies in order to improve their performance and enable
them to act as independent companies with economic motives. For this purpose, it had proposed setting up
an independent regulatory body.

The Insurance Regulatory and Development Authority Act of 1999 brought about several crucial policy
changes in the insurance sector of India. It led to the formation of the Insurance Regulatory and
Development Authority (IRDA) in 2000. The goals of the IRDA are to safeguard the interests of insurance
policyholders, as well as to initiate different policy measures to help sustain growth in the Indian
insurance sector.

PRESENT SCENARIO - LIFE INSURANCE INDUSTRY IN INDIA

The life insurance industry in India grew by an impressive 47.38%, with premium income at Rs. 1560.41
billion during the fiscal year 2009-20010. Though the total volume of LIC's business increased in the last
fiscal year (2009-20010) compared to the previous one, its market share came down from 85.75% to
81.91%.
The 17 private insurers increased their market share from about 15% to about 19% in a year's time. The
figures for the first two months of the fiscal year 2009-2010 also speak of the growing share of the private
insurers. The share of LIC for this period has further come down to 75 percent, while the private players
have grabbed over 24 percent. With the opening up of the insurance industry in India many foreign
players have entered the market. The restriction on these companies is that they are not allowed to have
more than a 26% stake in a company’s ownership.

Since the opening up of the insurance sector in 1999, foreign investments of Rs. 8.7 billion have poured
into the Indian market and 19 private life insurance companies have been granted licenses.

Innovative products, smart marketing, and aggressive distribution have enabled fledgling private
insurance companies to sign up Indian customers faster than anyone expected. Indians, who had always
seen life insurance as a tax saving device, are now suddenly turning to the private sector and snapping up
the new innovative products on offer. Some of these products include investment plans with insurance and
good returns (unit linked plans), multi – purpose insurance plans, pension plans, child plans and money
back plans.

Market Share of Indian Insurance Industry

The introduction of private players in the industry has added value to the industry. The initiatives taken by
the private players are very competitive and have given immense competition to the on time monopoly of
the market LIC. Since the advent of the private players in the market the industry has seen new and
innovative steps taken by the players in this sector. The new players have improved the service quality of
the insurance. As a result LIC down the years have seen the declining phase in its career. The market
share was distributed among the private players. Though LIC still holds the 75% of the insurance sector
but the upcoming natures of these private players are enough to give more competition to LIC in the near
future. LIC market share has decreased from 95% (2002-03) to 81 %( 2004-05).The following companies
has the rest of the market share of the insurance industry. Table 3 shows the mane of the player in the
market.
TABLE NO: 1 NAME OF THE INSURANCE COMPANY AND THE SHARE HOLDING PATTERN

Name of the Insurance Company Shareholding

Agricultural Insurance Co Bank and Public Ins Co

Bajaj Allianz General Insurance Co. Ltd. Privately Held

Cholamandalam MS General Insurance Co. Ltd. Privately Held

Export Credit Guarantee Company Public Sector

HDFC Chubb General Insurance Co. Ltd. Privately Held

ICICI Lombard General Insurance Co. Ltd. Privately Held

IFFCO-Tokio General Insurance Co. Ltd. Privately Held

National Insurance Co. Ltd. Public Sector

New India Assurance Co. Ltd. Public Sector

Oriental Insurance Co. Ltd. Public Sector

Reliance General Insurance Co. Ltd. Privately Held

Royal Sundaram Alliance General Insurance Co. Ltd. Privately Held

Tata AIG General Insurance Co. Ltd. Privately Held

United India Insurance Co. Ltd. Public Sector

There are a total of 13 life insurance companies operating in India, of which one is a Public Sector
Undertaking and the balance 12 are Private Sector Enterprises.

List of Companies are indicated below:-

TABLE NO: 2 NAME OF THE LIFE INSURANCE COMPANY AND THE SHARE HOLDING
PATTEN
 Name of the company Nature of Holding

Allianz Bajaj Life Insurance Co Private

Aviva Life Insurance Private

Birla Sun Life Insurance Co Private

HDFC Standard Life Insurance Co Private

ICICI Prudential Life Insurance Co Private

ING Vysya Life Insurance Co. Private

Life Insurance Corporation of India Public

Max New York Life Insurance Co. Private

MetLife Insurance Co. Private

Om Kotak Mahindra Life Insurance Private

Reliance insurance Private

SBI Life Insurance Co Private

TATA- AIG Life Insurance Company Private

TABLE 3 NAME OF THE PLAYER MARKET SHARE (%)

Name of the Player Market share (%)

LIFE INSURANCE CORPORATION OF INDIA 82.3

ICICI PRUDENTIAL 5.63

BIRLA SUN LIFE 2.56

BAJAJ ALLIANZ 2.03

 SBI LIFE INSURANCE 1.80

HDFC STANDARD 1.36

TATA AIG 1.29

MAX NEW YARK 0.90

AVIVA 0.79

OM KOTAK MAHINDRA 0.51

ING VYSYA 0.37

MET LIFE 0.21

Present Scenario of Insurance Industry

 India with about 200 million middle class household shows a huge untapped potential for players
in the insurance industry. Saturation of markets in many developed economies has made the Indian
market even more attractive for global insurance majors. The insurance sector in India has come to
a position of very high potential and competitiveness in the market. Indians, have always seen life
insurance as a tax saving device, are now suddenly turning to the private sector that are providing
them new products and variety for their choice.

 Consumers remain the most important centre of the insurance sector. After the entry of the foreign
players the industry is seeing a lot of competition and thus improvement of the customer service in
the industry. Computerization of operations and updating of technology has become imperative in
the current scenario. Foreign players are bringing in international best practices in service through
use of latest technologies

 The insurance agents still remain the main source through which insurance products are sold. The
concept is very well established in the country like India but still the increasing use of other
 sources is imperative. At present the distribution channels that are available in the market are listed
below.

