SUMMER TRAINING ON

ANALYSIS OF CUSTOMER PERCEPTION ABOUT PENSION PLANMETLIFE

Undertaken at

METLIFE INDIA INSURANCE CO.PVT.LTD

Submitted in the Partial Fulfillment of the requirements For the degree of

MASTER OF BUSINESS ADMINISTRATION

Under the supervision of: Dr.BHARAT BHUSHAN

Submitted by AMIT KUMAR

SESSION 2006-2008

MR DAV INSTITUTE OF MANAGEMENT STUDIES

(Approved by A.I.C.T.E., Govt. of India & Affiliated to M.D. University, Rohtak) 5. K.m. Stone, Sonepat Road, ROHTAK-124023

MR DAV INSTITUTE OF MANAGEMENT STUDIES

(Approved by A.I.C.T.E., Govt. of India & Affiliated to M.D. University, Rohtak) 5. K.m. Stone, Sonepat Road, ROHTAK-124023 ________________________________________________________________ Ref No Dated

DECLARATION
I AMIT KUMAR Roll No. ______________Class M.B.A of the MR DAV Institute of Management Studies, Rohtak here by declares that the Summer Training Report entitled ANALYSIS OF CUSTOMER PERCEPTION ABOUT PENSION PLANSMETLIFE 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 suggestion as approved by the faculty were duly incorporated.

Signature of supervisor (Dr .BHARAT BHUSHAN)

Signature of the student (AMIT KUMAR)

Counter Signed Principal of the Institute

Acknowledgement

I am grateful to Mr. AKASH DAHIYA, Agency manger, MetLife India Insurance Pvt Ltd. (Gurgaon), for providing me with valuable opportunity to apply the theoretical concepts of marketing of the financial services to practice at Gurgaon Branch. I express my wholehearted thanks to Mr.Abhinav Sharma, S.M., at Gurgaon Branch for helping me shoulder the responsibility of a valuable marketing exercise at this Branch. I feel highly obliged for her effort in guiding me and for her patience in answering my queries during the course of the project. I also extend my sincere thanks to my faculty guide, Dr. Bharat Bhushan, Co-ordinator MRDAV, ROHTAK for the encouragement, guidance and hours they invested with me to make the project a success. My sense of gratitude extends to the complete METLIFE INDIA INSURANCE PVT LTD. family at Gurgaon, and my clients without whose indulgence the project wouldnt have seen the light of the day.

AMIT KUMAR ROLL NO. 1802 MBA FINAL

PREFACE
Practical training constitutes an integral part of the management studies. Training gives an opportunity to the students to expose themselves to the industrial environment, which is quite different from the classroom teachings. The practical knowledge is an important suffix to the theoretical knowledge. One cannot rely merely upon theoretical knowledge. It has to be coupled with practical for it to be fruitful. Classroom lectures make the fundamental concept of management clear but not their application in actual practice. Positive and correct results of the classroom learning need realities of the practical situation. It thus enables the students to undergo those experiences, which will help them later when they join any organization. It is in this sense that practical training in company has a significant role to play in the subject of financial management for developing managerial and administrative skills in the future finance managers and to enhance their analytical skills. After liberalization the Indian economic sense is changed because of Multi National Companies continuously coming with their technical expertise and proven management concepts. Industrial activity in India has become a thing to watch and I really wanted to be a part of it and it is essential for me being a finance student. I consider myself lucky to get my summer training in Indias largest INSURANCE COMPANY METLIFE INDIA INSURANCE CO. PVT. LTD. I underwent seven weeks of training at gurgaon branch of METLIFE. It really helped me to get a practical insight into the actual business environment and provide me an opportunity to make my financial management concepts more clear.

CONTENTS
Page No.
CERTIFICATE DECLARATION ACKNOWLEDGEMENT PREFACE CHAPTER-1 CONCEPTUAL FRAMEWORK & COMPANY PROFILE 1.1 Life Insurance. 1.2 Company product 1.3 Pension Plans. 1.4 Company Profile. CHAPTER-2 OBJECTIVE AND RESEARCH METHODOLOGY 2.1 Objectives of report. 2.2 Research methodology. a) Research Design. b) Sample Size. c) Data Collection. d) Limitation of study CHAPTER-3 CHAPTER-4 ANALYSIS AND INTERPRETATION IMPLICATION & CONCLUTION BIBLIOGRAPHY 40-41 42-43 6-12 13-15 16-31 32-39 1 2 3 4

44-52 53-55 56-57 58-60

APPENDICES Questionnaire

INTRODUCTION OF LIFE INSURANCE

Introduction to Life Insurance

According to the U.S. Life Office Management Inc. (LOMC), "Life Insurance provides a sum of money if the person who is insured dies whilst the policy is in effect." Life insurance has come a long way from the earlier days when it was originally conceived as a risk-covering medium for short periods of time, covering temporary risk situations, such as sea voyages. As life insurance became more established, it was realized what a useful tool it was for a number of situations that includes temporary needs/threats, savings, investment, retirement etc.

