INDEX

SR.NO PARTICULAR PAGE

NO

1. INTRODUCTION 5

1.1 INSURANCE INDUSTRY 7

1.2 THE ROLE OF INSURANCE COMPANIES IN 11

WEALTH MANAGEMENT

1.3 COMPANY INTRODUCTION (HDFC LIFE) 13

1.4 TYPES OF INSURANCE AT HDFC LIFE 21

1.5 RESEARCH AREA 22

1.6 SOME WEALTH BUILDER PLANS 23

2. Literature review 34

3. Methodology 39

4. Data interpretation 42

5. Findings 56

6. Recommendation conclusion 58

7. Bibliography 60

8. ANNEXTURE 62

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 1. INTRODUCTION

1.1 INSURANCE AS A WEALTH BUILDER

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Life Insurance is one amongst those wealth strategy vehicles that nobody extremely need to speak regarding
however is a crucial topic to review frequently. The truth is that there are several wealth management ways
wherever Life assurance is an efficient and important tool. In business settings, Buy-Sell agreement and key
person insurance enable the business to speculate capital within the seemingly higher come business and not
expose the business expose the business to excessive risks of untimely changes in possession or loss of a key
individual within the business. If monetary independence isn't quite achieved life assurance is an efficient and
important tool to guard the family till the bell is rung and it's not required by anyone. Some vital inquiries to
take into account include:

How much are you paying for term coverage?

Term Life assurance these days is cheaper than it's been in regarding twenty years ago, as competition has
drive premiums lower and cheaper, with many insurance corporations providing term policies, it'd be time to
rewrite yours.

How low-cost is term coverage right now?

If you're forty, it's attainable to pay but 12000 a year -maybe a lot of less for a term policy with typical death
edge of two. 5lac-5lac. In fact, If you're a 50 year old male living in Bombay, Rs 1 crore of term coverage for
ten years will be had as very little as Rs.15000 annually.
Why have premiums become therefore inexpensive? you'll be able to look it up to many powerful factors:
death rate have declined markedly in recent decades, and men setting out to shut the expectancy gap on girls,
Plus, insurers ar going complete to induce your business advertising on-line, on the radio, on TV and on the
face of it all over else.

Besides low premiums, what else must you look for?

You would like a bonded renewable policy, which can allow you to renew your term coverage at the tip of the
given term while not having to endure medical checkup. You furthermore may need mounted premiums for
the lifetime of the term, as hostile a "teaser" premium that rises once many years. You'll be able to purchase a
term policy lasting 10, 20, 25, 30 years; the shorter the term, the cheaper the premiums.

Wealth management is Associate in Nursing investment consulting service that mixes different monetary
services to deal with the shoppers. Its a information method whereby the adviser understands the data
regarding the client's needs and tailors a useful strategy utilizing applicable monetary merchandise and
service.

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While the employment of a wealth manager relies on the thought of that he/she is going to give services in
any facet of the monetary field, some choose to focus on specific space. This might be supported the
experience of the wealth manager works or regulates.

Life insurance has several wealth management applications, and should be terribly powerful once used
together with different structures like trusts. Life assurance tends to disagree in application quite wide in step
with the countries involved, however, and there are several subtleties as wealth manager are able to guide
you thru. In Europe, for ex, insurance merchandise tend to be known as wrappers and they are generally wont
to defend portfolios from current financial gain tax; these sort of merchandise tend to be weighted additional
towards investment assets with death edge calculation lower and lesser, however policies will be meshed
towards variety of wants.

1.2 INDUSTRY/ SECTOR

The insurance sector is made from firm that give risk management at intervals at intervals the type of
insurance contracts. The fundamental thought of insurance is that one party, the insurer (insurance provider),
can guarantee payment for AN unsure future event . Meanwhile, another party, the insured or the client,
pays a smaller premium to the insurance company or the insurer in exchange for the protection on it unsure
future prevalence.

As AN trade, insurance is taken into account a slow-growing, safe sector for investors. This perception isn't as
robust because it was within the 1970's and 1980's, however it's still usually true compared to different
money sectors.

Life insurance firms primarily issue policies that pay a benefit as a payment upon the death of the insured to
their beneficiaries. Life assurance policies could also be oversubscribed as term life, that is a smaller amount
overprices at and expires at the term or permanent (typically whole life or universal life), that is costlier
however lasts a time period and carries a money accumulation element. Life insurances may additionally sell
long-run incapacity that replace the insured's financial gain if they become sick or disabled. Well-known life
insurance embrace LIC, HDFC LIFE, ICICI prudent, Bharati AXA, Bajaj Alliance, Wild Flower Yeddo, Republic of
India Assurance.

Business need special style of insurance policies that insure against particular types of risks moon-faced by a
selected business. as an example, a fast-food eating place wants a policy that covers injury or injury that
4
happen as a results of change of state with a deep pullet . AN car dealer is not subject to this variety of risk
however will need coverage for injury or injury that might occur throughout check drives.

Future is incredibly unsure, however there's thanks to protectone's family and build one's children's future
safe. Insurance firms facilitate United States Of America to ensure that our family's future isn't simply secure
however additionally prosperous. Life Insurance is especially vital if you're the only earner for your family.
The loss of you and your family financial gain may devastate your family.

Insurance can ensure that if something happen to you, your favourite ones are going to be able to manage
financially, This study titled "Study of shoppers Perception regarding insurance Policies" enables the
insurance firms to know however consumer's perception differs from one person to another person.
However a shopper selects, organizes and interprets the service quality and the merchandise quality of variety
of various insurance policies, offered by numerous Life Insurance Firms.

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

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

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

1956: 245 Indian and Foreign insurers and provident societies taken over by the central government and got
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. The insurance sector is a colossal one and is growing at a speedy rate of 15-
20%.
Together with banking services, insurance services add about 7% to the country's GDP. A well developed and
evolved insurance sector is a boon for economic development as it provides long- term funds for
infrastructure development at the same time strengthening the risk taking ability of the county.

Insurance Regulatory and Development Authority (IRDA):

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The Insurance Regulatory and Development Authority (IRDA) is a national agency of the government of India,
based in Hyderabad. In 1999, the Insurance Regulatory and Development Authority (IRDA) were constituted
as an autonomous body to regulate and develop the insurance industry. The IRDA was incorporated as a
statutory body in April, 2000. The key objectives of the IRDA include promotion of competition so as to
enhance customer satisfaction through increased consumer choice and lower premiums, while ensuring the
financial security of the insurance market. The IRDA opened up the in August 2000 with the invitation for
application for registrations. Foreign companies were allowed ownership of up to 26%. The Authority has the
power to frame regulations under Section 114 A of the Insurance Act, 1938 and has from 2000 onward framed
various regulations ranging from registration of companies for carrying on insurance business to protection of
policyholders interests.

Role of IRDA:
 Protecting the interests of policyholders.
 Establishing guideline for the operations of insurers, and brokers.
 Specifying the conduct, qualifications, and training for insurance intermediaries and agents.
 Promoting efficiency in the conduct of insurance business.
 Regulating the investment of funds by insurance companies.
 Specifying the percentage of businesses to be written by insurers in rural sectors.
 Handling disputes between insurers and insurance intermediaries.

