Insurance Companies

Aviva Life Insurance India

Bajaj Allianz
Birla Sun Life Insurance
HDFC Life Insurance
ICICI Prudential
ING Vysya Life Insurance
Kotak Mahindra Old Mutual
LIC
Max New York Life Insurance
MetLife India Insurance
Reliance Life Insurance
SBI Life Insurance
Shriram Life Insurance
Tata AIG Life Insurance
Agriculture Insurance Co of India
Apollo DKV Insurance
Cholamandalam MS General
HDFC Ergo General Insurance
ICICI Lombard General Insurance
IFFCO Tokio General Insurance
National Insurance Company Ltd
New India Assurance
Oriental Insurance Company
Reliance General Insurance
Royal Sundaram Alliance Insurance
Shriram General Insurance Co Ltd
Tata AIG General Insurance
United India Insurance
Universal Sompo
Bharti AXA Life Insurance
Canara HSBC OBC
DLF Pramerica Life Insurance
Future Generali Life Insurance
IDBI Fortis Life Insurance
Religare Life Insurance
Sahara India Life Insurance
Star Union Dai-ichi Life Insurance
General Insurance
Health Insurance
Home Insurance
Motor Insurance
Travel Insurance

Life Insurance in India

Endowment Policy
Group Insurance
Joint Life Insurance Policy
Loan Cover Term Policy
Money Back Policy
Pension Plan
Term Life Insurance Policy
Unit Linked Insurance Plans
Whole Life Insurance Policy

http://www.iloveindia.com/finance/insurance/life-insurance/unit-linked-insurance-plans.html

Unit Linked Insurance Plans (ULIP)

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

In a ULIP, the invested amount of the premiums after deducting for all the charges and premium
for risk cover under all policies in a particular fund as chosen by the policy holders are pooled
together to form a Unit fund. A Unit is the component of the Fund in a Unit Linked Insurance
Policy.

The returns in a ULIP depend upon the

performance of the fund in the capital market. ULIP investors have the option of investing across
various schemes, i.e, diversified equity funds, balanced funds, debt funds etc. It is important to
remember that in a ULIP, the investment risk is generally borne by the investor.

In a ULIP, investors have the choice of investing in a lump sum (single premium) or making
premium payments on an annual, half-yearly, quarterly or monthly basis. Investors also have the
flexibility to alter the premium amounts during the policy's tenure. For example, if an individual
has surplus funds, he can enhance the contribution in ULIP. Conversely an individual faced with
a liquidity crunch has the option of paying a lower amount (the difference being adjusted in the
accumulated value of his ULIP). ULIP investors can shift their investments across various
plans/asset classes (diversified equity funds, balanced funds, debt funds) either at a nominal or
no cost.

Expenses Charged in a ULIP

Premium Allocation Charge:

A percentage of the premium is appropriated towards charges initial and renewal expenses apart
from commission expenses before allocating the units under the policy.

Mortality Charges:
These are charges for the cost of insurance coverage and depend on number of factors such as
age, amount of coverage, state of health etc.

Fund Management Fees:

Fees levied for management of the fund and is deducted before arriving at the NAV.

Administration Charges:
This is the charge for administration of the plan and is levied by cancellation of units.

Surrender Charges:
Deducted for premature partial or full encashment of units.

Fund Switching Charge:

Usually a limited number of fund switches are allowed each year without charge, with
subsequent switches, subject to a charge.

Service Tax Deductions:

Service tax is deducted from the risk portion of the premium.

Insurance Regulatory & Development

Authority
Insurance Regulatory & Development Authority is regulatory and development authority under
Government of India in order to protect the interests of the policyholders and to regulate,
promote and ensure orderly growth of the insurance industry. It is basically a ten members' team
comprising of a Chairman, five full time members
and four part-time members, all appointed by
Government of India. This organization came into
being in 1999 after the bill of IRDA was passed in the Indian parliament.

