MINOR PROJECT REPORT

ON
'A STUDY ON FACTORS AFFECTING CUSTOMER PREFERENCE TOWARDS
INVESTING IN LIFE INSURANCE POLICIES'

Submitted in partial fulfilment of the requirements

for the award of the degree of
Bachelor of Business Administration (BBA)

VIVEKANANDA INSTITUTE OF PROFESSIONAL STUDIES

(Affiliated to Guru Gobind Singh Indraprastha University, Delhi)
AU-BLOCK, PITAMPURA, DELHI-110034

SUBMITTED BY: SUBMITTED TO:

UDIT SOMANI MS. RIDDHIMA SHARMA
BBA (GENERAL), SECTION A READER
FOURTH SEMESTER
02817701721
 STUDENT UNDERTAKING

This is to certify that I have completed the Project titled “A Study of Indian Retail Banking
Industry with special reference to State Bank of India” under the guidance of “Ms.
RIDDHIMA SHARMA” in partial fulfilment of the requirement for the award of degree of
Bachelor of Business Administration (BBA [H]) at Vivekananda Institute of Professional
Studies, Vivekananda School of Business Studies, New Delhi. This is an original piece of
work and has not been submitted elsewhere.

NAME OF STUDENT- Udit Somani

STUDENT SIGNATURE

1
 CERTIFICATE

This is to certify that the project titled “A Study of Indian Retail Banking with special

reference to State Bank of India” is an academic work done by “UDIT SOMANI” submitted

in the partial fulfillment of the requirement for the award of the degree of Bachelor Of

Business Administration (BBA [H]) from Vivekananda Institute of Professional Studies,

Vivekananda School of Business Studies, New Delhi, under my guidance & direction. To the

best of my knowledge and belief the data & information presented by him/her in the project

has not been submitted earlier.

Ms. RIDDHIMA SHARMA

SIGNATURE OF FACULTY GUIDE

2
 ACKNOWLEDGEMENT
I would hereby, make most of the opportunity by express my profound sense of gratitude and
reverse to all those who have helped and encouraged me towards the successful completion
of the project.
Firstly, I would like to express my thanks to GURU GOBIND SINGH INDRAPRASTHA
UNIVERSITY for giving me such a wonderful opportunity to widen the horizons of my
knowledge.
I would like to thank to my project guide MS. RIDDHIMA SHARMA for her immense
guidance and valuable help in completing the project.
Lastly, I would like to thank all the faculty members of VIVEKANANDA INSTITUTE OF
PROFESSIONAL STUDIES for guiding me and supporting me in the completion of this
project from time to time.

Udit Somani
02817701721
BBA(G) 3rd SEM

3
 Index

S.No. Name Page No.

1 Executive Summary 5

2 Chapter 1: Introduction 6-14

3 Chapter 2: Company Profile 15-36

4 Chapter 3: Literature Review 37-38

5 Chapter 4: Objectives and the Scope of the Study 39-40

6 Chapter 5: Research Methodology 41-43

7 Chapter 6: Data Analysis 44-58

8 Chapter 7: Findings, Conclusion and Suggestion 59-61

9 Chapter 8: Limitations of The Study 62-63

10 Bibliography 64

11 Annexure 65-67

Executive Summary
The Chapter presents the summary of the findings of the study, draws conclusion from the
study and also makes suggestions for the studies. The topic of my study was 'A STUDY ON
FACTORS AFFECTING CUSTOMER PREFERENCE TOWARDS INVESTING IN

4
LIFE INSURANCE POLICIES' is all about understanding the factors that affects the
customer decision while buying Life Insurance Policy.
The summary of the findings is organised around the questionnaire which was based on the
research objectives of the study about all the factors that affects the customers from
buying/investing in Life Insurance Policy. he first objective of the study was to check the
customer preferences that what kind of policy the opt/prefer the most and the result comes
towards "Money Back" Policy is preferred by 47.8% and as a feature 'Money Back
Guarantee' is preferred by 73.9%. The Second objective is which Insurance company is being
preferable by most and the result goes to 'SBI Life' which is preferable by 34.8% and the
reason behind this is the friendly service and responsiveness
There are two types methods of collecting data which are primary and secondary methods.
The study guided by the primary method of data collection. A questionnaire was designed to
collect the data. Schedule method of administration was used to collect the data. In the study
simple Random sampling method was used. The size of the sample was forty guests. The
research was descriptive in nature. The MS Excel has been used to present the data.
In the study it was found that majority of the respondents got to know about the Agile Capital
Service (India First Live Insurance) because of is premium charges which is less than all and
premium paying terms are 5/6/7 years less than different Life Insurance. The second reason
should be the brand value because India First Life Insurance is run with the collaboration of
Bank of Baroda, Andhra Bank (now, Union Bank of India), and Legal & General.
The conclusion of the study is that there are majority of the respondents got to know about
the Agile Capital

Services (India First Live Insurance) through their Friends/Relatives. For analysing the data
MS Excel was used. Percentage method was used to analysing the data. The data has been
represented with the help of tables and pie charts. After analysing the data, a following steps
were recommended to the company which have been explained above. The study was
conducted on 92 respondents.

5
 CHAPTER 1

INTRODUCTION

6
 INTRODUCTION TO INSURANCE
Life insurance is a contract that offers financial compensation in case of death or disability.
Some life insurance policies even offer financial compensation after retirement or a certain
period of time. Life insurance, thus, helps you secure your family’s financial security even in
your absence. You either make a lump-sum payment while purchasing a life insurance policy
or make periodic payments to the insurer. These are known as premiums. In exchange, your
insurer promises to pay an assured sum to your family in the event of death, disability or at a
set time. Life insurance can help you support your family even after retirement.
Definition: Life insurance (or life assurance) is a contract between an insurance policy holder
and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of
money (the benefit) in exchange for a premium, upon the death of an insured person (often
the policy holder).
The purpose of life insurance is to provide financial protection to surviving dependents after
the death of an insured. It is essential for applicants to analyse their financial situation and
determine the standard of living needed for their surviving dependents before purchasing a
life insurance policy. Life insurance agents or brokers are instrumental in assessing needs and
establishing the type of life insurance most suitable to address those needs. Several life
insurance channels are available including whole life, term life, universal life and variable
universal life policies. It is prudent to re-evaluate life insurance needs annually, or after
significant life events like marriage, divorce, the birth or adoption of a child and major
purchases, like a house.

Tax Benefits associated with Life Insurance Policies:

• Life insurance not only ensures the well-being of your family, it also brings tax
benefits.
• The amount you pay as premium can be deducted from your total taxable income.
• However, this is subject to a maximum of Rs 1.5 lakh, under Section 80C of the
Income Tax Act.
• The premium amount used for tax deduction should not exceed 10% of the sum
assured.

How Life Insurance Works

There are three major components of a life insurance policy.

7
❖ Death benefit is the amount of money the insurance company guarantees to the
beneficiaries identified in the policy upon the death of the insured. The insured will
choose their desired death benefit amount based on estimated future needs of
surviving heirs. The insurance company will determine whether there is an
insurable interest and if the insured qualifies for the coverage based on the
company's underwriting requirements.
❖ Premium payments are set using actuarially based statistics. The insurer will
determine the cost of insurance
(COI), or the amount required to cover mortality costs, administrative fees and other
policy maintenance fees. Other factors that influence the premium are the insured’s
age, medical history, occupational hazards and personal risk propensity. The insurer
will remain obligated to pay the death benefit if premiums are submitted as required.
With term policies, the premium amount includes the cost of insurance (COI). For
permanent or universal policies, the premium amount consists of the COI and a cash
value amount.
❖ Cash value of permanent or universal life insurance is a component which serves
two purposes. It is a savings account, which can be used by the policyholder,
during the life of the insured, with cash accumulated on a tax-deferred basis. Some
policies may have restrictions on withdrawals depending on the use of the money
withdrawn. The second purpose of the cash value is to offset the rising cost or to
provide insurance as the insured ages.

