Professional Documents
Culture Documents
PROJECT REPORT
ON
COMPARISON OF PENSION PLAN OF
BAJAJ ALLIANZ
WITH OTHER COMPETITORS
UNDERGONE AT
BAJAJ ALLIANZ LIFE INSURANCE
In partial fulfillment of the requirement for the
Degree of
MASTER OF BUSSINESS ADMINISTRATION
SESSION (2006-2008)
SUBMITTED TO
INVERTIS INSTITUTE OF MANAGEMENT & STUDIES,
BAREILLY
AFFILIATED TO
U.P. TECHNICAL UNIVERSITY, LUCKNOW
Prepared By:NITESH CHANDRA OJHA
MBA 2nd YEAR
ROLL NO. 0701570059
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PREFACE
THE PRESENT REPORT IS ON THE COMPARISON OF WHOLE LIFE
PLAN OF THE COMPANY BAJAJ ALLIANZ LIFE INSURENCE WITH
OTHER MAJOR INSURANCE PLAYERS. IN ADDITION, THE REPORT
STUDIES THE COMPARATIVE ANALYSIS OF THE VARIOUS INSURANCE
PLAYERS. THE AIM OF THE STUDY IS TO GAIN INSIGHT INTO THE WHOLE
GAMUT OF WHOLE LIFE INSURANCE BUSINESS IN BAREILLY.
IN THIS REPORT, THE BASIC FEATURES AND BENEFITS OFFERED BY
BAJAJ ALLIANZ LIFE INSURANCES PENSION PLAN OVER OTHER
COMPANIES HAVE BEEN ANALYZED. IT ALSO ANALYSES THE BENEFITS
OR UNIQUE SELLING PROPOSITION OF THE COMPANYS PENSION PLAN,
WHICH GIVES IT A COMPETITIVE EDGE OVER OTHER INSURANCE
COMPANIES.
THE
REPORT ALSO
UNDERTAKES
A SURVEY
REGARDING
THE
A MODE
OF
SAFETY AND
SECURITY FOR
THEIR
FAMILY
ANDTHEMSELVES.
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Acknowledgements
Any accomplishment requires the effort of many people and this work is no
different. I thank Bajaj Allianz Life Insurance and its entire staff, whose
support was instrumental in accomplishing the task. I would also like to
express my sincere gratitude to Bajaj Allianz Life Insurance Company Ltd. for
giving me this wonderful opportunity to work and get to know more about the
insurance industry and life insurance market in general. It was a great
experience to work with so talented and committed people.
I would also like to express my sincere regards to MR.S.K. ROI (FACULTY
IIMS) for extending her valuable guidance. He has been a source of inspiration
and motivation incidental to the completion of my project.
Many data of my findings are the result of a collection from various sources,
such as magazines and many insurance companies. Regardless of the source, I
wish to express my gratitude to those who may have contributed to this work,
even though anonymously.
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MISSION PENSION
With inflation eating away at buying power... taxes eroding the interest earned
on savings... and the possibility of spending more than two decades in
retirement, it's clear that a plan is needed to secure your retirement dreams.
And, as the Life insurance rates are based primarily on age, the younger you
are when you make this decision, the lower your premium will be. Make a
decision today and ensure a more enjoyable, less tension filled tomorrow . . .
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CONTENTS
1. EXECUTIVE SUMMARY
2. INTRODUCTION
RETIREMENT (18-34)
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COMPANY PROFILE
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.
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ALLIANZ GROUP
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 AG, 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.
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SHARED VISION
A household name in India teams up with a global
conglomerate...
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. With over 15,000 employees, the
company is a Rs. 4000 crore auto giant, is the largest 2/3-wheeler manufacturer in
India and the 4th largest in the world. AAA rated by Crisil, Bajaj Auto has been in
operation for over 55 years. 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.
A 10 million strong base of retail customers using Bajaj products.
Advanced Information Technology in extensive use.
Experience in the financial services industry through Bajaj Auto Finance
Ltd
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INDIAN OPERATIONS
Growing at a breakneck pace with a strong pan Indian presence Bajaj
Allianz has emerged as a strong player in India...
Bajaj Allianz Life Insurance Company Limited is a joint venture between two leading
conglomerates Allianz AG and Bajaj Auto Limited.
Characterized by global presence with a local focus and driven by customer
orientation to establish high earnings potential and financial strength, Bajaj Allianz
Life Insurance Co. Ltd. was incorporated on 12th March 2001. The company received
the Insurance Regulatory and Development Authority (IRDA) certificate of
Registration (R3) No 116 on 3rd August 2001 to conduct Life Insurance business in
India.
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Syndicate Bank
Company has developed a range of life insurance products exclusively for our Banc
assurance partners. Also, our products are customized to suit specific needs of banks.
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PRODUCTS
Individual plans
Protector
A mortgage reducing term plan
This is the perfect plan to protect the family from the repayment liability of
outstanding loans, in the unfortunate case of death of the loanee. There is also an
option to cover the co- applicant of the loan at a very nominal cost under this plan...
Child gain
Childrens policy
Right from providing for your child's education to securing a bright future, this plan is
tailor- made to suit your child's needs...
Cash gain
Money Back Plan
This is the only money back plan that offers quadruple protection, going upto 4 times
the basic sum assured, and a family income benefit...
Swarna Vishranti
Retirement plan
In addition to life insurance and attractive tax benefits, this plan enables you to make
adequate provisions for your years after retirement as well...
Invest gain
An Endowment Plan
This savings plan combines high protection (up to quadruple cover) with a unique
family income benefit...
Term Plan With Return -Of-Premium
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An economic way of providing life cover, this plan also ensures the return of all
premiums at the time of maturity...
Life Time Care
Whole Life Plan
This whole life plan provides survival benefits at the age of 80 thereby making sure
you are financially secure at the time when you need it the most
Keyman Insurance
A Promising Business Opportunity
Keyman Insurance provides you with the unique opportunity to protect your business
against the unfortunate loss of key people, while giving you valuable tax advantage
and a lovely tool to help employee loyalty too...
New Unit Gain Plus
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...
Additional Rider Benefits For Unit Linked Product
Bajaj Allianz Additional Benefits Additional protection for you and your family
available with Unit Gain Plus ...
New Unit Gain Easy Pension Plan
Unit Linked Retirement Plan Without Life Cover
Bajaj Allianz New UnitGain Easy Pension Plus, is a plan that helps you take control
of your future and ensure a retirement you can look forward to. This is a regular
premium investment linked deferred annuity policy. Available as: New UnitGain Easy
Pension Regular Premium & New UnitGain Easy Pension Single Premium.
