A SUMMER TRAINING REPORT

ON
COMPARITIVE STUDY OF CONVENTIONAL PENSION PLAN AND UNIT LINKED PENSION PLANS (ULPPs)

Kurukshetra University, Kurukshetra in the Partial Fulfillment for the Degree of Master in Business Administration (SESSION 2011-13)- MBA
Under Supervision of :
Mr. GAGNISH DUGGAL BRANCH MANAGER

Submitted By:
NISHA SHARMA UNI. ROLL

KURUKSHETRA INSTITUTE OF TECHNOLOGY AND MANAGEMENT (KURUKSHETRA UNIVERSITY, KURUKSHETRA)

DECLARATION

I Nisha Sharma Roll No. 2911942 MBA (3rd Semester) of the Kurukshetra Institute of Technology and Management , Kurukshetra hereby declare that the Summer Training Report entitled Comparitive Study of Conventional Pension Plan And Unit Link Pension Plan is an original work and the same has not been submitted to any other Institute for the award of any other degree. A seminar presentation of the Training Report was made on and the suggestions as approved by the faculty were duly incorporated.

NISHA SHARMA MBA- 3rd sem. Roll No. 2911942

ACKNOWLEDGEMENT

With a great sense of gratitude and indebtedness, I am very much thankful to Mr. RANJEET VERMA head of the department of our institute for allowing me to do this project.
I specially thank to Mr.Pawan Dhankhar successfully. I would also like to thank Mr.Gagnish Duggal my summer training guide for making us understand how to apply theoretical knowledge to real life situations. He trained us with the functioning of life insurance business. His teaching, support and guidance were of immense importance in completion of my summer training project. Finally, I wish to express my thanks from core of my heart to my parents, and my friends for their help and co-operation for conducting this study. for their help to complete my project

NISHA SHARMA 2911942 MBA

INDEX

Topic
Executive summary Introduction Insurance in India Introduction of BAJAJ ALLIANZ Statement of objective Research Methodology Introduction of the subject Analysis & Interpretation Findings & Suggestions Annexure 9.1 Questionnaire 9.2 Bibliography

EXECUTIVE SUMMARY
This project has been undertaken with the purpose to differentiate between conventional pension plan and unit linked pension plan in such a way that potential individual to earn regular income in their golden years. Planning for retirement is an important exercise for any individual. For it is this exercise, which can help the individual spend his golden years in peace and comfort. A retirement plan from a life insurance company helps an individual insure his life for a specified amount. At the same time, it helps him to accumulate a corpous, which he receives at the time of retirement. There are two types of pension plan.

Conventional pension plan Unit linked pension plan While a conventional pension plan invest a major portion of the

premium money in bonds and government securities that gives less return. With a personal pension plan, individual have to pay a regular amount usually every month or a lump sum to the pension provider who will invest it on your behalf and on the vesting date, full maturity amount received by the individual. Entire maturity amount treated as tax free in the hands of receiver. Whereas unit linked pension plan can play an important role in the retirement planning exercise. Unit linked pension plan invested in units of the investment funds of your choice, based on the prevailing unit price. There are various fund choices in unit linked pension plans like growth funds, equity managed fund which gives higher return as compare to

conventional plan. On vesting date, the individual can withdraw only up to 1/3rd of the maturity amount and remaining 2/3rd amount has to be invested in annuity. In unit linked pension plan up to 1/3 rd of the maturity amount, if withdrawn, is treated as tax-free. Pension received on the remaining 2/3rd amount is taxed as per the individual tax slab.

Conclusion:
After the comprehensive study we can conclude that unit linked pension plan is a better plan that helps individuals plan effectively for their retirement. The primary aspect which differ conventional pension plan with unit linked pension plan is that conventional plan invest a major portion of their money in government securities, bonds and money market instruments whereas unit linked invest funds of your choices that gives better returns as compare to conventional pension plans. On maturity unit linked pension plan provides a regular source of income by way of annuity There are various options available for individual on unit linked pension plan. Lifetime annuity without return of purchase price. Annuity for life with the return of purchase price. Lifetime annuity guaranteed for a certain no. Of years. Joint life/last survivor annuity.

INSURANCE SECTOR IN INDIA

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

A BRIEF HISTORY OF THE INSURANCE SECTOR

The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. Some of the important milestones in the life insurance business in India are: 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956: 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India.

The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British.

INSURANCE SECTOR REFORMS

In 1993, Malhotra Committee headed by former Finance Secretary and RBI Governor R.N. Malhotra was formed to evaluate the Indian insurance industry and recommend its future direction. The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector. The reforms were aimed at creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognising that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms In 1994, the committee submitted the report and some of the key recommendations included:

I) STRUCTURE

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

II) COMPETITION Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the industry. No Company should deal in both Life and General Insurance through a single entity. Foreign companies may be allowed to enter the industry in collaboration with the domestic companies.

Postal Life Insurance should be allowed to operate in the rural market. Only one State Level Life Insurance Company should be allowed to operate in

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

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

V) CUSTOMER SERVICE LIC should pay interest on delays in payments beyond 30 days Insurance companies must be encouraged to set up unit linked pension plans Computerisation of operations and updating of technology to be carried out in the Insurance industry

The committee emphasized that in order to improve the customer services and increase the coverage of the insurance industry should be opened up to competition. But at the same time, the committee felt the need to exercise caution as any failure on the part of new players could ruin the public confidence in the industry.

Hence, it was decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs.100 crores. The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. For this purpose, it had proposed setting up an independent regulatory body.

THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY (IRDA) Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies. The other decisions taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies was the launch of the IRDAs online service for issue and renewal of licenses to agents. The approval of institutions for imparting training to agents has also ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products, which are expected to be introduced by early next year. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. In the private sector 12 life insurance and 6 general insurance companies have been registered.

INSURANCE COMPANIES IN INDIA

AVIVA BAJAJ ALLIANZ BIRLA SUN LIFE HDFC STANDARD LIFE

ICICI PRU ING VYSYA LIFE INSURANCE CORPORATION MAX LIFE INSURANCE METLIFE INDIA OM KOTAK MAHINDRA RELIANCE LIFE INSURANCE SBI LIFE INSURANCE

CHAPTER-1

Introduction of BAJAJ ALLIANZ Vision of BAJAJ ALLIANZ Values of BAJAJ ALLIANZ

Introduction To The Company

About Bajaj Group Bajaj Auto Ltd, the flagship company of the Rs. 8000 crore Bajaj group is the largest manufacturer of two-wheelers and three-wheelers in India and one of the largest in the world. A household name in India, bajaj auto has a strong brand image & brand loyalty synonymous with quality & customer focus.

A strong Indian brand- hamara bajaj

One of the largest 2 & 3 wheeler manufacturer in the world 21 million vehicles on the roads across the globe Managing funds of over rs 4000 cr. Bajaj auto finance one of the largest auto finance cos. In India Rs. 4,744 cr. Turnover & profits of 538 cr. In 2002-03 It has joined hands with allianz to provide the Indian consumers with a distinct option in terms of life insurance products.

As a promoter of bajaj allianz life insurance co. Ltd., bajaj auto has the following to offer Financial strength and stability to support the insurance business.

A strong brand-equity. A good market reputation as a world class organization. An extensive distribution network. Adequate experience of running a large organization.

About allianz
Allianz group is one of the world's leading insurers and financial services providers.

Founded in 1890 in Berlin, allianz is now present in over 70 countries with almost 174,000 employees. At the top of the international group is the holding company, allianz with its head office in Munich. Allianz group provides its more than 60 million customers worldwide with a comprehensive range of services in the areas of

Property and casualty insurance, Life and health insurance, Asset management and banking.

Allianz ag- a global financial powerhouse

Worldwide 2nd by gross written premiums - Rs.4,46,654 cr. 3rd largest assets under management & largest amongst insurance cos. a sum of rs.51,96,959 cr.

12th largest corporation in the world 49.8 % of global business from life insurance Established in 1890, 110 yrs of insurance expertise 70 countries, 173,750 employees worldwide

About bajaj allianz life insurance ltd.

Bajaj allianz life insurance company has developed insurance solutions that cater to every segment and age-income profiles. For companies it provides comprehensive 'employee benefit solutions' (group term life, Edli, gratuity, superannuation, key man insurance and more); for the individual invest gain (a unique life insurance plan where sustenance of income is combined in the same plan that also pays a lump sum), cash gain (money back), child gain (children's plan), risk care (pure term), lifetime care (whole life), term care (term with return of premium), swarna vishranti (retirement plan), protector (mortgage term insurance plan), unit gain (unit linked plan), unit gain single premium, unit gain plus, unit gain plus sp, lifelong gain plan, unit gain single pension & unit gain easy pension plans.

Bajaj allianz has launched a complete set of need-based products to cater to each varied needs of the customer. Currently bajaj allianz has a product portfolio of 26 products and more need-based products are in the pipeline.