Types of Life Insurance

1. Term Insurance:

Term insurance is a type of life insurance policy that provides coverage for a
certain period of time, or a specified "term" of years. If the insured dies during the
time period specified in the policy and the policy is active - or in force - then a
death benefit will be paid.
Term insurance is initially much less expensive when compared to permanent life
insurance. Unlike most types of permanent insurance, term insurance has no cash
value. There are many different types of term insurance policies available. Many
policies offer level premiums for the duration of the policy, such as 10, 20, or 30
years. These are often referred to as "level term" policies. While premiums for

8
 these level term policies remain level for a set number of years, after this time
period the premium increases significantly, making the policy cost prohibitive.
Most term policies have a built-in privilege to convert to a permanent policy
regardless of any changes in the insured's health.
Term insurance has two features that make it attractive:
a) A guarantee on the premium and survivor benefit for a defined amount of years,
depending on the company, age of the insured and other factors.
b) No capability of accumulating cash inside the policy. You can't pay an extra premium
to get extra benefit.
You can’t transfer money from other accounts into the policy. The carrier will not
pay dividends or apply interest to your account.

2. Whole Life Insurance:

Whole life insurance, or whole of life assurance (in the Commonwealth of

Nations), sometimes called "straight life" or "ordinary life," is a life insurance
policy which is guaranteed to remain in force for the insured's entire lifetime,
provided required premiums are paid, or to the maturity date. As a life insurance
policy, it represents a contract between the insured and insurer that as long as the
contract terms are met, the insurer will pay the death benefit of the policy to the
policy's beneficiaries when the insured dies. Because whole life policies are
guaranteed to remain in force as long as the required premiums are paid, the
premiums are typically much higher than those of term life insurance where the
premium is fixed only for a limited term. Whole life premiums are fixed, based on
the age of issue, and usually do not increase with age. The insured party normally
pays premiums until death, except for limited pay policies which may be paid up in
10 years, 20 years, or at age 65. Whole life insurance belongs to the cash value

9
 category of life insurance, which also includes universal life, variable life, and
endowment policies.
Individuals may find whole life attractive because it offers coverage for an
indeterminate length of time. It is the dominant choice for insuring so-called
"permanent" insurance needs, including: a) Funeral expenses
b) Estate planning
c) Surviving spouse income
d) Supplemental retirement income.

Individuals may find whole life less attractive, due to the relatively high
premiums, for insuring: a) Large debts
b) Temporary needs, such as children's dependency years,
c) Young families with large needs and limited income.

3. Endowment Policy:

An endowment policy is a life insurance contract designed to pay a lump sum after
a specific term (on its 'maturity') or on death. Typical maturities are ten, fifteen or
twenty years up to a certain age limit. Some policies also pay out in the case of
critical illness.
Policies are typically traditional with-profits or unit-linked (including those with
unitised with-profits funds) the holder then receives the surrender value which is
determined by the insurance company depending on how long the policy has been
running and how much has been paid into it. Pension insurance provides many
benefits. They can be used as a low-risk way to save. Policyholders can choose
how much to pay each month and how long they want to stay, usually for 10 or 20
years.
Benefits of Endowment Plans:
a) Dual Benefit: Endowment Plans offer the dual benefit of Long Term Investment
and Insurance. Apart from paying the sum assured to the beneficiary in case of the
policy holder’s demise, endowment plans also pay a lump sum maturity amount is
the policy holder survives the policy tenure.
b) Safe: Even though the returns on endowment plans may be lower, they are risk free
in terms of the sum assured.

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c) Disciplined Savings: Policy holders need to set aside a pre-determined amount
towards the premium payment at a stipulated time interval, thus encouraging a
disciplined approach to saving.
d) Assured bonus: Endowment plans declare an annual bonus, typically paid out as a
specific percentage of the sum assured. In case of policy holder’s survival, additional
bonuses accrued during the policy are paid in addition to the sum assured
e) Compounding returns: A key advantage of endowment plans is that they fetch
returns on a compounding basis during a policy term
f) High Liquidity: Endowment Policies are liquid in nature.

4. Money Back Policy:

Money back plans protect your family’s financial interests from circumstances
such as death or critical illness of the policy holder. Periodic Pay-outs create
wealth for meeting financial commitments at key stages in life. Money Back plans
offer true amalgamation of Insurance and Investment. Secure your family
financially.
Money back plans are one of the most popular life insurance plans in India. Under
these plans, policy holders receive a frequent pay-outs as the death benefit, in case
the policy holder survices. These packages include both insurance and investment
plans. A money back plan is ideal for people who want a guaranteed return on their
investments and are looking for regular pay-outs at the same time in addition to an
insurance cover for themselves for the same money they are putting as a premium.
Unlike a standard life insurance policy that only pays an amount after the maturity
of the policy, the money back plan starts to pay an amount that is called a ‘survival
benefit’ over the lifetime of the policy. This survival benefit is given after a few
years from the start of money back plan and continues until the maturity of the
money back policy. The survival benefit is basically the reward from the company
to the insured individual for surviving. The benefit is only paid if the insured is
alive.
Money Back Policy Benefits:
a) Low Risk Exposure: Money Back policy plans are insurance cum return products,
hence they don’t entail high risk.

11
b) Regular Source of Income: Money Back policy provides frequent pay-outs during
the policy terms. This is known as Survival Benefits.
c) Insurance Coverage: Money Back Policy offers insurance coverage, thus providing
financial security to your family members to meet their obligations after your
demise.
d) Assured Return on Investment: Money back plans offer an assured return on the
invested amount.
Therefore, you need not worry about losing out on your investment.

5. Unit linked Insurance Plans:

ULIP or Unit Linked Insurance Plan is a mix of insurance along with investment.
From a ULIP, the goal is to provide wealth creation along with life cover where the
insurance company puts a portion of your investment towards life insurance and
rest into a fund that is based on equity or debt or both and matches with your long-
term goals. These goals could be retirement planning, children’s education or
another important event you may wish to save for.
When you make an investment in ULIP, the insurance company invests part of the
premium in shares/bonds etc., and the balance amount is utilized in providing an
insurance cover. There are fund managers in the insurance companies who manage
the investments and therefore the investor is spared the hassle of tracking the
investments. ULIPS allow you to switch your portfolio between debt and equity
based on your risk appetite as well as your knowledge of the market’s
performance. Benefits like these which offer investors the flexibility of switching
is a huge factor contributing to the popularity of these investment instruments.

Benefits of ULIP:
a) Life cover: First and foremost, with ULIPs you get a life cover coupled with
investment. It offers security that a taxpayer’s family can fall back on in case of
emergencies like the untimely death of the taxpayer, etc.
b) Income tax benefits: Not many are aware that the premium paid towards a ULIP
is eligible for a tax deduction under Section 80C. Additionally, the returns out of
the policy on maturity are exempt from income tax under Section 10(10D) of the
Income-tax Act.

12
 c) Finance Long Term Goals: If you have long-term goals like buying a house, a
new car, marriage, etc., then ULIP is a good investment option because the money
gets compounded. As a result, the net returns are generally more.
d) The flexibility of a portfolio switch: As already mentioned, ULIPS are usually
designed in a way that they allow you to switch your portfolio between debt and
equity based on your risk appetite as well as your knowledge of how the market is
performing.

Consolidated benefits and information of Life Insurance Plans

Term insurance ➢It is the most basic type of insurance.

➢It covers you for a specific period.
➢Your family gets a lump-sum amount in the case of your
death.

➢If, however, you survive the term, no money will be paid to

you or your family.

Whole Life Insurance ➢It covers you for a lifetime.

➢Your family receives a certain sum of money after your
death.

➢ They will also be entitled to a bonus that often accrues on

such amount.

Endowment Policy ➢ Like a term policy, it is also valid for a certain period.
➢ A lump-sum amount will be paid to your family in the
event of your death.

➢ Unlike a term plan, you get the maturity proceeds after the
term period.