History of Life Insurance

Life insurance made its first appearance in England in 16th century. The first registered life office in England was the hand in hand society in 1696. The famous 'Amicable Society' for a perpetual assurance office started its operation since 1706. Life insurance did not prosper in the United States during the 18th century, because of serious fluctuations in death-rate.

Life Insurance in India

In India some Europeans started the first life insurance company in Bengal Presidency, viz., The Orient Life Insurance in 1818. The Year 1870 was a year of land mark in the history of Indian Insurance separating the early period of pioneering attempts at life insurance from the subsequent period of steady development at the establishment of Indian life office, viz., Bombay Mutual Life Assurance Society in 1871.

Up to end of 19th century, the insurance was in the incept ional stage. Therefore no legislation was required till that usually the Indian Company Acts 1883 was applicable. Since 1956, with the nationalization of insurance industry, the state run Life Insurance Corporation of India (LIC) has held the monopoly in India. Then comes the LPG (Liberalization, Privatization and Globalization) that paved entry of Private and Foreign Life Insurance players in India during the late 90's and earlier 2000's. Currently India and China are the most lucrative insurance markets in the world. They constitute the home of half of the population of the world and their recent rapid economic development makes them attractive for foreign investment. The share of life insurance premium to GDP of India was 1.29 percent, which is abysmal in the global standard. Despite these opportunities, however, there is also a rough ride ahead for the new players in India. This is because, unlike in the West, insurance is sold more as an instrument of savings in India than as a product offering for protection and security. LIC's 1996 insurance survey reveals that more than 40 percent of insurance-buyers look at insurance products as a means of savings. Risk coverage is only a secondary objective for them and nearly 26 percent of the insurance policies sold are on considerations of old age security. Only 18 percent of insurance policies are sold on death risk considerations. considerations.

Foreign Direct Investment (FDI) Policy in Insurance Sector

As per the current (Mar 06) FDI norms, foreign participation in an Indian insurance company is restricted to 26.0% of its equity / ordinary share capital. The Union Budget for fiscal 2005 had

Recommended that the ceiling on foreign holding be increased to 49.0%. However, the matter is still under discussions. All life insurance companies have to comply with the strict regulations laid out by IRDA. Therefore there is risk in going in for private insurance players.

Even if Life Insurance Corporation of India (LIC), the state owned behemoth is the largest player in the market, the private companies are coming out with better products, which are more beneficial to the customer. Among such products are the ULIPs or the Unit Linked Investment Plans which offer both life cover as well as scope for savings or investment options as the customer desires. Further, these type of plans are subject to a minimum lock-in period of three years to prevent misuse of the significant tax benefits offered to such plans under the Income Tax Act. Hence, comparison of such products with mutual funds would be erroneous.

The maximum commission limits as per statutory provisions are:

Agency commission for retail life insurance business:

35 - 40% for 1st year premium if the premium paying term is more than 20 years 25 - 30% for 1st year premium if the premium paying term is more than 15 years 10 - 15% for 1st year premium if the premium paying term is less than 10 years 7.5% - yr 2 and 3rd year and 5% - thereafter for all premium paying terms.

In case of Mutual fund related - Unit linked policies it varies between 1.5% to 60% on the premium paid.

Agency commission for retail pension policies:

7.5% for 1st year premium and 2.5% thereafter

Maximum broker commission - 30%

Referral fees to banks Max 55% for regular premium and 10% for single premium. However in any case this fee cannot be more than the agency commission as filed under the product.

However, the above commission may be further subject to the product wise limits specified by IRDA while approving the product.

This entry is from Wikipedia, the leading user-contributed encyclopedia. It may not have been reviewed by professional editors (see full disclaimer)

Features of Indian insurance industry:

Low market penetration Ever-growing middle class component in population. Growth of consumer movement with an increasing demand for better insurance products. Inadequate application of information technology for business Adequate fillip from the Govt. in the form of tax incentives to the insured

Insurance Regulatory and Development Authority (IRDA)

The regulatory body for insurance IRDA has been established with the following mission: "To protect the interests of the policy holders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto."