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Swarna Raksha I
A fixed annuity for life will be payable, and on death of the annuitant, the nominee
will be entitled to receive an amount that is equal to the lumpsum used to purchase the
annuity.
Mahila Gain Rider
The unique plan that takes care of you and your loved ones and provides benefits like
Critical Illness Benefit
Reconstructive Surgery Benefit for Breast(s) due to Breast Cancer
Congenital Disability Benefit
Complications of Pregnancy Benefit.
Health Care
This is a three-year health insurance plan, providing comprehensive health cover with
life insurance benefit. You can choose the amount of cover for each benefit separately
in multiples of the minimum cover amount, subject to a maximum multiple of 10.
New Unit Gain Premier SP
Upfront Allocation of 105% of single premium on day 1
Flexi maturity after 6years
New Unit Gain Super
High Allocation
Guaranteed life cover
New Family Gain
The only Unitlinked insurance plan with ethical equity fund.
Suits religious investment guidelines as well.
Save Care Economy-SP
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An ideal plan for a one-time lump sum investment that provides for savings with
high risk-cover.
An investment that provides financial security and liquidity.
An ideal plan for a one-time lump sum investment that provides for savings with high
risk-cover. This Single Premium investment plan for 10 years is also participates in
the profits of the company.
New Unit Gain Plus SP
A single premium plan with maxx allocations
Choice of 4 investment funds and 3 free switches allowed each year
Partial and Full withdrawls after 3 years
Samraksha
Single premium Term Assurance
Convenient terms of 5 & 10 years
Sum Assured options of Rs. 5000 and Rs. 10,000
Minimum & maximum entry age is 18 & 45 respectively
Surrender Value None & Maturity Value None
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Group plans
Group Credit Shield
Available for Employer - Employee Groups
and Non Employer-Employee Groups
Group Term Life
Available for Employer - Employee Groups
and Non Employer-Employee Groups
Group Term Life Scheme
in lieu of EDLI (Employees Deposit Linked
Insurance)
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INTRODUCTION
PLANNING FOR RETIREMENT
After spending years working hard, setting up your home and raising a family,
retirement should be one of the most rewarding chapters of your life. It should be the
time to enjoy your independence. Spending time with children and grandchildren,
traveling, pursuing a hobby, embarking on a new vocation.
However, for too many people, the uncertainty of their retirement income clouds this
sunny picture. Even though you have planned ahead and saved, will it be enough to
last a lifetime? Is there some way your savings could provide a constant source of
income that would ensure peace of mind?
Today, thanks to a healthier life style and advances in medicine, the average Indian
lives longer. A person, who is 60 plus today, can hope to live at least till the age of 75.
A person who is 40 plus today can hope to live at least till the age of 80. That means
that we need to plan for at least 20 to 30 years of retired life.
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Do pay special attention to the first question. Many people who are currently
employed, assume the answer to that question is zero, because their retirement
money will come from the employer's pension plan. Unfortunately, this
monetary stream may not provide a sufficient retirement income.
To ensure a comfortable retired life, you would be wise to invest money into
additional avenues - like life insurance. To calculate your likely monetary
requirements during retirement, use our Retirement Calculator that will give you an
intelligent estimate.
However, as you get closer to retirement, you will need to re-evaluate your needs and
adjust accordingly to meet your goals.
ANNUITIES
An annuity gives you a fixed sum of money, at periodic intervals, for the rest of your
life. Adding a tax deferred investment, like an annuity, to your retirement plan may
help you realize your retirement dreams. Besides giving your savings the power of tax
deferred compounding (in case of deferred annuity), you are also in control of when
you begin receiving payments. They also provide a number of benefits that other
instruments don't. Some of these include:
Lifetime Income:
If outliving your savings is a concern, an Annuity could be the solution. You can
arrange to receive a steady stream of periodic payments, for the rest of your life. Only
Annuities provide the retirement income options that can protect you from outliving
your assets.
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TAX BENEFITS
Premiums paid under this Plan will be eligible for If you were to die prematurely,
would your spouse have enough money to continue the lifestyle that he/she has
become accustomed to? Annuities offer Joint or Survivor Option, which ensures that
the same income stream continues for your spouse. Will your heirs be able to meet the
final expenses? Planning to provide for the needs of the family after your death is
essential? Annuities offer the option of a guaranteed death benefit, which passes to
your named beneficiary.
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ANNUITY OR NOT
Annuities are widely used to augment / add to retirement incomes. However, we
recommend that you do not blindly go for them. Annuities generally work well for
people who meet the following criteria:
You are investing money you will not need for the next 10-15 years. That's
about the time it will take to get the maximum benefits from tax rules (The
only exception to this rule, is if you are about to retire and want to put a chunk
of money into an immediate annuity, which will provide you with fixed,
guaranteed monthly income right away.)
You have received a windfall lately: a bonus, an inheritance or any other lump
sum that you want to invest for your future.
Annuities are an ideal way to invest large sums of money received all at once
Your current tax bracket is very high and it would reduce later due to
retirement. As the Annuity's gains are tax deferred, your entire savings work
and grow for you
You are nearing retirement age and looking for a product that will pay you a
guaranteed income for life
ANNUITY MEANING
The word annuity implies periodic payments. When you buy an annuity, the company
promises to pay you a periodic sum of money, for a specified period of time.
An Immediate Annuity starts making the income payments within the first year of its
purchase.
A Deferred Annuity will start making the payments at a pre-determined future date, as
agreed between the buyer of the Policy and the company.
Immediate Annuity
An Immediate Annuity starts making the periodic income payments within the very
first year of its purchase. The annual amount received as annuity payment from ICICI
Prudential is dependent on the purchase price of the annuity and the buyer's life
expectancy. The annual amount receivable through the annuity can be varied by
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adjusting the purchase price of the annuity. The Joint Life, Last Survivor Annuity also
returns the purchase price of the annuity to a designated nominee.
Deferred Annuity
A Deferred Annuity is one where the payout phase begins after a stipulated number of
years. Either multiple contributions or a single lump sum contribution can be made
towards it. A Deferred Annuity has two phases: the Accumulation Phase and the
Payout Phase.
Accumulation Phase:
The amount accumulates on a compounded basis, till the Buyer decides to take
income from it. If the Buyer dies, a regular income stream is automatically provided
to the beneficiaries.
Payout Phase:
This begins when the Buyer starts making periodical withdrawals from the
accumulated sum. The Buyer may make partial withdrawals or convert the entire
accumulated sum to a stream of income payments
Return of Purchase Price - Income payments are guaranteed for the life of the
Annuitant. On the demise of the Annuitant, the Beneficiary receives the original
purchase price as a lump sum.
Annuity certain for chosen period and Life Annuity thereafter - Income
payments are guaranteed for a specific number of years (5, 10 or 15 years).