To Be The First Choice Insurer For Customers To Be The Preferred Employer For Staff In The Insurance Industry. To Be The Number One Insurer For Creating Shareholder Value

(1.1)

portfolio of the company

At bajaj allianz customer delight is their guiding principles. Ensuring world-class solution by offering customized product with transparent benefits supported by the best technology is their business philosophy. According to Mr. Amar, Mr. Sinha. The company has used innovative marketing as well as pricing strategies and their premium chart would be much lower than the other player in the market. Company has launched various products in the market with most competitive premium among all player

ORGANISATION STRUCTURE

BOARD OF DIRECTOR Rahul bajaj chairman Madhur bajaj Vice chairman Sanjeev bajaj Executive director

Rajiv bajaj MD

Pardeep shrisvastava Presedent(engiee) R C Maheshwari CEO (Commercial Vehicles) N H Hingorani Vice President (Commercial)

Abrahim joseph Vice present(r&d)

S Sridhar Ceo(2wh)

Rakesh Sharma CEO (International Business) Kevin P D'sa Vice President (Finance)

C P Tripathi Vice President (Corporate)

K Srinivas Vice President (Human Resources)

S Ravikumar Vice President (Business Development)

Ranjeet gupta Vice presedent(insurance)

What is risk?
It is a condition in which more than one outcome is possible. People take decisions based on perceptions of risk, not necessarily on the actual risk. Risk is a state of nature, where as uncertainty is a state of mind. This uncertainty arises from risk. If something is certain not to occur or certain to occur, there is no risk. Most activities and events in life, however involve risk we cannot be certain of their outcomes. Except for some recreational activities, humans generally prefer less risk to more risk. Or we are risk averse. Risk aversion causes us to undertake actions to minimize uncertainty. Insurance is one of the most important tool to reduce uncertainty.

What are individual risks?

Individuals are exposed to Property, liability and personal losses. Personal loss exposures arise from the possibilities of death, incapacity, illness or injury, retirement, and unemployment. These losses are associated with families and businesses. What is risk management? Risk management is most often associated with attempts to manage those risks that entail the possibility of economic harm. From a financial viewpoint, harm is a reduction in the economic value of an individual. The economic value of an individual is the value today of its expected future cash flows. This value today is derived by taking the present [discounted] value of the difference between expected future inflows and outflows. We discount future cash flows because money has time value; i.e., we prefer a rupee today to the same rupee next year after all, if we invested the rupee today, we [hopefully] would have more than a rupee next year. Thus the purpose of risk management is to contribute to the maximization of the economic value of an individual where value is defined as the discounted value of expected future cash flows. Risk management contributes to economic value by reducing economic harm. The risk management process follows the classical three-step approach to problem solving and involves

Problem Specification Problem Analysis Problem Decision-making Once exposures have been identified and measured, the various means of managing risk should be considered and decisions should be made about the optimum strategy in light of individual objectives. The two fundamental ways of dealing with these losses are Risk control Risk finance Risk Control tools include avoidance, reduction and prevention of risk,

Risk Finance tools include risk retention, risk transfer, and risk sharing Risk management decision has to be taken on the basis of evaluation of risk manage Why is risk to be managed?

This risk management is a revolutionary idea that defines the boundary between modern times and the past. Because we are vulnerable to more risks than our ancestors risk management is more important today than in the past. The physical and economic security formerly provided by the tribe or extended family diminishes with industrialization. Our income-dependent, wealth-acquiring lifestyles render us and our families more vulnerable to environmental and societal changes over which we have no control. Now more formalized means are required for mitigating the adverse consequences of untimely death, unemployment, loss of health, old age, law suits and destruction of our property.

Essence of risk management

The Essence of risk management lies in maximizing the areas where we have some control over the outcome while minimizing the areas where we have absolutely no control over the outcome.

Role of life insurance in risk management.

Life Insurance is a contingent claim contract on the pools assets. Life insurance is a contract for payment of a sum of money to the person assured (or failing him/her, to the person entitled to receive the same) on the happening of the event insured against Life Insurance comes to the timely aid of the family in the unfortunate event of the death or total permanent disability of the bread winner. By and large, life insurance is civilizations partial solution to financial uncertainties caused by untimely death. Life Insurance substitutes certainty for uncertainty Life Insurance involves activities and services that are intimately connected with all divisions of economics referred to. The outstanding and distinctive mission of life insurance is risk-bearing and risk elimination in our economic affairs. Life insurance is an attractive financial instrument in an individuals portfolio that provides an assurance of security element alternatives in the light of cost benefit analysis.

What is ULIP?
Unit Linked Insurance Policies (ULIP) was first offered in the United States in 1976, (after being developed and sold successfully in The Netherlands, England, and Canada) in the name of Variable Life Insurance. Basically it was a type of whole life insurance whose values may vary directly with the performance of a set of earmarked investments. Now many markets are offering these ULIPs in children plans (ICICI Smart Kid policy) endowment and retirement plans (LICS Forty Plus policy) also. These plans give an option to the investor to choose between three fund options debt, equity, and balanced. In these products, premiums can be paid quarterly, half yearly or yearly. Out of the premium amounts, deductions will be made towards Initial administrative charges Investment management charges (there will be an extra charge if the policyholder utilizes the switch over (from equity to debt or debt to balance) option

 Annual administration charges Risk cover and the balance will be invested in a selected fund (debt or equity or balance). Insurance Companies charge anywhere between 20 -35 percent as upfront charges for their unit-linked plans. So, every time you make your premium payment, only a part of it is actually invested in the fund of your choice.

n case of death during the premium paying term or the term of the policy, the sum assured (Rs.1 Lakh in example) or value of policy fund, whichever is higher, is paid to the beneficiaries. In case of survival up to maturity, the value of the fund is paid out. The returns on that day (maturity or death) on the plan depend upon the performance of the market, be it equity or debt. So if the fund value falls below amount invested on that day, the policyholder will receive a lesser amount. Hence one can see that the risk here is transferred to the policyholder as nothing is guaranteed.

Unit-linked plans are essentially similar to mutual fund products wherein the premium is invested in various funds in keeping with policyholders risk appetite.

However, the difference in a mutual fund investment is that the money is virtually at call by the customer. In case of unit-linked insurance plans, it is impossible to predict whether the market will be in an upswing on the day of the policyholders death or on maturity. The Net Asset Value (NAV) will reflect the underlying value of assets, which in turn is dependent on the movement of the Sensex.

An Evaluation of ULIP Policies Market-linked returns have become the norm today. This is the reason why insurance companies launch unit-linked plans in different avatars. Important segments of the consumer market no longer consider life insurers as competing only with other life insurers. In an effort to gain market power and thereby to protect or enhance profitability the issue of product development and innovation, including pricing and marketing

innovation, is all the more important with the continued convergence among financial service competitors. If we observe the trend of ULIPS in insurance market, after the insurance sector is opened, private players, came up with aggressive marketing strategies to establish their presence. And the public sector has, in its turn, redrawn its priorities. It is quietly being carried out at LIC. Till last year, we used to do our budgeting for individual plans. But from the beginning of this year we are doing it at the cumulative level, says Ashok Shah, Zonal Manager (North Zone), LIC in a Ficc-organized insurance seminar in October last year. This new exercise has helped us in prioritizing the sales of individual plans according to the market needs, he adds. Accordingly, as already discussed the Buoyant growth in these plans may be due to Rising stock market Enticed by the Bull Run, policyholders are putting in more than the actual yearly premium as they top up the investment portion of their risk policies. Falling interest rates (The last five years saw interest rates fall dramatically by 400 basis points). Wider product offerings by the insurers (ex. Endowment plan, pension plans etc). Benefits: A Unit linked plan providing an opportunity for the discerning investor to benefit from the returns available in the Capital Market without going for direct investment in the capital market Unlike traditional products where investment details and various charges are kept under wraps, ULIPs project all these information upfront. But when we think the risk management part of ULIP Policies the following questions will arise.

Linking the market to the death benefit ones family gets:

Linking death benefits to the market returns may end up in ambiguity which is in the negation of Life insurance purpose. The purpose of Life insurance is to substitute certainty for uncertainty. For Eg. If an individual aged 35, middle class employee who

purchased ULIP Policy were to die when the index is at 5,000, his family stands to get Rs.5 lakh. But if were to die when the index is at 8,000, his family will get Rs.8 lakhs. A very sharp rise in the sensex is not a common phenomenon and since 1992, a rise of more than 250 points has happened only 13 times. A list prepared by Economic Times based on the difference between the current close and the previous close reveals that out of these 13 times rise in sensex, seven rises in the sensex of more than 250 points had taken place in 1992 during the Harshad Mehata bull run (that had taken the Sensex above the 4000 point mark for the first time in history). Hence in the long run, returns in the stock market are likely to settle in the range of five to six per cent. Even the traditional insurance market offers conservative yearly return of 5-6 per cent year after year for long years or for next 20 years. In this scenario the risks in ULIP Policies may be listed out like this. The chances of dying in an index downturn Is it possible to replace the economic value of an individual to their dependants with these policies? Is it appropriate for a 35 year old middle class man to bet his last penny on the direction of the market? Is it prudent to link the money an individual want to leave behind for family to the whims and fancies of stock market mechanics? What is the position of maturity value if the policy matures at the time of break out of scams like Harshad Mehta and Ketan Parekh. Is it appropriate to consider Insurance as a means to make big bucks? The possibility of falling equity markets and the effect of it on future sales for insurance companies. What is the credibility of banks and insurance companies with their customers when they receive low returns on maturity or death? Even if there is guaranteed Sum assured what about the cost of the product and bearish trend in the stock market?

There is a contrast in the objectives of life insurance and ULIP Policies.

They are Life Insurance is a contingent claim contract where as ULIP is based on market return and also contingent claim.