Market Potential For Private Life Insurance Companies In India

It has been found out that: * 85 percent of the Indians prefer LIC than any other insurance companies. * 'Prevention of Loss', 'Assured Returns' and 'Long term Investment' are the important factors influencing Indians in opting for Life Insurance * Only few of the Indians are aware of private life insurance companies. * Most of the Indians are of the opinion that private insurance companies would be able to perform well in the long run. * Most of the Indians are interested in 'Money back' policies than others * Most of them are interested in insuring for an amount of Rs. 1- 2 lakhs * There is significant relationship existing between monthly household income and amount insured * Based on the monthly household income, Indians prefer to their investment needs like bank deposit, post office schemes, real estate, insurance, gold, chit funds, shares etc. Agents are mostly responsible for selling insurance products in India

Private Players in Indian Life Insurance

The major players in Indian life insurance sector include: * Allianz Bajaj Life Insurance Company Ltd., * Aviva Life Insurance Co. India Pvt. Ltd., * AMP SANMAR Assurance Company Ltd., * Birla Sun Life Insurance Company Ltd., * HDFC Standard Life Insurance Company Ltd., * ICICI Prudential Life Insurance Company Ltd., * ING Vysya Life Insurance Company Private Ltd., * Life Insurance Corporation of India * Max New York Life Insurance Co. Ltd., * MetLife India Insurance Company Pvt. Ltd., * Om Kotak Mahindra Life Insurance Co. Ltd., * SBI Life Insurance Company Ltd., * Sahara India Insurance Company Ltd., * Tata AIG Life Insurance Company Ltd.,

The market share for LIC is 60 percent and other players share only the remaining 40 percent.

COMPANY PRODUCT

Product Details
No one can give you all the answers when it comes to dealing with life's ups and downs. But we can certainly equip you to deal with life better. Please find below the various products offered by MetLife to suit your specific need:

Accumulation Whole Life Policy

Met 100- Limited Pay Whole life Non - Participating Met 100- Limited Pay Whole life Participating MET Suvidha Met Sukh Money Back Non Participating Met Bhavishya

Endowment Policy

Money Back Policy

Multi Purpose Met Smart Plus

Met Smart Premier Met Smart Plus - Single Pay Met Smart Premier - Single Pay

Protection Met Suraksha - TROP

Met Suraksha - TA Met-Mortgage Protector SP/Limited pay (MRTA)

Retirement

MET Pension - Participating Deferred Annuity MET Advantage Plus

Add Ons Accidental Death Benefit (ADB)

Term Rider Waiver Of Premium

PENSION PLAN

PENSION PLAN

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. This article takes a closer look at pension plans and the role they play in the individual's retirement planning exercise.

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

Maturity Maturity amt amt Annual (@6%) (@10%) premium (Rs) (Rs) (Rs) 13,500 960,000 1,590,500

Sum assured Tenure Age (Yrs) (Rs) (Yrs) 30 500,000 30

Actual rate of return (%) 5.10 Annuity amt (Rs) 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).

Difference between conventional life insurance plans and pension plans

There are some fundamental differences between life insurance plans and pension plans, with the objective behind both of them, being the most important. Life insurance 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.

Spot the difference

Conventional insurance plans

Pension plans

Maturity payouts

Only up to one-third of the maturity amt can be withdrawn. Remaining 2/3rd amt Full maturity amount received by has to be compulsorily invested in an the individual annuity. Nominees/ beneficiaries have the option of receiving either the entire maturity amt or Full maturity amount received by investing up to 2/3rd of the amt in an the nominees/ beneficiaries annuity. Deduction up to Rs 100,000 Deduction up to Rs 10,000 available under available under Section 80C Section 80CCC.

Death benefits

Tax benefits

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

Stream of income

1. Maturity payouts In case of conventional insurance plans, the individual receives the entire corpus on maturity. However, in case of 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 amounts 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 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.

Retirement Planning

There's a day in all our lives that we look forward to with anticipation and some anxiety too the first day of retirement. A time when finances are crucial. A time when you want to be sure that you are financially independent and secure. MetLife has comprehensive plans that allow you to build a fund to enjoy financial security on retirement Enjoying Retirement THERE MAY BE SOME GLORIOUS DAYS AHEAD - THE DAYS OF YOUR RETIREMENT. No longer confined to the rigors of the professional world, you can spend your time doing what you want to do. Don't, however, expect everything to fall magically into place. Like most things in life, you'll get the most from retirement by planning. Start by thinking about how you will replace your work routine with a retirement routine. Before the last day on your job, have an idea of how that first day of retirement will be filled. You don't want to start this new phase of your life wondering what you'll do. Take some time to think about your lifestyle and how you're going to adapt. If getting up early for work has

always been drudgery, plan for a leisurely beginning to your day. If sitting at a desk all day was against your nature, now is the time to let your active self take over. Just remember, you don't have to rush like you did to catch the train or beat the traffic! The goal is to get the most out of a precious resource - your time.