Additionally, the payments continue beyond the "period certain" for as long as the
Annuitant lives.
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Joint Life Last Survivor - This option is based on the lives of two people. The
income payments continue till the demise of both the Annuitants.
The plan can be structured so that
On the demise of one of the Annuitants, the payments continue for the same
amount or for a lesser amount.
On the demise of both the Annuitants, the original purchase price is given to
the Beneficiary as a lump sum.
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Repeat the calculation, using your new total, for every year you plan to wait before
drawing on your savings at retirement. The results may surprise you. For example, the
effects of 10 years of inflation means you will need Rs. 255,256 (approx) to meet
those same expenses!
Thus, you need to consider the effect of inflation on your expected annuity income
when planning for retirement.
RETIREMENT PLANS
Most of you picture yourselves enjoying the fruits of labor after retirement, going on
your dream vacation, or helping your children's career take wing. But do you realize
that financing all this will most likely depend partly on your personal savings?
Because personal savings and investments represent a significant source of retirement
income for many people, you can never save too much.
Currently, you are at a stage where you are juggling many roles, as nurturing parents,
dutiful caregivers to elders, supportive life partners, while trying to maintain a career.
It is too easy to get carried away handling and solving the day-to-day problems to not
look into your retirement needs. It may also seem too far away to be of concern. But a
look at the issues below will make the need for some strategic planning at this stage
amply clear.
Today, thanks to a healthier lifestyle and advances in medicine, the average Indian
lives longer. This makes the challenge of accumulating enough money for retirement
even more difficult, since it may have to last longer. Also, with the falling interest rate
scenario and the rising costs of medical expenses retirement mean monetary
uncertainty for most of us. More so, because there is also the ever-persistent evil of
inflation, which erodes your purchasing power. The graph below illustrates how much
Rupees will 10,000/- amount to after some years:
Therefore, the message is simple - no matter whether you are 30 or 50, you should
start planning early to have a healthy retirement kitty.
As can be seen the cost of delaying is high. Situation A is when you are saving Rs
10000 annually from the age of 25 to 34 years and Situation B is when you save the
same annual amount from the age of 35 to 59 years. As can be seen in the example,
even after investing your money for a 2.5 times longer duration, the maturity value in
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the second case is much lesser (the figures are based on a hypothetical interest rate of
10%). The longer your money is allowed to grow at a compounded rate, the more
dramatic will the difference be eventually.
Therefore, the message is simple - Put Time On Your Side and Start Early.
1
2
3
4
5
6
7
As the chart indicates, the powerful combination of compound interest plus tax
deferred earnings, plus no tax on maturity proceeds, can be one of your strongest
allies, when it comes to accumulating wealth, for your retirement or other long term
financial goals.
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Maximize the value of your investments to get more pensions, when you
retire.
Beat the effect of inflation over the long-term, enjoy real appreciation.
Value
of your
invest
ments
that
give
you
pensio
n
Your
Objectiv
eMaximiz
e this
value
Linked Pensions provide you the power to invest the way you want- so you have the
opportunity to maximize your returns.
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Long-Term
Appreciatio
n of your
investment
Combination of
Cap.
Appreciation
with steady
returns
Reasonable
and steady
returns
Flexibility to Switch Between your Investments OptionsBased on your changing Life stage, your investment priorities change. We have made
a flexibility to felicitate this change for you, so that you can change from one option
of investment to other depending on your needs.
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Pure
Accumulation
purpose- No
LifeCover and
Health Riders
ZERO DEATH
BENEFIT OPTION
Protection with
Accumulation
Purpose- With
LifeCover and
Health Riders
DEATH BENEFIT
WITH RIDERS
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You may find that you want to work for some more years.
You may want to accumulate in your pension for some more time.
And, above all you may want to start your pension whenever you wish, any
day, any month.
We understand your needs and hence we have the flexibility in our products that give
you the power to start your pension whenever you wish to.
You may wish to postpone it because:
You want to accumulate for some more time.
You may work for some more years.
You may wish to take any benefits from the market
movements.
Your
Original
Vesting Date
wish
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The yesteryears!!
Retirement Years
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RISING INFLATION
Wouldnt you have ridiculed on somebody who ten years age would have said Potatoes ten
years from now would cost Rs10 /kg? Today you may look back and say how correct he was!!
Look at these
10 years ago Today
1 Kg of Potato
Rs 1.50
1 Ltr. Of Petrol Rs17.00
1 Mum-Dli Train Ticket
Rs350.00
% Increase
Rs 8.00 533%
Rs31.00 182%
Rs1750.00500%
May
Look
ridiculo
us
when at Vacation- Certainly on Vacation!!
same
as that
which is nothing but your vacation after
your
person
10
years
ago
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Disease
33
Cost in 2002
Projected Cost
doctor
per (Rs)
(Rs)
in 2012#
Spondylitis
month cost
Once in
3 2500
8000
(Rs)
25600
Arthritis
months
Once in
2 250
850
2890
Asthma
months
Month cost45 175
600
2060
Diabetes
days
Once
750
2500
in
a 225
month
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DELAY YOUR SAVINGS AND THE COST THAT YOU WOULD INCUR IS
UNIMAGINABLE(THE MAGIC OF COMPOUNDING)
Rs 11, 32,832
Rs 3,00,000
In
ve
st
m
en
ts
R
eti
re
m
en
t
Sa
vi
ng
s
Rs 3,00,000
The
Choice
is all
yoursBe
Smart in
your
Plannin
g or pay
the high
cost of
delay.
R
eti
re
m
en
t
Sa
vi
ng
s
RETIREMENT PLANNING
INCREASING LIFE EXPECTANCY
SOME FACTS:
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YESTERYEARS
Retirement Years
Working Years
We are increasingly getting left with lesser number of productive years to take care of a longer
and longer retirement years.
PROTECTION OF LIFESTYLES
How the Cost of Living has been increasing?
Today
Rs 8. 00
Rs 31
Rs 80
Rs1750
% increase
533%
182%
400%
500%
Ticket
Looking at the above list of items which would be the one that you would not use
after you have retired. Perhaps you would use all of them. If these keep on growing at
the same rate, a 10 year hence scenario would look like this.
1 Kg of Potato
Today
Rs 8. 00
% increase
10 year hence
533%
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1 Litre of Petrol
1 Cinema Ticket
1 Mumbai-Delhi
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Rs 31
Rs 80
Rs1750
182%
400%
500%
57
320
8750
What we have not considered here is the medical cost, which is a major expense in the
post-retirement phase.
Isnt it frightening to imagine what would be the cost of the above items 20 years
from now??