Types of Insurance Policies:

 Whole of life term life insurance(Term plan) - As their names counsel, whole-of-life policies cowl a
client till such purpose they die, whereas term life insurance or insurance suggests that the
policyholder's life is insured for a bunch amount, with a payout due as long as they die at intervals the
term of the policy. As might be expected, whole-of-life policies area unit usually the more expensive
choice.

 Endowment - Usually (this can be) often wherever AN policies is supposed to produce a particular
profit to a policyholder's family on death, sort of a payment to pay off the remaining mortgage on a
property. It additionally embrace paying a particular premium quality for a such as amount of your
time and obtaining bonded come with innocuous rate at the tip of maturity.
 Investment - Usually (this can be) often wherever the policy provides for investment additionally as
protection, with the insurance premiums paid being invested with for the long run advantage of the
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 client and the other insurance beneficiaries. Unit-linked bonds, distribution bonds and with-profits
bonds area unit among the alternatives here.

Insurance and Mercantilism Money Merchandise

Insurance plans area unit the principal product of the globe. However, recent decades have brought variety of
company pension plans to businesses and annuities to retiree.
At this place insurance firms area unit in direct competition with different money plus suppliers on these
styles of merchandise. Indeed, several insurance agents area units currently branded as full service money
advisors giving each protection merchandise further as investments, money designing, and retirement
designing. Several insurance firms currently have their own principal, analysts either in-house or in
partnership.

The India Insurance Sector is basically divided into 2 classes -Life insurance and Non life insurance. The Non-
life insurance sector is mostly termed as General Insurance. Each the life insurance and so the Non- life
insurance is ruled by IRDAI (Insurance Regulative and Development Authority of India).

The role of IRDA is to totally monitors the complete insurance sector in Republic of India and additionally act
sort of a defender of all the insurance shopper rights and laws. This is often the principle all the insurance and
laws of the IRDAI.
The Insurance sector in Republic of India consists total of fifty seven insurance firms. Out of that twenty four
firms area unit the life insurance supplies and so the remaining thirty three area unit non- life insurance. Out
that there area unit seven public sector firms.
Life insurance sector in Republic coverage to the lifetime of the people, whereas the non-life insurance firms
provide coverage with our daily living like travel, health, our automobile and bikes, and residential insurance.
Not solely this, however additionally non-life insurance firms give coverage for our industrial equipment's
further. Crop insurance to our farmers, gadgets insurances for mobiles, pet insurances, equipment insurance
etc. area unit some a lot of insurance merchandise being created accessible by the general insurance firms in
Republic of India.
The Life Insurance firm have gained AN investment prospectus at intervals the recent times with a plan of
providing insurance beside a growth of your savings. however the general insurance firms stay reluctant to
produce pure risk cowl to the people.

1.3 THE ROLE OF INSURACE COMPANIES IN WEALTH MANAGEMENT

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  Potentially- imminent changes in the way insurance is distributed, in the way products are
manufactured, in the cost effectiveness of products, and also in product structures to provide more
flexibility and tailoring
 Effects to do more to meet investor's expectations, in terms of transparency and fair dealing, to
ultimately focus on enhancing relationships with customers, to rebuild confidence
 Attempts to ensure consumers recognize the value they get from the protection benefits which are
embedded in the policies
 Measures to address concerns over the competency and incentives of advisers and other selling
insurance plans
 To clarify the role of insurance as part of wealth management solutions, from the perspectives of
investment, protection and wealth planning

IMPORTANCE OF INSURANCE AS WEALTH BUILDER

As a fee- based wealth management firm, we use insurance but only in its very simplest form. This means
term life and critical illness-type products, used for protection and succession planning.
The industry in under a lot of scrutiny, and reputation risk is perhaps the biggest challenge it faces related to
issues around fairness, cost efficiency and cost effectiveness of products.
Changes are expected in the way insurance is distributed, the way products are manufactured, in the products
themselves and in their structures.
We must focus on providing value in whatever they use insurance for. This is in line with where the Insurance
Companies are coming from with.

Yet insurance has always had a place as part of wealth management solutions. It is a methodology for savings
and for making provisions for the future. There might be question marks about whether it is the most
efficient vehicle but it is definitely a simple and effective one.
Everybody needs to be protected against unforeseen events and it's never too early to start saving for
retirement and leaving a legacy. Insurance is an easy way to package all that together.

Within the private banking segment, insurance is used almost exclusively in relation to wealth structuring, so
clients use insurance wrappers and whole of life policies to structure solution in a tax efficient way, to pass on
their legacy or to simply allow them to feel that they can spend the rest of their money without worry in the
knowledge that there will be a certain amount that is set aside in the future.

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I can be dangerous to convince investors to buy insurance as an investment product. Investors need to split
products into two when they evaluate them- the insurance element and the investment element.
More still has to be done by the industry to meet investors expectations, on transparency and fair dealing.

A lot of the issues that insurance plans have experienced in the past related to the fact that many individual
do not recognize the value they get from the protection benefits embedded in the policies. That has to be
taken into account if people are looking at investment returns.
However, from a wealth management perspective, insurance will always to be able to address an individual's
various need relating to saving solution that tries to comprehensively map out all of those needs.
However, there is an explicit conflict of interest when companies try to combine both the protection and
investment sides, by trying to align two different products together: which are separately driven by the
manufacturing and distribution sides of the same business.
It would be interesting for the insurance industry to ask itself whether if it didn't have all of its legacy
businesses, remuneration structures and distribution systems, how would it want to be structured today if it
had choice? I think companies would probably set themselves up differently so that the embedded costs in
the business were not so high.
It is clear that the regulatory requirements will be increased going forwards, and that investors will request
more services from advisers.
So to reduce conversations about appropriate products just to the topic of fees is probably not the right
approach to take.

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1.4 COMPANY INTRODUCTION
HDFC Life Insurance Company restricted (Formerly HDFC customary life insurance company Limited) is also
venture between HDFC Ltd., one amongst India's leading housing finance establishment and customary Life
Aberdeen, a worldwide investment firm.
Establishment in 2000, HDFC Life is also a number one long-run life insurance solutions supplier in Asian
nation, providing a range of individual and insurance solutions that meet varied client wants like Protection,
Pension, Savings, Investment, Regular Payment and Health. As on march thirty one,2020 the company had
thirty seven individual and eleven cluster merchandise in its portfolio, at the side of six ex gratia edges,
business to a varied vary of client wants.
HDFC Life continues to profit from its presence across the country with 421 branches and extra distribution
touch points through many partnership. The partnership comprise 270 bank assurance partners as well as
NBFCs (Non Banking Finance Companies), MFIs (Micro Finance Institutions), SFBs (Small Finance Banks) etc.
and quite forty new system partners. The corporate is too reinforced by a strong base of financial
consultants.

Founded August 2000

MD & CEO Ms. Vibha Padalkar
Headquarter Bombay
Offices in Asian nation 414 branches
980+ cities
Claim settlement magnitude relation ninety nine.04 %
Assets underneath management one,25,552 Crores
Lives Insured five.1 Crores
Sum Assured 605,820 Crores

Management
Ms. Vibha Padalkar
Managing Director & Chief Executive Officer
Vibha has been associated with HDFC Life since August 2008. She qualified as a member of the Institute of
Chartered Accountants of England and Wales in 1992 and is also a member of the Institute of Chartered
Accountants of India. Prior to her appointment at HDFC Life, she has worked in varied sectors such as global
Business Process Management, global FMCG and in an international audit firm. Over the years, Vibha has
received various awards from organisations such as The Institute of Chartered Accountants of India, The

10
Economic Times and IMA India, along with being recognised as one of the ‘Top 30 Most Powerful Women in
Business’ by Business Today.