New Choices Ask yourself some important questions: What do you like to do? Were there things you longed to do but didn't have time for when you were working? These are the activities you should begin building your retirement days around. In a way, these new activities may now be your job and can provide you with the most satisfaction. Here are just a few ideas to get you started:

Education. Early in life, schooling involves acquiring skills, so maybe you've never had the opportunity to study something just for the sheer joy of learning. Go to the library and develop a list of books you've always wanted to read, and then dig in.

Outdoor activities. Cooped up in an office, factory or other building all day, you may have longed to spend more time outdoors. Turn your garden into the show place you know it can be. Go fishing or take up bird watching. Whatever your interest in the outdoors, enjoy it.

Hit the road. Now you have the time to indulge your wanderlust. Make a list of the places you want to go, and make vacation planning your hobby when you're not roaming.

Handwork. Woodworking, needlework and painting are just a few hands-on hobbies. To do them well takes time, something you had little of when you were working. Now you can perfect your craft. Make a place at home where you can work with your hands to your heart's content.

Speak out. If an interest in politics and government has always played second fiddle to your career, give it first place now. Whether you run for elections, work on someone else's pre-election campaign or keep tabs on legislations that affect you, find a way to get involved.

Pet pleasure. Perhaps you're someone who enjoys pets, and now that you have more time on your hands, you could provide a good home for a dog, cat, bird or fish. If you have the space and the desire, caring for a pet can be a rewarding experience. Pets can be loyal companions and have positive effects on your well being.

To Work or Not to Work You may find that you want to go back to work - but this time on your terms. Work has its own rewards-the regular contact with people, the feeling of being needed, the knowledge that you're contributing - and you may find that there's still a place in your life for work. You may even be able to continue with your previous employer, perhaps as a consultant or a part-time employee with valuable knowledge gained over the years. It may seem strange to think about reentering the work force just as you're leaving it, but many people find that, without the pressure to earn a paycheck, work can actually be enjoyable. Others find that they're able to take a job they've always wanted, even though the pay isn't so great. Some take jobs that dont pay at all, deciding volunteer work is the best way to use their retirement hours.

Volunteering allows you to use your life experiences, skills and talents to help others in your community. There are numerous organizations that need help. If you decide to volunteer, choose something you enjoy and are familiar with; that way, you'll be volunteering some time while dealing with people who have interests similar to yours. Other possibilities include local hospitals, schools or religious organizations.

To Your Health While you're planning your new lifestyle, be sure to consider your health. Start by thinking about your exercise routine. Don't have one? Design one that's right for you! Moderate exercise is necessary to help maintain your health. While you were working, the demands of your job may have helped to keep you physically fit. If you had a regular exercise routine, your work schedule probably helped keep you on track. Now those sources of motivation are gone and you may need to find a way to make sure you don't become a "couch potato." Just as important is your diet. Again, your three square meals a day may have revolved around your work schedule. With a relaxed schedule, you may find your eating habits relaxing a little, too. Just being aware this can happen may help you avoid it: Make a point of eating right by taking time to prepare healthful meals that are low in fat and high in nutritious foods such as fruits, vegetables and grains. Before you retire, get a thorough checkup from your doctor. Have your eyes examined and your teeth cleaned and checked, too. Scheduling these visits while you're still employed allows you to take advantage of your health insurance. After you retire, you may have less coverage. If you have to get new or supplemental health insurance, your rates and coverage will be affected by your current health situation. Think of the long term, too. Your health is likely to change over time, and there are a variety of illnesses you're more prone to with age. So, don't forgo regular preventive health visits, particularly for blood pressure and cholesterol level checks. Talk to your doctor about your

family's health history and the likelihood that you'll develop a problem. Ask about the symptoms you should watch out for, and, of course, get medical help whenever necessary. Also, take a close look at your insurance situation and decide whether you need extra insurance. Choosing a supplemental health policy can be complicated. Do your homework, shop around and don't allow yourself to be pressured into a quick decision.

Home Sweet Home At some point you may want to evaluate housing alternatives for your retirement. Start by asking yourself how well your current home works for you. If you own your home, think about the size of the house and property and the amount of upkeep required. Many folks have paid off their loans by the time they retire, but others have not, so think about the expense of maintaining your home. Look ahead and consider how well this home will meet your future needs. If, for example, you're finding it difficult to climb stairs in your two-story, it may be time for a move. But before heading off for a change of scenery, think about how far you would be from family and friends. Most retirement experts advise staying close to loved ones, if not under the same roof. Remember, your life is going to change with retirement, so keeping your relationships in place gives you a good support system to help you deal with the change. Whats more, if you could work out a joint family with your children nothing like it.