Life insurance is a contract for payment of a sum of money to the person assured (or failing him/her, to the person entitled to receive the same) on the happening of the event insured against. There is some assurance at higher cost.

Life Insurance comes to the timely aid of the family in the unfortunate event of the death or total permanent disability of the bread winner. By and large, life insurance is civilizations partial solution to financial uncertainties caused by untimely death. Policyholder is transferring his risk to the insurance company in life insurance where as market risk is transferred to the policy holder in ULIP Policies.

The purpose of life insurance is providing only appropriate assurance of security or protection where as the purpose of ULIP is besides providing lower financial security an opportunity to benefit from changes in the security prices in the market.

Risk Finance tools include risk retention, risk transfer, and risk sharing management alternatives in the light of cost benefit analysis.

Why Bajaj Allianz Life Insurance? An Impeccable Track Record Across The Globe In Providing Security And Cover For You And Your Family... Bajaj Allianz, realize that customer seek an insurer whom he can trust their hard earned money with. Allianz ag with over 110 years of experience in over 70 countries and bajaj auto, trusted for over 55 years in the Indian market, together are committed to offering customers financial solutions that provide all the security customer need for their family . Bajaj allianz brings to customer several innovative products.

Key achievements:

Races past gross written premium of over rs. 1001 crore, with growth of over 357% over previous years Gross written premium of rs. 219 crores First year premium of rs 860 crore a 380% growth over last years fiscal year premium of rs 179 cr.

Rocketed to no. 2 position as against no 6 at the end of last financial year amongst pvt. life insurance cos., with a clear lead of rs 240 crore

Fastest growing insurance company with 380% growth Market share jumps almost 4 times from 0.95 % to 3.39 % amongst all life insurance cos.

Increased its product portfolio from 7 to 19 simple and flexible products Launched complete suite of employee benefit solutions (group products for corporate)

The bajaj allianz difference

Business strategy aligned to clients' needs and trends in Indian and global economy / industry

Internationally experienced core team, majority with local background Fast, decentralized decision making Long-term commitment to market and clients

Trust
At bajaj allianz, we realize that you seek an insurer whom you can trust. Bajaj auto limited is trusted name for over 55 years in the Indian market and allianz ag has over 110 years of global experience in financial services. Together we are committed to provide you with time tested and trusted financial solutions that provide you all the security you need for your investments. And more..

Underwriting philosophy
Our underwriting philosophy focuses on :

Understanding the customer's needs

Underwriting what we understand Meeting the customer's requirements Ensuring optimal coverage at lowest cost

Claims philosophy The bajaj allianz team follows a service that aims at taking the anxiety out of claims processing. We pride ourselves on a friendly and open approach. Company focused towards providing customer a hassle free and speedy claims processing. Companys claims philosophy is to :

Be flexible and settle fast Ensure no claim file to be seen by more than 3 people Check processes regularly against the global allianz opex (operational excellence) methodology sold over 1 million since inception.

Customer orientation
At bajaj allianz, our guiding principles are customer service and client satisfaction. All our efforts are directed towards understanding the culture, social environment and individual insurance requirements - so that we can cater to all your varied needs.

Experienced and expert servicing team

A team of experienced people who understand Indian risks and are supported by the necessary international expertise required to analyze and assess them drives us. Service engineers located in every major city.

Superior technology
In order to ensure speedy and accurate processing of customer needs, we have established world-class technology, with renowned insurance software, which networks all our offices and intermediaries

Using the web, policies can be issued from any office across the country for retail products. Unique, user friendly software developed to make the process of issue of policies and claims settlement simpler (e.g. online insurance of marine policy certificate).

Bajaj allianz unit gain plan

The thumb rule for buying insurance is that your insurance needs are minimal in your early earning years, increase with added responsibilities (marriage, children, loans etc.) And taper off by the time you retire. It is difficult to find a single insurance plan that can take care of all your changing requirements in life additional protection, more money to invest, sudden requirement of cash or a steady post-retirement income. With bajaj allianz unit gain, you can invest in one life insurance plan that can take care of all your changing requirements throughout your life. This plan has been designed to provide you with maximum flexibility, so that you do not have to worry about your changing needs. These are very good plan for those who want protection (especially) for their family because happiness and security for our family is all that we want. However, the uncertainties of life often worry you. Unfortunate events can make you are no longer around. Life insurance can help ease many of those worries. It ensures that your loved ones are adequately provided for and that their future is secure, no matter what the uncertainty. Bajaj allianz unit gain offers the unique option of combining the protection of life insurance with the attractive prospects of investing in securities. You can choose the investment funds you want to invest your money, providing you with an opportunity to have a direct stake in the performance of the financial markets. You also benefit from attractive tax advantages and can protect your loved ones against unfortunate events.

The bajaj allianz unit gain plan

The bajaj allianz unit gain comes with a host of features to allow you to have the best of all worlds protection and investment with flexibility like never before. Some of the key features of this plan are:

Guaranteed death benefit Choice of 6 investment funds with flexible investment management: you can change funds at any time.

Attractive investment alternative to fixed-interest securities Provision for full/partial withdrawals any time after three full years premiums are paid. Unmatched flexibility to match your changing needs.

How does the plan work? The premiums paid are invested in a fund/funds of your choice (depending on the allocation rate) & units are allocated depending on the price of units for the fund/funds. The value of your policy is the total value of units that you hold in the fund/funds. The insurance cover charges are deducted through monthly cancellation of units. The fund administration charge and fund management charge are priced in the unit value.

Minimum sum assured = 5 times the annual premium. Maximum sum assured = y times the annual premium where y will be as per the following table:

Age group Y

0 30 125

31 35 105

36 40 75

41 45 55

46 55 30

56 60 20

Table no (1.1) (maximum sum assured)

Benefits and conditions

What tax benefits are available for this plan? The plan offers tax benefits under section 80c and article10(10d) at 1961 .

What additional feature does this plan offer you? You can avail of the accident and disability benefit under this plan.

What are your entry conditions for lifeguard level term assurance? Your age at entry should be between 18 years and 50 years. The minimum term is 5 years and the maximum term is 25 years, which is subject to a maximum of 65 years of age. The minimum premium for the product is rs. 10000 per annum.

Bajaj Allianz unit gain easy pension plan

With Bajaj allianz, you can take control of your future and ensure a retirement you can look forward to. There are two packages to choose from:

Unit gain easy pension regular premium Unit gain easy pension single premium What are the benefits available? The plan works in two parts - the deferment period and the annuity period. During the deferment period, the plan builds up the funds required to purchase the immediate annuity. The deferment period ends at the vesting date. You are free to choose your age of retirement (vesting date) between 45 and 70 years. The benefits on vesting date (the date you choose to retire) The account value as on the vesting date will be used to purchase an immediate annuity. The immediate annuity will be purchased at rates prevailing at that point of time. Option to take lump sum: you have the option to take up to 1/3rd of the account value on the vesting date as a lump sum. This amount would be tax free in your hand, as per current tax laws. The balance amount will be used to purchase an immediate annuity.

Open market option:

`You have the option to purchase an immediate annuity from bajaj Allianz or from any other company. If the immediate annuity is purchased from bajaj Allianz, the amount available for purchase of the annuity will be marked up by 2%. The minimum installment of annuity from bajaj allianz is rs. 1000/-. The annuity frequency may be changed to make each installment more than the minimum requirement. If it still below the minimum, the account value may be utilized to purchase an immediate annuity from any other company in the open market as per your choice, or paid in lump sum, if permissible, subject to the prevailing tax laws.

Annuity options:
You will be able to choose from all immediate annuity products offered by bajaj allianz

Life insurance at the vesting date. The annuity products currently available are: Annuity for life Annuity for life with 5, 10 or 15 years certain payout Annuity for life with return of capital You also have the open market option to purchase immediate annuity. How does the bajaj allianz unit gain easy pension plan work? The premiums paid are invested in a fund/funds of your choice (depending on the allocation rate) & units are allocated depending on the price of units for the fund/ funds. The value of your policy is the total value of units that you hold in the fund/ funds. The administration charges are deducted through cancellation of units. The fund management charge is priced in the unit value. Value of units: the unit price of each fund will be the unit value calculated as per the following formula.
Important details of the bajaj allianz unit gain easy pension plan

Minimum Age at entry Deferment period Age at vesting 18 5 45

Maximum 65 40 70

Table no (1.2) (details of plan)

Payment mode
For your convenience, we have provided 4 premium payment modes that can be single, yearly, half-yearly, and quarterly. We also offer a monthly premium payment mode with salary deduction schemes. In addition, you also have the option to pay top-ups to increase your investments. The minimum single premium is rs. 10,000/-. For regular premium, the minimum premium is rs. 10,000/- for the annual mode, rs. 5,000/- for half yearly, rs. 5,000/- for quarterly, and rs. 1,000/- for the monthly mode. The minimum topup premium is rs. 5,000/-.

Full withdrawals
Unit gain easy pension offers you the flexibility of full withdrawals by surrendering units. For single premium plan full withdrawals are allowed anytime after the payment of the single premium. For regular premium plan full withdrawal is allowed after 3 full years regular premiums (including top ups) are paid. The surrenders are paid out at the value of units, and there is no surrender penalty on full withdrawals after 3 full years regular premiums (including top ups) are paid.