Mr. Suresh Badami

Executive Director
Suresh has been associated with HDFC Life since October 2013 and is the Executive Director of the Company.
Prior to joining HDFC Life, he was associated with Dunlop India Limited, ICI India Limited, Cogensis
Networks Private Limited, Max Ateev Limited, and ICICI Bank Limited. Suresh has 26 years of experience in
sales & business across varied industries including 17+ years in banking & financial services. He holds a
Bachelor’s degree in Science from Bangalore University and a Post Graduate Diploma in Management from
Xavier Institute of Management, Bhubaneswar.

VISION AND VALUES

One of the foremost winning and loved insurance company, that mean that we have a tendency to ar the one
among the foremost sure company, the simplest to trot out, provide the most effective price for cash and set the
standards within the business.

'The most blatant alternative for all'.

Our vision and values that we have a tendency to observe:-
 Excellence
 Individuals Engagement
 Personal Integrity
 Client Centricity
 Collaboration

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KEY HIGHLIGHTS

1. As on March thirty one, 2020 the corporate had thirty seven individual and eleven cluster merchandise
in its portfolio, in conjunction with six ex gratia rider edges, business to a various vary of client wants.

2. In business enterprise 2012, the corporate established a wholly-owned subsidiary, HDFC Pension
Management Company Ltd., to work its pension fund business underneath the National Pension
theme (NPS).

3. In business enterprise 2016, the corporate established its initial international wholly-owned subsidiary
within the UAE, HDFC International Life and Re Company Ltd., to work its insurance business.

4. The most effective insurance Company, BFSI award 2018.

5. within the fiscal year 2018-2019, 5.1 Crs of lives were insured.

6. HDFC LIFE hierarchical first in “The nice Places to figure For” within the insurance class.

7. Ranks third among Best corporations in massive organizations (more than 10,000 employees)

8. HDFC Life has received ‘Creative Excellence Award’ at INDIAA awards 2018

9. HDFC Life is recognized because the Best fifty PCI corporations for 2019

10. HDFC Life is recognized because the Best fifty PCI corporations for 2019

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13
HDFC merchandise OFFERED

1. Protection Plans
• HDFC Life Click two defend and
• HDFC Life Click two defend 3D and
• Click to shield Health- jazz band arrange

2. Retirement Plans
• HDFC Life Click two Retire
• HDFC life Pension secure arrange
• HDFC Life secure retirement savings account
• HDFC Life New immediate regular payment arrange

3. Savings and Investment plans

• HDFC Life Click two Wealth (ULIP)
• HDFC Life Sanchay and
• HDFC Life Sanchay Par Advantage
• HDFC Life Classic One
• HDFC Life Sanchay
• HDFC Life Sampoorna Samridhi and
• HDFC Life Classic Assure and
• HDFC Life Super financial gain arrange
• HDFC Life Sampoorna Nivesh

• HDFC Sendero Luminoso professional Growth Flexi

• HDFC Life professional Growth and
• HDFC Sendero Luminoso professional Growth Super II
• HDFC Sendero Luminoso Crest
HDFC Life Uday
• HDFC Life Capital protect
• HDFC Life Pragati
• HDFC LIFE Click two Invest

4. Women’s and children’s arrange

• HDFC Life good lady
• HDFC SLC Young Star Super Premium
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• HDFC Life Young Star Udaan

5. Health plans
• HDFC Life Cancer Care
• HDFC Life viscus Care
• HDFC Life simple health

1.5 COMPETITORS OF HDFC LIFE:

Life Insurance Corporation of India (LIC):
Life Insurance Corporation of India popularly known as LIC is the largest life insurance company in India
owned by the Government of India. LIC, one of the top 10 insurance companies in India, came into existence in
the year 1956. LIC makes insurance accessible for every person in any corner of the country with 2048 branch
offices, 113 divisional offices, 8 zonal offices and 1381 satellite offices. Currently, LIC’s total asset under
management is INR 3,111,847 cores (USD 450 billion). LIC being the dominant insurance player has a huge
customer base of over 29 cores policyholders.

ICICI Prudential Life Insurance:

ICICI Prudential Life Insurance Company is promoted by ICICI Bank Limited and Prudential Corporation
Holdings Limited. Founded in the year 2000, ICICI Prudential Life is one of the best insurance companies in
India having its presence all over the country today with its strong bancassurance channel and multiple
distribution channels. A total asset under management of the company is INR 1,604.10 billion. With the
customer-centric approach, ICICI Prudential Life offers various long-term protection and savings plans for a
diverse customer segment.

Max life Insurance Company:

Max Life Insurance Company founded in the year 2000 is the largest non-bank private sector insurance
company in India. Max Life Insurance Company is a joint venture between Indian Max India Ltd, a multi-
business Indian corporate and Mitsui Sumitomo Insurance Company, a Japanese Insurance Company. It is one
of the fastest-growing insurance companies in India and Max Life’s asset under management has now touched
the mark of INR 50,000 cores. Max Life has a customer base of more than 30 lakhs.

Bajaj Allianz Life Insurance Company:

Bajaj Allianz Life Insurance Company founded in the year 2001 is a joint venture between Bajaj Fin Serv
Limited of Bajaj Group. Bajaj Allianz Life has 759 branches across the country to offer innovative insurance
solutions to various customer segments. Bajaj Allianz Life Insurance is known for its strong innovative
products and timely customer service.

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Aditya Birla Sun Life Insurance:
Aditya Birla Sun Life Insurance Company, founded in the year 2000 is a subsidiary of Aditya Birla Capital
Limited. Aditya Birla Sun Life Insurance Company was formed by coming together of Aditya Birla Group and
Sun Life Financial, leading international financial services organisation in Canada. Birla Sun Life is one of the
best insurance companies in India that offers a diverse range of insurance solutions starting from protection
plan to pension plan, savings plan and many new-age products. A total asset under management of the company
is INR 4, 10,110 million.

Bharti AXA Life Insurance:

Bharti AXA Life Insurance was founded in the year 2006. It is a joint venture between AXA Group and Bharti
Enterprises. Strong financial expertise and domestic business excellence of these companies have laid a strong
background for the company. Bharti AXA Life has introduced various innovative insurance products to cater to
the unique needs of customers. Bharti A+XA Life’s distribution network is spread across 123 cities in the
country. The company has a customer base of more than 10, 50,000.

SBI Life Insurance Company:

SBI Life Insurance Company is a joint venture between State Bank of India (SBI), India’s largest bank and
BNP Paribas Cardiff, French multinational bank and financial services company. Currently, SBI Life Insurance
has an authorised capital of INR 20 billion (USD 290 million). SBI Life was first started as a bancassurance
business which is now extended to the multi-distribution channel. With customer service excellence and
product innovations, the company has been growing year on year.

Reliance Nippon Life Insurance Company:

Reliance Nippon Life Insurance Company, founded in the year 2001 is one of the leading insurance companies
in India catering to various segments of people. Reliance has more than 10 million policyholders. The company
has made insurance accessible for many through its strong distribution network of 727 branches. Reliance Life
has a product for every possible need of the individual. Currently, the company’s assets under management is
INR 20,281 Cr.