 Direct selling

 Corporate agents

 Group selling

 Brokers and cooperative societies

 Bancassurance

 Customers have tremendous choice from a large variety of products from pure term (risk)
insurance to unit-linked investment products. Customers are offered unbundled products with a
variety of benefits as riders from which they can choose. More customers are buying products and
services based on their true needs and not just traditional moneyback policies, which is not
considered very appropriate for long-term protection and savings. There is lots of saving and
investment plans in the market. However, there are still some key new products yet to be
introduced - e.g. health products.

 The rural consumer is now exhibiting an increasing propensity for insurance products. A research
conducted exhibited that the rural consumers are willing to dole out anything between Rs 3,500
and Rs 2,900 as premium each year. In the insurance the awareness level for life insurance is the
highest in rural India, but the consumers are also aware about motor, accidents and cattle
insurance. In a study conducted by MART the results showed that nearly one third said that they
had purchased some kind of insurance with the maximum penetration skewed in favor of life
insurance. The study also pointed out the private companies have huge task to play in creating
awareness and credibility among the rural populace. The perceived benefits of buying a life policy
range from security of income bulk return in future, daughter's marriage, children's education and
good return on savings, in that order, the study adds.
CHAPTER 3

COMPANY PROFILE
COMPANY PROFILE

HDFC Standard Life is one of India’s leading private life insurance Companies, which offers a range of
individual and group insurance solutions. It is a joint venture between Housing Development Finance
Corporation Limited. (HDFC) India’s leading housing finance institution and Standard Life plc, a leading
provider of financial services in the United Kingdom. HDFC Standard Life’s product portfolio comprises
solutions, which meet various customer needs such as Protection, Pension, Savings, Investment, and
Health. Customers have the added advantage of customizing their Plans by adding optional benefits called
riders, at a nominal price. The company currently has 25 retail and 4 group products in its portfolio, along
with five optional rider benefits catering to the savings, investment, protection and retirement needs of
customers. HDFC Standard Life continues to have one of the widest reaches among new insurance
companies through a network of 595 offices serving over 720 cities and towns across the country.

The company has also increased its depth in existing markets with a strong base of more than 207,000
Financial Consultants. HDFC Standard Life Insurance Company Limited. is one of India's leading private
insurance companies, which offers a range of individual and group insurance solutions. It is a joint venture
between Housing Development Finance Corporation Limited (HDFC Limited), India's leading housing
finance institution and a Group Company of the Standard Life Plc, UK. As on February 28, 2009 HDFC
Ltd. holds 72.43% and Standard Life (Mauritius Holding) 2006, Ltd. holds 26.00% of equity in the joint
venture, while the rest is held by Others.

At HDFC Standard Life, they work towards helping their customers to live with pride and self respect.
Being customer centric is a value dear to their heart. "Raising the bar", "Soar for More" is their business
mantra; in doing so, rigor of processes is also what they adhere to .Integrity is thweir way of life.
Providing a challenging work environment to employees goes hand in hand with their motto of customer
delight.

10 incredible years and still going strong, they have literally made their mark with footprints over 600
cities & towns in India. The growth engine is driven by more than 16,000 committed employees who take
pride in working for HDFC Standard Life, a distribution channel with over 2,00,000 customer centric
financial consultants and equally strong channel partners in private and public sector banking. While
accelerating their growth, they foster a learning culture towards creating thought leadership in the
industry.

HDFC's finest investment is in its Human Resources. They believe that the combination of growth and
talented work force will take the organization to newer heights. They believe that their people are their
building blocks on which the company's performance & productivity is based.

HDFC Standard Life is a leading life Insurance Company. It’s the endeavor of the organization to attract
talent in a competitive landscape and retain them through effective people processes.

Company’s talent acquisition strategy is to hire the right people who align and demonstrate HDFC
Standard Life values. Their learning and leadership initiatives emphasize on capability development at
each level to create an environment which allows contribution towards business growth. Alignment with
our values is the starting point in HDFCSL.
Company’s talent management initiatives recognize individual aspirations and provide opportunities for
employees to fulfill their potential.

Company’s employee engagement endeavors are geared to build a culture where employees partner the
organization building processes.
JOINT VENTURE

HDFC Standard Life Insurance Company Limited was one of the first companies to be granted license
by the IRDA to operate in life insurance sector. Reach of the JV player is highly rated and been
conferred with many awards. HDFC is rated ‘AAA’ by both CRISIL and ICRA. Similarly, Standard
Life is rated ‘AAA’ both by Moody’s and Standard and Poor’s. These reflect the efficiency with which
HDFC and Standard Life manage their asset base of Rs. 15,000 Cr and Rs. 600,000 Cr. Respectively.

HDFC Standard Life Insurance Company Ltd was incorporated on 14th August 2000. HDFC is the
majority stakeholder in the insurance JV with 81.4 %stale and Standard of as a staple pf 18.6% Mr.
Deepak Satwalekar is the MD and CEO of the venture.

HDFC Standard Life Insurance Company Ltd. Is one of India’s leading Private Life Insurance
Companies., which offers a range of individual and group insurance solutions. It is a joint venture
between Housing Development Finance Corporation Limited (HDFC Ltd.) India’s leading housing
finance institution and the Standard Life Assurance Company, a leading provider of financial services
from the United Kingdom. Both the promoters are will known for their ethical dealings and financial
strength and are thus committed to being a long-term player in the life insurance industry- all
important factors to consider when choosing your insurer.