Free look period

Within 15 days from the date of receipt of the policy, you have the option to review the terms and conditions and return the policy, if you disagree to any of the terms & conditions, stating the reasons for your objections. You will be entitled to a refund, which will be the lower of:

The premium paid less the insurers costs of issuing the policy and the policy documents (including but not limited to stamp fee charges), or The value of units, less the insurers costs of issuing the policy and the policy documents (including but not limited to stamp fee charges).

Termination of the policy

The policy will terminate on occurrence of any of the following: The units in the policy are fully surrendered The account value becomes rs 100/- or less The account value is not sufficient to support deduction of units for a period of three months.

Tax benefits
Death benefit is tax-free. The 1/3rd lump sum that can be taken on the vesting date is Also tax-free. Premiums paid are eligible for tax relief under sec. 80 cc (1) or sec 88 of it act. In case of change in any tax laws relevant to the policyholder or the fund performance, the same will be applied as per regulations prevailing at that point of time

Unit gain plus gold: With Bajaj Allianz unit gain plus gold we have formulated a unique combination of protection and prospectus of attractive returns with investment in various mix of securities to make a perfect plan to last you a lifetime of prosperity and happiness.

Key features of this plan are: 1. Guaranteed life cover, with a flexibility to choose insurance cover according to your changing Needs. 2. Presenting a unique investment Asset Allocation Fund where in you have not to worry to switch funds in case market condition charges rather experienced fund managers will monitor the mix of Assets in the fund and will manage the mix in such situations to maximize returns. 3. If you want to manage the mix of assets for your policy on your own, you have the choice of 5 other investments funds with complete flexibility to switch money from one fund to other to manage your investment better 4. Flexibility of partial withdraw at any time after three years from commencement of the policy provided three full years premium are paid. 5. A host of optional additional rider benefits which include assurance to your family with family income benefit and waiver of premium benefits.

How does the plan work Premiums paid by customers, net of premium allocation charge, are invested in funds of your Choice and units are allocated depending on the unit price of the fund. The value of your policy is the total value of units that you hold in the fund . The insurance

cover charges, policy administration charges and the additional rider benefits charges are deducted through monthly cancellation of units fund management charges is priced in the unit value.

BENEFITS Death benefit:

On death occurring before the age of 7 years: the death benefit will be the fund value as the date of receipt of intimation of date at the office. On death after the age of 7 years and before the age of 60 years: the benefits payable would be the sum assured less value of partial withdraw made in the last 24 months prior to the date of death or the fund value as on the date of receipt of intimation of death at the company offices whichever is higher. The death benefit payable would be calculated separately for regular premiums and top up premiums.

Maturity benefits:
On maturity the fund value in respect of regular premiums and top up premiums will be paid

Surrender benefits:
The surrender value of the policy will be equal to the fund value less surrender charges, if any. Any time after three years from the date of commencement of the policy, provided due premiums for first three policy years have been paid, the policyholders will have the option to avail of surrender benefits by complete surrender of units.

Additional rider benefits:

The following additional rider benefits in the form of rider can be availed at the option of the policyholder. UL Accidental death benefits rider UL Accidental permanent total/partial disability benefit rider. UL Critical illness benefits rider.

UL Hospital cash benefits rider

Free lock period:

Within 15 days from the date of receipt of the policy ,you have the option to review the terms and conditions and return the policy, if you disagree to any term & conditions, stating the reason for your objections. You will be entitled to a refund of the premium paid, subject only to a deductions of a proportionate risk premium for the period on cover and the expenses incurred on medical examination and stamp duty charges. The return paid to you will also be reduced/increased by the amount of any reduction/increase in the fund value.

Day of grace: A grace period of 30 days for the yearly, half yearly and quarterly modes and of 15 days for the monthly modes is allowed under the policy, your policy remains in force for all insurance covers, if any even if the due premiums are not paid during this period.

Revival of the policy: It is possible to revive a policy that has lapsed due to non-payment of premiums within 2 years from such date of lapse. You have to give a written application to the company to receive the policy with all due unpaid regular premiums. The revival will effected subject to underwriting.

Tex benefits: Premium paid and benefits received will be eligible for tax benefits as per application tax laws.

Important details of Bajaj allianz unit gain plus gold: Minimum age at entry 0 years risk commences at age 7. Minimum maturity age 18 years

Maximum maturity age 70 years Additional rider benefits 65 years for all riders expect UL wop.

Century plus
Bajaj Allianz Century plus offers, you a limited premium payment term option and a unique combination of protection and prospectus with attractive returns. With

98% allocation in first 2 years and 100% thereafter, we ensure that your investment income gets accelerated and you reap benefits from a plan that delivers prosperity and happiness to you.

Features of the plan are

Guaranteed life cover of sum assured plus fund value. Take maximum advantage of booming markets today and get maximum allocation on your funds from the 1st year onwards.

Loyalty units to enhance your fund value every year from the sixth policy year. If you want to manage the mix of assets for your policy on your own, you have a choice of 5 investment funds to invest it.

Flexibility to partial withdraw at any time after 3 year from commencement of the policy provided 3 full premiums are paid.

At maturity, you can take your fund value at maturity date or periodic instalment spread over a maximum period of 5.

A host of optional additional rider benefits which includes assurance to your family with accidental death benefit and accidental permanent total/partial disability benefit.

VISION

'The most successful and admired life insurance company, which means that we are the most trusted company, the easiest to deal with, offer the best value for money, and set the standards in the industry'.

THE MOST OBVIOUS CHOICE FOR ALL

VALUES
VALUES that will be observed while we work with Bajaj

INTEGRITY
WHAT IS IT?

Honest and Truthful in every Action. Transparency. Stick to principles irrespective of outcome. Be just and fair to everyone.

WHY?

Integrity is the bedrock on which the company and the expectations of the customers and employees are built.

Integrity establishes the credibility of the person, define the character and empowers one to do justice to the job.

Enables building confidence and trust, achieving transparency and laying a strong foundation for a binding relationship.

Guiding principle for all walks of life.

INNOVATIONS

WHAT IS IT?

Building a storehouse of treasures through experiences. Looking at every product and process through fresh eyes everyday

WHY?

To exceed customer expectation and maximize customer retention. To achieve competitive advantage. To promote a growth and upgrade standards in the industry. To foster creativity amongst employees and partners To open a world of new possibilities.

CUSTOMER CENTRIC

WHAT IS IT?

Understanding his expectation by keeping him as the center point Listen actively. Understand customer need and deliver solutions. Customer interest always supreme

WHY?

Reinforce brand loyalty by complete transparency. Customer is the source of revenue for the company. Customer is the reason for our existence. Ensure that customer choose our company to do business with. Will contribute to customer retention Customer goodwill alone can bring more business and more customers.

PEOPLE CARE

WHAT IS IT?

Genuinely understanding the people we work with. Guiding their development through training and support. Helping them develop requisite skills to reach their true potential. Know them on a personal front. Create an environment of trust and openness.

WHY?

People are the most valuable asset of the company. Motivate to individual to give his/ her best. Job satisfaction.

TEAM WORK

WHAT IS IT?

Whole team makes the ownership of the deliverable. Consult all involved, understand and arrive at a common objective. Co-operate and support across departmental boundaries. Identify strength and weaknesses accordingly allocate responsibility to achieve common objective.

WHY?

Together every one achieves more. It adds joy at work place. Teamwork generates synergy and provides a focused approach.

CHAPTER-2.

STATEMENT OF OBJECTIVE

STATEMENT OF OBJECTIVE
The objective of study is the comparative analysis of ULPPS with traditional pension plans in terms of returns, risk coverage, growth and liquidity; various factors that are to be studied like income level and stock market, performance, age; risk bearing capacity The objective of this report is to find out the difference between Conventional Pension Plans and Unit linked pension plans by comparing both of them. The main aim of this research is to find out the truth which is hidden and which has not yet been discovered. The truths that Unit linked pension plans are better than Conventional pension plan.

The main purpose of this study is to gain familiarity with a phenomenon and to achieve new insights to Unit linked pension plans against Conventional pension plan.

No doubt, after watching the ups and downs of the stock market take the idea of a traditional pension might sound pretty good but now there is a new concept of Pension plan i.e. Unit linked pension plan, they are the source of getting higher tax free returns and are beneficial for long term investments. On the other hand they also provide financial back up at the event of the death of policy holder.

CONSTRUCT
Comparative analysis of ULPPS and traditional Pension Plans .

INDEPENDENT VARIABLES
Stock market situations,income levels,age,risk bearing capacity,level of inflation in economy.

Dependent Variables
Demand and sale of (ULPPS) performance of the company,

CHAPTER-3

RESEARCH METHODOLOGY
So we should consider the following steps in research methodology:

Meaning of research Problem statement Research design Sample design Data collection Analysis and Interpretation of data

Meaning of Research
Research is defined as a scientific & systematic search for pertinent information on a specific topic. Research is an art of scientific research.

PROBLEM STATEMENT

The research problems, in general, refers to some difficulty with a researcher experience in the contest of either a particular or a theoretical situation and want to obtain a salutation for same. The present project has been undertaken to do the Financial Analysis at UCP.