AEGON Life Insurance Company:

AEGON Life Insurance Company, founded in the year 2008 is one among the best to offer various life
insurance solutions to various customer segments. AEGON Life is the new age company with a strong digital
presence and a diverse product portfolio.

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Aviva Life Insurance Company:
Aviva Life Insurance Company is a joint venture between Aviva plc, a British Assurance Company and Dabur
Group, an Indian conglomerate. With more than 121 branches and 9000+ employees, Aviva Life has been
offering a wide array of insurance products starting from protection plan to savings and retirement plans.
Online products, customer service and many more areas make the company one of the top insurance companies
in India.

PNB MetLife Insurance Company:

PNB MetLife Insurance Company is one of the best insurance companies in India founded in the year 2001.
The company serves customers over 7,000 locations through its multidistribution channels by offering
numerous life insurance and savings products.

Canara HSBC OBC Life Insurance Company:

Canara HSBC OBC Life Insurance Company was founded in the year 2008 is one of the top insurance
companies in India. The company came into existence by coming together of the two largest public sector
banks in India – Canara Bank and Bank of Commerce along with HSBC Insurance Holdings Limited. Canara
HSBC OBC Life has a customer base of around 60 million customers.

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1.5 Types of Insurances at HDFC LIFE

Term life-
Term insurance is essentially a kind of life assurance that gives coverage for a particular period of your time or
years. The nominee of the insured receives the benefit if the insured dies when the policy is active. Among life
assurance plans, insurance provides the very best life assurance coverage for rock bottom premiums during the
amount of the plan.

Savings plan-
Savings and Investment plans assist you save regularly and be adequately prepared to satisfy family’s financial
needs within the future. Investment Plans are financial products that provide the chance to make wealth for
future. Investment Plans offer to assist individuals in disciplined and periodic investment into different funds
overtime so on achieve their future financial goals.

Unit linked plan-

Unit Linked Insurance Plans by HDFC Life are investment cum protection plans. The investments made in
(ULIP) plans are subject to risks related to capital markets. HDFC Life offers a variety of ULIP products
depending on your risk appetite and financial goals – be it for retirement planning, child’s education or
marriage or for investment purposes.

Health plan-
HDFC Life provides a variety of Health Insurance Plans & Mediclaim Policies and protection plans that offer
financial security to meet health related contingencies. Due to changing lifestyles, health issues haven't just
escalated, they need increasingly become more complex in nature. It becomes imperative therefore to possess a
insurance plan in situ , thus your financial planning is incomplete if you've got not accounted for health.

Retirement plan-
Retirement & Pension Plans provide you with financial security in order that when your professional income
starts to ebb, you'll still accept pride without compromising on your living standards. Given the high cost
standard of living and rising inflation, Retirement planning has become all the more important.

Child plan-
Successful parenting is no mean accomplishment. A huge contributor to the present success is financial
planning for your child's future needs at the proper age! There is really no better gift you can give your child,

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than the promise of a secure future with Young Star Child Plans that encompass child insurance plans & child
education plans from HDFC Life.

Women plan-
Women’s insurance plan caters to different financial needs of girls. Women’s plans are a set of specially
created and hand-picked products which suit the needs of women at different stage of their life; such as
protection, health, retirement, child’s education and long term savings and investments.

1.6 RESEARCH AREA

In short, the role of life insurance in wealth management can be broken into two areas: first, wealth
enhancement-type products such as single premium insurance, which plans give clients an alternative financial
instrument to park and grow their funds over a period of time; and secondly, wealth accumulation-type
products, which offer a financial protection base as people save and build up a capital sum. Along the way,
should something untoward happen to the consumer, there’s a payout. Notable in India is the increasing
convergence that is happening between financial services firms and financial institutions in terms of what they
offer to consumers. So, insurance companies don’t just sell but also manufacture products that are similar to
banking products, for example savings and investment products, says Tay. And the same is happening with the
banks, as many are distributing insurance products, although they’re mainly focused on savings and investment
products.

In addition, as a fast-growing affluent society, more Indians are looking for legacy planning tools, says Tay.
“Insurance also plays the role of creating an immediate estate to take care of wealth distribution equitably;
thereby leaving behind a positive financial legacy.” Although these are encouraging trends, the main hurdle to
turning this potential into something meaningful is that insurance is far from being top of-mind for either
wealth managers or their customers. “Insurance in wealth management is not even yet in its infancy; it is just
being conceived,” says industry specialist Jain. “Penetration into client wallets is exceedingly low with
insurance,” he explains, “at around 1% to 5% of the revenues of most wealth managers.”

1.7 SOME WEALTH BUILDER PLAN OFFERED BY HDFC LIFE

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1 Sanchay Par Advantage

HDFC Life Sanchay Par Advantage is a participating life insurance plan that provides an option to
avail cover for whole of life (till the age 100 years). The plan provides a holistic solution for you to
generate a regular income and to build a corpus to achieve the planned goals and secure your loved
one’s future, without any compromises.

Premiums

Frequency Minimum Premium per Installment

Annual Rs.30,000

Half-Yearly Rs.15,000

Quarterly Rs.7,500

Monthly Rs.2,500

SANCHAY PAR ADVANTAGE

(A) Immediate Income Option

An option that provides regular income by way of cash bonuses (if declared), from 1st policy year
and provides lump sum at maturity thereby creating a legacy for your family members.

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Survival Benefit:

The policyholder would be eligible to receive Cash Bonus (if declared) at the end of each Policy Year
and payable from the 1st policy year until death or end of policy term, whichever is earlier. Cash
Bonus (if declared) would be expressed as:

Cash Bonus payable = Cash Bonus Rate x Annualized Premium

Maturity Benefit:

For a policy where all due premiums have been paid, the maturity benefit payable at the end of the
policy term is defined as: 1. Sum Assured on Maturity plus 2. Accrued Cash Bonuses, if not paid
earlier plus 3. Interim Survival Benefit, if any plus 4. Terminal Bonus, (if declared) Sum Assured on
Maturity is total Annualized Premium payable under the policy during the premium payment term.
Where, Interim Survival Benefit = Interim Cash Bonus Rate * Annualized Premium * Months elapsed
since last Survival Benefit payout date / 12 On payment of the Maturity Benefit, the policy will
terminate and no more benefits will be payable.

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Death Benefit:

On death of the life assured during the policy term, provided all due premiums are paid, death benefit
equal to the following shall be payable as lump sum to the nominee:

• Sum Assured on Death plus

• Accrued Cash Bonuses, if not paid earlier plus

• Interim Survival Benefit (if any) plus

• Terminal Bonus (if declared)

The minimum Death Benefit shall be 105% of Total Premiums Paid4 as on date of death. Where, the
Sum Assured on Death is the absolute amount of benefit which is guaranteed to become payable on
death of the life assured.

It shall be the highest of:

• 10 times the Annualized Premium

• Sum Assured on Maturity

• Death Multiple x Annualized Premium

Where, Interim Survival Benefit = Interim Cash Bonus Rate * Annualized Premium * Months elapsed
since last Survival Benefit payout date / 12 The applicable Death Multiples are specified below. On
payment of Death Benefit during the policy term, the policy will terminate and no future payouts will
be payable. For minor lives where risk commences from the first policy anniversary and death of the
Life Insured takes place prior to the risk commencement date, only the basic premiums paid to date
(excluding taxes and levies, if any) shall be payable as the Death Benefit.