Joint family vs. Nuclear If you are reading this now, it is quite probable that you are from that generation where the joint family system was held at high esteem. However, with the changing times and the career-oriented focus of the younger society, you will have to decide on your own whether you will be able to handle a joint family. Here are some pros and cons:

In a joint family, as elders you do not have to worry about your security or ill-health your children will be there to take care of you You could alternate as a life guide to your grandchildren - in turn they will shower you with love and affection all the way

You could cut down on the expenses otherwise inevitable, if you choose to live away from your children

Of course, the only con might be your state of mind - how far can you adjust to your new role

Get Your Financial House in Order Without adequate financing, many of your retirement dreams may remain just that - dreams. So before you finalize retirement plans, you may want to consider professional assistance. To get a complete picture of your financial resources, pensions, savings and any other investments in your equation. Then talk to a professional about how best to allocate those resources and get an idea of how much income your investments will generate. Also, if you're expecting a lump-sum payment from your provident fund or gratuity, be prepared to make the choice as to how you will handle it Evaluate the costs of the retirement lifestyle you envision. Think about added expenses-for example, health insurance if your retirement plan doesn't provide it. And be sure to figure in taxes - unfortunately, they don't stop just because you stopped working. Think of this

exercise as a reality check. You're sure to feel more comfortable with the retirement decisions you make after doing the math. Happy days ahead!

MET Pension - Participating Deferred Annuity

Suitability The plan is suitable for those who want

Financial security after retirement Tax benefit throughout the premium paying term Multiple premium paying option

Salient Features

MET Pension is structured as a participating endowment and a participating immediate annuity.

Save up to Rs 33,660 in tax for every year of premium payment subject to conditions given under income tax 1961 (* For person having a taxable income of above Rs. 10 lakhs).

Choose from various premiums paying term namely single, limited (3 year and 5 years) and regular pay. A one-time lump sum addition equal to 10% of the face amount is payable along with the maturity proceeds. Withdraw up to 33% of the annuity amount tax-free and chose to buy an annuity with the balance amount from not only MetLife but also any other insurance company. MetLife gives you only one annuity option namely - Life annuity. The plan is a Participating one.

No Bonus is payable for first two policy years. Thereafter a bonus as declared by the company will be credited as reversionary bonus on the policy anniversary. Company may also declare terminal bonus. Reversionary Bonus: It is an insurance amount in addition to the face amount. If declared and vested, the reversionary bonus is payable, together with the face amount, on death of the insured person or maturity of the policy. The bonus will be credited at rates as declared by the company, on the policy anniversary. Terminal Bonus: if any, would be a % of accrued reversionary bonus, which becomes payable on maturity or on death, if it occurs after the 10th policy anniversary. Both Reversionary and Terminal Bonus are not guaranteed as they are based on the company's actual investment returns, mortality, persistency and expense experience

The Premium modes available are: Annual, Semi-Annual, Quarterly, Monthly and Payroll Savings Program (PSP).

Benefits

Death Benefit

Endowment phase: In case of the death of the policy holder during the endowment phase, there will be return of premium plus reversionary bonus if any Immediate annuity phase: There will be no death benefit during the annuity phase for the beneficiary of the policy

Maturity Benefit

The amount of maturity benefit at the end of the endowment phase is equal to the face amount plus guaranteed addition plus attached reversionary bonuses, if any plus terminal bonus, if any.

1/3 of the maturity benefit will be paid out to you as a lump sum, tax-free. The balance must be used to convert into a life annuity either with MetLife India Insurance or with any other insurance company offering annuities.

The following options are available for MET Pension:

Single Pay. 3 year limited pay. 5 year limited pay. Regular Pay.