Money-back Policy ➢ A certain percentage of the sum assured will be paid to

you periodically throughout the term as survival benefit.
➢ After the expiry of the term, you get the balance amount
as maturity proceeds.

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 ➢ Your family gets the entire sum assured in case of death
during the policy period. This is regardless of the
survival benefit payments made.

Unit-linked Insurance Plans ➢ Such products double up as investment tools.

(ULIPs) ➢ A part of your premium goes towards your insurance
cover.
➢ The remaining amount is invested in Debt and Equity.
➢ A lump-sum amount will be paid to your family in the
event of your death.

14
 CHAPTER 2
COMPANY PROFILE

15
Agile Capital Services Is a Leading Consulting Firm in India. At Agile Capital, the
Company offers wealth management services to high- and ultra-high-net-worth individuals
(Hnis & Uhnis). Their team is made up of specialists who offer consultation services to
people in the financial and investing sectors so they may protect their families' financial
futures. Delivering competent and knowledgeable guidance in wealth maximization, career
planning, and bridging the talent and job seeking gap.
Agile Capital Services
Website: www.agilecapitalservices.com
Designation: Management Trainee
Qualification Required: BBA, B.com, MBA, PGDM
Location: Work from home/ New Delhi
Sector: BFSI Joining Month: October – January (As per academic calendar)
Duration of Internship: 30-45 days (as per campus requirement)

Offered Specilizations
Marketing (Core)
Marketing & Finance (Dual Spec.)
Marketing & HR (Dual Spec.)

Roles and Responsibilities

Marketing
• Need benefit Analysis (Experience in all stages of the sales process).
• Research prospects in targeted markets, and clients Procurement through networks,
negotiations and deliberations.
• Collaborate with the sales team to ensure requirements and After sales services are
met • Making daily sales records and managing client's portfolio.
• Perform market analysis and research on competitors and Develop strategies and
reports to find the competitive edge.
• Process of interacting with customers to determine a business's objectives.
• Discuss client price and forecasting sales revenue.
• Sales analysis and Prospecting.

Finance
• Being exposed to the wealth management industry, its goods, and services.

16
 • Understanding clients’ financial needs.
• The support team of wealth management experts.
• Understanding Tax calculation.
• Assist with portfolio analysis and proposed strategy creation.
• Preparing proposals for clients.
• Aiding in the management of documents and recommendations for both new and
current clients.
• Fundamental analysis of Financial Statements.

Human Resource
• Understanding CTC calculations
• Creating job descriptions, and posting job openings.
• Dealing into Talent Acquisition Profile i.e., Responsible for handling complete
recruitment cycle.
• Scheduling Interviews, resume screening, shortlisting and familiarizing with
onboarding processes.
• Training and development to Improve employee engagement activities.

Internship Schedule entation – They will be getting brief knowledge about company, roles
& responsibilities and about mentors as well.
They will be allotted with the company guide as well.
➢ 1st Phase - Training Sessions (10-15 days)
➢ 2nd. Phase - Marketing & Sales Profile (10-15 days)
➢ 3rd. Phase - Finance or HR profile (10-15 days

Services Provides by the company

1. Consulting Services
2. Portfolio Management
3. Recruitment Services
4. Taxation Services
5. Financial Analysis
6. Internship Program
7. Professional Skill Development

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 Our Identity
Our professionals and experts working around the clock to provide best HR and
financial solutions to our clients and organizations in order to give them edge over
their competitor. We are committed to provide best opportunities for the job
seekers.

Our Vision
Our vision is to significantly increase the wealth of our clients by providing best
financial services as well as most valuable recruitment service provider.

Our Mission
We thrive to provide best and simplest wealth management advice through honest
financial solutions as well as inspire the candidates to explore job opportunities
across various industrial sector.

Our Slogan
- “Give your trust, we ascertain you remuneratively lucrative return to the fullest.”

SWOT Analysis of ACS: -

Strengths
• Works in all sectors (Finance, Hr, Marketing)
• Majority of interns work under it
• Works under 3 party system
• Competition is given for the competition of work.
• Pre-Placement offers are also provided for the better interns.

Weakness
• Overload of work under employees.
• Shortage of employees.
• Rating not bases on sound actuarial principles

Opportunities
• Got to know about working on the field.

18
• Bank’s enormous database
• Interns can get better opportunities
• Recognized skills

Threats
• Management issues due to overloaded crowd.
• Workings hours are more than the actual job timeline.
• Lowers profit of the organisation

Product Profile

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 INTRODUCTION
India First Life Guaranteed Benefit Plan, a plan with multitude of options which
will modify itself to suit
“your” needs, while keeping you secure with a life cover. If you primarily need
supplementary future income, you have the Income Benefit option to support you,
if you want to accrue savings for a goal, Lumpsum Benefit will help you, if you
want a continued life cover even if you missed paying a premium; the Life Cover
Continuance will take care of your protection (applicable after you have paid two
full years’ premiums) and the life cover will ensure your loved ones are protected
throughout the policy term. You can secure your aspirations anytime and anywhere
through online mode by simply logging onto our website.
This offering will ensure a financially accomplished and
fulfilled life ahead! Key Features
➢ Accomplish your future goals! Choose from Income Benefit or Lumpsum Benefit
option as per your need. ➢ Tailor the plan to suit your requirements, as you get to
choose from 4 varied options under the Income Benefit Get three-way boost in the
Income Benefit option. Receive Monthly Income, Annual Income as well as
Maturity at the end of the policy term.
➢ Give your savings the extra boost with the Lumpsum benefit option.
➢ Pay premiums only for a limited period while benefitting from your policy for an
entire term.
➢ Continue to enjoy life cover benefit for one full year even if you miss to pay one
premium (applicable after you have paid two full years’ premiums).
➢ Safeguard your family further by opting Waiver of Premium Rider. Protect them
from the burden of paying future premiums in case of occurrence of death,
accidental total permanent disability or any of the defined critical illness while
continuing the benefits of the policy.
➢ Support your loved ones through death benefit as a one-time payment or in
instalments over a period of 5, 10 or 15 years.
➢ Tax benefit may be available on the premiums paid and benefits received as per
prevailing tax law.

1. What is the IndiaFirst Life Guaranteed Benefit Plan?

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 This a non-linked, non-participating, limited premium, endowment life insurance
policy which not only provides a shorter pay commitment of 5 / 6 or 7 years but
also gives you savings and protection in a single policy. Not just this, the policy
will also ensure, continuation of your life cover benefit even in case you miss to
pay one premium, thus protecting your family with a continued life cover for one
year. This policy will also take care of your liquidity needs through its Loan
facility.

2. What are the basic eligibility criteria in this policy (product at a glance)?

Note:
a. Life cover for minor life will start immediately. However, the policy will vest for
life assured on attainment of majority i.e. 18 years.
b. Income Benefit payment will start on or after attainment of age 18 years and hence
policy term will be selected accordingly.
c. Ages specified are as on last birthday.