Background and inception of the company

HDFC Standard Life Insurance Company Limited. is one of India's leading private insurance
companies, which offers a range of individual and group insurance solutions. It is a joint venture
between Housing Development Finance Corporation Limited (HDFC Limited), India's leading housing
finance institution and a Group Company of the Standard Life Plc, UK. As on February 28, 2009
HDFC Ltd. holds 72.43% and Standard Life (Mauritius Holding) 2006, Ltd. holds 26.00% of equity in
the joint venture, while the rest is held by others.

The company was incorporated on 14th august 2000 under the name of Hdfc Standard Life Insurance
Company Ltd.

The ambition of the company from as far back as October 1995 was to be the first private company to
re enter the life insurance market in India ,on 23rd of October 2000,this ambition was realized when
HDFC STANDARD LIFE was the only life insurance company to be granted certification of
registration .

Hdfc Standard Life has a long and close relationship build upon shared value and trust. The ambition
of Hdfc Standard Life is to mirror the success of the parent company and be the yard stick by which all
other insurance companies in India are measured.

Hdfc Standard Life Insurance Company LTD is a joint venture between HDFC, India’s largest housing
finance institution standard life assurance company , Europe’s largest housing finance institution and
standard life assurance companies , Europe’s largest mutual life company HDFC over RS- 280000
CRORES In assets and standard life over us $ 100 billion in assets .

Nature of Business

HDFC STANDARD LIFE is into a business of insurance. It is one of the first private insurance
companies. Its sell various insurance policy based on the needs of consumer. It has traditional
insurance plan as well as modern ulip plan in its portfolio.

Vision

“The most successful and admired life insurance company, which mean that we are the most trusted
company, the easiest to deal with, offer the best value for money, and set the standards in the industry.
In short, “The most obvious choice for all”.

Mission

We aim to be the top new life insurance company in the market. This does not just mean being the
largest or the most productive company in the market, rather it is a combination of several things like

 Customer service of the highest order

 Value for money for customers

 Professionalism in carrying out business

 Innovative products to cater to different needs of different customers

 Use of technology to improve service standards

 Increasing market share

Values

 Integrity

 Innovation

 Customer centric

 People Care “One for all and all for one”

 Team work

 Joy and Simplicity

Strategy

 Creating capital efficient, innovative products

 Opening new routes to the markets

 Leveraging investment management expertise and performance

 Driving for operational excellence.

Key Strength

Financial Expertise: As a joint venture of leading financial services groups. HDFC standard Life has
the financial expertise required to manage your long-term investments safely and efficiently.

Range of Solutions: They have a range of individual and group solutions, which can be easily
customized to specific needs. Their group solutions have been designed to offer the customer a
complete flexibility combined with a low charging structure.

Strong Ethical Value: HDFC is an ethical and Cultural Organization. False selling or false
commitment with the customers is not allowed.
Areas of Operation:

HDFC Standard Life continues to have one of the widest reaches among new insurance Companies.
The company strengthened its number of offices from 103 to 572 across the country in less than 3
years. Through these offices, the company today services customer needs in over 730 cities and towns.
HDFCSLIC is head quartered at Mumbai and has established its presence in the states of:

TABLE 4 AREAS OF OPERATION

Andhra Pradesh Assam

Bihar Chatthisgarh

Delhi Goa

Gujarat Haryana

Himachal Pradesh Jharakhand

Karnataka Kerala

Madhya Pradesh Maharashtra

Meghalaya Orissa

Punjab Rajasthan

Tamil Nadu Uttar Pradesh

Uttaranchal West

TABLE 5 HDFCSLIC HAS ITS BRANCHES IN:

Ahmedabad Bangalore

Chennai Jaipur

Hyderabad Jodhpur

Jalandar Kanpur

Ludiana Luknow

Kolkata Meerut

Mangalore Patna

Mysore Trichur
Noida Trivandrum

Pune New Delhi

Group Companies

HDFC Bank: World Class Indian Bank- among the top private banks in India.

HDFC AMC: One of the top 3 AMCs in India- Preferred investment manager.

Intelent Global : BOP services for international customers.

CIBIL: Credit information services bureau.

HDFC Chubb: Upcoming Private companies in the field of General Insurance

Associate Companies

HDFC Limited HDFC Bank

HDFC Mutual Fund HDFC Sales

HDFC ERGO General Insurance

Other Companies

 HDFC Trustee Company Ltd.

 GRUH Finance Ltd.

  HDFC Developers Ltd.

 HDFC Property Ventures Ltd.

 HDFC Ventures Trustee Company Ltd.

 HDFC Investments Ltd.

 HDFC Holdings Ltd.

 Credit Information Bureau (India) Ltd

 HDFC Securities

Bancassurance Partners

HDFC Bank

Saraswat Bank

PRODUCT/SERVICE PROFILE
A comprehensive list of policies and products on offer by HDFC Standard Life Insurance

Protection Plans

• HDFC Term Assurance Plan

• HDFC Loan Cover Term Assurance Plan
• HDFC Home Loan Protection Plan

Children's Plans

• HDFC Children's Plan

• HDFC SL Youngstar super II
• HDFC Unit Linked Young Star super premium

Retirement Plans

• HDFC Personal Pension Plan

• HDFC SL Pension Maximus
• HDFC Immediate Annuity

Savings & Investment Plans

• Savings & Investment Plans

• HDFC Endowment Assurance Plan
• HDFC SL Crest
• HDFC SL ProGrowth Super II
• HDFC SL ProGrowth Flexi
• HDFC SL ProGrowth Maximiser
• HDFC SL New Money Back Plan
• HDFC Single Premium Whole of Life Insurance Plan
• HDFC Assurance Plan
• HDFC Savings Assurance Plan
• Endowment Gain Insurance Plan

Health Plans

• HDFC Critical Care Plan

• HDFC SurgiCare Plan
Group Plans

• Group Term Insurance Plan

• Group Variable Term Insurance Plan
• Group Unit Linked Plan - Gratuity
• HDFC SL Group Savings plan
• Group Unit Linked Plan - Leave Encashment

Protection Plans

 HDFC Term Assurance Plan: This plan is designed to help secure family’s financial needs in
case of uncertainties. The plan does this by providing a lump sum to the family of the life assured
in case of death or critical illness (if option is chosen) of the life assured during the term of the
contract. One can choose the lump sum that would replace the income lost to one’s family in the
unfortunate event of one’s death.