Illustration for a Male aged 30 years, Annualized Premium: INR 1 lac, Premium Payment Term: 8
years, Sum Assured on Maturity: INR 8,00,000.

22
 (B) Deferred Income Option

An option that provides Guaranteed Income for a guarantee period, and also provides regular income
by way of cash bonuses (if declared) throughout the policy term. It helps create a legacy for your
family members by providing a lump sum at maturity.

23
Survival Benefit:

The policyholder will start receiving Guaranteed Income plus discretionary Cash Bonuses (if
declared) in arrears one year after the end of Premium Payment Term. Cash Bonus is expressed as
Cash Bonus Rate2 x Annualized Premium

Maturity Benefit:

For a policy where all due premiums have been paid, the maturity benefit will be the aggregate of:

1. Sum Assured on Maturity plus

2. Accrued Guaranteed Income and Cash Bonuses (if declared), if not paid earlier plus

3. Interim Survival Benefit(if any) plus

4. Terminal Bonus, if declared Sum Assured on Maturity is total

Annualized Premium payable under the policy during the premium payment term. Where, Interim
Survival Benefit = (Interim Cash Bonus Rate * Annualized Premium + Guaranteed Income) * Months
elapsed since last Survival Benefit payout date / 12 On payment of the Maturity Benefit, the policy
will terminate and no more benefits will be payable.

24
Death Benefit:

On death of the life assured during the policy term, provided all due premiums are paid, death benefit
equal to the following shall be payable as lump sum to the nominee:

• Sum Assured on Death plus

• Accrued Cash Bonuses and Guaranteed Income, if not paid earlier plus

• Interim Survival Benefit (if any) plus

• Terminal Bonus (if declared)

The minimum Death Benefit shall be 105% of Total Premiums Paid4 as on date of death.

Where, the Sum Assured on Death is the absolute amount of benefit which is guaranteed to become
payable on death of the life assured. It shall be the highest of:

• 10 times the Annualized Premium

• Sum Assured on Maturity

• Death Multiple x Annualized Premium

25
Illustration for a Male aged 30 years, Annualized Premium: INR 1 lacs, Premium Payment Term: 8
years, Sum Assured on Maturity: INR 8,00,000

The IRR from both these plans is 5-6% which is par with any mutual fund investment or bank fd.

26
2 Sanchay Plus

Life becomes more meaningful with the achievement of personal milestones which you have planned
for. But these milestones are often accompanied by added responsibilities, expenses and the burden of
any uncertainty happening. We do our best to ensure that the financial security is achieved through
meticulous planning for key life stages such as marriage,children, parenthood, retirement, etc. Life
Insurance plan can help you achieve such goals whilst safeguarding the family’s future against the
uncertain events.

(A) Guaranteed Maturity

Maturity benefit-

This option offers a guaranteed maturity benefit payable as lump sum at the end of policy term upon
payment of all due premiums and the life assured surviving the policy term.

Death benefit-

In case of death of Life Assured during the policy term, the death benefit equals to Sum Assured on
death plus Accrued Guaranteed Additions shall be payable to the nominee

Sum Assured on Death is the highest of:

 10 times the Annualized Premium2, or

 105% of Total Premiums paid3, or

 Guaranteed Sum Assured on Maturity, or

27
  an absolute amount assured to be paid on death, which is equal to the Sum Assured.

(B) Guaranteed Income

Maturity Benefit-

This option pays you a maturity benefit in the form of Guaranteed Income for a fixed term of 10 or12
years upon payment of all due premiums and life assured surviving the policy term.

Death benefit-

Sum Assured on Death is the highest of:

 10 times the Annualized Premium,

 105% of Total Premiums paid, or

 Premiums paid accumulated at an interest of 5% p.a. compounded annually, or

 Guaranteed Sum Assured on Maturity, or

 an absolute amount assured to be paid on death, which is equal to the Sum Assured

(C) Life Long Income

Maturity benefits-
28
This option offers a benefit of a guaranteed income upto the age of 99 years and the return of
premium at the end of payout period upon payment of all due premiums and life assured surviving the
policy term

Death benefits-

Sum Assured on Death is the highest of:

10 times the Annualized Premium, or

105% of Total Premiums paid, or

Premiums paid accumulated at an interest of 5% p.a. compounded annually, or

Guaranteed Sum assured on Maturity, or

an absolute amount assured to be paid on death, which is equal to the Sum Assured.

(D) Long Term Income

Maturity benefits:-

This option offers a benefit of a guaranteed income for a fix term of 25-30 years and return of
premium at the end of payout period upon payment of all due premiums and life assured surviving the
policy term

29
Death Benefit:-

Sum Assured on Death is the highest of:

10 times the Annualized Premium, or

105% of Total Premiums paid, or

Premiums paid accumulated at an interest of 5% p.a. compounded annually, or

Guaranteed Sum assured on Maturity, or

an absolute amount assured to be paid on death, which is equal to the Sum Assured

30
2 LITERATURE REVIEW

31
1. STUDY ON BANK ENTERS IN INSURANCE

Author Name: Stigler (1971) They argue in this article the entry of banks in insurance operations would
enhance competition in the insurance market, reducing any existing economic rents for insurers. However,
whether a bank could earn an excess return depends on the initial costs of the bank’s entry into insurance, the
cost advantages and disadvantages of banks relative to existing insurers/agencies/ brokers and the synergies
existing between banking and insurance.

2. STUDY ON BANK & INSURANCE

Author Name: Gumbel (1991) This article says about that both banks and insurers rely on the law of large
numbers for the balance of their operations. Thus, size is an inherent objective of both lines of business which
may provide an explanation for growth strategies.

3. STUDY ON RATE AND RETURN OF EQUITY

Author Name: Rao and Bhole (1990) In this article they say about the rate of return from equity during short
run as well as in the long run. They analysed that rate of return from equity in the long run turned to be positive
but on the same time real return in the short run were often negative. Their study has shown the results that
nominal total return on equities in India has increased but as compared to rate of inflation the real return on
equity has been found negative.

4. STUDY ON LIFE INSURANCE IN INDIA- EMERGING ISSUES

Author Name- Ajit Ranode and Rajeev Abuja (1999) In this paper has presented the overview of all the
companies of Life Insurance with in India along with the strategic issues along with the private companies in
India. They have addressed the need of private players along with enhancement in the whole operation. Even
they have addressed the strategies to create the greater density. They have focused on mobilization of long term
saving for infrastructure.

5. STUDY OF LIFE INSURANCE MARKET-PRODUCT AND CUSTOMER

Author Name- Raghu Gulati (1999) Within his survey he had tried to gain the information of life insurance
market along with its products and customer behaviour. He tried studying business of life insurance along with
product portfolio and what all the strategies companies have adopted and demographic analysis. What all the
32
strategies companies follow while launching any new policy. According to the study it states that every
insurance company have deep scope in the urban areas, but the people are still unaware, yet it may be seen that
there is good potential to increase the revenue. According to the survey 50% of the business for life insurance
company comes from rural areas and sales agents are the key person for the sales of the policy. Even it is stated
that according to product strategies the company should come up with the flexible policy which will cover the
risk stated by customer.