21
 d. Annualized Premium shall be the premium amount payable in a year chosen by the
policyholder, excluding the taxes, rider premiums, underwriting extra premiums
and loadings for modal premiums, if any
e. Total Premiums Paid means total of all premiums received, excluding any extra
premium, rider premium and applicable taxes

3. What are the benefit options available in this policy?

There are two benefit options in the policy; Lumpsum Benefit option and Income
Benefit option. You can choose one of these benefit options at inception of the
policy. Benefit option once selected cannot be changed to another.
The details of each option are as given below –
Benefit Option Details
Lumpsum Benefit ➢ This option will help you achieve your long-term goals as you
receive a lumpsum amount at the end of the policy term
➢ You can choose the policy and premium payment term at the
inception of the policy and pay premium for a limited duration
accordingly
➢ The maturity benefit amount will be determined by multiplying
age and term wise maturity benefit factor with Annualized
Premium
➢ Your nominee(s) will receive the death benefit in case of an
unfortunate event as specified in Point 5

22
Income Benefit ➢ This option will help you attain your liquidity goals as you receive
a fixed monthly income during the Income Period.
➢ You can choose the monthly income you want to receive subject to
a minimum of Rs. 10,000 per month.
➢ Based on your specific needs, you can also choose from one of the
following Premium Payment Term (PPT)-Gap Period (GP)-
Income Period (IP) combinations:
PPT GP IP

5 5 5

6 6 6

7 7 7

7 8 6

For example; if you choose 5-5-5 option, you will pay premiums
for 5 years, and after the completion of gap period of 5 years, you
will start receiving your monthly income for the next 5 years.
➢ • Monthly Income: You will begin receiving your monthly income
at the beginning of every month during Income Period, after
completion of Gap Period provided policy is in-force.
➢ • Annual Income: In addition to the monthly income, 5.5 times of
monthly income will be paid at the end of every policy year during
Income period except at the end of the policy term i.e., on
maturity.
➢ • Your nominee(s) will receive the death benefit in case of an
unfortunate event as specified in Point 5

4. What do you get at the end of the policy term (maturity benefit)?
You stand to receive the Guaranteed Sum Assured on maturity, at the end of the
policy term as the maturity benefit in the policy. On payment of the maturity
benefit, the policy will terminate, and no more benefits will be payable. In case of
Lumpsum Benefit, the Guaranteed Sum Assured on Maturity will be calculated by
multiplying age and term wise maturity benefit factor with Annualized Premium. 5
In case of Income Benefit, Guaranteed Sum Assured on Maturity is X times of
Monthly Income. X for different premium payment terms are as follows:

23
 Premium Payment Gap Period (Years) X
Term (Years)
5 5 42
6 6 55
7 7 65
7 8 65
Please note that in any case, Sum Assured on Maturity including the annual and
monthly income benefits paid shall not be less than the total premiums paid under
this policy.

5. What happens in case of life assured’s demise in this policy (death benefit)?
The Sum Assured on Death in the policy will be paid to nominee(s) in case of
death of the Life Assured.

Minimum Sum Assured on Death Maximum Sum Assured on Death

Rs. 5,00,000 As per board approved underwriting
policy

In case of Lumpsum Benefit, the Sum Assured on Death is of 10 times of

annualized premium. In case of Income Benefit. Sum Assured on Death is of 11
times of annualized premium. You can also opt for Waiver of Premium Rider for
continuation of benefits. Please refer to India First Life Waiver of Premium Rider
brochure for more details on the said rider.

Policy Option How and when benefits are Size of such benefits
payable

Lumpsum Benefit Payable on Death of the Life
Assured during the policy term
given the policy is in force or
fully paid-up
Death Benefit is higher of Sum
Assured on Death Or 105% of
total premiums paid till the
date of death.
Where Sum Assured on Death
is of 10 times of Annualized
Premium.

24
Income Benefit Payable on Death of the Life
Assured during the policy term
given the policy is in force or
fully paid-up
Higher of Sum Assured on
Death Or 105% of total
premiums paid till date of
death.
Where Sum Assured on Death
is of 11 times of Annualized
Premium.
In case of death of the Life
Assured during the Income
Period, Death Benefit shall be
payable without deducting any

monthly or annual income

already paid under the policy.

In the unfortunate event of life assured’s demise during the term of the policy,
Death Benefit is paid out to nominee(s) either as lumpsum or as a monthly income
over next 5, 10 or 15 years.
Note: Death benefit/Paid-up Death benefit will not be reduced by any monthly
income/paid-up monthly income and annualincome/paid-
upannualincomebenefitsalreadypaidunderin-forcepolicyand/
orpaiduppoliciesrespectively.
Death benefit will be paid either as lump sum amount or in monthly instalments
over the period of 5,10 or 15 years as opted by the policyholder/nominee(s) at any
time during policy period or on death of Life Assured. In case of death benefit in
instalments; the monthly instalment amount will be calculated by multiplying the
death benefit by annuity factor, where annuity factor will be arrived on the basis of
prevailing SBI savings bank interest rate as on date of death. Once the instalment
payment starts, this payment remains level throughout the instalment period. The
prevailing SBI savings bank interest rate is subject to review at the end of every
financial year. The prevailing interest rate will be decided on 31st March every
year

6. Are there any Riders available in this policy?

Yes, you have an option to opt for IndiaFirst Life Waiver of Premium (WOP) Rider
(UIN: 143B017V01) for Premium Paying Term of 6 and 7 years. This rider when

25
 opted, supports you, by waiving off the future premiums of your base policy in
case the policyholder/ life assured suffers from death, accidental total permanent
disability or critical illnesses as defined under the rider basis the rider option as
chosen. The options for policyholder/ life assured are as mentioned below.
OPTION BENEFIT
Waiver of Premium on Death This option provides benefit of waving
all future premiums due and payable
under the base policy on Death of the
Policyholder (only when life assured and
Policy Holder are different individuals
under base policy), subject to rider and
base policy being in force.

Waiver of Premium on Accidental Total This option provides the benefit of

Permanent Disability or (diagnosis of) waving all future premiums due and
payable under the base policy on either
Critical Illness or simultaneous happening of the
following events; Accidental Total
Permanent Disability of the rider life
assured or on the confirmed diagnosis of
the rider life assured suffering from any
one of the

critical illnesses covered under the rider,

subject to rider and base policy being in
force.

26
Waiver of Premium on Death or This option provides the benefit of
Accidental Total Permanent Disability or waving all future premiums due and
Critical Illness payable under the base policy on earlier
happening of either of the following
events - Death of the rider life assured or
Accidental Total Permanent Disability of
rider life assured or on the confirmed
diagnosis of the rider life assured
suffering from any one of the Critical
Illnesses covered under the rider, subject
to rider and base policy being in force.
To opt for this option, life assured and
Policy Holder should be different
individuals under base policy

In case you opt for this rider, premium under this rider shall not exceed 30% or
100% of premium under the base policy depending on the rider option chosen.
Additionally, this rider will not be offered if the term of the rider exceeds
outstanding Premium Paying Term under the base policy.

7. How does this policy work?

We have explained the working of the policy with a sample illustration below.
Mr. Kumar, 35 years bought the IndiaFirst Life Guaranteed Benefit Plan under the
Income Benefit for the 78-6 Premium Payment Term – Gap Period – Income
Period combination. To receive a monthly income of `35,000, he paid a monthly
premium of `35,138 for the premium payment term of 7 years. After a gap period
of 8 years, he will start receiving the monthly income of `35,000 for the Income
Period of 6 years. He will also receive an Annual Income of `1,92,500 every year
of the Income Period other than at the end of the term. At maturity, Kumar will
receive `22,75,000. In total he will receive 1.95 X benefit of the total premiums
paid in the plan. Even in case he dies during the policy term, in 14th year, his loved
ones will be safeguarded with the Death Benefit of `44,42,746. His nominee(s) can
choose to receive the death benefit as lumpsum or as income over a period of 5, 10,
15 years.

27
 Sample Rates for Lumpsum Benefit and Income Benefit option for various
Premium Payment Term and Policy Term combinations.

Total benefits received include monthly income, annual income and maturity benefits.

8. What are the tax benefits in this policy?

Tax benefits may be available on premiums paid and benefits receivable as per
prevailing Income Tax Laws. These are subject to change from time to time as per
the Government Tax laws. Please consult your tax consultant before investing.

9. Can I get a loan in this policy?

Yes, you may benefit from a loan facility under this policy.
The amount of the loan that you may avail at any point of time will depend on the
surrender value. You may avail of a loan amount up to 70% of the available
surrender value. The minimum loan amount should be Rs.1,000. We will charge
interest at a rate of 9% per annum which may be revised by us from time to time
subject to IRDAI approval. As and when the loan principal along with accrued
interest exceeds the surrender value for paid-up cases, the policy will be
compulsorily surrendered and outstanding loan along with accrued interest will be
recovered from surrender proceeds or paid-up value. This compulsory surrender
will not apply for premium paying policies. For policies during the premium
payment term, if the premium is not paid and policy become paid-up post taking
loan, the policy will get compulsory surrendered, if the loan plus interest is greater
than the surrender value and policy is not revived.
For in force policies or fully paid-up policies

28
 In case the policy becomes due for any survival benefit or income benefit or
maturity benefit or surrender benefit or becomes a claim by death, insurer shall
become entitled to deduct the amount of the loan or any portion thereof which is
outstanding, together with all interest from the policy proceeds.