 HDFC Loan Cover Term Assurance Plan: This plan aims to protect family from loan liabilities
in case of unfortunate demise within the policy term. It provides the beneficiary with a lump sum
amount, which is a decreasing percentage of the initial Sum Assured. This means that as the
outstanding loan decreases as per the loan schedule, the cover under the policy also decreases as
per the policy schedule.

 HDFC Home Loan Protection Plan: This plan aims to protect family from loan liabilities in case
of unfortunate demise within the policy term. It ensures that family does not lose the dream house
that person have purchased for them, in case person is not around to repay the outstanding monthly
installments on their housing loan.
Children's Plans

 HDFC Children's Plan: As a parent, everyone priority is their child’s future and being able to
meet their child’s dreams and aspirations. With HDFC Children’s Plan, they can start building
their savings today and ensure a bright future for their child. This ‘With Profits’ plan is designed
to secure the child’s future by giving the child (Beneficiary) a guaranteed lump sum on maturity
or in case of unfortunate demise, early into the policy term.

 HDFC SL Young Star Super II: HDFC SL Young Star Super II you can fulfill your child’s
immediate and future needs. So tomorrow when the child needs the support they don’t have to
depend on anyone else. In case of unfortunate demise or critical illness, the company will pay the
greater of Sum Assured (less partial withdrawals) or Fund Value to your child (Beneficiary). The
policy will terminate. The company will pay 100% of all the future regular premiums to the
Beneficiary as and when due, on an annual basis.


 HDFC SL Young Star Super premium : HDFC SL Young Star Super Premium can fulfil the
child’s immediate and future needs. with this unit linked insurance plan and be assured that
savings for child will continue, even in your absence. This plan offers the choice of cover
options and benefit payment preferences- all designed to suit the needs. This plan helps to secure
the child’s immediate and future needs. In case of unfortunate demise or critical illness, the
company will pay the Sum Assured to the child (Beneficiary). The company will pay further
premiums. With Save -n- Gain benefit, the company will pay 50% of all the original regular
premiums towards the policy and 50% of the premiums will be paid to the Beneficiary as and
when due, on an annual basis. Any Death Benefit or Critical Illness cover terminates immediately.
An illustration of how education expenses could rise with passing time due to inflation

Source: HDFC Standard Life Survey 2008. Inflation assumed as 6% p.a

Retirement Plans

 HDFC Personal Pension Plan: The HDFC Personal Pension Plan is a ‘With Profits’ insurance
policy that is designed to provide a post-retirement income for life with the freedom to choose your
retirement date.
 HDFC Pension Super: The HDFC Personal Pension Plan is a ‘With Profits’ insurance policy that
is designed to provide a post-retirement income for life with the freedom to choose your retirement
date.

 HDFC Pension Supreme: The HDFC Pension Supreme is Unit Linked plan, designed to provide
a post-retirement income for life with the freedom to choose their retirement date. This plan gives
them with an outstanding investment opportunity to maximize their savings by providing them a
choice of thoroughly researched and selected investments. This plan also gives Bumper Addition
to the fund value at vesting.

 HDFC SL Pension Champion: The HDFC SL Pension Champion is Unit Linked plan, designed
to provide a post-retirement income for life with the freedom to choose their retirement date. This
plan gives them with an outstanding investment opportunity to maximize their savings by
providing them a choice of thoroughly researched and selected investments. This plan also gives
Bumper Addition to the fund value at vesting.

 HDFC SL Unit Linked Pension Maximiser II: HDFC SL Unit Linked Pension Maximiser II is a
unique Single Premium unit linked plan, designed to provide a post-retirement income for life with
the freedom to maximize their investment returns. This plan also gives Bumper Addition* of 5% of
initial single premium at vesting and on death.

 HDFC Immediate Annuity: The HDFC Immediate Annuity is a contract that uses investor capital
to provide them with a guaranteed gross income throughout their lifetime or over a period of their
choice. The income is guaranteed and is unaffected by the rise and fall of interest rates. This means
the investor can plan their life the way they want it to be, safe in the knowledge that their gross
income will not fall during the period they have selected. The HDFC Immediate Annuity offers a
number of options to meet all their income needs.
Savings & Investment Plans

 HDFC Endowment Super: With HDFC Endowment Super, investors can start building their
savings and it ensures that their family remains financially independent, even when they are not
around. This Unit Linked Plan also gives them with an outstanding investment opportunity to
maximize their savings by providing them a choice of thoroughly researched and selected
investments.

 HDFC Endowment Supreme: With HDFC Endowment Supreme, investors can start building
their savings today and it ensures that their family remains financially independent, even when
they are not around. It is a convenient plan, which saves them from the need of going for Medicals.
This Unit Linked Plan gives them with an outstanding investment opportunity to maximize their
savings by providing them a choice of thoroughly researched and selected investments. This plan
also gives Bumper Addition to the fund value at Maturity.

 HDFC Simple Life: It is a convenient plan, which saves investors from the need of going for
Medicals. This Unit Linked Plan gives them with an outstanding investment opportunity to
maximize their savings by providing them a choice of thoroughly researched and selected
investments.

 HDFC Endowment Super Suvidha: It is a convenient plan, which saves investors from the need
of going for Medicals. This Unit Linked Plan gives them with an outstanding investment
opportunity to maximize their savings by providing you a choice of thoroughly researched and
selected investments. This plan also gives Bumper Addition to the fund value at Maturity.