Now, ask a person- when would he spend more money on a vacation or while at
work. More often that not you would get an answer VACATION. What is
retirement- it is this vacation after a long stint of working years. In this period one
would like to maintain the present level of lifestyle, if not better.
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Present
After 20 years*
Household
6000
9552
Children
Medical Expense
Total
3000
500
9500
0
1526
11078
Even with the household expenses reduced by 40% and no expenses on the children
post-retirement, the cost of living will increase by 15%.
Therefore it is important that we provide enough to take care of these increasing
expenses.
The costs have been worked out assuming an increase in the medical costs by
15% and an overall cost inflation of 5%
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This study would also helped in knowing the potential market for the product
and also how to have a competitive edge over the other players in the market by
stressing on to the key areas of the product.
METHODOLOGY ADOPTED
The first step was to study all the insurance products being offered by BAJAJ
ALLIANZ LIFE INSURANCE CO. LTD.
Then data of other pension players was collected by personally visiting them and
then probing their pension plans.
The next step was to draw results from the analysis of the information collected
regarding the features of the product in the market.
A comparison was then made between the features of the product in the market
and that offered by BAJAJ ALLIANZ LIFE INSURANCE CO. LTD.
After finding out the investors details, this data was then tabulated, analyzed and
deductions were then made so as to know the investors psyche and the products
and features which a investor looks for in a product.
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RESEARCH DESIGN
A research design is the arrangement of conditions for collection and analysis of
data in a manner that aims to combine relevance to the research purpose with
economy in procedure. The research design id the conceptual structure within
which research is conducted; it constitutes the blue print for the collection,
measurement and analysis of data.
Types of Research Design
1. Exploratory Research Design- Also called formulative research study; the main
purpose of such studies is that of formulating a problem for more precise
investigation or of developing the working hypotheses from an operational point
of view.
SAMPLING
Sampling may be defined as the selection of some part of an aggregate or totality
on the basis of which a judgment or inference about the aggregate or totality is
made.. In other words, it is the process of obtaining information about an entire
population by examining only a part of it.
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Types of Sampling
1. Probability Sampling: - Also known as random sampling or chance
sampling. Under this sampling design, every item of the universe has an
equal chance of inclusion in the sample.
2. Non-Probability Sampling: - It is that sampling procedure which does
not afford any basis for estimating the probability that each item in the
population has of being included in the sample.
In my study, I have taken a sample size of 250 and 50 respectively for my two
surveys.
DATA ANALYSIS
Data is mainly of two types:
1. Primary data: - are those, which are collected a fresh and for the first time,
and thus happen to be original in character.
2. Secondary Data: - are those which, have already been collected by
someone else and which have already been passed through statistical
process.
In my study, data has been collected through questionnaires hence it is primary
data.
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Age-
Occupation-
Q.1- Do u know that govt. of india has privatized life insurance industry?
(a)yes
(b)no
Q.2- How many life insurance companies are in india?
(a)17
(b)12
(c) 10
(d)can,t say
Q.3- Do u know abt. BAJAJ ALLIANZ?
(a)yes
(b)no
Q.4- How do u know abt the BAJAJ ALLIANZ ?
(a)through media advertisements
(b)through representative of BAJAJ ALLIANZ
(c)through articles
(d)other channels
Q.5- Which company has the punch line
(a) max new york life insurance
(b)birla sunlife
(c) icici pru
(d)BAJAJ ALLLIANZ
Q.6- Have u taken any life insurance cover for urself or for ur family?
(a)yes
(b)no
Q.7- The no. of policies u have at this time
(a) 1-5
(b)5-10
(c) more than that
Q.8-What is the importance of insurance in your life?
(a) safety
(b)investment
(c)tax saving
(d)others
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DATA ANALYSIS
INSURANCE COAMPANIES
In all there was 10 insurance companies' pension plans were studied,
including BAJAJ ALLIANZ LIFE INSURANCE CO. LTD.
COLLECTION OF DATA
S. No.
INSURANCE COMPANY
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
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APPENDICES
PENSION PLANS
BAJAJ ALLIANZ represents pension plans that combine the best of investment
and insurance.
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vesting date. You are free to choose your age of retirement (vesting date) between 45
and 70 years. After the vesting date, the annuity payments begin.
The benefits on Vesting Date (the date you choose to retire)
The Fund Value as on the vesting date will be used to purchase an immediate
annuity, 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 Fund
Value 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 life insurer as recognised by IRDA. If the
immediate annuity is purchased from Bajaj Allianz, the amount available for
purchase of the annuity will be marked up by 2%.
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Full Withdrawals
Full withdrawal/Surrender is allowed (subject to Surrender Charge, if any) anytime
after 3 years from commencement
Age at Entry
Defement Period
Age at Vesting
Minimum
18 yrs
5 yrs
45 yrs
Minimum Premium
Maximum
65 yrs
40 yrs
70yrs
Tax Benefits
Premiums paid will be eligible for tax deduction under Section 80C of the Income Tax
Act.
Policy Administration Charges will be Rs.50 per month per policy (charged
monthly through cancellation of units) escalating at 5% per annum.
Fund Management Charge will be 1.75% p.a. of NAV for Equity Growth Pension
Fund and Accelerator Mid-Cap Pension Fund, 1.25% p.a. of the NAV for Equity
Index Pension Fund II, 0.95% p.a. of the NAV for Bond Pension Fund and 0.95%
p.a. of NAV for Liquid Pension Fund.
Switching Charges: Three free switches would be allowed every year. Subsequent
switches would be charged @ 5% of switch amount or Rs. 100, whichever is
lower.
Allocation: A portion of the premium paid will be charged towards expenses in the
initial years. Accordingly, the allocation to your fund will be will be as follows-
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10,000-24,999
25,000-49,999
50,000- 99,999
100,000-499,999
500,000 and above
Policy Year 1
84%
86%
88%
90%
92%
Policy Year 2
98%
98%
98%
98%
98%
Surrender Charge If first three years regular premiums are not paid and the
policy is lapsed, the Surrender Charge on regular premium unit value would be
100% of the first years annualised Allocated Premium.
If first three years regular premiums have been paid in full, the scale of
The
after
Policy year
4
5
6 and above
Surrender Charge
5%
2%
No Charge
three years regular premiums have not been paid and the policy is lapsed, the
Surrender Value, if any, would be payable at the expiry of the revival period or three
policy years, whichever is later.
No surrender charge will be applied in case of complete surrender of units in respect
of Top Up Premium.
Miscellaneous Charge: The miscellaneous charge would be charged at the rate of
Rs.100/- per transaction in respect of reinstatement, alteration of premium mode,
increase in regular premium or issuance of copy of policy document.