Powers and Functions of IRDA

  It issues the applicants in insurance arena, a certificate of registration as well as renewal,
modification, withdrawal, suspension or cancellation of such registrations.
 It protects the interests of the policy holders in any insurance company in the matters
related to the assignment of policy, nomination by policy holders, insurable interest, and
resolution of insurance claim, submission value of policy and other terms and proposals
in the contract.
 It also specifies obligatory credentials, code of conduct and practical instructions for
mediator as well as the insurance company. Apart from this, it also defines the code of
conduct for the surveyors and loss assessors involved with the insurance business.
 One of the major functions of IRDA includes endorsing competence in the insurance
business. Apart from this, upholding and regulating professional organizations in
insurance and re-insurance business is also a major duty of IRDA.
 IRDA is also entitled to for asking information, undertaking inspection and investigating
the audit of the insurers, mediators, insurance intermediaries and other organizations
related to the insurance sector.
 It is also concerned with the regulation of the rates, profits, provisions and conditions that
may be offered by insurers in respect of general insurance business if it is not controlled
or regulated by the Tariff Advisory Committee.
 It is also entitled to supervise the functioning of the Tariff Advisory Committee.
 IRDA specifies the terms and pattern in which books of accounts are to be maintained
and statement of accounts shall be provided by insurers and other insurance mediators.
 It also regulates investment of funds by insurance companies as well as the maintenance
of margin of solvency.
 It is also empowered to be involved in the arbitration of disagreements between insurers
and intermediaries or insurance intermediaries.
 It is meant to specify the proportion of premium income of the insurer to finance policies.
 IRDA also specifies the share of life insurance business and general insurance business to
be accepted by the insurer in the rural or social sector.

Impact Of IRDA On Indian Insurance Sector

The creation of IRDA has brought revolutionary changes in the Insurance sector. In last 10 years
of its establishment the insurance sector has seen tremendous growth. When IRDA came into
being; only players in the insurance industry were Life Insurance Corporation of India (LIC) and
General Insurance Corporation of India (GIC), however in last decade 23 new players have
emerged in the filed of insurance. The IRDA also successfully deals with any discrepancy in the
insurance sector.

Life Insurance, India

Life is very fragile and death is a certainty. We cannot control the uncertainties of life. But, we
can cover the risks surrounding us. Life insurance, simply put, is the cover for the risks that we
run during our lives. It protects us from the
contingencies that could affect us.
Life insurance is not for the person who passes away, it for those who survive. It is the
responsibility of every bread earner to guard against the events that could affect the family in the
unfortunate circumstance of his / her demise. Thus, having a life insurance policy is very vital.
Before going for a life insurance policy it is imperative that you know about various types of life
insurance policies. Major among them are:

Endowment Policy
An endowment policy covers risk for a specified period, at the end of which the sum assured is
paid back to the policyholder, along with the bonus accumulated during the term of the policy.

Whole Life Policy

A whole life policy runs as long as the policyholder is alive. As risk is covered for the entire life
of the policyholder, therefore, such policies are known as whole life policies.

Term Life Policy

Term life insurance policy covers risk only during the selected term period. If the policyholder
survives the term, the risk cover comes to an end.

Money-back Policy
Money back policy provides for periodic payments of partial survival benefits during the term of
the policy, as long as the policyholder is alive.

Joint Life Policy

Joint life insurance policies are similar to endowment policies as they too offer maturity benefits
to the policyholders, apart form covering risks like all life insurance policies.

Group Insurance Policy

Group insurance offers life insurance protection under group policies to various groups such as
employers-employees, professionals, co-operatives

Loan Cover Term Assurance Policy

Loan cover term assurance policy is an insurance policy, which covers a home loan. Such a
policy covers the individual's home loan amount in case of an eventuality.

Pension Plan or Annuities

A pension plan or an annuity is an investment that is made either in a single lump sum payment
or through installments paid over a certain number of years

Unit Linked Insurance Plan

Unit linked insurance plan (ULIP) is life insurance solution that provides for the benefits of risk
protection and flexibility in investment.