6. STUDY ON INDIAN INSURANCE INDUSTRY AND PRIVITIZATION

Author Name: Chaudhary (2000) In this article he made an endeavour on the jobs which privately owned
businesses can play. The targets of the paper were to see if private insurance agencies can fill in as one stop
shop covering all protection needs, to know whether privately owned businesses can offer worth included
administrations past premium assortment and guarantee settlement or not. It was inferred that without precedent
for the historical backdrop of Indian Insurance, the idea of delegate is being redesigned on a full scale. The
range of go-betweens will get further and 24 their effect on the lead of protection business will be more
extensive than previously. The insurance agencies can become one stop search for giving all protection items
and administrations to the clients.

7. STUDY ON DISTRIBUTION OF INSURANCE

Author Name: Basu and Hollway (2002) In his article he showed the foundation of new contestants, their
business systems and different improvements that are probably going to impact the market. After the opening of
protection area in India, numerous insurance agencies have entered the market with new circulation procedures.
These organizations are offering distinctive sparing plans, term advantages, riders and a more extensive scope
of items. From the investigation, it is apparent that private life safety net providers should focus on their
dispersion procedures so as to catch the undiscovered protection advertise.

8. STUDY ON INSURACE INDUSTRY IN INDIA-STRUCTURE &FUTURE CHALLENGES

Author Name: Jhaveri (2005) In this article he has unmistakably clarified the status and development of Indian
protection industry after progression and furthermore presents future difficulties and openings connected with
the protection. Protection is the foundation of nation's hazard the board framework and impact development of
an economy in a few different ways. Infiltration of protection to a great extent relies upon accessibility of
protection items, protection mindfulness and nature of administrations. The future development of this segment
will rely upon how successfully the back up plans are meeting the desires for their clients and ready to change
the impression of the Indian buyers and make them mindful of the insurable dangers. The examination
33
demonstrated that on request side, the ascent in salary will trigger the development of protection. The procedure
of changes has upgraded rivalry, gave a decision to the clients and improved the productivity level of the
business. LIC keeps on staying solid in country regions while in urban zones and metros, the private life back
up plans have made their essence.

9. STUDY ON INFORMATION THEORY AND PORTFOLIO MANAGEMENT

Author Name: Aksuyek Zurich ( 2008) In this article he attempts to comprehend the connection of data
hypothesis to the hypothesis of ideal interests in a securities exchange. Consequently, he thinks about two
situations. First, he examines an ideal portfolio development issue in a securities exchange with known
disseminations of stocks returns. At that point he inspects a general methodology for portfolio development in a
securities exchange without information about appropriations of stocks returns. He saw that the association
between data hypothesis and portfolio the board lies on the information pressure and all-inclusive codes. Other
than the properties of long-ideal portfolio are extremely testing and amazing. Sadly, it isn't completely
constructible on the grounds that in all actuality we don't know about the genuine circulations of stock returns.
Accordingly, the widespread portfolio bodes well as far as useful utilization.

10. STUDY OF CUSTOMER PREFERENCE IN LIFE INSURANCE INDUSTRY IN INDIA

Author Name- Ms Sunayna Khurana (2002008) The studies are conducted on the customer preference for the
life insurance, as in today’s competition every other private companies are coming up with the new plans to
gain the attention of the new customers and to retain the old one. Author has tried to understand the customer
preferences on plans from the company. Author has collected the sample data from 200 customers of Hissar
city only.

11. STUDY ON MUTUAL FUND VS INSURANCE

Author Name: Das (2008) The article says that the investor has inferred that the different investment pattern
does not provide the same level of services with respect to the age of retail investors in India Investor with
higher academic qualifications and professionals like to invest in life insurance and mutual funds respectively.
Male investors are more participating in Indian stock market as 26 compared to females. Majority of people are
investing with the objective of capital growth followed by tax saving and a few for retirement plan.

34
12. STUDY ON PORTFOLIO PERFORMANCE MEASUREMENT

Author Name: Lensen’s Alpha (2012) Jensen's Alpha is additionally an award to chance measure. Be that as it
may, it utilizes an alternate idea of hazard. This current measure's system is taken from the capital resource
evaluating model (CAPM). In this model, among the presumptions, it is taken that each financial specialist
holds a broadened portfolio. This permits speculators to enhance away a portion of their venture hazard, leaving
them presented distinctly to 'deliberate' or nondiversifiable market-related hazard. Jensen's Alpha uses just
orderly hazard for scaling a portfolio's arrival. Alpha estimates the deviation of a portfolio's arrival from its
harmony level, characterized as the deviation of come back from the hazard, balanced desire for that portfolio's
arrival. For positioning purposes, the higher the alpha, the better is the exhibition. The store beats the market,
on a deliberate hazard balanced premise, if Jensen’s Alpha is more prominent than zero, and the other way
around.

13. STUDY ON MUTUAL FUND ANALYSIS AND LIFE INSURANCE

Author Name: Shsnmuganathan & Muthian (2012) The article has done a comparative analysis on standing of
ULIPs in an individual investment portfolio and concluded that Investment in ULIP with equity investment
option is than that of traditional investment. If investment horizon is long and equity should generate decent
return in the long run simultaneously if we can think of investing in Mutual fund, ULIPS are the smart choice
for people who want to enjoy market returns and keep the control in their hands. Add to that it gives insurance
cover with the flexibility to adapt changing lifestyle needs. This is a viable option for those who want a
convenient, economical one –stop solution.

14. LIFE INSURANCE INDUSTRY OF INDIA- PAST, PRESENT & FUTURE

Author Name- Shilpa Agarwal, A. K. Mishra Author in their research found that LIC has successfully created
value for its policy holder. Author has analysed both the pre and post-performance of the LIC which shows
remarkable growth in the over-all business in the market. According to the author LIC have the potential for the
growth and will be enjoying goodwill in India. But in today’s market private insurance companies are giving
tough competition, so it seems that LIC should put more efforts on increasing their business network through
various ways such as adopting technology and innovations to build good client relationship.

35
3. METHODOLOGY

36
3.1 Research Objective
The major objective of this report is:
 To get detailed information about insurance products.
 To study investors preference towards insurance products.
 To study level of awareness of investors towards insurance as a Wealth builder or income builder.
 To study the investment pattern of the people with respect to insurance products.

3.2 Sampling Technique

The sample technique followed in the study is non probability convenient sampling simple random sampling
are used to select the respondent from the available database. The research will be carried on the basis of
structured questionnaire.

3.3 Research tool used

The data collected is duly processed with the help of MS-Excel. The researchers have selected Ztest and
ANOVA testing for study.

3.4 Data Collection

The data was collected through primary and secondary sources. The sufficient and relevant literature is
available pertaining to the investor's behaviour pertaining to different investments.
The primary data was the help of specially designed questionnaire.
The secondary data was collected from book journals and information available on the internet.

3.6 Scope of Study

The study is confined to the factors considered by the investors while making their investment. their level of
awareness about the various insurance products available in the study is considered.

3.7 Hypothesis
H0 - Income does not play a significant role in Customer's perception towards buying an insurance policy.
H1 - Income plays a significant impact role in Customer's perception towards buying an insurance policy.
H0 - There is no significant impact of Income and their saving on customers perception towards investing in an
insurance policy.
H1 - There is significant impact of Income and savings on customers perception towards investing in an
insurance policy.