Revision of charges
After taking due approval from the Insurance Regulatory and Development Authority,
the Company reserves the right to change the following charges:
Fund Management Charge up to a maximum of 2.75% p.a. of the NAV for the
Equity Growth Pension Fund and Accelerator Mid-Cap Pension Fund, 2.25% p.a.
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for the Equity Index Pension Fund II and 1.75% p.a. for the Bond Pension Fund
and Liquid Pension Fund.
If the Proposer/Life Assured does not agree with the charges, he/she will be
allowed to exit the plan at the prevailing price of units.
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Unlimited top-ups
Mortality charges are nil, enabling you to maximize your investment returns
The Fund Value as on the vesting date will be used to purchase an immediate
annuity, at rates prevailing at that point of time
Option to take lump sum: You have the option to take upto 1/3rd of the Fund
Value 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 life insurer as recognised by IRDA. If the
immediate annuity is purchased from Bajaj Allianz, the amount available for
purchase of the annuity will be marked up by 2%.
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Full Withdrawals
Full withdrawal/Surrender of Fund Value, net of Surrender Charge, if any, is allowed
anytime after 3 years from commencement.
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:
You also have the open market option to purchase immediate annuity.
The minimum instalment of annuity from Bajaj Allianz is Rs. 1000/-. The annuity
frequency may be changed to make each instalment more than the minimum
requirement. If it still below the minimum, the Fund Value may be paid in a lump
sum, if permissible, subject to applicable tax laws.
IMPORTANT DETAILS OF THE BAJAJ ALLIANZ NEW UNIT GAIN EASY
PENSION PLAN SP PLAN
Minimum
Maximium
Age at Entry
18 yrs
65yrs
Defement Period
5yrs
40 yrs
Age at Vesting
45 yrs
70yrs
Single Premium
Rs. 50000
No limit
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Top Up Premium
Rs. 5000
No limit
Tax Benefits
Contributions made will be eligible for tax deduction under Section 80C of the
Income Tax Act.
Charges Under the Plan
Policy Administration charges will be Rs.50 per month per policy (charged monthly
through cancellation of units) escalating at 5% per annum. The Company reserves the
right to change the Policy Administration Charge at any time with prior approval from
the IRDA.
Fund Management charge will be 1.75% p.a. of the NAV for Equity Growth
Pension and Accelerator Mid-Cap Pension Fund, 1.25% p.a. of the NAV for Equity
IndexPension Fund II, 0.95% p.a. of the NAV for Bond Pension Fund and 0.95% p.a.
of NAV for Liquid Pension Fund.
Switching Charges: Three free switches would be allowed every year. Subsequent
switches would be charged @ 5% of switch amount or Rs. 100, whichever is lower.
Allocation: A portion of the premium paid will be charged towards expenses.
Accordingly, the allocation of single premium and top ups would be 98%.
Miscellaneous Charge: The miscellaneous charge would be charged at the rate of
Rs.100/- per transaction in respect of issuance of copy of policy document.
Revision of charges
After taking due approval from the Insurance Regulatory and Development Authority,
the Company reserves the right to change the following charges:
Fund Management Charge up to a maximum of 2.75% p.a. of the NAV for Equity
Growth Pension Fund and Accelerator Mid-Cap Pension Fund, 2.25% p.a. for
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Equity Index Pension Fund II and 1.75% p.a. for Bond Pension Fund and Liquid
Pension Fund.
If the Proposer/Life Assured does not agree with the charges, he/she will be
allowed to exit the plan at the prevailing price of units.
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Lifetime Pension: A regular premium linked deferred pension plan that gives you
the freedom to choose the amount of premium, and invest in market-linked funds, to
generate potentially higher returns.
Secure Plus Pension: A regular premium deferred pension plan that gives you the
flexibility to choose between 3 levels of sum assured for the same level of total annual
contribution.
Life Link Pension: A single premium linked deferred pension plan that gives you
the freedom to choose the amount of premium, and invest in market-linked funds, to
generate potentially higher returns.
Forever Life: A regular premium deferred pension plan that helps you save for your
retirement while providing you with life insurance protection.
LIFETIME PENSION
DEFERRED PENSION PLAN
A Linked Deferred Plan gives you the freedom to choose the amount of premium, and
invest in market-linked funds, to generate potentially higher returns. A part of the
premium paid is used to pay for the death benefit (if any) opted for by you and the rest
would be invested in the plan of your choice. On the retirement date, the accumulated
value of the units will be used to purchase an annuity - to provide you with regular
income for life.
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ELIGIBILITY
You should be between 18 and 60 years of age.
MINIMUM PREMIUM
The minimum annual premium is Rs.10,000; half-yearly premium is Rs. 5,000 and
monthly premium is Rs.834.
TERM
Minimum term is 10 years.
SURRENDER
This plan acquires a surrender value after full premiums for 3 policy years are paid. In
case of complete withdrawal, a surrender value equivalent to the value of the units is
paid.
INITIAL CHARGES
The initial administrative charges in the 1st year would be 20% of the premium, for
premium amounts less than Rs.50,000. For premiums equal to or greater than
Rs.50,000, the charges would be 18% of the premium. In case the Zero Death Benefit
has been opted for, the charges would be 18% and 15% for the same premium bands.
However, in all cases, charges wouldbe 7.5% in the 2nd year and 4% from 3rd year
onwards.
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ADMINISTRATIVE CHARGES
Other charges would include annual administrative charges of 1.25% per annum of
net assets for Protector (Income) and 1.25% per annum for Maximizer (Growth) and
Balancer (Balanced) options. An annual investment charge of 0.25% per annum of net
assets for Protector and 1% for Maximizer (Growth) and Balancer (Balanced) would
also be charged.
ANNUITY PAYMENT MODE
Your accumulated value would start paying you regular income in the form of an
annuity, at a frequency chosen by you. This income can be received monthly,
quarterly, half-yearly or annually.
SECUREPLUS PENSION
= Basic cover
(Term) x Premium
= Standard cover
(Term + 5) x Premium
= Enhanced cover
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With Life Cover: Any person between 18 and 60 years of age can apply.
Without Life Cover (Zero Death Benefit): Any person between 18 and 65
years of age can apply.
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TERM
Minimum term is 10 years.
MINIMUM PREMIUM
Minimum annual premium is Rs.10,000; half-yearly premium is Rs.5,000; and
monthly premium is Rs.834.
SURRENDER
Secure plus Pension acquires a surrender value after premiums for three policy years
are fully paid. The surrender value is the accumulated value of your policy, or its
market value at the time of death or maturity, whichever is higher. Surrender value
can be classified under two categories:
a) Guaranteed b) Non-guaranteed.
Guaranteed surrender value will be 35% of all premiums paid - excluding the
first year premium and all extra premiums and premiums for rider benefits.