10. Is there a grace period for missed premiums?

We provide you with a grace period which is the time provided for payment of
premium from the premium due date during which the policy is considered to be
in-force with the risk cover.
You are provided a Grace Period of 15 days under monthly mode and one month
but not less than 30 days for other premium payment modes, in case you miss your
due premium on the due dates. In case of the Life
Assured’s death or occurrence of any covered event as per the benefit option
chosen during the Grace Period, we will pay the benefit after deducting the unpaid
due premiums till date of death or date of the covered event. During this period the
policy will be considered to be in-force.
This policy has a grace period of 30 days for yearly, half-yearly and quarterly
frequencies and 15 days for monthly frequency from the premium due date. In case
of death of the life assured during this period, death benefit after deducting due
premiums before date of occurrence of death, will be paid to the
nominee(s)/appointee/ legal heir.

11. What is the Life cover continuance benefit in this policy?

Under this benefit; if you miss to pay premium for one policy year after your policy
acquires paid up value; the death benefits under the policy will continue as per the
in-force policy for one year from the date of “First
Unpaid Premium”.
Policyholder will have an option to further extend the benefit of “Life Cover
Continuance Benefit” if he/she pays due premium with applicable interest within
one year from date of “First Unpaid Premium.” On such payment, Life cover
continuance benefit will be applicable, for one year from the revised “Unpaid
Premium” date. If you do not pay due premium within 12 months from the date of

29
 “First Unpaid Premium” then the policy will get converted to reduced paid up
policy.

12. What happens in case you miss paying the premiums?

In the event of non-payment of due premiums under the policy within the grace
period, the policy will lapse if the policy has not acquired a guaranteed surrender
value. The risk cover will cease, and no further benefits will be payable in case of a
lapsed policy.
The policy will lapse if less than two full years’ premiums have been paid.
However, you can revive your lapsed policy within the revival period. If policy is
lapsed and is not revived during the revival period, it will be foreclosed without
paying any benefit after expiry of the revival period. You can see further sections
below on Revival for more information.
In case of non-payment of premium before the expiry of grace period, policy will
acquire paid-up value
provided at least two full years’
premiums have been paid. Note:
• A Reduced Paid-Up policy can be revived (to the original benefits) within five
years from the date of first unpaid Premium subject to the conditions.
• If policy in Reduced Paid Up mode is not revived during the revival period, it will
continue in the reduced paid-up mode until maturity or death or surrender of the
policy.
• A Policy becomes fully paid-up provided all due premiums are paid during the
term of the policy and the benefits payable will be as per the terms and conditions
of the policy.
• In any case the Reduced Paid-up Sum Assured on death or Reduced Paid-up Sum
Assured on Maturity including the paid-up benefits income benefits paid as
mentioned below shall not be less than the total premiums paid under this policy.

Once a policy becomes paid-up in Lumpsum Benefit Option:

• Death Benefit under Reduced Paid-up policy: The death benefit would be the
Reduced paid-up Sum Assured on death.
• Where Reduced paid-up Sum Assured on death is defined as Sum Assured on
Death as on the date of policy being madepaid-

30
 up*(Totalnumbersofpremiumspaid)/(TotalNumberofpremiumspayableoverthepolic
yterm)
9
• Maturity Benefit under the Reduced Paid-up policy: The maturity benefit would be
the Reduced paid-up Sum Assured on maturity.
• Where Reduced paid-up Sum Assured on maturity is defined as (Guaranteed Sum
Assured on Maturity*
(Total numbers of premiums paid)/ (Total Number of premiums payable over the
policy term))

Once a policy becomes paid-up in Income Benefit Option:

• Death Benefit under Reduced Paid-up policy: The death benefit would be the
Reduced paid-up Sum Assured on death.
Where Reduced paid-up Sum Assured on death is defined as Sum Assured on
Death as on the date of policy being made paid-up * (Total numbers of premiums
paid)/ (Total Number of premiums payable over the policy term)
In case of death of the Life Assured during the Income Period whilst the policy is
in reduced paid-up status, the death benefit will not be reduced to the extent of
paid-up Monthly Income and paid-up Annual Income already paid, if any
• Survival Benefit under the Reduced Paid-up policy: On survival of the Life
Assured whilst the policy is in reduced paid-up status, the following benefit will be
payable during the Income Period which will commence after the completion of
Gap period.
I. Paid-up Monthly Income – Paid-up Monthly Income will be payable on monthly
basis, at the beginning of each policy month during the Income Period. Where
Paid-up Monthly Income is defined as Monthly Income * (Total numbers of
premiums paid)/ (Total Number of premiums payable over the policy term)
II. Paid-up Annual Income – Paid-up Annual Income will be payable to the
Policyholder at the end of each policy year during the Income Period (falling
before maturity). Paid-up Annual Income will not be payable at the end of the
policy term i.e., on maturity. Where Paid-up Annual Income is defined as Annual
Income * (Total numbers of premiums paid)/ (Total Number of premiums payable
over the policy term).
• Maturity Benefit under the Reduced Paid-up policy: The maturity benefit would be
the Reduced paid-up Sum Assured on maturity.

31
 Where Reduced paid-up Sum Assured on maturity is defined as (Guaranteed Sum
Assured on Maturity *
(Total numbers of premiums paid)/ (Total Number of premiums payable over the
policy term))

13. What are your options to revive the policy?

You may revive your policy within 5 years from the due date of first unpaid regular
premium but before the Maturity Date by –
I. submitting a written request for revival of the lapsed Policy;
II. paying all unpaid due Premiums along with interest; and
III. providing a declaration of good health and undergoing a medical examination (at
your own cost), if needed. A lapsed Policy will only be revived along with all its
benefits in accordance with our board approved underwriting policy.
Note: The current interest charged for delay in premium payment is 9.5% p.a.
which may be revised from time to time.

14. Can you surrender your policy?

It is advisable to continue your policy to enjoy full benefits of your policy.
However, we understand that in certain circumstances you may want to surrender
your policy. The policy will acquire surrender value after first two full years’
premiums have been paid.
At the time of surrender higher of Guaranteed Surrender Value (GSV) or Special
Surrender Value (SSV) will be payable. The surrender value payable will vary by
policy term and policy year of surrender.
The GSV factors are dependent upon policy year of surrender and policy term.
The Guaranteed Surrender Value (GSV) will be GSV factor for premium * total
premium paid less sum of all monthly/paid-up monthly and annual/paid-up annual
income benefits already paid as applicable under chosen benefit option. For Fully
Paid-Up policy i.e on or after paying all due premiums:
TheSSVwillbe=(GuaranteedSumAssuredonMaturity)multipliedbytheSSVfactorpre
vailingatthetimeofsurren der. For Reduced Paid-up Policy or Premium Paying
Policies before completion of premium payment term: TheSSVwillbe=Paid-
upSumAssuredonmaturitymultipliedbytheSSVfactorprevailingatthetimeof

32
 surrender Surrender value will be higher of SSV and GSV, where GSV and SSV
will be calculated as mentioned above.
GSV factors are mentioned in Annexure I.