RESEARCH DESIGN

A research is the arrangement of the conditions for the collections and analysis of the data in a manner that aims to combine relevance to the research purpose with economy in procedure. In fact, the research is design is the conceptual structure within which research is conducted; it constitutes the blue print of the collection, measurement and analysis of the data. As search the design includes an outline of what the researcher will do from writing the hypothesis and its operational implication to the final analysis of data.5

Research Design can be categorized as:

TYPES OF RESEARCH DESIGN

EXPLORATORY RESEARCH DESIGN

DESCRIPTIVE & DIAGNOSTIC RESEARCH DESIGN

EXPERIMENTAL RESEARCH DESIGN

The present study is exploratory in nature, as it seeks to discover ideas and insight to brig out new relationship. Research design is flexible enough to provide opportunity for considering different aspects of problem under study. It helps in bringing into focus some inherent weakness in enterprise regarding which in depth study can be conducted by management.5

SAMPLING DESIGN:
A sample design is a definite plan for obtaining a sample from the sampling frame. It refers to the technique or the procedure that is adopted in selecting the sampling units from which inferences about the population is drawn. Sampling design is determined before the collection of the data.

Several decisions have to be taken in context to the decision about the appropriate sample selection so that accurate data is obtained and efficient results are drawn.

DATA COLLECTION
After the research problem has been identified and selected the next step is to gather the requisite data. While deciding about the method of data collection to be used for the researcher should keep in mind two types of data VIZ. primary and secondary

TYPES OF DATA

PRIMARY DATA

SECONDRY DATA

PRIMARY DATA:
The primary data are those, which are collected afresh and for the first time, and thus happened to be original in character. We can obtain primary data either through observation or through direct communication with respondent in one form or another or through personal interview.3

METHODS OF PRIMARY DATA

OBSERVATION METHOD

INTERVIEW METHOD

QUESTIONNAI RE METHOD

SCHEDULE METHOD

SECONDARY DATA:The secondary data on the other hand, are those which have already been collected by someone else and which have already been passed through the statistical processes. When the researcher utilizes secondary data then he has to look into various sources from where he can obtain them. For example Books, magazines, newspapers, Internet, publications and reports etc.3

In the present study I have made use of secondary data collected from their website and from their records.

RESEARCH METHODOLOGY
A careful investigation or inquiry especially through search for new facts in any branch of knowledge. Research Methodology is a way to systematically solve the problem. It may be understood as a science of studying how research is done scientifically. Basic purpose of each and every research is to discover answers to questions through the applications of procedures. The process of research includes research design, which includes a conceptual structure within which research could be conducted. The function of research design is to provide for the collection of relevant evidence with minimal expenditure of effort, time and money. In this report the research design applied is DESCRIPTIVE It includes primary survey and the related facts and findings. It describes the current state of the market and the preferences of Unit linked pension plan over conventional pension plan. It describes the relationship between conventional pension plan and Unit linked pension plan along with the description as to how they are competing in the market.

RESEARCH METHODOLOGY
Research Design: Descriptive Population: General Public

Data:

PRIMARY DATA through doing a survey to find out the best among two.

SECONDARY DATA by collecting useful information from journals, Newspapers and web sites. Sample size: 150 PEOPLE

CHAPTER-4 INTRODUCTION OF CONVENTIONAL PENSION PLANS AND UNIT LINKED PENSION PLANS

Introduction to Pension Plans

Pension plans offered by life insurance companies help individuals plan effectively for their retirement. For, it is pension plans that provide individuals with a regular income in their golden years.

However, since the tax benefit on such plans is limited to Rs 10,000, investments in such plans have been somewhat subdued. Apart from the tax benefits, it is important that individuals evaluate pension plans from a retirement planning perspective. Life insurance policies are valuable assets to mitigate the financial risk of untimely death. As such, every individual facing such a financial risk who can afford to pay for such a protection must seriously consider purchasing some life insurance. In the current Indian market, this choice is difficult on three counts:

Inherent complexity due to uncertainty and long time horizons. The need to compare a plethora of different types of products from competing insurance companies. Most insurance policies bundle pure insurance with savings to offer composite products.

A pension is a steady income given to a person (usually after retirement). Pensions are typically payments made in the form of a guaranteed annuity to a retired or disabled employee. Some retirement plan (or superannuation) designs accumulate a cash balance (through a variety of mechanisms) that a retiree can draw upon at retirement, rather than promising annuity payments. These are often also called pensions. In either case, a pension created by an employer for the benefit of an employee is commonly referred to as an occupational or employer pension. Labor unions, the government, or other organizations may also fund pensions.

What are Pension Plans?

Simply put, pension plans (also referred to as retirement plans) are offered by insurance companies to help individuals build a retirement corpus. On maturity this corpus is invested for generating a regular income stream, which is referred to as pension or annuity. Pension plans are distinct from life insurance plans, which are taken to cover risk in case of an unfortunate event.

Pension Plan Details

Sum assured Age (Yrs) 30 (Rs) 500,000 Tenure (Yrs) 30 Annual (Rs) 13,500 Maturity premium amt (@6%) Maturity amt (Rs) 960,000 (@10%) (Rs) 1,590,500

Actual rate of return (%) Annuity amt (Rs)

5.10 71,500

7.80 118,500

The example given above is illustrative. It will differ across insurance companies. Let us take an individual aged 30 years who wants to buy a pension plan with a sum assured of Rs 500,000 for a 30-year tenure. The premium to be paid for the same is approximately Rs 13,500. In case of an eventuality, the beneficiary will stand to get the sum assured of Rs 500,000 plus the bonuses/additions, if any. In case the individual survives the tenure, he will stand to benefit to the tune of the maturity amount as indicated in the table below. Assuming that he buys an annuity for life, the annual amount he would get as pension would be approximately Rs 71,500 (on Rs 960,000) or Rs 118,500 (on Rs 15,90,500). The option of receiving monthly/quarterly/half-yearly pension is available with most life insurance companies. However, the returns shown at 6% and 10% are not calculated on the premium paid. They are calculated after deducting expenses from the premium. The actual

compounded annual growth rate (CAGR) on the premium works out to approximately 5.10% (for the 6% figure) or 7.80% (for the 10% figure).

Conventional Pension Plan

Conventional pensions may be suitable if you're employed and not in a company pension scheme, or as an addition to a company pension. You may also wish to set up a personal pension if you are self-employed, or if you are not working but can afford to put aside money for retirement.

How Personal Pension work? The policy is basically a savings contract, which is designed to provide an income for life from retirement. It does this by providing a notional lump sum on retirement, comprising of sum assured plus any attaching bonus. Subject to the prevailing regulations, part of this lump sum can be taken in form of cash and the rest converted to an annuity at the market rate. Alternatively, if it is permitted by the prevailing regulations, the notional lump sum can be used to buy an annuity with any of the insurance company who will accept such business. On earlier death after the first year, for Regular Premium policies all premiums paid to date will be returned with interest at 8% per annum, subject to a maximum of the sum assured plus bonuses declared to date. For Single premiums, it is sum assured plus bonuses declared to date. Normally, we will declare a reversionary bonus once a year. Once added, it cannot be reduced. Reversionary bonus will take the form of a simple addition to your policy benefits. In addition, on maturity, a terminal bonus might be payable. On death, an interim bonus, reflecting the period since the last addition of reversionary bonus, might also be payable.

Where Conventional pension plan invest?

Conventional pension plans invest a major portion of the premium monies in bonds and government securities (G-Secs). That is why the returns are on the lower side. And if one were to factor into the equation an annual inflation figure of approximately 5%-6% per annum, then the real return figures look even more unimpressive.

Riders available in conventional plan:

Critical Illness Rider: In the event of the Life Assured contracting a critical illness, an additional payment equivalent to the Sum Assured under the rider would be made. This cover is available up to a maximum of 65 years of age. Claims for critical illnesses are not admitted for the first 6 months of the policy. This benefit is available on the basis of the life assured surviving 28 days from such diagnosis.
Accident and Disability Benefit Rider: In case of accidental death, the nominee gets an additional Sum Assured under this rider.

(a)

In case of accidental death while travelling by mass surface transport, the nominee will get twice the Sum Assured under the rider.

(b)

In the event of total and permanent disability due to an accident, which impairs one's capacity to earn, 10% of the Sum Assured is paid every year for 10 years.

Term Cover - Additional Protection for your family: You have the option to include a Term Cover in your policy, which will provide an additional life insurance protection at a nominal cost. This also ensures that the pension available to spouse is further supplemented.

Family Income Benefit: You can select the unique Family Income Benefit from Bajaj Allianz that ensures total financial protection for your loved ones. In case of death or accidental total permanent disability, a guaranteed monthly income of

1% of the sum assured (12% per annum) is paid till the vesting date or at least for a period of 10 years, whichever is higher. Moreover, all future premiums are waived. This unique regular income benefit can act as an important supplement to the pension available to the spouse in case of death mode may be changed to make each installment more than the minimum requirement. If it is still below the minimum, the Sum Assured + Accrued Bonuses would be paid.

Why returns in conventional plans is low ?

Because of not taking of the risk nature they invest in government securities and bonds their returns are in the lower side. That is why the sale of conventional pension plan is also low.

UNIT LINKED PENSION PLAN

The unit linked pension plan is basically an insurance contract, which is designed to provide a retirement income for life. Your premiums are invested in units of the investment fund of your choice, based on the prevailing unit price. On vesting the value of your units will be used to buy your retirement benefits. On earlier death, the beneficiary receives the value of your units plus a cash lump sum of Rs. 1,000. The amount of money that a person invested in a ULPP, and will end up with during retirement depends on three factors - costs such as those for management and administration, fund management performance and the market growth over the years. Costs are important as they eat into your premium contribution before the remainder can be invested. Thus, the lower the costs, the better the chances of higher accumulation.