You have the option of selecting a guaranteed annuity rate period of either 5 or
7 years.
The amount of annuity is fixed for a guaranteed annuity rate period and will be
recalculated at intervals of every guaranteed period, based on the then
prevailing annuity rates.
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Purchase Price (which will be available for calculation of the annuity rate at
the end of the guaranteed annuity period), on survival, will be guaranteed
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You choose the amount of life cover you require. In this plan, the Death Benefit is
1.05 times the premium paid. You can also opt for a Zero Death Benefit. The amount,
which you pay for the Death Benefit, depends on your chosen protection level.
CHOOSING INVESTMENT PLAN
You can choose between the Maximize (Growth), Protector (Income) or Balancer
(Balanced) plans. You also have the power to switch between the plans, to suit your
investment priorities. You are entitled to one free switch every year during the
deferment period.
ELIGIBILITY
You should be between 18 and 60 years of age. For Zero Death Benefit, any person
between 18 and 65 can apply. The cover ceasing age is 60 years.
MINIMUM PREMIUM
Minimum premium in this plan is Rs. 50,000.
TERM
Minimum term of the product is 3 years.
SURRENDER
This plan acquires surrender value after 1 year from the start of the plan. In case of
complete withdrawals, a surrender value equivalent to the value of the units is paid.
INITIAL CHARGES
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For premiums between Rs.50, 000 and Rs.99, 999, the initial charges would be 4% of
the premium. For premiums between Rs.1, 00,000 and Rs.4, 99,999, charges would be
2.25% and for an amount of Rs.5, 00,000 or more, the charges would be 1.25% of the
premium.
ADMINISTRATIVE CHARGES
Other charges would include annual administrative charges of 1.25% per annum of
net assets for Protector (Income) and 1.25% per annum for Maximizer (Growth) and
Balancer (Balanced) options. An annual investment charge of 0.25% per annum of net
assets for Protector and 1% for Maximizer (Growth) and Balancer (Balanced) would
also be charged.
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ELIGIBILITY
You should be between 20 and 60 years of age.
MINIMUM SUM ASSURED
Minimum sum assured is Rs. 50,000.
TERM
Minimum term is 5 years and the maximum is 30 years.
MINIMUM PREMIUM
Minimum premium is Rs.6, 000.
SURRENDER
Forever Life Pension Plan acquires a surrender value after premiums for 3 policy
years are fully paid. A surrender value is payable if you wish to withdraw after 3
years.
ANNUITY PAYMENT MODE
Your accumulated value would start paying you regular income in the form of an
annuity, at a frequency chosen by you. This income can be received monthly,
quarterly, half-yearly or annually.
GURANTEED ANNUITY PERIOD
You have the option of selecting a guaranteed annuity rate period of either 5 or
7 years.
The amount of annuity is fixed for a guaranteed annuity rate period and will be
recalculated at intervals of every guaranteed period, based on the then
prevailing annuity rates.
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Once the policy holder is 75 years of age, the annuity will be fixed for life and
not reviewed thereafter.
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30
35
40
Term
10
n/a
n/a
9,577
15
n/a
6,098
6,117
20
4,309
4,327
4,357
For Single premium policies, the premium payable with respect to the basic benefit is
equal to the basic sum assured as required by the policyholder.
ELIGIBILITY
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Term
RP1 SP2 RP
10 5
40
Age
SP
15
Entry
RP SP
18 35
atAge
atAge
Maximum
atAge
at
Entry
Retirement Retirement
60
50
70
50% of premiums paid subsequent to the first year in respect of the basic
benefit, excluding all additional premiums.
Before retirement, the guaranteed surrender value, including the value of any
attaching bonuses, for Single Premium policies is 50% of the single premium
paid in respect of the basic benefit, excluding all additional premiums.
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OM KOTAK MAHINDRA
With Cover
Without Cover.
ELIGIBILITY
Minimum age - 18 years
Maximum age - 60 years
TERM
Term can you chosen to pay the premiums: 5 yrs - 30 yrs
VESTING AGE
Minimum Age - 45 yrs, Maximum Age - 65 yrs
COMMUTATION
You may take a lump sum in cash of up to a third of your Basic Sum Assured or
Accumulation Account, whichever is higher; and the balance of the benefit you are
eligible for will be used to buy an annuity of your choice.
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TAX BENEFIT
You can avail of a tax benefit u/s 80CCC (1) of the Income Tax Act 1961 on a
premium of up to Rs.10, 000 per annum. If you are in the tax bracket of 31.5%, you
can reduce your tax liability up to Rs.3, 150 on a premium of Rs.10, 000 towards this
policy this benefit is available to you every year you pay.
PLAN DETAILS
Regular Premium
Single Premium
20 - 60 years
20 - 60 years
50 - 70 years
Deferment Period
10 - 40 years
Entry Age
10 - 40 years
Payment 10 - 40 years
Not applicable
Period
Minimum Premium
Rs. 2,500
Rs. 100,000
ANNUITY DETAILS
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Notional Corpus During your earning years, you pay us a fixed premium every year
or a single premium. On the date of retirement that you choose, this policy provides
you with a Notional Corpus, comprising the Sum Assured, together with Pure
Endowment benefits purchased out of the bonuses declared by the Company from
time to time. You can take up to 25% of this Notional Corpus in lump sum and use the
balance amount, to purchase an annuity.
ANNUITY OPTIONS
You can choose any one of the Annuity options at least 6 months before vesting date.
Annuity for Life, with return of annuity purchase priceYou will get the annuity
for life. When you die, your legal representative will get the refund of annuity
purchase price. For ages more than 50 years the current prevailing annuity rate
is 4.375 % per annum
You can also choose any other annuity options offered by us at the time of exercise
In case you do not choose any annuity option, you shall receive an Annuity for Life.
The Annuity plan opted for by you cannot be altered during the six months before the
vesting date.
PREMIUM PAYMENT OPTIONS
You have the option of paying a Single Premium or Regular Premiums. For the latter,
yearly and half yearly options are available.
OPEN MARKET OPTION
You have the flexibility to purchase Annuity from any other IRDA approved
company. In such a case, we shall pay the notional corpus directly to such a company
chosen by you.
SURRENDER
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You have the freedom to surrender your Policy prior to its Vesting Date. Subject to
statutory or other restrictions, if any, we shall pay a minimum guaranteed surrender
value of 55% of the Premiums received in Regular Premium policies, and 80% of the
Premium received in Single Premium policies. However, the policy will not acquire
any cash surrender value until completion of one year from the date of issue of the
policy.
FREE LOOK PERIOD
You have the freedom to cancel this Policy by returning the original Policy with a
written request to us within 15 (fifteen) days from the date of receipt of this Policy, in
which case the Premiums paid less expenses incurred on stamp duty by us, will be
refunded without interest.