Money Back Policy, India

Money back policy provides for periodic payments of partial survival benefits during the term of
the policy, as long as the policyholder is alive. They differ from endowment policy in the sense
that in endowment policy survival benefits are payable only at the end of the endowment period.

An important feature of money back policies is that in the event of death at any time within the
policy term, the death claim comprises full sum assured without deducting any of the survival
benefit amounts, which may have already been paid as money-back components. The bonus is
also calculated on the full sum assured.

Money back life insurance policies are very popular

among traditional investors who seek financial instruments that provide insurance and
investment, with a low risk element and guaranteed returns. This type of policy is perfect for
individuals who are in their late 30s or early 40s and are looking at significant payouts after 10-
15 years to fund their children's higher education, marriage and other expenses. Money back
policies create a long-term savings opportunity with a reasonable rate of return, especially since
the payout is considered exempt from tax except under specified situations. One negative aspect
of money back policies is that they have higher premium as compared to other insurance polices.

Things to Consider Before Buying Money Back Policy

 Before buying a money back plan,it is advisable to read the terms and conditions
thoroughly. You should carefully check out the actual amount allocated towards the
premium, how much of it is going to be accumulated and how much is the insurance
company's charges.
 Make sure that the periodic payouts are sound enough to meet your anticipated needs.
You can analyse the past performance in terms of declared bonuses. Though the past is
not necessarily an indication of future performance, it gives a fair idea of the insurance
company's commitment to its policy hold

 Endowment Policy, India

 An endowment policy covers risk for a specified period, at the end of which the sum
assured is paid back to the policyholder, along with the bonus accumulated during the
term of the policy. An endowment life insurance policy is designed primarily to provide a
living benefit and only secondarily to provide life insurance protection. Therefore, it is
more of an investment than a whole life policy.

Endowment life insurance pays the face value of the policy either at the insured's death or
at a certain age or after a number of years of
premium payment. Endowment policy is an
instrument of accumulating capital for a specific purpose and protecting this savings
program against the saver's premature death.

Premium on endowment policies is payable for the full term of the endowment policy
unless, the insurer dies earlier. When compared to whole life policies, the premium rates
for endowment policies are higher and the bonus rates lower. But one of the major
 attractions of endowment policies is that they provide a return on premium payments,
when the policy comes to an end. The endowment received at the maturity of the policy
can be used for buying an annuity policy to generate a monthly pension for the whole
life.

Whole Life Insurance Policy, India

A whole life policy runs as long as the policyholder is alive. As risk is covered for the entire life
of the policyholder, therefore, such policies are known as whole life policies. A simple whole life
policy requires the insurer to pay regular premiums throughout the life. In a whole life policy, the
insured amount and the bonus is payable only to the nominee of the beneficiary upon the death
of the policyholder. There is no survival benefit as the policyholder is not entitled to any money
during his / her own lifetime.

Whole life policies have a major drawback in the

sense that the policyholder is not entitled to any
money during his or her own lifetime. Hence such a
policy is suitable only in a few, very specific cases. Suppose a person buys a whole life policy
for say 25 years at the age of thirty when his children are young and the family needs protection.
By the time he is 55 his children may be well settled, no longer truly needing the protection the
whole life policy provides. On the other hand, he would probably require the money for himself
and his wife for the retired life but this would not be possible since the sum assured is payable
only when the policy holder dies.

Who Should Buy Whole Life Policy

 A whole life policy is beneficial for those who are eligible for a sizable pension during
their retired life. It can cover the risk of death taking place soon after retirement and,
therefore the pension coming to an early end.
 It is also ideal for those who wish to create an estate either for their heirs or for donating
to charity after their death.