 HDFC Endowment Supreme Suvidha: It is a convenient plan, which saves insured person from
the need of going for Medicals. This Unit Linked Plan gives them with an outstanding investment
 opportunity to maximize their savings by providing them a choice of thoroughly researched and
selected investments. This plan also gives Bumper Addition to the fund value at Maturity.

 HDFC Wealth Builder: HDFC Wealth Builder is an exclusive plan crafted for elite achievers. An
investment cum insurance plan that will actively help in building investor wealth and give them
twin advantage of exclusive funds (actively managed ) along with choice of limited premium
payment term. This plan provides the financial protection to their loved ones and builds up their
wealth effortlessly. This plan also gives Bumper Addition to the fund value at Maturity.

 HDFC Endowment Assurance Plan: With HDFC Endowment Assurance Plan, investors can
start building their savings today and ensure that their family remains financially independent, even
when they are not around. This ‘With Profits’ plan is designed to secure their family’s future by
giving their family a guaranteed lump sum on maturity or in case of their unfortunate demise, early
into the policy term.

 HDFC Money Back Plan: With HDFC Money Back Plan, investors can plan now to ensure that
they have the necessary funds to have the necessary funds to secure their long-term as well as
short-term financial goals. This ‘With Profits’ plan gives them a proportion of the basis Sum
Assured as Cash lump sums at regular 5-year intervals within the policy term.
 HDFC Single Premium Whole of Life Insurance Plan: HDFC Single Premium Whole of Life
Plan is a tailor made plan well suited to meet investors long-term investment needs and help them
to maintain their family’s financial independence. This single premium investment plan is a
Whole of Life plan aimed at providing long-term real growth of their money.
 HDFC Assurance Plan: HDFC Assurance Plan helps investors conveniently build their long-term
savings while keeping their family’s future protected. This ‘With Profits’ savings plan helps them
to build their long-term savings while securing their family’s future.
 HDFC Savings Assurance Plan: HDFC Savings Assurance Plan is a ‘With Profits’ savings plan
which helps investors conveniently build their long-term savings and ensure that their family is
protected even if they are not around.
 Single Premium Investment: This plan is a Whole of Life plan aimed at providing long-term real
growth of your money.

Features
 Advantages

 This participating plan is a Whole of Life plan aimed at providing long-term real growth for your
money
 By nature, this is a whole life policy where the term extends for the life However, you can decide
on the policy term by using a feature built into it. For a period of 4 weeks, after any one of the
10th, 15th, 20th and subsequent five-year anniversaries, you can choose to receive the Sum
Assured plus any attaching bonuses, in full. Once money has been received, your policy will cease
or you may also continue the policy for your whole life
 You can terminate the policy any time, after it has been in force for at least 6 month and receive a
surrender value. We will pay discretionary surrender value based on our experience. However,
after completion of 3 years there will be a guaranteed surrender value of 50% of premium paid. In
addition to the guaranteed surrender value, we may pay additional discretionary surrender value
based on our experience. Contract ends on the payment of the same
 Currently Section 80C benefit is available for the premium paid under the plan to the extent of
20% of the Sum Assured. In the event of a death claim the money paid is exempt as per Section
10(10D), of the Income Tax Act 1961

Health Plans

 HDFC Critical Care Plan: HDFC Critical care plan provides for a lump sum payment on survival
post diagnosis of a critical illness, so that in the event a critical illness strikes, investors don’t have
to dig into those precious savings of them.
 HDFC Surgi Care Plan: HDFC SurgiCare Plan provides investors with timely support in case
they have to undergo a major surgery and hospitalization, as the case maybe, ensuring their
financial independence at all times.

Health plans give you the financial security to meet health related contingencies. Due to changing
lifestyles, health issues have acquired completely new dimension overtime, becoming more complex in
nature. It becomes imperative then to have a health plan in place, which will ensure that no matter how
critical your illness is, it does not impact your financial independence.

Rural Products

 HDFC Gramin Bima Kalyan Yojana

 HDFC Gramin Bima Mitra Yojana
 HDFC Bima Bachat Yojana

Social Products

 HDFC Development Insurance Plan

The Title of the study

“Financial planning” for HDFC standard Life Insurance company Limited.

Statement of the problem:

This study was undertaken to do a Financial Planning for the people so that they are aware of where
they stand financially today and to suggest them what investment plans they can adopt among the
plans (products) available at HDFC Standard Life insurance company so as to secure their future.

The Financial Planning was done from the point of view of the insurance companies, thus if focused
on investment in the insurance products rather than investments in Mutual funds, real estates, etc

This research tries to analyze some key factors which influence the purchase of insurance like the term
of the policy, the age of the client, the type of company, the annual income, the amount of annual
premium payable ( capacity and willingness to spend), risk taking ability and the influence of
advertising. Solutions and recommendations are made based on qualitative and quantitative analysis of
the data.

Research objective:

 The main objective of this project is to do a financial planning of the people and to suggest
suitable investment so as to

 To maximize return on investments at a reasonable level of risk

 To accumulate the necessary savings for significant family needs.

 To have the necessary capital available in case of unexpected loss of income or savings
or significant unforeseen outlays.

 To have sufficient saving and income for retirement

 To minimize and defer income taxed and other government levies

 To prepare family members who want to carry on the family business if applicable

 The other objective of this project is to do a study of various Traditional and ULIP products of
HDFC standard life insurance company and to suggest the suitable plan (product) to the people
based on their Financial Planning.

Research methodology
  Research Type: Descriptive and Exploratory research

 Research Approach: survey Method

 Target Population: Residents in and around Jayanagar and J.P Nagar

 Sampling: Sampling refers to the method of selecting a sample from a given universe with a
view to draw conclusions about that universe. A Sample is a representative of the universe
selected for study.