ANNUITY DETIALS
For premium Rs 10,000/- per annum
Entry
Retirement at Age 50
Retirement at Age 60
Age
30
Entry
Sum
Notional
Notional
Annuity for
Assured
Corpus *
Life *
Assured
Corpus *
Life *
243,250
322,335
20,040
373,832
625,312
45,704
Retirement at Age 60
Retirement at Age 70
Age
40
Sum
Notional
Notional
Annuity for
Assured
Corpus *
Life *
Assured
Corpus *
Life *
241,196
321,891
23,527
365,764
633,731
60,724
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DEATH BENEFIT
In the unfortunate event of your death within one year from the effective date of the
policy, we shall refund the premiums received without any interest. In the unfortunate
event of your death after one year from effective date of the policy (but before the
vesting date), we shall be refund of premium with interest @ 3% per annum as the
minimum guaranteed interest rate, limited to the sum assured specified in the schedule
together with the Cash Value of the Pure Endowment benefits, if any. This may be
availed of by the beneficiary: a. Either in lump sum, orb. By way of purchase of life
annuity with return of Annuity Purchase Price from us or any other
IRDA
approved Company.
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ING VYSYA
Percentage
Not less than 20%
not less than 40%
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The Bonus Interest will be in proportion to the period for which the monies are
invested in the ING Vysya Capital Guranteed Plan during the year and will be
credited to your plan IPA on 31st of March each year.
COMMUTATION
On your attaining the chosen vesting date, one-third of the benefit amount can be
withdrawn and its tax free under section 10(10A) of the IT Act. The balance amount
will be utilized to purchase an annuity.
DEATH BENEFITS
The benefit amount under this plan on the vesting date on earlier death of policy is the
balance amount in the IPA.
In case of death during the term, your spouse will have the following options in
respect of the benefits under the policy
To defer the purchase of annuity if the age of the spouse is less than 45 years
In case there is no spouse, the benefit amount will be paid in lump sum to the
nominee/legal heirs.
The cover shall be equal to the lower of 5 times the regular contribution or Rs
1 lakh
The sum assured under this rider will be used to increase the benefit amount
under the basic policy
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TATA AIG
NIRVANA
VESTING AGE
You can choose your retirement fund and your retirement age (anywhere from 50 to
65 years) so you choose the age from which you start getting your pension.
GURANTEED RETURNS
Like no other retirement plan in the market, it guarantees an additional 10 per cent of
the sum assured if your policy has been in force for 10 years. That's how sure we are
of our future stability. So when you're ready to put up you feet and rest, you worry
about your garden, not how you fund it. This guaranteed addition is also payable on
death.
NON GURANTEED RETURNS
To top all this, extras like our Reversionary and Terminal bonuses add up to a very
attractive package.
The Reversionary bonus is projected at an annual 3 per cent (compounded) from the
5th year of your policy.
The Terminal bonus - that can go up to 40 per cent - is paid at the time of retirement
or death (policy must be in force for a minimum 10 years).
Both these bonuses are non-guaranteed and depend on the performance of the
company.
COMMUTATION
At the time of retirement or death we return 25 per cent of your accumulated sum.
With the other 75 per cent you (or your nominee) buy an annuity - an annuity being
something that pays you a monthly pension for the rest of your life.
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LIC
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ANNUITY OPTIONS
Joint life and last survivor annuity to the annuitant and his/her spouse under
which annuity payable to the spouse on death of the purchaser will be 50% of
that payable to the annuitant.
The annuity rates will be that available under the version of the New Jeevan Akshaya
Plan current at the date of vesting. A rebate of 3% will be available on the purchase
price of the New Jeevan Akshaya Policy. Option for the annuity type is to be
exercised at least 6 months before the date of vesting.
DURING DEFERMENT
A term rider option will be available. On the death of the policyholder who has opted
for the term Assurance rider (provided the policy is in-force), the Term Assurance
Sum Assured along with all premiums (excluding term Assurance premium and extra
premium if any) paid up to the date of death accumulated at the rate of 5% p.a.
compounding or at such rates as decided by the Corporation from time to time will be
paid to the nominee. When the policy is not in-force, only return of premiums with
interest as stated above will be available.
For those not opting for the Term Assurance Rider, in respect of policies which are inforce or in a paid up condition, all premium accumulated at 5% p.a. compounding or
at such rates as decided by the Corporation from time to time, will be paid to the
nominee. Term Rider Option will be available only on the Annual Premium Plan.
REBATES
Premium will be payable yearly, half-yearly, quarterly or monthly (including SSS) or
by single premium. Mode rebates @ 2.6%, 1.3% and 0.5% of the tabular annual
premium will be available for yearly, half- yearly and quarterly premiums.
For large cash option the rebates available are:
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AMOUNT (Rs)
83
>=1,00,000 <
>=2,00,000 <
2,00,000
5,00,000
3%
4%
5%
6%
7%
8%
>= 5,00,000
Both rebates will be applied separately on the Tabular Premium and not after the other
has been applied.
SURRENDER VALUE
For Annual Premium Plans: The Guaranteed Surrender Value will be equal to 90% of
all premiums paid excluding the first year premium, all Term Assurance premium and
extra premium (if any). This will be allowed after at least two full years premiums
have been paid and will be available after two full years have been completed from
the date of commencement. However, the policy can not be surrendered after the
annuity vests.
For Single Premium Plan: The Guaranteed Surrender Value will be 90% of the single
premium paid. Surrender will be allowed 2 years after the commencement of the
policy.
SPECIAL SURRENDER VALUE
For Annual premium policy this will be available at least two years after date of
commencement and during deferment period if at least two full years premium has
been paid.
For Single premium policies, this will be available one year after the date of
commencement and during the deferment period. The special surrender value will be
quoted separately. Surrender value will not be available for the Term Rider Benefit.
GRACE PERIOD
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The days of grace will be one calendar month but not less than 30 days under the
yearly, half-yearly and quarterly modes of payment of premium. For monthly mode,
the days of grace will be 15 days.
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SBI LIFE
LIFELONG PENSION
GURANTEED RETURNS
Guaranteed Returns On top of a guarantee of the principal corpus, our plan gives a
minimum guaranteed return on the savings. LIFELONG Pensions guarantees you a
minimum return of 4% per annum during the first seven years of your subscribing to
the Pension Plan and the return is compounded annually (Till 31-March-2010). In
addition, you will be entitled for any annual bonus that might be declared by SBI Life
every year based on the net surplus from the pension fund investments. SBI Life
would announce the minimum rate from time to time, so that at any point of time
there is a minimum guaranteed rate that your retirement savings will accumulate with
us.