NAV FOR THE DATE : 31/03/2011

     
Plan Name & Fund Face NAV as RepurchaseSale
Options Valueon date Value Value
BIMA PLUS Launch Date:02/02/2001
Secured 10.00032.8039 031.1637 032.8039
Balanced 10.00042.2868 040.1725 042.2868
Risk 10.00060.4523 057.4297 060.4523
FUTURE PLUS Launch Date:04/03/2005
Bond 10.00014.2034 014.2034 014.2034
Income 10.00016.3721 016.3721 016.3721
Balanced 10.00017.7221 017.7221 017.7221
Growth 10.00024.8762 024.8762 024.8762
JEEVAN PLUS Launch Date:18/10/2005
Bond 10.00014.1598 014.1598 014.1598
Secured 10.00014.9430 014.9430 014.9430
Balanced 10.00015.2850 015.2850 015.2850
Growth 10.00023.2931 023.2931 023.2931
MONEY  PLUS Launch Date:20/12/2006
Bond 10.00013.6081 013.6081 013.6081
Secured 10.00013.5937 013.5937 013.5937
Balanced 10.00013.8381 013.8381 013.8381
Growth 10.00012.4457 012.4457 012.4457
MARKET PLUS Launch Date:05/07/2006
Bond 10.00014.5598 014.5598 014.5598
Secured 10.00014.8655 014.8655 014.8655
Balanced 10.00015.0264 015.0264 015.0264
Growth 10.00015.8190 015.8190 015.8190
FORTUNE PLUS Launch Date:23/08/2007
Bond 10.00012.8767 012.8767 012.8767
Secured 10.00013.7368 013.7368 013.7368
Balanced 10.00012.2810 012.2810 012.2810
Growth 10.00012.2460 012.2460 012.2460
PROFIT PLUS Launch Date:23/08/2007
Bond 10.00013.4534 013.4534 013.4534
Secured 10.00013.7409 013.7409 013.7409
Balanced 10.00014.5298 014.5298 014.5298
Growth 10.00011.9472 011.9472 011.9472
MARKET PLUS - I Launch Date:17/06/2008
Bond 10.00012.3929 012.3929 012.3929
Secured 10.00012.4553 012.4553 012.4553
Balanced 10.00012.6235 012.6235 012.6235
Growth 10.00014.2291 014.2291 014.2291
MONEY PLUS - I Launch Date:22/05/2008
Bond 10.00013.2721 013.2721 013.2721
Secured 10.00015.1409 015.1409 015.1409
Balanced 10.00015.2158 015.2158 015.2158
Growth 10.00014.3906 014.3906 014.3906
CHILD FORTUNE
Launch Date:01/11/2008
PLUS
 Bond 10.00011.3771 011.3771 011.3771
Secured 10.00016.1386 016.1386 016.1386
Balanced 10.00015.5771 015.5771 015.5771
Growth 10.00015.7423 015.7423 015.7423
JEEVAN SAATHI
Launch Date:29/06/2009
PLUS
Bond 10.00010.9114 010.9114 010.9114
Secured 10.00011.0893 011.0893 011.0893
Balanced 10.00010.9875 010.9875 010.9875
Growth 10.00011.8628 011.8628 011.8628
WEALTH PLUS Launch Date:09/02/2010
WealthPlus 10.00010.5312 010.5312 010.5312
ENDOWMENT PLUS Launch Date:20/09/2010
Bond 10.00010.3037 010.3037 010.3037
Secured 10.00010.0517 010.0517 010.0517
Balanced 10.00009.9885 009.9885 009.9885
Growth 10.00010.2758 010.2758 010.2758
PENSION PLUS Launch Date:02/09/2010
Debt 10.00010.2529 010.2529 010.2529
Mixed 10.00010.1438 010.1438 010.1438
SAMRIDHI PLUS Launch Date:25/02/2011
Samridhi Plus 10.00010.0000 010.0000 010.0000
HEALTH PLUS Launch Date:04/02/2008
Health Plus 10.00012.0588 012.0588 012.0588
HEALTH
Launch Date:29/04/2009
PROTECTION PLUS
Health Protection
10.00011.4214 011.4214 011.4214
Plus