Various companies structure or spread the costs differently during the tenure of their plan. The structuring may even differ with plans from the same company.

Out of the three factors, while fund management and market growth are prospective in nature and beyond your control, you can research on the cost structure of various ULPPs - information that the insurance advisor can give you - before you invest.

Given the cost structure, you can project the retirement corpus you will need at the get at the end of the tenure. Since most of the ULPPs right now have a very short track record, it makes sense to supplement it with the fund performance to find out whether the company can really deliver on its projections (see Growth and Returns).

Considering plans with the highest equity exposure from six top life insurers (in terms of their market share), we find that among plans with 100 per cent equity exposure, HDFC Standard Life's plan comes right on top with the best projected value. It has shown consistency in returns and has the maximum exposure to equities. Of the two other companies providing plans with lower equity exposure, the choice is not a clear one.

By now, it will be clear to you that in the future, you will have to do much more than just take the easy route of investing in a pension plan to save taxes. You will have to take an informed decision on the prospects.With the right amount of homework, you can ensure that you get a lot of happiness out of the happy combination pension plans provide:

Unit-Linked Pension Plans Built-in Flexibility Age at Vesting (Yrs) Available Plans HDFC Standard life Unit Linked Pension ICICI Pru. Life Time Super Pension SBI Life Horizon II Pension Met Advantage Plus Aviva Plus Max Life insurance Life maker life Insurance-Pension Min. 50 Max. 75 Term/ Deferment (Yrs) Min. 10 Max. 40

45 50 45 40 50

75 70 55 70 70

10 10 10 5 5

57 52 50 70 52

Returns over 1year (%) HDFC Standard Life Unit36.46

Annualized

Projected corpus (Rs) lakh

Max. Equity

return(%)

Exposure (%)

Linked Pension ICICI Prudential Life Time

39.2

51.38

100

Super Pension SBI Life Horizon II Pension Met Advantage Plus Aviva life Insurance - Pension Plus Birla Sunlife Flexi Secure Life Retirement Plan-II

38.06 46.61 38.44 16.75

40.08 132.44 38.25 24.59

45.38 46.39 45.92 44.42

100 100 100 60

16.18

14.29

51.21

35

Why Unit linked pension plan good?

Most insurers in the year 2011 have started offering at least a few unit-linked plans. Unit-linked life insurance products are those where the benefits are expressed in terms of number of units and unit price. They can be viewed as a combination of insurance and mutual funds. The number of units that a customer would get would depend on the unit price when he pays his premium. The daily unit price is based on the market value of the underlying assets (equities, bonds, government securities, et cetera) and computed from the net asset value. The advantage of unit-linked plans is that they are simple, clear, and easy to understand. Being transparent the policyholder gets the entire upside on the performance of his fund. Besides all the advantages they offer to the customers, unit-linked plans also lead to an efficient utilisation of capital. Unit-linked products are exempted from tax and they provide life insurance. Investors welcome these products as they provide capital appreciation even as the yields on government securities have fallen below 6 per cent, which has made the insurers slash payouts. According to the IRDA, a company offering unit-linked plans must give the investor an option to choose among debt, balanced and equity funds. If you choose a debt plan, the majority of your premiums will get invested in debt securities like gilts and bonds. If you choose equity, then a major portion of your premiums will be invested in the equity market. The plan you choose would depend on your risk profile and your investment need. The ideal time to buy a unit-linked plan is when one can expect long-term growth ahead. This is especially so if one also believes that current market values (stock valuations) are relatively low. So if you are opting for a plan that invests primarily in equity, the buzzing market could lead to windfall returns. However, should the buzz die down, investors could be left stung.

If one invests in a unit-linked pension plan early on, say when one is 25, one can afford to take the risk associated with equities, at least in the plan's initial stages. However, as one approaches retirement the quantum of returns should be subordinated to capital preservation. At this stage, investing in a plan that has an equity tilt may not be a good idea. Considering that unit-linked plans are relatively new launches, their short history does not permit an assessment of how they will perform in different phases of the stock market. Even if one views insurance as a long-term commitment, investments based on performance over such a short time span may be appropriate.

ADVANTAGES OF ULPPS
The advantage of unit-linked pension plans is that they are simple, clear, and easy to understand.

Being transparent the policyholder gets the entire upside on the performance of his fund. Besides all the advantages they offer to the customers, unit-linked plans also lead to an efficient utilization of capital.

Unit-linked products are exempted from tax and they provide life insurance. Investors welcome these products as they provide capital appreciation even as the yields on government securities have fallen below 6 per cent, which has made the insurers slash payouts.

According to the IRDA, a company offering unit-linked plans must give the investor an option to choose among debt, balanced and equity funds. If you opt for a unitlinked endowment policy, you can choose to invest your premiums in debt, balanced or equity plans.

If you choose a debt plan, the majority of your premiums will get invested in debt securities like gilts and bonds. If you choose equity, then a major portion of your premiums will be invested in the equity market. The plan you choose would depend on your risk profile and your investment need. ULPP provides multiple benefits to the consumer The benefits include:

Investment and Savings

Flexibility

Investment Options

Transparency

Liquidity

Regular income

Tax planning

CHAPTER-5

ANALYSIS AND INTERPRETATION

CONVENTIONAL PENSION PLAN

ICICI Tata AIG Bajaj Prudential (Nirvana) Allianz (ForeverLife) (Swarna Vishranti) MINIMUM ANNUAL PREMIUM (RS) 6,000 5,000 LIC LIC (Jeevan (Jeevan Suraksha/ Nidhi) Jeevan Dhara) 2,500 3,000 HDFC Max New SBI Personal York Life (LIFELONG Pension (EasyLife) Pensions) Plan 2,400 2,500 3,000 Kotak Mahindra (Retirement income plan) 4,000 ING Vysya (Best Years) 5,000

MINIMUM 50,000 COVER (RS) MIN-MAX. TENURE (YRS) 5 30

50,000 -

50,000 5 - 40

50,000 2 - 35

50,000 5 35

10 - 40

10 40

25,000

5 - 52

2-52 yrs for 5 - 30 Pure Pension plan; 5-52 yrs for Pension cum Life Cover plan. 18-65 yrs for 18-60 Pure Pension plan; 18-60 for Pension cum life cover plan. 50-70 45-65

MIN/MAX 20-60 AGE AT ENTRY (YRS)

18-55

18-65

18-65 yrs 18-65 (for Jeevan Dhara); 18-70 (for Jeevan Suraksha) 50-79 40-75

18-60

20-60

18-65

MIN-MAX VESTING AGE (YRS)

50-70

50-65

45-70

50-70

50-70

45-70

RIDERS Critical AVAILABLE illness rider, Accident and disability benefit rider

Term rider, Critical illness rider, Accident rider

Term cover, Critical illness cover, Hospital cash benefit, Accident benefit, Family income benefit

Term assurance rider, Critical illness rider

Accidental No death and disability benefit rider, Term assurance rider, Critical illness rider

No

No

Term / Term Preferred Rider Term rider, Accidental benefit rider, Critical illness rider, Permanent disability rider, Life guardian rider, Accidental disability guardian rider Yes -

LIFE COVER Yes AVAILABLE

Yes

Yes

Yes

Yes

Conventional pension plans invest a major portion of the premium monies in bonds and government securities (G-Secs). That is why the returns are on the lower side. And if one were to factor into the equation an annual inflation figure of approximately

5%-6% per annum, then the real return figures look even more unimpressive.This is where unit linked insurance plans (ULIPs) can play an important role in the retirement planning exercise. ULIPs have a mandate to also invest a portion of the premium in the stock market apart from bonds and G-Secs. Studies have shown that from a long-term perspective, equities are equipped to give a higher return other fixed income instruments like bonds and G-Secs. And since retirement planning is a long-term exercise, individuals would do well to consider investing a portion of their retirement money in pension ULIPs.

Pension ULIPs: How they fare

HDFC Birla Sun LIC Standard Life (Future Life (Flexi Plus) (Unit SecureLi Linked fe II) Pension Plan) ULIP FUND Pension Growth Nourish, Bond OPTIONS Maximiser fund, Growth, fund, II (Growth), Equity Enrich Income Pension managed fund, Balancer II fund, Balanced (Balanced), Balanced fund, Pension fund, Growth Protector II Defensiv fund (Income), e fund, Preserver Secure fund, Liquid fund ICICI Prudential (Lifetime Pension II) Bajaj Allianz (UnitGain easy Pension) Max New MetLife York Life (Met (Life Advantage Maker ) Pension Plan)