On top of a guarantee of the principal corpus, our plan gives a minimum guaranteed
return on the savings.
TAX SAVING
All contributions you make under our Pension Plan qualify for tax exemption under
Section 80 CCC (1) of the Income Tax Act(1962) up to the ceiling level permitted
(currently Rs.10,000 per annum). The deduction is available to everyone irrespective
of the tax bracket they come under
ELIGIBILITY
Any person between the age of 18 to 65 can subscribe to this unique Pension plan.
PREMIUM
The pension Account Holder can invest any amount of regular contribution towards
retirement savings, with a minimum of just Rs. 3,000 per year. He/She can increase or
lower the annual contribution during his/her working life, subject to this minimum
amount.
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PERSONAL PLUS
PREMIUM
Pension Plus is a regular savings personal pension plan.
ELIGIBILITY AGE
It can be purchased for any life between 18 to 65 years of age.
VESTING AGE
The minimum age at maturity is 50 years and the maximum age at maturity is 70
years.
MINIMUM PREMIUM
The minimum annual premium is Rs. 6,000.
TERM
The minimum policy term is 5 years.
PREMIUM TOP-UPS
You have the flexibility of increasing your regular premiums (minimum increase of
Rs. 1,000).
However, regular premium once increased cannot be reduced.
CHANGE OF VESTING AGE
You have the option of increasing the policy term through a written communication at
least three months prior to the maturity date. The minimum increase allowed in the
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policy term is one year. This option can be exercised only once during the term of the
policy.
OPTION OF RETIAINING THE POLICY
You also have the option of retaining the policy (after the expiry of the policy term)
with the Company by converting it into a paid-up policy till you attain 70 years of
age.
UNIT PURCHASE
The premium you pay is used to purchase units at their current price on the date of
allocation. You earn investment returns through increases in unit price.
INVESTMENT OPTIONS
Pension Plus offers two investment fund options
LUMSUM INVESTMENT
Pension Plus also offers you the flexibility of making lump sum investments through
additional single premiums, apart from the regular premiums, as often as you require
over the duration of the policy. These increase the savings value of the policy besides
maximizing tax benefits.
The minimum lump sum investment through additional single premium is Rs.
10,000/- at present but may vary subject to reviews by the Company.
The additional single premium units can be surrendered only on full surrender of the
policy.
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RESERCH METHODOLOGY
Marketing Research
Managers need information in order to introduce products and services that create
value in the mind of the customer. But the perception of value is a subjective one, and
what customers value this year may be quite different from what they value next
year. As such, the attributes that create value cannot simply be deduced from common
knowledge. Rather, data must be collected and analyzed. The goal of marketing
research is to provide the facts and direction that managers need to make their more
important marketing decisions.
To maximize the benefit of marketing research, those who use it need to understand
the research process and its limitations.
Marketing Research vs. Market Research
These terms often are used interchangeably, but technically there is a difference.
Market research deals specifically with the gathering of information about a market's
size and trends. Marketing research covers a wider range of activities. While it may
involve market research, marketing research is a more general systematic process that
can be applied to a variety of marketing problems.
The Value of Information
Information can be useful, but what determines its real value to the organization? In
general, the value of information is determined by:
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FINDINGS
1. The awareness of BAJAJ ALLIANZ LIFE INSURANCE CO. among
the people in Bareilly is of a large ratio, Approximately 79% of the
people surveyed knew about the Company. This is shown by the
following chart:-
2. People, who are aware of the company, are mainly through the
Companys representative or some other channels. Hardly anyone
recognizes the company through advertisements. This is as shown
below:-
3. Nearly 83% of the people surveyed have taken a life insurance policy
for themselves and their family but most of them prefer LIC to various
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5. 28% of the people who knew about the company are satisfied with the
services offered by the company as shown below:-
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Trustw orthy
Non Trustw orthy
Can't say
88%
yes
45%
no
55%
8. The most preferred media chosen by most of the people is television as they more
deeply come to know abt the features of the product through it.
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8%
24%
Television
48%
Radio
New spaper
MNYL Representative
20%
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SWOT ANALYSIS
S Strength
W Weakness
O Opportunity
T- Threat
1. STRENGTHS:
A hard nut to crack:
To manage such a big organization, is really a tuff work and the officials and
the departmental heads have well managed it.
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NO pain, no gain:
The various department heads and the other officials are doing great efforts
and hard work for the improvement of the organization and facing the
competition.
2. WEAKNESS:
A little knowledge is dangerous than no knowledge:
Some people working over here are not fully aware of the working of the
organization and hence they always have to consult each other on even the
smallest matters.
3. OPPURTUNITIES:
A drowning man catches on a straw:
It gets a good level of assistance from the superiors as well as other staff
members when they try to provide some help in the matter which are not meant
to be handled, by one own self.
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4. THREATS:
Rotten apples injure their companions:
Some people are lethargic and due to lack of strict supervision, they sit as much
as they can and do nothing.
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CONCLUSION
It is clear from the above study that insurance business is mushrooming
in the country. Today there are number of insurance companies offering
different insurance plans with different added advantages. LIC is leading
company in the insurance business in India with a market share of
51.44% followed by BAJAJ ALLIANZ with a market share of 11.27%.
By having a deep analysis of comparison of various pension plans, I do
conclude that although all the companies have kept the best insurance
plans with almost equal benefits. And it is somewhat difficult to
distinguish
But still if I have to distinguish , I will say the best pension plans are of
lic and bajaj allianz. Although ICICI PRUDENTIAL plans also seem to
be attractive for the customer.
But the another most attractive plan of BAJAJ ALLIANZ is there which
is giving allocation up to 98% in case of top ups and its pension plan
named NEW UNIT GAIN EASY PENSION PLAN is a regular premium
(fixed premium payment term) investment linked deferred annuity policy
without life cover.
Available as Regular and Single Premium Option.
and also offers
Choice of 5 investment funds viz Equty Index, Equity Plus, Balanced
plus, Debt plus & cash plus fund
Whereas Birla Sun Life is offering a policy of minimum amount of
Rs.75,000/- as compared to minimum insurable sum of Rs.50,000/98
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offered by ICICI Pru and Allianz Bajaj at the same time Birla Sun
Life is also guaranteeing a minimum return of 3% p.a. on your
premium net of all policy fees and charges. Analysis shows that all
the insurance companies taken into study are providing almost
equal benefits.
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RECOMMENDATIONS
BAJAJ ALLIANZ should reduce its minimum policy payment in the first
installment.
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BIBLIOGRAPHY
WEBSITES
www.allainzbajaj.com
www.iciciprulife.com
www.hdfcstandardlife.com
www.icicibank.com
www.bimaonline.com
www.licindia.com
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