Illustration Mr. Ajay is a 27-year-old man working in an IT company in Pune having annual Taxable Income 6 lakhs. He buys a Met Pension policy with a sum assured of Rs 5, 00,000. He

chooses a vesting age (retirement) of 55 years. This vesting age would be the age when the annuity would start. The total premiums paid would be Rs 18,550/-. Illustrated (Returns Illustrated (Returns at 3%) 519,000 1,215,040 at 6%) 519,000 2,590,895

Guaranteed Total Premium Paid (Rs.) Total Maturity amount at vesting (Rs.) Amount receivable under Life Annuity *(Rs. p.a.) 519,000 550,000

18,920

41,797

89,127

What You Pay Annually Annual Premium Paid on Basic Policy (Rs.) Annual Tax Savings u/c 80CCC (Rs.)** 18,550 5,676

Net Annual Premium if tax savings are considered (Rs.) 12,874 * The Annuities calculations shown in the table below are based on the current annuity rates and the assumptions taken in the benefit illustration. The Annuity shown in the table are indicative and are not guaranteed. ** If the Annual Taxable Income is more than Rs. 10,00,000 then the tax savings will be 33.66% of the amount eligible under Section 80CCC, else 30.60% /20.40% /10.20% Note : From the assessment year 2006 - 07, deduction under Sec 80 C, 80 CCC and 80 CCD cannot exceed Rs,1,00,000.

Other Conditions

Minimum Entry age: Age 18 years last birthday

Minimum age for vesting age (retirement): Age 45 years last birthday Maximum age for vesting age (retirement): Age 70 years last birthday Minimum Face amount: Rs. 50,000 Minimum premium Amount: Annualized premium of Rs. 4,000 (not inclusive of the Rider Premium) Minimum policy term of 10 years

Exclusions

In the event the Insured committing suicide, whether sane or insane at that time, within one year from the effective date of insurance cover or the date of the Policy or the date of the last reinstatement whichever is later, the benefit is restricted to the extent of refunding the premium(s) received without interest, if any, less any expenses incurred by us.

Company Profile

MetLife
With over 137 years of experience, the MetLife companies serve millions of customers in the Americas and Asia with one goal in mind to build financial freedom for everyone. The MetLife companies are a leader in-group benefits that serve 88 of the top one hundred FORTUNE 500* companies, and provide benefits to 37 million employees and family members through its plans sponsors in the U.S. The MetLife companies are also ranked #1 in-group life and #1 in commercial dental in the U.S. The MetLife companies are the number one life insurer in the U.S. with approximately US $2.8 trillion of life insuranceinforce. In India, MetLife was incorporated in 2001, and aims to differentiate itself through customized need based selling, simple and innovative products, and technology-backed service experience, to tread its path to build financial freedom for everyone.

Why I need Insurance

Life Insurance is a contract by which you can protect yourself against specific losses by paying a premium over a period of time. Since each one of us, during our lives are faced with numerous risks failing health, financial losses, accidents and even fatalities, our instinct drives us to cover ourselves against those risks. Though an insurance cover cant protect you against the emotional losses arising out of these risks, it softens the economic crisis that usually accompanies these losses. Life Insurance gains much more value if you are a nuclear family. Unlike in the traditional joint family system, in a nuclear family, support from the extended family cannot be counted upon. So it is vital that you have an insurance cover as the protective shield against unfortunate losses.

And its not only your life you could insure against those risks. With the Insurance Industry going through positive changes in the last few decades, now, you have a variety of risk coverage options. For instance, products in the market range from whole life insurance to covering risks associated with home loans. Whats more, now you could choose life insurance as an investment option, the returns of which you can enjoy at the most critical phases of your life for instance, at the time of your childs admission into one of those dream institutes. And the insurance industry is constantly evolving. So, you now have a wider option of insurers presenting you with products that not only cover those risks, but also act as wealth accumulation or investment avenues, which, you should definitely avail of. Whether you are new to insurance, or an informed customer, you could always get valuable information from us. We have attempted to cover this site with some comprehensive information on life insurance. However, do not hesitate to leave a note for our Financial

Advisors. Not only they could provide you with the additional information you might be looking for, they can also help you assess your life insurance needs and invest wisely Insurance is defined as a cooperative device to spread the loss caused by a particular risk over a number of persons who are exposed to it and who agree to ensure themselves against that risk. Risk is uncertainty of a financial loss. The insurance is also defined as a social device to accumulate funds to meet the uncertain losses arising through a certain risk to a person injured against the risk.

Mission / Vision / Values

Our Vision and Mission Build financial freedom for all through leadership in providing financial advice and building long-term relationships through innovative protection, accumulation and retirement products, robust underwriting processes and creating world-class customer service experience for our customers. We want to provide customers in India with world-class solutions for financial security, and in the process add significant value to our shareholders, associates and society.

Our Core Values

We lead through Innovation to offer world class and competitive products to our customers We build Long Term Relationships with our customers by creating a world class service experience through operational excellence and the innovative use of technology

We create a Customer Centered and Result Focused Vision that inspires each one of our Associates and has their buy-in We are committed to creating a High Performance Organization by creating an environment that allows each one of our Associates to perform at their peak. As a result we will also be recognized as an Employer of Choice

We are committed to Partnering with our internal and external Customers for mutual success We work with Integrity, Fairness and Financial Prudence in all our dealings keeping the interests of our Shareholders, Customers and Associates paramount

Corporate Partners
As the vital channel for MetLifes products, we have chosen some exemplary banks and financial institutions. These will serve as the interface between our customers and us to aid us understand the unique needs and aspirations of every Indian. And update our products with features that form the cornerstones of financial freedom.