 Sampling Method: Convenience Sampling

 Survey type: Structured type format was used for collecting information to do the Financial
Planning. Personal interview was also conducted.

Data collected:

 Primary sources

Primary data was used which includes the survey method using structured format, telephonic
interview as well as the personal interview methods of data collection were used.

 Secondary sources

Secondary data was used such as books, the internet, company brochure, product brochures, product
brochures, the company website, newspaper articles etc.

Sample size

The sample size is - respondents belonging to different age groups, excluding the age of 20 years.

Sample Framework:

The sampling Framework included the residents in and around jayanagar and Koramangala

Data analysis and interpretation:

Tables and Pie Diagrams were used for the analysis of the collected data. Data was interpreted using
the Microsoft Excel Sheet.

Limitation of the Study:

 The study covers a limited sample size and does not cover the whole of Bangalore city. The
sample size was restricted to---- numbers because of the tedious task involved in analyzing the
financial aspects of the client.

 It is very difficult to extract the details related to the financial aspects from the clients.

 The entire process of financial planning for the people was time consuming and was based on
the appointments scheduled by the people.
GENERAL INTRODUCTION

What is Financial Planning?

Financial planning is a process of setting objectives, assessing assets and resources, estimating future
financial needs, and making plans to achieve monetary goals. Many elements may be involved in
financial planning, including investing, asset allocation, and risk management. Tax, retirement, and
estate planning are typically included as well.

Financial planning plays a starring role in helping individuals get the most out of their money. Careful
planning can help individuals and couples set priorities and work steadily towards long-term goals. It
may also provide protection against the unexpected, by helping individuals prepare for things such as
unexpected illness or loss of income.

Financial planning is a critical exercise in ensuring long-term financial security. A financial plan is a
road map to help you achieve your life’s financial goals.

Here are three basic questions that you will answer during financial planning:

• Where are you today? What is your current financial situation?

• Where do you want to get to? What is your vision of your future financial situation?

• Will you be able to get there? How do you plan to achieve your vision?

During the financial planning process you analyze what your financial needs and goals are. Then, you
quantify in money terms what resources you need to meet those goals, and quantify the time period
during which you want to achieve these goals. Finally, you write an action plan on what you need to
fulfill your plan in terms of what products to buy and what types of savings to make.

The basics of financial plan may include some of the following questions:

 Will your family be financially secure, whatever happens to you?

Are your finances taxes efficient?

 Are you getting the best return in a rising or a falling stock market on your investments?

 Is your child’s education financially secure? How about for their wedding?

 Do you have enough money for your retirement?

Meaning Of Financial Planning

Financial planning is a systematic approach whereby the financial planner helps the customer to
maximize his existing financial resources by utilizing financial tools to achieve his financial goals.

Financial planning is simple mathematics. There are 3 major components:

• Financial Resources (FR)

• Financial Tools (FT)
• Financial Goals (FG)

When you want to maximize your existing financial resources by using various financial tools to
achieve your financial goals, that is financial planning.

Financial Planning: FR + FT = FG

In other words, financial planning is the process of meeting your life goals through proper
management of your finances. Life goals can include buying a home, saving for your children's
education or planning for retirement. It is a process that consists of specific steps that help you to take
a big-picture look at where you are financially. Using these steps you can work out where you are now,
what you may need in the future and what you must do to reach your goals.

Financial planning is an evolving plan that changes as you grow in your career path and move on in
your career path and move on in your life stages, it is a plan that needs to be reviewed as the
circumstances changes for example getting married, buying a house and raising a family. As your life
goals and financial status changes you will need to review your financial plans to see if you will
achieve your financial goals with in the given time line.

How should one begin a financial planning?

The only thing permanent in life is change. Times change, People change. So does life. You expect life
to be much better tomorrow than it is today. Tomorrow, you hope to fulfill all your dreams and
aspirations. But what happens if things take an untoward turn?

The first step he should take in creating a financial plan is to identify his personal and family financial
goals. Goals are based in what is most important to an individual. Short-term goals are things that one
desires soon , while long-term goals identify what one wants later on in life. Take these short-term and
long-term goals and establish priorities, making sure an emergency fund is listed as the first item. Then
estimate the cost of each goal and set a target date to reach it.

The changing life cycle affects financial planning. A person’s goals must be updated as his needs and
circumstances change. In one’s young adult years, short-term goals may include adequate insurance,
establishing good credit, and just getting under way. During a person’s middle years, the goals shift
from immediate personal spending to educate for children and planning for retirement.

360° financial planning

Instead of investing in an ad-hoc manner, 360° Financial Planning helps you take a holistic, all-round
view. Briefly, 360° Financial Planning comprises:

 Investment Planning: To make your wealth grow

 Cash Flow Planning: To provide for assets and meet the periodic cash requirements
 Tax Planning: To save on taxes and increase your income
 Insurance Planning: To protect yourself, your family and your assets
 Children's Future Planning: To give your children a financially secure future
 Retirement Planning: Because retirement is a time to relax, not to get worried

 Investment Planning

To make your wealth grow. Everyone needs to save for a rainy day. Once you have saved
enough to take care of emergencies, you should start thinking about investing and to make your money
grow.
 Investment Planning includes:

• Risk Profiling
• Asset Allocation and Portfolio Construction
• Creation and Accumulation of Wealth through Systematic Investment Plans (SIP)

 Regular review of progress and Portfolio Rebalancing

Essentially, Investment Planning involves identifying the financial goals throughout our life,
and prioritizing them. Investment Planning is important because it helps us to derive the
maximum benefit from our investments.