Equity Growth Multiplier, index fund, Accelerato pension Balanced r, fund, Equity fund, Balancer, plus pension Conservati Moderator fund, Equity ve fund, , Protector, MidCap Secure Preserver plus pension fund fund, Debt plus pension fund, Balanced plus pension fund, Cash plus pension fund ALLOCATION Upto 100% 100% in Upto Bond Equity 20-70% in Multiplier: TO EQUITIES in pension growth 35% in fund: index Growth 100%; maximiser- fund; 60- Enrich; NIL; pension fund; 10- Accelerato II; upto 40% 100% in upto 20% Income fund: at 40% in r: upto in pension equity in fund: Not least 85% in Balanced 80%; balancer-II; managed Growth; more stocks fund; 0- Balancer: nil in fund; 30- upto 10% than primarily 15% in upto 50%; Protector II 60% in in Enrich 20%; from NSE Conservati Moderator & Preserver balanced Balanced Nifty Index; ve fund; : upto

fund; 1530% in defensive managed fund; nil in secure managed & liquid fund

MINIMUM 10,000 10,000 5,000 10,000 PREMIUM (RS) LIFE COVER Yes No Yes Yes No No Yes OPTION AVAILABLE HOW IS SUM Option 1: Sum 10 times 5-20 Zero sum Sum 110% of ASSURED Zero sum assured = the times the assured. assured = the value CALCULATE assured. Rs 1,000 regular annualise Pure value of of units in D Pure plus the premium d accumulatio units in the the unit accumulatio fund amount. premium n. policy. account. n. Option 2: value. Sum assured = annual contribution X tenure. MIN/MAX Option 1: 18-60 18-65 18-65 18-65 18-60 20-55 AGE AT 18-65. ENTRY (YRS) Option 2: 18-60 MIN-MAX 45-75 50-70 50-70 40-75 45-70 50-70 45-65 VESTING AGE (YRS)

fund: Not Equity plus NIL more pension Secure than fund: at fund 30%; least 85%; Growth Equity fund: Not MidCap more plus pension than 60% fund: at least 50% in midcap stocks; Debt plus pension fund: NIL; Balanced plus pension fund: 30%50% in equity index fund and 50%-70% in debt plus fund; Cash plus pension fund: NIL 5,000 10,000 10,000

in 20%; Protector and Preserver: NIL

INITIAL YEARS' EXPENSES

17%-22% in 8.50%- 21% for 8%-13% 15% for the 20% in 20% in first yr. 22% for the first for years first year. year 1; year 1. 2% 12%-15% years 1 year. 1 and 2. 10% in for years 2 for second and 2. (Exact year 2. to 10. yr.(Exact (Exact percentag percentage percentag e depends e depends upon the depends upon the annual upon the premium premium annual amount). amt). premium * amt). FUND Maximiser 0.80% 1% Bond Equity 1.25% for Multiplier MANAGEME II1.5%; fund and MidCap Growth and NT CHARGES balancerIncome plus and fund; Accelerato 1.0%; fund: Equity plus 1.10% for r: 1.75%; protector II 1%; pension Balanced Balancer & Balanced funds: fund; and preserverfund: 1.5%; 0.90% for Moderator 0.75% 1.25%; Equity Conservati : 1.50%; Growth index ve and Protector fund: pension Secure and 1.50% fund: 1%; fund Preserver: Debt plus 1.25%. pension fund and Cash plus pension fund: 0.70%; Balanced plus pension fund: As applicable on component funds

Having said that, it is also important that investments in ULIPs are made after considering expenses like fund management charges since this will impact returns over the long-term. Also, don't lose sight of your overall equity allocation. For example, if the individual has already invested a significant amount of his money in stocks and equity funds, then he might be better off investing in a conventional pension plan from a diversification perspective.

ULIPs other important benefits like liquidity. You can withdraw money from a ULIP to meet emergencies. Also, you can invest surplus money (i.e. top-ups) over and above the premium amount. Some insurers have launched capital guarantee ULIPs. Such products aim to guarantee the premiums paid by the individuals (net of expenses) plus the bonus declared, on maturity. Individuals, who fear 'loss of capital' in a ULIP, will find such products attractive. However, capital guarantee ULIPs have lower equity exposure which could dampen returns for the aggressive investor.

DIFFERENCE BETWEEN CONVENTIONAL PENSION INS PLANS AND UNIT LINKED PENSION PLANS
There are some fundamental differences between conventional pension plans and unit linked pension plans, with the objective behind both of them, being the most important. Conventional pension plans aim at covering the risk from an unfortunate event. Pension plans on the other hand work on the opposite scenario that if an individual survives beyond an age (retirement age), he will need to provide for himself. The difference in objectives is the main reason for the differences in the features of life insurance and pension plans. Conventional pension plans Unit linked Pension plans Only up to one-third of the maturity amt can be withdrawn. Remaining Full maturity amount received by 2/3rd amt has to be compulsorily Maturity payouts the individual invested in an annuity. Nominees/ beneficiaries have the

option of receiving either the entire Full maturity amount received by maturity amt or investing up to 2/3rd Death benefits the nominees/ beneficiaries of the amt in an annuity.

Deduction up to Rs 100,000 Deduction up to Rs 10,000 available Tax benefits available under Section 80C under Section 80CCC. Up to 1/3rd of the maturity amt, if withdrawn, is treated as tax-free. Pension received on the remaining Entire maturity amt treated as tax 2/3rd amt is taxed as per the Taxation of free in the hands of the receiver individual's tax slab maturity payouts Entire maturity amt/ death benefit On maturity, provides for a regular received in one go. No provision stream of income. In case of an for a stream of income by way of eventuality, option of pension benefits Stream of income pension. available

1. Maturity payouts:
In case of conventional insurance plans, the individual receives the entire corpus on maturity. However, in case of unit linked pension plans, the individual has the option of withdrawing up to one third of the maturity amount in cash. He will have to buy an annuity with (at least) the remaining two thirds amount from any life insurer of his choice.

2. Death benefits:
In case of an eventuality under life insurance plans, the nominees receive the sum assured plus the bonuses/ additions if any. Not all pension plans offer a life cover (as already covered above). Also, in case of a unit linked pension plan, the nominee has the option of receiving the entire amount on maturity in cash and buying an annuity with the same.

3. Tax benefits:
Premium paid up to Rs 100,000 per annum is eligible for deduction under Section 80C in case of insurance plans. However, premium payments towards pension plans are eligible for deduction under Section 80CCC; the limit being set at Rs 10,000. However, the deduction under Section 80CCC falls under the overall limit of Rs 100,000. For example, if an individual pays a premium of Rs 15,000 for a pension plan, then the tax benefit of Rs 10,000 only. Also, his overall tax benefit will stand reduced to Rs 90,000 (i.e. Rs 100,000 less Rs 10,000).

4. Taxation of maturity payouts:

The maturity amount in case of conventional insurance plans is treated as tax free in the hands of the individual. However, it is slightly different in case of pension plans.

Up to one third of the maturity amount, which can be withdrawn, is treated as tax free in the hands of the individual. The pension, from the remaining two-thirds amount, is taxed according to the marginal rate of tax.

5. Income stream:
On maturity, pension plans provide a regular source of income by way of annuities. In case of conventional plans, the individual receives the entire maturity amount in lump sum.

Options available to individuals on unit linked pension plans:

Pension plans come with various annuity options. We have explained them below: 1. Lifetime annuity without return of purchase price: Under this option, the ndividual receives pension for as long as he lives. The pension ceases on occurrence of an eventuality and the insurance contract comes to an end. 2. Annuity for life with a return of the purchase price: If this option is exercised, the individual receives pension till he is alive. In the event of an eventuality, the purchase price of the annuity is paid out to his nominees/beneficiaries. Purchase price here means the maturity amount, which includes the basic sum assured plus the bonuses/additions, if any. 3. Lifetime annuity guaranteed for a certain number of years: Under this option, the individual receives a pension for a certain number of years (as prescribed by the plan) irrespective of whether he is alive for the said period or not. A major positive of this option is that, if he survives the period, he continues to receive pension for the rest of his life. For example, if the individual has opted for 'Lifetime annuity guaranteed for 15 years', and he meets with an eventuality after only 3 years, then his nominees will keep receiving annuity for the remaining 12 years (i.e. 15 years less 3 years). After the said 15-year period, the annuity will cease and the pension plan will draw to a close.

4.

Joint life/ Last survivor annuity: The individual receives a pension till he is alive. In case of an eventuality, his spouse receives the pension.Apart from the options mentioned above, some companies also offer both, 'with' and 'without return of purchase price'. Under the 'Joint life / last survivor annuity with return of purchase price', in case of an eventuality to both the individual as well as his spouse, the purchase price of the annuity is 'returned' to the nominee. Evidently, pension plans help individuals prepare for their retirement needs. Not only do they aid in building a corpus over a period of time, but they also provide income for life. That is why it is important that individuals include pension plans while conducting their retirement planning exercise

View of financial planners

As financial planners, we regularly receive queries on how to go about planning for various life stages. Financial planning to take care of the post-retirement years is always an important activity for individuals. With respect to retirement planning, we recently received a query from a client who wanted to know whether he would be better off investing in a pension plan offered by a life insurance company or investing in mutual funds. Given below is our analysis on the options available to the investor. Let us look at the given set of variables first. The client's age is 38 years and he would like to retire 22 years hence i.e. at the age of 60 years The client would like to invest an amount of Rs 1,000,000 (Rs 1 m) each year for three years. In total, he will invest an amount of Rs 3 m over 3 years. The client has been suggested a single premium plan of Rs 1 m with additional `top-ups' worth Rs 1 m p.a. (per annum) for the following two years. In all, the client would be paying Rs 3 m over the 3-yr period. The client has a high-risk appetite and would like to remain invested in equities throughout the tenure of the pension plan. The client has a well-diversified portfolio including mutual funds and stocks.

 Based on the information, we have worked out a likely retirement solution for the investor.