J&K Bank UTI Bank Dhanlakshmi Bank

Karnataka Bank

Vision:
To make METLIFE the dominant Life and Pensions player built on trust by world-class people and service. This we hope to achieve by:

Understanding the needs of customers and offering them superior products and service Leveraging technology to service customers quickly, efficiently and conveniently Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to our policyholders Providing an enabling environment to foster growth and learning for our employees And above all, building transparency in all our dealings.

The success of the company will be founded in its unflinching commitment to 5 core values -- Integrity, Customer First, Boundaries, Ownership and Passion. Each of the values describe what the company stands for, the qualities of our people and the way we work. We do believe that we are on the threshold of an exciting new opportunity, where we can play a significant role in redefining and reshaping the sector. Given the quality of our parentage and the commitment of our team, there are no limits to our growth.

Management
Rajesh Relan Managing Director Chandar Chellani Officer, Agency Sales KP Sharma Appointed Actuary Sameer Bansal Deputy Director, Bancassurance & Business Partnership P Sankaran Deputy Director, Business Support

MS Suresh General Manager, Employee Benefits KR Anil Kumar Chief-Planning and Financial Controller KS Raghavan Director, Information Technology Pankaj Raj Deputy Director, Marketing Vijay Raghavan Deputy Director, Strategic Initiatives & Business Transformation

GROWTH RATE IN INSURANCE INDUSTRY 2005 Pvt. Sector insurance growth rate (Premium) LIC growth rate (Premium) Industry growth rate (Premium) MetLife India growth rate (Premium) 84% -2% 17% 128 % 2006 98% 121% 113% 136 %

MetLife Presence Branches Cities

2006 42 30

2007 161 112

2008 191 135

J& K H P U L CH HA A Delhi R UP RA J
C S HA TI

SIK K BIHA R JKN D OR I

GU J MA H
Mumb ai

M P

ACHAL PRA ASSA M NAG ME A MAN G TR I I Kolkat W MI a B Z

Hyderabad

KA R
Bangalore

A P

Chennai

Kochi

OBJECTIVES & RESEARCH

METHODOLOGY

OBJECTIVE OF REPORT

1. To examine the costumer awareness and perception about pension plan provided by insurance company. 2. To evaluate marketing practices adopted by METLIFE about pension plan policy.

RESEARCH METHODOLOGY
RESEARCH METHODOLOGY Research Methodology means the procedure for conducting a systematic and planned approach to carry out research project for the purpose of achieving the objectives. A useful research is, therefore, compelled to follow certain scientific rules or steps and stipulation, planning and executive the research.

The content of research methodology are stated below:

a)

RESEARCH DESIGN: The research is exploratory in nature. The design of research is exploratory also termed, as formulative research. The major emphasis was a discovery of ideas and insights.

b) SAMPLE SIZE AND TECHNIQUES: The sample size is

50 policyholders on the basis of Convenience sampling.

c) DATA COLLECTION: To get required information data collected is primary and secondary. PRIMARY DATA: The primary data is collected through survey method. By the instruments structured questionnaire and personal interviews. SECONDARY DATA: Secondary data is collected through websites, journals, and magazines.

LIMITATION OF STUDY
Time is very limited.

Sometime respondents dont want to disclose some relevant information.

Another limitation was that some staff members were either reducing or hesitated to provide the required information.

Another limitation was lack of professional knowledge. The trainee being a student may not be able to analyses the data as a professional could do.

ANALYSIS & INTERPRETATION

Question 1: Are you satisfied with the plan being provided to you by METLIFE? 1) Satisfied 2) Not satisfied -46 -4

8%

satisfied unsatisfied

92%

INTERPRETATION In this question 46 respondents are satisfied with the plan provided by METLIFE while 4 of the respondent are unsatisfied by the services.

RESULT: Greater number of plan holder is satisfied. Question 2: Do you feel the timings to avail this plan is right. 1) Satisfied -47

2) Unsatisfied -3

50 40 30 20 10 0 satisfied unsatisfied Series1

INTERPRETATION In this question 47 respondents are satisfied with the timings for availing the plan while 3 are unsatisfied. RESULT: Ample number of plan holders is satisfied.