37
3.8 variables
Investors Perception: Independent Variable
Income and Savings: Dependent variable

38
4. DATA INTERPRETATION

39
THE ROLE OF INSURANCE COMPANIES IN WEALTH MANAGEMENT
 Potentially- imminent changes in the way insurance is distributed, in the way products are
manufactured, in the cost efficiency and cost effectiveness of products, and also in product structures
to provide more flexibility and tailoring.

 Efforts to do more to meet investor's expectations, in terms of transparency and fair dealing, to
ultimately focus on enhancing relationship with customers to rebuild confidence

 Attempts to ensure consumers recognize the value they get from the protection benefits which are
embedded in the policies.

 Measures to address concerns over the competency and incentives of advisers and other selling
insurance plans.

 To clarify the role of insurance as port of wealth management solutions, from the perspectives of
investment, protection and wealth planning.

IMPORTANCE OF INSURANCE AS A WEALTH BUILDER

As a fee-based wealth management firm, we use insurance but only in its very simplest form. This means
term life and critical illness-type products, used for protection and succession planning.
The industry is under a lot of scrutiny, and reputation risk is perhaps the biggest challenges it faces- related to
issues around fairness, cost efficiency and cost effectiveness of products.
Changes are expected in the way insurance is distributed, the way product are manufactured, in the products
themselves and in their structures.

40
We must focus on providing value in whatever they use insurance for. This is in line with where the Insurance
Companies are coming from with.
Yet insurance has always had a place as part of wealth management solutions. It is a methodology for saving
and for making provisions for the future. There might be question marks about whether it is the most
efficient vehicle but it is definitely a simple and effective one.
Everybody needs to be protected against unforeseen events and it's never too early to start saving for
retirement and learning a legacy. Insurance is an easy way to package all the together.
Within the private banking segment, insurance is used almost exclusively in relation to wealth structuring, so
client use insurance wrappers and whole of life polices to structure solutions in tax- efficient way, to pass on
their legacy or to simply allow them to feel that they can spend the rest of their money without worry in the
knowledge that there will be a certain amount that is a set aside in the future.
It can be dangerous to convince investors to buy insurance as an investment product. Investors need to split
products into two when they evaluate the insurance element and the investment element.
More still has to be done by the industry to meet investor's expectations, on transparency and fair dealing.

At lot of the issues that insurance plan have experienced in the past related to the fact that many individual to
not recognize the value they get from the protection benefits embedded in the policies. That has to be taken
into account if people are looking at investment returns.
However, from a wealth management perspective, insurance will always to be able to address an individual's
various needs relating to saving, legacy and protection- either through separate solutions or a single solution
that tried to comprehensively map out all of those needs.
However, there is an explicit conflict to interest when companies try to combine both the protections and
investment sides, by trying to align two different products together: which are separately driven by the
manufacturing and distribution sides of the same business.
It would be interesting for the insurance industry to ask itself whether if it didn't have all of its legacy
businesses, remuneration structures and distribution systems, how would it want to be structured today if it
the choice? I think companies would probably set themselves up differently so that the embedded cost in the
business were not so high.
It is clear that the regulatory requirements will be increased going forward, and that investors will request
more and more services from advisers.
So to reduce conversations about appropriate products just to the topic of fees is probably not the right
approach to take.
For insurance companies, a provider of structured products and investment solutions, launching worldwide 30
to 50 customized investment products a day, and that have an average lifetime of 12 to 14 month, and then

41
launching our cooperation with life insurance companies business in India, where they use our products as
investments for their life insurance products, we had to realize that the life insurance companies have totally
different requirement, given the lifetime of 20 to 40 years for insurance. This makes timing, servicing and
transparency much more important.
Being able to fulfil such need as a product provider is quite challenging and only possible if one has access to a
fully automated, flexible and scalable platform.
Providing as much flexibility to the client as possible for products with such a long life is critical, for example
by including life- cycle management or lock- in features being able to smooth the exposure and therefore risk
for the investor.
Also, over the last few year, it has been seen that insurance companies are being more creative and conscious
about being transparent. For example, there is a differentiation between guaranteed and non- guaranteed
returns. Advisers are also more mindful to explain to customers clearly and carefully about the respective
pros and cons of various products.

42
 STASTICAL ANALYSIS

T Test
H0- Income does not play a significant role in Customer's perception towards buying an insurance policy.
H1- Income plays a significant role in Customer's perception towards buying an insurance policy.

t-Test: Two-Sample Assuming Equal Variances

Variable
Variable 1 2
1.03773
Mean 1.867924528 6
Variance 0.96298984 0.03701
Observations 53 53
Pooled Variance 0.5
Hypothesized Mean Difference 0
Df 104
t Stat 6.043864814
P(T<=t) one-tail 1.18837E-08
t Critical one-tail 1.659637437
P(T<=t) two-tail 2.37673E-08
t Critical two-tail 1.983037526

From the above table we can see the two tailed Critical Value of T is + 198&- 1.98 and the T calculated Value is
6.04
So, the above calculation indicates that the T calculated value (6.04) does not fall between the level of
confidence (1.98), representing that the null hypothesis is rejected and re can say that income does play an
important role an important role in customer perception towards buying and insurance policy.

ANOVA TEST
H0- There is no significant impact of income and their saving on customers perception towards investing in an
insurance policy.
H1- There is significant impact of income and their savings on customers perception towards investing in an
insurance policy.

SUMMARY
43
 Varianc
Groups Count Sum Average e
1.86792
Column 1 53 99 5 0.96299
2.32075 1.18359
Column 2 53 123 5 9
1.03773
Column 3 53 55 6 0.03701

ANOVA
Source of Variation SS df MS F P-value F critical
22.4402 30.8301 5.21E- 3.05400
Between Groups 44.8805 2 5 8 12 4
113.547 0.72786
Within Groups 2 156 6

158.427
Total 7 158

Above results indicate that significant F calculated value that is 30.83 is more than the F Critical value which is
3.05, representing that the null hypothesis is rejected and this can be interpreted that income and saving have
a significant impact on customers perception towards investing in an insurance policy.

44
 PRIMARY DATA

GENDER

Female Male
50% 50%

It is been observed that out of 54 respondents 50% are male and 50% are female.

OCCUPATION

45
 Unemployed
6%

Student
Business 22%
15%

Salaried
57%

It is been observed that out of 54 respondents 22% are students, 6% are unemployed, 15% are having their
own business and 57% are salaried.

INCOME (CTC)

5,00,000 - 10,00,000 & above

10,00,000 2%
11%

Below 1,00,000
32%

1,00,000 - 5,00,000
56%

From the above diagram we can see that 31% of the respondents have income less than 1000000 per annum
followed 56% who have an income between 1-5 lac per annum followed by 11% and 2% of income of 5-10 lac
and 10 lac and above respectively.

WHAT PERCENYAGE OF MONTHLY SALARY DO YOU SAVE?

46
 31% & Above
13%

0 - 10%
39%
21 - 30%
18%

11 - 20%
30%

From the above chart we can observe that 39% of the people save 0-10% of their income, 30% save 11-20% of
their income, 18% save 21-30% of their income while 13% save 30% and above of their income. as savings play
a major role in investing. we can predict that people with more savings tend to invest more in Insurance
policies or endowment or money back policies which can give you returns and help you and your family to
secure their futures.