15. What is the Free Look Period available in your policy?

You can return your policy within the Free Look period;
In case you do not agree to the any policy terms and conditions, you have the
option of returning the policy to us stating the reasons thereof, within 15 days from
the date of receipt of the policy. The free-look period for policies purchased
through distance marketing or electronic mode will be 30 days.
Do you get any refund when you cancel your policy?
Yes. We will refund an amount equal to the –
Premium paid
Less: i. Pro-rata risk premium and rider premium, if any, for the time the
policy was in force Less ii. Any stamp duty paid
Less iii. Expenses incurred on medical examination, if any
Distance Marketing includes every activity of solicitation (including lead
generation) and sale of insurance products through the following modes:
i. Voice mode, which includes telephone calling;
ii. Short Messaging service (SMS);
iii. Electronic mode which includes e-mail, internet and interactive television (DTH);
iv. Physical mode which includes direct postal mail and newspaper & magazine
inserts; and,
v. Solicitation through any means of communication other than in person.

16. What happens in case the life assured commits suicide (Suicide Exclusion)?
In case of life assured’s death due to suicide within 12 months from the date of
commencement of risk under the policy or from the date of revival of the policy, as
applicable, the nominee or beneficiary of the policyholder shall be entitled to at
least 80% of the total premiums paid till the date of death or the surrender value
available as on the date of death whichever is higher, provided the policy is in
force.

33
17. Nomination
The member can appoint a nominee as per section 39 of the Insurance Act,
1938 as amended from time to time. For more details please refer to our
website www.indiafirstlife.com

18. Assignment
As per the provisions of Section 38 of the Insurance Act, 1938 as amended from
time to time. For more details, please refer to our website
www.indiafirstlife.com

19. You are prohibited from accepting rebate in any form

Prohibition of Rebate: Section 41 of the Insurance Act, 1938, as amended from
time to time, states
1) No person shall allow or offer to allow, either directly or indirectly, as an
inducement to any person, to take or renew or continue an insurance in respect of
any kind of risk relating to lives or property in India, any rebate of the whole or
part of the commission payable or any rebate of the premium shown on the Policy,
nor shall any person taking out or renewing or continuing a Policy accept any
rebate, except such rebate as may be allowed in accordance with the published
prospectuses or tables of the insurer.
2) Any person making default in complying with the provisions of this section shall
be liable for a penalty which may extend to ten lakh rupees

20. What happens in case of submission of information which is false or incorrect?

Fraud/ Misstatement would be dealt with in accordance with provisions of Section
45 of the Insurance Act 1938, as amended from time to time. Section 45 of the
Insurance Act 1938, as amended from time-to-time states
1) No policy of life insurance shall be called in question on any ground whatsoever
after the expiry of three years from the date of the policy, i.e., from the date of
issuance of the policy or the date of commencement of risk or the date of revival of
the policy or the date of the rider to the policy, whichever is later.
2) A policy of life insurance may be called in question at any time within three years
from the date of issuance of the policy or the date of commencement of risk or the
date of revival of the policy or the date of the rider to the policy, whichever is later,

34
 on the ground of fraud: Provided that the insurer shall have to communicate in
writing to the insured or the legal representatives or nominees or assignees of the
insured the grounds and materials on which such decision is based.
3) Notwithstanding anything contained in sub-section (2), no insurer shall repudiate a
life insurance policy on the ground of fraud if the insured can prove that the mis-
statement of or suppression of a material fact was true to the best of his knowledge
and belief or that there was no deliberate intention to suppress the fact or that such
mis-statement of or suppression of a material fact are within the knowledge of the
insurer: Provided that in case of fraud, the onus of disproving lies upon the
beneficiaries, in case the policyholder is not alive.
4) A policy of life insurance may be called in question at any time within three years
from the date of issuance of the policy or the date of commencement of risk or the
date of revival of the policy or the date of the rider to the policy, whichever is later,
on the ground that any statement of or suppression of a fact material to the
expectancy of the life of the insured was incorrectly made in the proposal or other
document on the basis of which the policy was issued or revived or rider issued:
Provided that the insurer shall have to communicate in writing to the insured or the
legal representatives or nominees or assignees of the insured the grounds and
materials on which such decision to repudiate the policy of life insurance is based:
Provided further that in case of repudiation of the policy on the ground of
misstatement or suppression of a material fact, and not on the ground of fraud, the
premiums collected on the policy till the date of repudiation shall be paid to the
insured or the legal representatives or nominees or assignees of the insured within a
period of ninety days from the date of such repudiation.
5) Nothing in this section shall prevent the insurer from calling for proof of age at any
time if he is entitled to do so, and no policy shall be deemed to be called in
question merely because the terms of the policy are adjusted on subsequent proof
that the age of the Life Insured was incorrectly stated in the proposal.

21. About IndiaFirst Life Insurance

We’ve had Bank of Baroda, Andhra Bank (now, Union Bank of India) and Legal &
General as our founding partners. After journeying with us through our years of

35
growth, Legal & General sold its stake in Feb 2019 to Carmel Point Investments
India Private Limited, a body corporate incorporated under the laws of Mauritius
and owned by private equity funds managed by Warburg Pincus LLC. This is the
first deal wherein a private equity fund has taken an interest in a life insurance
company. Our shareholding pattern of the company now stands at: Bank of Baroda
– 44.00%, Union Bank of India – 30.00%, and Carmel Point Investments India
Private Limited – 26.00%.

36
 CHAPTER 3

LITERATURE REVIEW

37
Need for study
Life Insurance is one of the most important and crucial product within Financial
Products. Human life is a most important asset and life insurance is the most
important type of insurance which provides financial protection to a person and his
family at the time of uncertain risks or damage. The motive of Life Insurance
Policies is that it provides Safety and also Protection to its users and also provides
them a platform to encourage for Savings. Life is precious and so is Life Insurance.
With a huge population in India, Insurance companies find India as one of the most
potential market for selling Life Insurance. Customers are the main pillars for Life
Insurance Business. Every company tries to attract and retain existing customers to
keep their profits high. The proper understanding of customers, their needs and
expectations help insurance providers to bring improvement in product as well as
services offered. In India, however, there is not much of achievement for Life
Insurance companies. The reasons are many, viz., low consumer awareness, poor
affordability, delayed customer services, lack of suitable products, etc.

Literature Review
Athma. P and Kumar. R (2007) in the research paper titled “an explorative study of
life insurance purchase decision making: influence of product and non-product
factors". The empirical based study conducted on 200 sample size comprising of
both rural and urban market. The various product and non-product related factors
have been identified and their impact on life insurance purchase decision-making
has been analysed. Girish Kumar and Eldhose (2008), published in insurance
chronicle icfai monthly magazine august 2008 in their paper titled "customer
perception on life insurance services: a comparative study of public and private
sectors", well explained the importance of quality services and its significance in
raising customer satisfaction level. A comparative study of public and private
sectors helps in understanding the customer perception, satisfaction and awareness
on various life insurance services.

38
 CHAPTER 4

SCOPE AND NEED FOR

THE STUDY

Objectives Of the Study

39
The study was carried out with the following objectives
• To study various factors influencing Customer Investment Decision in Life
Insurance.
• To study and analyse the impact of various demographic factors on
customers life insurance investment decision.
• To evaluate preferences of the customers while taking life insurance
investment decision.
• To study and rank the factors responsible for the selection life insurance as
an investment option.

Scope Of the Study

• The study aims at understanding the market of Insurance. Insurance being
one of the most important Financial Product in the market, still has not
reached a more number of customers.
• The main motive of the study is to understand the various factors that affect
the customers decision in buying a Life Insurance Policy.
• The study also aims to understand the various types of policies provided by
Agile Capital Services(India First Life Insurance).

40
 CHAPTER 5

RESEARCH
METHODOLOGY

41
Research methodology is the framework or plan for a study which is used as a
guideline in collecting and analysing the data collected. It is the blue print that is
followed in completing the study. The basic objective of the research cannot be attained
without proper research design. Research Methodology systematically solves the
research problem. It has many dimensions and research methods constitute a part of the
research methodology. Thus, when we talk about research methodology, we do not talk
only of the research method but also consider the logic behind the methods.