Investments in unit linked pension plan (ULPP)

If the client decides to buy Unit linked pension plan, then he would be paying Rs 1,000,000 in the first year. Since this is a single premium plan, one-time charges on the same are 2.50% (i.e. in the first year). In other words, Rs 25,000 would be deducted from the client's single premium amount and the remaining amount (i.e. Rs 975,000) would be invested in the 100% equity ULIP option. This amount will remain invested for the entire 22-yr tenure. The charges for any additional top-ups in the second year too would be to the tune of 2.50%. Similar to the first year, Rs 25,000 would be deducted from the second year's top-up amount. So Rs 975,000 would be invested over 21 years. One-time charges for any top-ups from the third year onwards fall to 1% for the year. Therefore, only Rs 10,000 (i.e. 1% of Rs 1,000,000) would be deducted and the remaining amount would be invested. The third year amount (Rs 990,000) will remain invested for a 20-yr period (i.e. time to maturity). Fund management charges (FMC) for managing equities in the given ULIP are 0.80% p.a. Administration charges are assumed to be Rs 180 p.a. (increasing at an assumed inflation rate of 5.00%).

Retirement Planning:
With the setting up of the pension fund regulatory and development authority (PFRDA), the future of pension schemes presumably seems to be in good hands. We would like to see investors investing more money into pension/annuities than is currently being done. Other than the obvious Section 80CCC benefits, this also takes care of the high (and mostly unavoidable) expenditure post retirement.

ULPPs on a rampage:
Financial planner find that the sales of Unit Linked Insurance Plans' (ULPPs) took a giant leap. To put things in perspective, ULPP sales accounted for a sizable amount of new business generated. This was primarily due to the bull run in the stock markets this year. Obviously ULPPs with higher equity components posted fantastic returns. Insurers through their agents/advisors effectively conveyed this fact. On their part individuals were swayed by the lucrative returns on high equity ULPPs ignoring their risk profile in the process.

Annuity/pension schemes to see more inflow of investments:

With the setting up of an interim pension fund regulatory and development authority (PFRDA), annuity/pensions are all set to see higher investments coming in. Private fund managers will now look after investments in pensions. Individuals will also be allowed to switch freely between fund managers to park their funds with the one who maximises their returns. Although only 50,000 employees have been covered in the initial year, this number is sure to go up in the coming years. This is also due to decreasing real rate of returns on investments and in effect, having a lesser corpus to fall back on postretirement.

RESEARCH
In order to find better between Conventional pension plan and ULPPs, we organized a survey to get a hint of peoples view about their investments. We prepared a set of questionnaire and surveyed 450 people across profession, income group, age, and gender. After analyzing their views it became easier to judge between the two plan instruments. Some of the questions we asked and the results for that is as follows Ques no.1:- Number of respondents? Ques no. 2: -: Whether retirement planning is important for you?

Ques no. 3: -Would you like to prefer Pension plans?

Ques no. 4: -Do you prefer long term or short term investment?

Ques no. 5: -Is liquidity important for you while making investment?

Ques no. 6: -Do you want to take risk in investment?

Ques no. 7: -Do you take into account regular income stream or one time income while making an investment?

Ques no. 8: -If offered traditional pension plan and Unit linked pension plan then which plan would you choose? Ques no.9:- On which basis you prefer Unit Link Pension Plan?

RESPONSE

Ques no. 1: - Particulars

Gender Male Female Percentage 70% 30%

30%

70%

Analysis:- As It shows that 70% of the respondents were male and remaining 30%were female.

Ques no. 2:- Whether retirement planning is important for you?

18%

82%

Not much Very much

Analysis:- As Majority of the people have said that they give importance to retirement planning. Four out of every five people have answered that retirement planning is on their priority list.

Ques no. 3: - Would you like to prefer Pension plan?

No
30% 70%

Yes

Analysis:- As It shows that people prefer Pension plan for a retirement planning. Most of the serviceman prefers the pension plan.

Ques no. 4: -Is liquidity important for you while making investment?

27% 73%

No Yes

Analysis:- As The response to the above question was 73% of the people give importance to liquidity while making an investment. While others prefer to keep their money for longer period to get returns so they prefer to have fixed time investments.

Ques no. 5: -Do you prefer long term or short term investment?

24% 76%

Long term Short term

Analysis: As 24% of the people would like to have short-term investments while other 76% prefer long-term investments. People who invest for short term wants to take out dividends from the booming stock market but other 76% wants return on their money.

Ques no. 6: Do you want to take risk with investment ?

37% 63%

No Yes

Analysis:- As 63% of the people are interested to take risk to earn a better return ULPP offer better returns than fixed deposits or other traditional investment instruments.

82

Ques no. 7: -Do you take into account regular income or one time income after retirement?

12%
Yes No

88%

Analysis:- As 88%of people are interested to take regular income in their golden years. ULPP provides regular income stream.

83

Ques no. 8 -If offered Traditional Pension plan and Unit linked Pension plans then which plan would you choose?

20%

Unit linked pension plan Traditional pension plan

80%

Analysis:- As Majority of people are interested in buying ULPP rather than traditional plan. Because ULLP invest in equities and give better returns.

84

Ques no.9:- On which basis you prefer Unit Link Pension Plan? Due to high return ( ) Due to tax exemption ( )

15%

85%

Analysis:- of above question is that 85% of the people invest in ULLP due to high returns and 15% invest due to tax exemption

85

CHAPTER-6 FINDINGS AND CONCLUSION

86

FINDINGS
1. Maximum number of the respondents have the opinion that retirement planning is important for them where as the remains do not think so. 2. Maximum number of the respondents give preference to pension plan i.e service man whereas remaining does not. 3. Maximum number of the respondents take into account the liquidity at the time of making investment where as the remaining doesnt think so. 4. From one finding we have also studied that maximum numbers of respondents give preference to long term plan. 5. From the study it is also finded that maximum numbers of respondent want to take risk in investment. 6. Maximum numbers of respondents take into account the regular income where as remaining doesnt . 7. Maximum numbers of respondents prefer Unit link Pension Plan while remaining like traditional pension plans. 8. Maximum numbers of respondents prefer ULLP due to high return feature.

87

CONCLUSION:

After studying both ULPPS as well as Conventional Pension plan we can conclude that ULPPS are better investments than Conventional Pension plan. If a person wants to invest for the long term also want high returns than he must go for ULPPS, it will give him tax-free high returns. We have also concluded that ULPPs have to invest the premiums in varying proportions in gsecs (government securities), bonds, the money markets (call money) and equities. The major difference between conventional pension plans and ULPPs is the investment mandate- while ULPPs can invest upto 100% of the premium in equities, the percentage is much lower (usually not more than 15%) in case of conventional pension plans. ULPPs are also available in multiple options like 'aggressive' ULPPs (which can invest upto 100% in equities), 'balanced' ULPPs (which invest 40-60% in equities) and 'debt' ULIPs (which invest only in debt and money market instruments).

SO FOR THE SAKE OF A BETTER AND SECURED FUTURE IN THEIR GOLDEN YEARS ULPPS ARE THE BETTER OPTION.

CONVENTIONAL

PENSION

PLAN

INVESTMENT

IN

GOVERNMENT

SECURITIES AND BONDS + LESS RETURNS

WHEREAS,

ULPP = INVESTMENT IN EQUITIES+ HIGH RETURNS + INSURANCE.

88

CHAPTER-7

ANNEXURE

89

QUESTIONAIRE
Ques no.1:- Gender of respondents Ans:-1 Male ( ) Female ( ) Ques no.2: - Whether retirement planning is important for you? Ans:Much ( ) Not Much ( )

Ques no.3: -Would you like to prefer Pension plans? Ans.:Yes ( ) No ( )

Ques no. 4: -Do you prefer long term or short term investment? Ans :Yes ( ) No ( )

Ques no. 5 -Is liquidity important for you while making investment? Ans:Yes ( ) No ( )

Ques no. 6: -Do you want to take risk in investment? Ans:Yes ( ) No( )

Ques no. 7: -Do you take into account regular income stream or one time income while making an investment? Ans:Yes ( ) No ( )

Ques no. 8: -If offered traditional pension plan and Unit linked pension plan then would you choose? Ans:Yes ( ) No ( )

Ques no.9:- On which basis you prefer Unit Link Pension Plan? Ans:-Due to high return ( ) Due to tax exemption ( )

90

BIBLIOGRAPHY

BOOKS
1. Wilkinson & Bhandarkar,(2005) Business Research Methodology, 6th edition, Tata McGraw Hill Publications, Delhi p- 237-243... 2. Beri G.C.,(2005) Marketing Research, 3rd edition, Third Edition, Tata Mc graw Hill Publications p- 95-98,233 3. Luck J. David, (2006)Marketing Research, 7th edition, Prentic hall of India, PP 1-11. 4. Hair, Bush, Ortinau,(2007) Marketing Research, 3rd edition, Tata Mcgraw Hill Publication, p-352-356 5. Nargundkar, R.,(2007) Marketing Reasearch 2nd edition, Tata Mcgraw Hill Publication,p-115-157 6. Sekaran, U.,(2008) Research Methods for Business 4th edition, Willey Student Edition,p-300-336 7. Cooper R. Donals, Schindler S.Pamela,(2007) Business Research Methods, 8th edition, Tata Mcgraw Hill Publication,p-176-203.

91

NEWS PAPERS
Times of India Economic Times Business Standard

MAGAZINES
Business World Business India India Today

WEB SITES
www.panchtattvainsurance.blogspot.com www.personalfm.com
www.hdfcslic.com

92