WHAT KIND OF INVESTMENT DO YOU PREFER?

Short term
24%

Both
44%

Long term
32%

The next question was about the type of investment people prefer to invest in so, from above pie chart we
can see the 44% people prefer both long term and short term kind of investment while 24% and 32% prefer

47
long term and short term investments respectively. As Insurance is a long term and short term both, the life
protection being a long term one and the money back or ULIP plans being the short term investments.

DO YOU HAVE AN INSURANCE POLICY?

No
41%

Yes
59%

From the above chart we can see that 59% people have insurance policy and 41% don't have an insurance
policy.

IF YES WHAT TYPE & INSURANCE DO YOU HAVE?

Public
20%

Private
80%

48
DO YOU THINK INSURANCE CAN HELP YOU TO BUILD YOUR WEALTH IN FUTURE?

Maybe
41%
Yes
50%

No
9%

From the above chart you can observe that 50% of people think insurance as an wealth builder option while
41% think that may be it may help or may not and rarely 9% people think that insurance can help in building
the wealth or the portfolio.

WHAT SCHEME OF INSURANCE POLICY HAVE YOU TAKEN?

Pension fund ULIP

10% 8%

Term plan
51%
Money back
28%

Endowment plan
3%

49
It can be seen that 51% of people have opted for term plan which gives whole life security and lumpsum
amount to the nominee .
28% of people have taken the insurance policy which also covers your life as well as gives you money back
that is the principle amount with some cash bonuses year by year.
10% have opted for pension funds. Generally the people who are retired or on verge of retirement invest in
such plans to get some amount of pension even after retirement which also gives life protection.
8% people invest in ULIP funds which are similar to Mutual fund but ULIP plan gives both to the investor which
is Insurance and Return under a single integrated plan.
And 3% of people opted for endowment plans which helps in long term gains as and also for the family's
future which guaranteed return and lumpsum amount at the end of maturity.

SOURCE OF INVESTMENT OTHER THAN INSURANCE

Other
20%
Bank FD
32%

PPF
7%

Mutual Funds
26% Equity
15%

When asked about the other investment other than insurance

32% people have chosen Bank FD as it is the safest investment with low returns but no risk.
26% people have chosen Mutual Fund which is a less risky option but still depends upon markets volatility.
15% people have chosen Equity Share as there is a high risk in it due to volatile market.
7% have chosen PPF which is again a safer and less risky option
And 20% have chosen other option such as gold, property etc.

STATE YOUR EXPECTATION ON INVESTMENT ALTERNATIVES BY TICKING ACCORDING TO ITS IMPORTANCE

50
 40

35

30

25
Highly Imporant
20 Important
Neutral
15 Less Imporant
Not imporant
10

0
Risk free returns Liquidity Tax benefits Returns
as compared to
mutual fund

From the above table and chart we can observe that most of the people found it highly important insurance
can help them having liquidity with short policies, can help with tax benefits under section 80C and 80D, can
also give them returns in form of Iumpsum amount for periodic income and also can give them guaranteed
returns compared to mutual funds which depends upon the volatility of market.

51
What parameters you have looked into at the time of buying Endowment or Money back policy?

35

30

25

20
Highlt imporant
15 Important
Neutral
10 Least important

0
Risk free returns Secure future Retirement plans Children education

From the above table and graph it can be seen that people find the endowment and money back policies
highly important and important with respect to returns securing future, retirement plans and also for their
children education.
As we can see there are no person who thinking insurance as least important option for securing families
future or for their children or retired person.

52
5. FINDINGS

53
 More than half of the respondent prefer both i.e. Long term as well as Short term investments.
 mainly 36% of the respondent find the best alternative to save their investment in Mutual funds.
 Around 96% of the respondent are insured i.e. they have a Life Insurance Policy.
 People prefer Public sector insurance rather than Private sector insurance.
 Most of the respondent have their Insurance Policy at Life Insurance Corporation of India
 In Private Sector, people trust more on HDFC Life over other Companies as per the above study.
 The major motive to invest in insurance is to SAVE TAX.
 People invest in Insurance for the future safety of the family.
 Most of the people think insurance and endowments policies can help them build their wealth.

54
6. RECOMMENDATIONS AND CONCLUSION

55
 When you invest in Insurance Policies or any Investment Policies would suggest to go through the
brochure and compare it with other companies and choose for the best suitable option for you.

 Don't fall in trap of some unknown players in the market who sell fake policies

 The main conclusion can be people should start looking at insurance policies as a investment plans as it
would help them build their future as we as protect their family.

 The most of the insurance companies are recruiting agents who are professional who can sell their
unsought insurance products.

 Companies also provide better policies based on customer needs and demands.

 In this competitive market companies provide better service quality, pricing, advertisement and
promotional activities.

 CRM is used to retain the customers and communicate with them.

56
7. BIBLIOGRAPHY

57
  Anjor P., Prof. S. H. Ali, Mohnish Kumar, and Vijay Kumar Verma. (2014). Service Quality Assessment:
A study of Consumer Satisfaction in Indian Insurance Sector. IOSR Journal of Business and
Management.
 Balaji c. (2015). International Journal of Multidisciplinary Research and Development.
 Dr. N. Senthilkumar, K. S., and K. Selvamani. (2016). International Journal of Research.
 Gulati, K., Arvind Kumar, and V. Ravi (2012). Asian Journal of Business and Economies.
 Kannan, M (2008). International Journal of Development and Sustainability.
 Kumar, A., and Srivastva Medha. (2013). Journal of Competitivesness.
 T. Nisamumdheen. (2013). Asian journal of Managerial Science

REFERANCES:
 www.hdfclife.com
 https://www.irdai.gov.in/
 https://shodhganga.inflibnet.ac.in/bitstream/10603/3519/13/13_chapter%206.pdf
 https://blog.investyadnya.in/insurance-sector-analysis/
 https://www.businessinsider.in/thelife/personalities/news/life-insurance-vs-fd-which-is-
betterforinvestment/articleshow/71631831.cms
 http://shodh.inflibnet.ac.in:8080/jspui/bitstream/123456789/2774/3/03_%20literature%20review.pdf

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ANNEXTURE

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1. Age(In years)

 28- 25
 26- 35
 36- 45
 46- 55
 56 and above

2. Gender
 Male
 female
 prefer not to say

3. Occupation
 Student
 Salaried
 Business
 Unemployed
 Retired

4. Income
 Below 100000
 100000- 500000
 500000- 1000000
 1000000 and above

5. What percentage of monthly salary do you save?

 0-10%
 11- 20%
 20- 30%
 30% and above

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6. What kind of investment do you prefer?
 Short term
 Long term
 Both

7. Do you have an insurance policy?

 Yes
 No

8. What type of insurance do you have?

 Private
 Public

9. Do you think Insurance can you help to build you wealth in future?
 Yes
 No
 Maybe

10. What scheme of Insurance policy have you take?

 Term plan
 Endowment plan
 Money back
 Pension fund
 ULIP

11. Sources of investment other than insurance

 Bank FD
 Equity
 Mutual fund
 PPF

12. State your expectation on investment alternatives by ticking according to its importance
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  Highly important
 Important
 Neutral
 Least important
 Not important

13. What parameters you have looked at the time of buying Endowment or Money back policy?
 Highly important
 Important
 Neutral
 Least important
 Not important

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