Research Design
Research design is defined as a framework of methods and techniques chosen by a
researcher to combine various components of research in a reasonably logical manner
so that the research problem is efficiently handled. It provides insights about “how” to
conduct research using a particular methodology. Every researcher has a list of research
questions which need to be assessed – this can be done with research design.

Population
Population is the entire pool from which a statistical sample is drawn. In statistics,
population may refer to people, objects, events, hospital visits, measurements, etc. A
population can, therefore, be said to be an aggregate observation of subjects grouped
together by a common feature. The population of research include the friends,
neighbour & colleague.

Sampling Methods
Convenience sampling was used in this study to define the target respondents in the
universe.

Convenience sampling: This method is also called chunk. Chunk means that fraction
of population being investigated neither by probability nor by judgment but on the basis
of the convenience. A sample is drawn from readily available list on the convenience of
the researcher.

Sample Size
The sample size of this research is 92. This study is based on the responses from 92
people who are friends, neighbour & colleague.

42
Research Area
The study is conducted in agile capital staff members and some of are known contacts

Sources of Data
The research plan called for gathering primary and is completely based on primary data.
Primary Data: It is the data collected first hand relating to specific queries and problems.
Its main advantage is that the information is up-to-date. On the other hand, it is
expensive and time consuming.

Methods of Data Collection

Data was collected through a carefully designed questionnaire and Google Forms was
used to record responses for this study.

Tools Used
For this study, all the data collected from the respondents was analysed using Microsoft
Excel.

43
 CHAPTER 6

DATA ANALYSIS

44
 1. Age Group
Sr. No. Age Group Respondents Percentage
1. 21-30 12 13%
2. 31-40 32 34.8%
3. 41-50 24 26.1%
4. 51-60 12 13%
5. 61 and above 12 13%
Table 6.1

Fig 6.1

Interpretation
The above data shows that 13% of the respondents belonged to age group of 21-30
years. 34.8% of the respondents belonged to the age group of 31-40 years. 26.1% of
the respondents belonged to the age group of 41-50. 13% of the respondents
belonged to the age group of 51-60 and 13% of the age group belongs to 60 and
above.

45
 2. Are you aware of various Life Insurance Products?

Sr. No. Responses Respondents Percentage

1. Yes 80 87%

2. No 12 13%

Total 92 100%

Table 6.2

Fig 6.2
Interpretation:
80 out of 92 respondents says “Yes” that they are aware of various Life Insurance
Products, which comes out to 87%. Whereas 12 out of 92 respondents says “No”
that they are not known by various Life Insurance Products that are available in the
market, which comes out to 13%.

46
 3. Do you hold any Life Insurance Policy
Sr. No. Responses Respondents Percentage

1. Yes 80 87%

2. No 12 13%

Total 92 100%

Table 6.3

Fig 6.3
Interpretation:
80 out of 92 respondents were holding an insurance policy. Hence, there were 87%
of respondents who hold an insurance policy. 12 respondents out of 92 respondents
did not hold any insurance policy which contributed to 13% of respondents not
holding an insurance policy.

47
 4. Do you consider Life Insurance policy as a source of Investment?
Sr. No. Responses Respondents Percentage

1. Yes 80 87%

2. No 12 13%

Total 92 100%
Table6.4

Fig 6.4
Interpretation:
80 out of 92 respondents were consider Life Insurance policy as a source of
investment. Which comes out to 87% of the total respondents. 12 respondents out of
92 respondents did not consider Life Insurance policy as a source of investment
which comes out to 13% of the total respondents.

48
 5. What preference would you give to Life Insurance?

Sr. No. Customer Preferences Respondents Percentage (%)

1. High 48 52.2%
2. Medium 32 34.8%
3. Low 12 13%
Total 92 100%

Interpretation:
48 out of 92 respondents which comes out 52.2% prefer high/most to Life Insurance
policy needs in life. Whereas 32 out of 92 respondents which comes out 34.8%
prefer medium/average to Life Insurance policy needs in life and at the last, 12 out
of 92 respondents which comes out 13% prefer low/least to Life Insurance policy
needs in life.

49
 6. What are the features that you would prefer most while investing in any Life
Insurance Policy?
Sr. No. Policy Features Respondents Percentage (%)
1. Money Back Guarantee 68 73.9%
2. Larger Risk Coverance 3 3.3
3. Easy Access to Agents 4 4.3
4. Low Premium 12 13%
5. Company's Reputation 5 5.4
Total 92 100
Table 6.6

Fig 6.6
Interpretation:
68 out of 92 respondent which comes out to 73.9% prefer ‘Money Back Guarantee’
feature while investing in life Insurance Policy. 3 out of 92 which comes out to 3.3%
prefer ‘Large Risk Coverance’ feature in life insurance.4 out of 92 respondent which
comes out to 4.3% prefer ‘Easy Access to Agent’ feature in Life Insurance.12 out of
92 respondents which comes out to 13% prefer ‘Low Premium’ feature in Life
Insurance and at the last 5 out of 92 respondents which comes out to 5.5% prefer
‘Company's Reputation’ feature in Life Insurance

50
 7. Which Life Insurance company do you prefer the most for Life Insurance?
Sr. No. Insurance Company Respondents Percentage (%)
1. Max Life 12 13%
2. India First Life 12 13%
3. Bajaj Allianz 5 5.4%
4. SBI Life 32 34.8%
5. LIC 24 26.1%
6. HDFC life 7 7.6%
Total 92 100%
Table 6.7

F
ig 6.7 Interpretation:
32 out of 92 respondents prefer ‘SBI Life’ insurance company which comes out to
34.8% and it is the most preferable among the all. Then comes LIC which is
preferable by 24 out of 92 respondents which comes out to 26.1%. Then comes
‘Max Life’ and ‘India First Life’ which both are preferable by 12 out of 92
respondents which comes out to 13% and at the last comes Bajaj Allianz and HDFC
Life which is preferable by 5 and 7 out of 92 which comes out to 5.4% and 7.6%.

8. What would you prefer in Insurance Company?

51
Sr. No. Responses Respondents Percentage (%)
1. A Trusted Name 24 26.1%
2. Goods Plan 12 13%
3. Friendly Service and responsiveness 44 47.8%
4. Accessibility 12 13%
Total 92 100%
Table 6.8

Fig 6.8
Interpretation:
44 out of 92 respondents prefer a ‘Friendly Service and responsiveness’ which
comes out to 47.8%. Where as 24 out of 92 respondents prefer ‘A Trusted Name’
which comes out to 26.1% and at last 12 out of 92 respondents prefer ‘Goods Plan’
and ‘Accessibility’ which comes out to 13%

52
 9. What type of Insurance Policy do you hold and prefer the most?
Sr. Insurance Policy Respondents Percentage (%)
No.
1. Endowment Plan 12 13%
2. Term Plan 24 26.1%
3. Money Back 44 47.8%
4. Unit Link 7 7.6%
5. Single Premium Plan 5 5.4%
Total 92 100%
Table 6.9

F
ig6.9 Interpretation:
The most preferable/holds insurance policy is ‘Money Back’ which is prefer by 44
out of 92 respondents comes out to 47.8%. The 2nd most preferable insurance policy
is ‘Term Plan’ which is prefer by 24 out of 92 respondents comes out to 26.1% and
after that there are ‘Endowment Plan’ which is prefer by 12 come out to
13%,’Unit Link’ which is prefer by 7 comes out to 7.6% & ‘Single Premium Plan’
which is prefer by 5 comes out to 5.4%

53
 10. Tax Benefit service Provided by Agile Capital Services (India First Life
Insurance)
Sr. Tax Benefits and Services Respondents Percentage (%)
No. (Rank) {Best (1) – Worst (5)}
1. Rank 1 24 26.1%
2. Rank 2 32 34.8%
3. Rank 3 17 18.5%
4. Rank 4 12 13%
5. Rank 5 7 7.6%
Total 92 100%
Table 6.10

Fig 6.10
Interpretation:
Most of the people rank 2 which states that the Tax Benefits and Services provided
by Agile Capital is good and the tax deduction comes under 80C for about 1.5 Lakh
Premium and 10(10D) for additional 50k for pension scheme

11. Risk Coverage and savings Provided by Agile Capital Services (India First
Life Insurance)

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Sr. No. Risk Coverage and savings Respondents Percentage
(Rank) {Best (1) – Worst (5)}
1. Rank 1 24 26.1%
2. Rank 2 3 3.3%
3. Rank 3 49 53.3%
4. Rank 4 12 13%
5. Rank 5 4 4.3%
Total 92 100%
Table 6.11

F
ig 6.11 Interpretation:
Most of the respondents rank 3 which states that ‘Risk Coverage and Savings’
provided by Agile Capital Service (India First Life Insurance) is average.