Question 3: Are you satisfied with the METLIFE agents dealing with this pension plan? 1) Satisfied -44

2) Unsatisfied -6

12%

satisfied unsatisfied

88%

INTERPRETATION In this question 44 respondents are satisfied with the dealings of the agents of METLIFE While 6 of the respondents are unsatisfied with the dealings and behavior of agents. RESULT: Mostly plan holders are satisfied.

Question 4: Do you feel that this service of plan is really beneficial for you? 1) Beneficial -44

2) Not beneficial -6

50 40 30 20 10 0 benificial not benificial Series1

INTERPRETATION In this question 44 of the respondents have responded that this services is really beneficial while 6 of the respondents are unsatisfied with this services. RESULT: Majority has responded that the services are really beneficial.

Question 5: Do you require any constant updates or guidance related to this Pension plan.

1) Required 2) Not required

-23 -27

27 26 25 24 23 22 21 required not required Series1

INTERPRETATION In this question 23 of the respondents required updates of plan while 27 of the respondent dont require. RESULT: Mostly plan holders dont require it.

Question 6: Are you being provided any extra facility with this plan? 1) Having full knowledge 1 2) Having part knowledge 8 3) Having no knowledge-1 4) Not commented -40

40 35 30 25 20 15 10 5 0 Having full knowledge

Series1

Not commented

IERPRETATION In this question only 1 respondent had full knowledge about the extra facilities while 8 are having part knowledge only, 1 of them had no knowledge and 40 are not commented upon. RESULT: Ample number of respondents has not commented.

Question 7: Is the METLIFE providing any security on this plan? 1) Yes 2) No -38 -2

3) Not commented -10

20% 4% Yes No Not commented 76%

INTERPRETATION In this question 38 respondents are stated that security is provided by METLIFE while 2 have replied in negative and 10 have not commented. RESULT: Majority of the plan holders has replied in positive.

Question 8: Have you applied other plan for your family? 1) Yes 2) No 3) Not disclosed -15 -34 -1

2%

30% yes no not disclosed

68%

INTERPRETATION In this question 15 have applied, while 34 havent applied and 1 hasnt commented. RESULT: Maximum number of plan holders hasnt applied.

IMPLICATION & CONCLUSION

FINDINGS
After the thorough research program some findings are there which I found and these are.

92% are satisfied with the plan of METLIFE, 94% are satisfied with the timing.

88% are satisfied with the dealing of the agents of METLIFE.

88% think that plan provided to them is beneficial.

46% say that they require updates and guidance and 54% dont require any updates and guidance.

76% says that MetLife provide security for their service and 4% says no.

68% say that they applied other plan for there family and 30% say no.

IMPLICATION

The following are some of the suggestion and recommendation that have evolved out after analysis of the study entitled ANALYSIS OF CUSTOMER PERCEPTION ABOUT PENSION PLAN METLIFE.

Better services should be provided to the customer. Grace period should be given to customer while paying premium. Agents should have sufficient knowledge about plan while dealing with customer. Online premium facility should be provided to customer. Constant updates or guidance should be provided to customer on time. Proper information should be provided on their forms monthly. Proper advertisement should be made to aware the people about the plans.

CONCLUSION
Most of the people are satisfied with the services provided by the company and the timings of the services. Clients are also satisfied the dealings of the agents done with them. Many people think that the services provide many benefit to them but few people say that they are not provided proper guidances and updates and expect the company to provide them. Most of the people are satisfied and happy with the future security of the plan and more of the people are also applying for other plan for their families.

BIBLIOGRAPHY

BIBLIOGRAPHY

BOOKS Kothari, CR Research methodology, Vishwas Prakashan, New Delhi, 1990. Beri, GC, Marketing Research, Tata Mc Graw Hill, New Delhi, Millennium Edition.2000.

MAGAZINES AND NEWSPAPER Annual Report of METLIFE. Economics Times. METLIFE Circular and Instruction. Times of India.

WEBSITES

www.metlife.co.in www.google.com

APPENDICES

QUESTIONNAIRE PLAN HOLDERS Name Occupation.. Age

Question 1): Are you satisfied with the plan being provided to you by METLIFE? Yes No

Question 2): Do you feel the timings to avail this plan is right? Yes No

Question 3): Are you satisfied with the MetLife agents dealing with this plan? Yes No

Question 4): Do you feel that this service of plan is really beneficial for you? Yes No

Question 5): Do you require any constant updates or guidance related to this plan. Yes No

Question 6): Are you being provided any extra facility with this plan? Yes No

Question 7): Is the METLIFE providing any security on this plan? Yes No

Question 8): Have you applied other plan for your family? Yes No