 Cash Flow Planning:

To provide for assets and meet the periodic cash requirements. In simple terms, cash flow refers to
the inflow and outflow of money. It is a record of your income and expenses. Cash flow planning
refers to the process of identifying the major expenditures in future (both short-term and long-term)
and making planned investments so that the required amount is accumulated within the required time
frame. Cash flow planning is the first thing that should be done prior to starting an investment
exercise, because only then will you be in a position to know how your finances look like, and what is
it that you can invest without causing a strain on yourself. It will also enable you to understand if a
particular investment matches with your flow requirement.

Cash flow plan brings you face-to-face with what you should ideally be saving, and investing in a
systematic and regular manner, and what would it mean to you to withdraw from your portfolio after a
couple of years. It brings down in numbers what your financial future has in store for you, and gives a
crystal clear view (as much as is possible with inflation and the interest rate scenario).

 Tax Planning

To save on taxes and increase your income. Proper tax planning is a basic duty of every person
which should be carried out religiously. According to the income tax act, 1961, one will be eligible for
tax benefits under section 80C and section 10(10D) of the act. One has to compare the advantages of
several tax saving schemes and depending upon your age, social liabilities, tax slabs and personal
preferences, decide upon a right mix of investments, which shall reduce your tax liability to zero or the
minimum possible. Every citizen has a fundamental right to avail all the tax incentives provided by the
Government. Therefore, through prudent tax planning not only income-tax liability is reduced but also
a better future is ensured due to compulsory savings in highly safe Government schemes.

 Insurance Planning

To protect yourself, your family and your assets. "Insurance is not for the person who passes
away, it for those who survive", goes a popular saying that explains the importance of Insurance
Planning. It is extremely important that every person, especially the breadwinner, covers the risks to
his life, so that his family's quality of life does not undergo any drastic change in case of an
unfortunate eventuality. Insurance Planning is concerned with ensuring adequate coverage against
insurable risks. Calculating the right level of risk cover is a specialized activity, requiring considerable
expertise. Proper Insurance Planning can help to look at the possibility of getting a wider coverage for
the same amount of premium or the same level of coverage for the same amount of premium or the
same level of coverage for a reduced premium. Hence, the need for proper insurance planning.
In other words, insurance protects us from the contingencies that could affect us.

 Children's Future Planning

To give your children a financially secure future. All parents want to give the best possible
upbringing to their children. This includes good education and security, in case of any eventuality.
Soon, your little bundle of joy will grow up, and it will be time to provide for his or her higher
education and wedding. The purpose of Children's Future Planning is to create a corpus for foreseeable
expenditures such as those on higher education and wedding, and to provide for an adequate security
cover during their growing years. Children's Future Planning acquires added importance because
children's education and wedding are high priority life goals, which can neither be postponed nor can
there be a compromise on the amount.Good education has always been the passport to a secure future.

 Retirement Planning

Because retirement is a time to relax, not to get worried. Some like it. Some don’t. But
retirement is a reality for every working person. Most young people today think of retirement as a
distant reality. However, it is important to plan for your post-retirement life if you wish to retain your
financial independence and maintain a comfortable standard of living even when you are no longer
earning. This is extremely important, because, unlike developed nations, India does not have a social
security net. Retirement Planning acquires added importance because of the fact that though longevity
has increased, the number of working years haven’t.

Benefits of Financial Planning

A financial plan is the formal process of charting a road map of financial goals while taking into
consideration an individual or business's assets, liabilities and credit standing. Financial planning helps
in taking control of your finances it assists you in curbing short-term temptations in favor of more
important long-term goal.

Financial planning provides the following benefits:

 Future needs become transparent

 Seeing the future with a clear vision
 Ensuring discipline, by giving you direction
 Assessing your risk tolerance develop an asset allocation strategy
 Helping you reduce taxes
 Safeguarding you and your family against financial crisis in the event of death or disability
 Planning for retirement or children’s education and marriage expenses
 Tracking investment performance with respect to set goals
 Providing peace of mind
 Financial planning serves to help us create a stable future and improve our financial status.
 Assess your financial situation by helping you track income and expenses, establish an
emergency fund, and determine your overall net worth and to see where you spend.
 Help to protect your savings and grow your investments
 You can also ensure that if there are any unexpected things that happen there is money or a
safety net ther to protect those who depend on you and the income
 By sticking to your plans you can avoid excessive spending and unmanageable debts. You will
be more effective in building, using and protecting your wealth through the years.
Disadvantages of financial planning

 It can take a lot of time

 It can be a costly process because you will need the assistance of your accountant or financial
advisor
 It is dependent on correctness of information
 It can tend to discourages you if your actual results are far from projected results in your
financial plan
Need and importance of Financial Planning

Time never stands still. You change, your needs change and your circumstances change. Additionally,
the context around you will also change. With new investment opportunities rising, the old
investments may no longer seem lucrative. That’s why the need for a regular financial planning
becomes even stronger today.

The past few years have seen a strong emergence of terms like financial planning and personal finance.
Everybody is talking about the importance of a regular financial planning.

Regular financial planning, it seems, is the only way to meet expected and unforeseen needs in life. No
wonder it is getting all the attention and making a buzz all around. It also ensures that the individual is
prepared to meet all the challenges in the volatile economic environment as well as accomplish all his
financial goals.

The need for a regular financial planning has become even more important especially in the present
scenario. Inflation and changing lifestyles are the two factors among others, which are responsible for
the volatile nature of the current economy.

Inflation rises when there too much money chases a limited number of goods. This leads to a fall in the
value of money. It is also expressed as a rise in the general price level. For example, a product that
costs Rs. 50 at present would cost Rs. 53 a year from today, assuming that prices rise a 6 per cent.
Financial planning ensures that one is well equipped to deal withstand the impact of inflation,
especially in during retirement when income streams dry up but expenses continue to rise.