55
 12. Security with high return rate provided by Agile Capital Services (India First
Life Insurance)
Sr. No. Security with high return Respondents Percentage
(Rank) {Best (1) – Worst (5)}
1. Rank 1 24 26.1%
2. Rank 2 32 34.8
3. Rank 3 12 13%
4. Rank 4 12 13%
5. Rank 5 12 13%
Total 92 100%
Table 6.12

Fig 6.12
Interpretation:
Most of the respondents (32 out of 92) rank 2 which states that ‘Security with High
Return’ provided by Agile Capital Service (India First Life Insurance) is good.

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 13. Insurance service provided by agents in Agile Capital Services (India First
Life Insurance)
Sr. No. Insurance Service provided by agents Respondents Percentage
(Rank) {Best (1) – Worst (5)}

1. Rank 1 24 26.1%
2. Rank 2 32 34.8
3. Rank 3 5 5.4
4. Rank 4 24 26.1
5. Rank 5 7 7.6%
Total 92 100%

Interpretation:
Most of the respondents (32 out of 92) rank 2 which states that ‘Insurance Service
provided by agents’ provided by Agile Capital Service (India First Life Insurance) is
good.

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 14. Premium charges in Agile Capital Services (India First Life Insurance)
Sr. No. Premium Charge Services Respondents Percentage
(Rank) {Best (1) – Worst (5)}

1. Rank 1 68 73.9%
2. Rank 2 3 3.3%
3. Rank 3 4 4.3%
4. Rank 4 12 13%
5. Rank 5 5 5.4%
Total 92 100%

Interpretation:
Most of the respondents (68 out of 92) rank 1 which states that ‘Premium Charges’
provided by Agile Capital Service (India First Life Insurance) is very good.

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 CHAPTER 7

FINDINGS,
CONCLUSIONS AND
SUGGESTIONS

59
 Findings of The Study
Analysis of the data collected from the respondents lead to the following findings

1. From the Study, it can be found that the customer decision to buy a Life Insurance
Policy majorly depends on demographic factors like the Age, Gender and Income
Level.
2. Majority of the respondents from the age group of 31 to 40 years are found to be
interested in buying a Life Insurance Policy.
3. 13% of the total respondents are not aware about Life Insurance and they do not
hold the same.
4. From amongst 92 respondents, 32 have shown preference towards buying a Life
Insurance Policy from SBI Life and after that LIC which is of 24 respondents
5. This survey reveals that majority of people buy insurance by its ‘Friendly Service
and Responsiveness’.
6. This survey states that majority of respondents (44 out of 92) prefer/holds ‘Money
Back’ plan.
7. The study shows that 73.9% of the total respondents buy insurance from Agile
Capital Service (India First Life Insurance) because of its premium charges which
comes for short term of 5/6/7 Years.

Conclusion
Life Insurance is an important form of insurance and essential for every individual.
Life insurance penetration in India is very low as compared to developed nations where
almost all the lives are covered. Customers are the real pillar of the success of life
insurance business and thus it’s important for insurers to keep their policyholders
satisfied and retained as long as possible and also get new business out of it by offering
need based innovative products. There are many factors which affect customers
investment decision in life insurance and from the study it has been concluded that
demographic factors of the people play a major and pivotal role in deciding the
purchase of life insurance policies.
Agile Capital Service who provides India First Life Insurance should need to focus
on the agents who serves the policy to the customers because 24 out of 92 respondents
rank 4 which states that the service provided by the agents are not good and they do not

60
want to buy it from 3rd party they directly go to bank and enjoy the service. Life
Insurance is growing with its various products like the Single Premium and ULIP plans
which many of the customers are still unaware and thus a proper knowledge regarding
the same can be helpful to the customers to choose and invest in Life Insurance
Policies.
Risk Coverage and savings should also need to be improve by agile capital service
because 42 out of 92 respondents rank them average and this would build the trust
before buying or investing in any Life Insurance that how much time taking process it
is while covering the risk.

Suggestions
After analysing the data, the following are the suggestions:

• I recommend the company to improve their “Risk Coverage and Savings”

facility because if customer gets problem while getting money back with a long
process this would impact the customer retension
• I recommend the company to put some efforts on Advertisement and Website’s
Presentation which would help the people to know about office
• I recommend the company to improve their agents service.

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 CHAPTER 8

LIMITATIONS OF THE
STUDY

➢ The study is limited to respondents from Delhi area majorly.

➢ Lack of awareness regarding Agile Capital Service was a major problem in reaching
to customers.

62
➢ Lesser awareness of various Life Insurance Products was one major problem while
conducting the survey. It was difficult to make people understand each and every
product of Insurance.
➢ Understanding and filling the Google Form was a difficult task because of not so
easy understanding of Google Form and questions.
➢ Some personal information like Income was not been disclosed by the respondents
so we skip that part and make our questionnaire easy to fill

63
 Bibliography

• Athma. P and Kumar. R (2007) in the research paper titled “an explorative study of life
insurance purchase decision making: influence of product and non-product factors". The
empirical based study conducted on 200 sample size comprising of both rural and urban
market.
• Eldhose.v and kumar. G (2008), “customer perception on life insurance services: a
comparative study of public and private sectors", insurance chronicle ICFAI monthly
magazine august 2008.
• Media Reports, Press Releases, Press Information Bureau, Union Budget 2017-18,
Insurance Regulatory and Development Authority of India (IRDA).

64
 Annexure

Que1 Age Group

A. 21-30
B. 31-40
C. 41-50
D. 51-60
E. 61 and above

Que2 Are you aware of various Life Insurance Products

A. Yes
B. No

Que3 Do you hold any Life Insurance Policy

A. Yes
B. No

Que4 Do you consider Life Insurance policy as a source of investment?

A. Yes
B. No

Que5 What preference would you give to Life Insurance Policy

A. High
B. Medium
C. Low

Que6 What are the features that you would prefer the most while investing in any Life
Insurance Policy?
A. Money Back Guarantee
B. Large Risk Coverance
C. Easy Access to Agents
D. Low Premium
E. Company’s Reputation

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Que7 Which Life Insurance company do you prefer the most for Life Insurance?
A. Max Life
B. India First Life
C. Bajaj Allianz
D. SBI Life
E. LIC
F. HDFC

Que8 What would you prefer in Insurance Company?

A. A Trusted Name
B. Goods Plan
C. Friendly Service and responsiveness
D. Accessibility

Que9 What type of Insurance policy do you hold and prefer the most?
A. Endowment Plan
B. Term Plan
C. Money Back
D. Unit Link
E. Single Premium Plan

Que10 Tax Benefit Service provided by Agile Capital Services(India First Life
Insurance) {Rank 1(Best) – Rank 5(Worst)}

Que11 Risk Coverage and savings provided by Agile Capital Service (India First Life
Insurance) {Rank 1(Best) – Rank 5(Worst)}

Que12 Security with high return rate provided by Agile Capital Services (India First
Life Insurance) {Rank 1(Best) – Rank 5(Worst)}

13. Insurance service provided by agents in Agile Capital Services (India

First Life Insurance) {Rank 1(Best) – Rank 5(Worst)}

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14. Premium charges in Agile Capital Services (India First Life
Insurance) {Rank 1(Best) – Rank 5(Worst)}

67