It is common for individuals to upgrade their lifestyle with higher disposable incomes, it is common
for individual to upgrade their standard of living. For example, objects like cars that were considered
luxuries not too long ago, have become necessities today. Financial planning has a role to play in
helping individuals in upgrading and maintaining their lifestyle as well.

Furthermore, individual might have to cope with unplanned expenditures like medical emergencies.
Sound financial planning can enable him to easily mitigate such unwelcome situations, without
putting a strain on his finances.
Sample: 1
Name: Mrs. Kavitha
Age: 40 Years
Occupation: Housewife

YOUR ASSETS

Financial assets Amount

Savings account 0

Bank deposit 2000000

PF/PPF/Retirement plans 7500

RBI/infrastructure bonds/KVP/NSC 0

Liquid/Debt MF 15000000

Balanced/ Equity MF 0

Insurance investments 100000

Others

Total 17107500

Physical Assets Amount

Property (House/Farm…) 40000

Gold / Jewellery 1000000

Other physical assets

Total 1040000

Total assets (financial + physical) 18147500

 YOUR LIABILITIES

Liabilities Amount

Total Loans 0

Your Net worth 18147500

 CASH INFLOWS
Your cash inflows(Annual) Amount Expected
(Rs.) Growth
p.a.
Annual net income- self(incl. bonus) 1500000 8%

Annual net income- spouse (inclu. 0 -

bonus)
Other inflows

Total 1500000

CASH OUTFLOWS
Your cash outflows Monthly Annual

Monthly expenses 50000 600000

(Rent, food, utilities, fuel, medical
etc.)

Investment/insurance 0 0
commitments
Loan EMIs 20000 240000

Grand total 70000 840000

Your annual surplus 660000

 ASSETALLOCATION
Savings Account Bank Account
PF/PPF/Retirement RBI/Infrastructure Bonds/KVP?NSC
liquid MF Equity MF
Insurace Investments Others
Property Jewellery
Othersphysical Assets

0% 0% 0%
1%
0%
0% 0%
5%
11%
0%

83%
 Ratio calculations
Your savings Ratio 44% Very good

Your Liquidity Ratio (cash/ 0.00 Inadequate cash

monthly Expenses )

• The savings ratio of amount one is left for investments to ones income

• The liquidity ratio is the ratio of amount of withdraw able money one has to
ones monthly expenses

Ratio Guidelines
<10% Inadequate

10% to 25% Good

Savings Ratio 25% to 50% Very good

guidelines
>50% Excellence

Ratio Guidelines
<3 Inadequate cash

3 to 6 ok

Liquidity Ratio >6 Excess cash

guidelines
 CASHINFLOWS
Net Income - self Net Income - spouse other inflows

0%

100%

CASHOUTFLOW
Loan EMI Monthly Expenses Investment commitments

0%

29%

71%
 Education expenses for your children

1 st child 2 child

Name Akshaya Arvind

Age 20 18

Total cost of desired education today 200000 300000

No. of years after which desired education will 2 2

begin
Expected increase in cost % 5% 5%

Future value of education expense 220500 330750

Wedding expense for your children

Total cost of wedding today 700000 500000

No. of years after which wedding would take 5 8

place
Expected increase in cost % 5% 5%

Future value of wedding expense 893400 738750

Total Future value 1113900 1069500

Interpretation:
Mrs. Kavitha has revealed that her monthly expenses was Rs. 50000. After analyzing the financial
data, it was concluded that Mrs. Kavitha has to insured for an amount of Rs. 12000000. This is
because if she maintained a saving of this amount then as a yearly interest at 5% she would get Rs.
50000 per month. Therefore this states that Mrs. Kavitha would require an insurance cover of Rs.
12000000.

Recommendations:

The policy recommended to Mrs. Kavitha was the Term Assurance which is a purely Life cover. It
cover only the risk of death. Which means that only on the death
Sample: 2
Name: Prasad vytla
Age: 33
Occupation: working professional

YOUR ASSETS

Financial assets Amount

Savings account 80000

Bank deposit 100000

PF/PPF/Retirement plans 30000

RBI/infrastructure bonds/KVP/NSC 60000

Liquid/Debt MF 0

Balanced/ Equity MF 0

Insurance investments 50000

Others 0

Total 320000

Physical Assets Amount

Property (House/Farm…) 400000

Gold / Jewellery 0

Other physical assets 100000

Total 500000

Total assets (financial + physical) 820000

 YOUR LIABILITIES

Liabilities Value

Total Loans 100000

Your Net worth 720000

 CASH INFLOWS
Your cash inflows(Annual) Amount Expected
(Rs.) Growth
p.a.
Annual net income- self(incl. bonus) 800000 8%

Annual net income- spouse (incl. 120000 6%

bonus)
Other inflows

Total 920000

CASH OUTFLOWS
Your cash outflows Monthly Annual

Monthly expenses 30000 360000

(Rent, food, utilities, fuel, medical
etc.)
Investment/insurance 2000 24000
commitments
Loan EMIs 3000 36000

Grand total 35000 420000

Your annual surplus 500000

 Ratio calculations
Your savings Ratio 54% Excellence

Your Liquidity Ratio (cash/ 4.5 Ok

monthly Expenses )

• The savings ratio of amount one is left for investments to ones income

• The liquidity ratio is the ratio of amount of withdraw able money one has to
ones monthly expenses

Ratio guidelines
<10% Inadequate

10% to 25% Good

Savings Ratio 25% to 50% Very good

guidelines
>50% Excellence

Ratio guidelines
<3 Inadequate cash

3 to 6 ok

Liquidity Ratio >6 Excess cash

guidelines
 Education expenses for your children

Name

Age

Total cost of desired education today

No. of years after which desired education will

begin
Expected increase in cost %

Future value of education expense

Wedding expense for your children

Total cost of wedding today

No. of years after which wedding would take

place
Expected increase in cost %

Future value of wedding expense

Total Future value