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PROJECT REPORT ON
“HDFC STANDARD LIFE INSURANCE’’
Submitted to:
MISS. SAKSHI ANAND
The liberalization of the Indian insurance sector has been the subject of
much heated debate for some years. The policy makers where in the catch
the policy makers had the fears that the insurance premium, which are
substantial, would seep out of the country; and wanted to have a cautious
As one of the rare occurrences the entire debate was put on the back
burner and the IRDA saw the day of the light thanks to the maturing
foreign participation were included the IRDA has opened the doors for the
Whether the insurer is old or new, private or public, expanding the market
will present multitude of challenges and opportunities. But the key issues,
2
possible trends, opportunities and challenges that insurance sector will
have still remains under the realms of the possibilities and speculation.
speed and flexibility. They point out that their entry will mean better
products and choice for the consumer. The critics counter that the benefit
currently untapped.
3
ACKNOWLEDGMENT
4
KAMAL
Executive Summary
In today’s corporate and competitive world, I find that insurance sector has
Insurance has the maximum growth rate of 70-80% while as FMCG sector
enter in this sector and ING Life Insurance Company Ltd has given me
enhancing sector.
Agents are the only way for a company of Insurance sector through which
policies and benefits of the company can be explained to the customer.
5
Preface
Acknowledgement
Executive Summary
Tables of Contents
6
CHAPTER I
INDIAN INSURANCE
INDUSTRY
“AN OVERVIEW”
7
THE INSURANCE INDUSTRY IN INDIA
AN OVERVIEW
8
order of one trillion US dollars. The Insurance sector, to
some extent, can enable investments in infrastructure
development to sustain the economic growth of the
country. (Source: www.indiacore.com)
HISTORICAL PERSPECTIVE
9
1920's and 1930's sullied insurance business in India. By
1938 there were 176 insurance companies.
10
Insurance Company and United India Insurance Company.
These were subsidiaries of the General Insurance
Company (GIC).
KEY MILESTONES
INDUSTRY REFORMS
11
Reforms in the Insurance sector were initiated with the
passage of the IRDA Bill in Parliament in December 1999.
The IRDA since its incorporation as a statutory body in
April 2000 has fastidiously stuck to its schedule of framing
regulations and registering the private sector insurance
companies. Since being set up as an independent
statutory body the IRDA has put in a framework of globally
compatible regulations.
12
during the fiscal year 2006-2007. Though the total volume
of LIC's business increased in the last fiscal year (2006-
2007) compared to the previous one, its market share
came down from 85.75% to 81.91%.
13
sector and snapping up the new innovative products on
offer. Some of these products include investment plans
with insurance and good returns (unit linked plans), multi –
purpose insurance plans, pension plans, child plans and
money back plans. (www.wikipedia.com)
CHAPTER II
14
PROFILE OF
ORGANIZATION
INTRODUCTION
HDFC Incorporated in 1977 with a share capital of Rs 10
Crores, HDFC has since emerged as the largest residential
mortgage finance institution in the country. The
corporation has had a series of share issues raising its
capital to Rs. 119 Crores. The gross premium income for
the year ending March 31, 2007 stood at Rs. 2,856 Crores
and new business premium income at Rs. 1,624 Crores.
The company has covered over 8,77,000 lives year ending
March 31, 2007.
15
India. HDFC also has an International Office in Dubai, UAE
with service associates in Kuwait, Oman and Qatar. HDFC
is the largest housing company in India for the last 27
years.
SNAPSHOT-I
16
• Loan Approvals Rs. 805 billion.
(up to Dec 2007) (US $ 18.30
bn.)
• Loan Disbursements Rs.669
billion
(up to Dec. 2007) (US $ 15.20
bn)
• Housing Units Financed 2.5 million.
• Distribution
Offices 181
Outreach Programs 90
KEY PLAYERS
17
Mr. Deepak M Satwalekar is the Managing Director and
CEO of the Company since November, 2000. Prior to this,
he was the Managing Director of HDFC Limited since 1993.
Mr. Satwalekar obtained a Bachelors Degree in Technology
from the Indian Institute of Technology, Bombay and a
Masters Degree in Business Administration from The
American University, Washington DC.
GROUP COMPANIES
investment manager.
18
HDFC Chubb: Upcoming Private companies in the field of
General Insurance.
cities in India
HDFC securities
STANDARD LIFE
19
Standard Life Currently has assets exceeding over £ 70
billion under its management and has the distinction of
being accorded “AAA” rating consequently for the six
years by Standard and Poor.
SNAPSHOT
JOINT VENTURE
20
and Poor’s. These reflect the efficiency with which HDFC
and Standard Life manage their asset base of Rs. 15,000
Cr and Rs. 600,000 Cr. respectively.
BUSINESS GROWTH
21
March 31, 2007 stood at Rs. 2,856 crores and new
business premium income at Rs. 1,624 crores.
KEY STRENGTH
Financial Expertise
As a joint venture of leading financial services groups.
HDFC standard Life has the financial expertise required to
manage long-term investments safely and efficiently.
Range of Solutions
HDFC SLIC has a range of individual and group solutions,
which can be easily customized to specific needs. These
group solutions have been designed to offer complete
flexibility combined with a low charging structure.
Strong Ethical Values:
HDFC SLIC is an ethical and Cultural Organization. False
selling or false commitment with the customers is not
allowed.
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Most respected Private Insurance Company
HDFC SLIC was awarded No-1 Private Insurance Company
in 2004 by the World Class Magazine Business World for
Integrity, Innovation and Customer Care.
CORPORATE OBJECTIVE
Vision
'The most successful and admired life insurance
company, which means that we are the most
trusted company, the easiest to deal with, offer the
best value for money, and set the standards in the
industry'.
'The most obvious choice for all'.
Values
.Integrity
.Innovation
.Customer centric
.People Care One for all
.Teamwork
.Joy and Simplicity
PRODUCTS & SERVICES
23
needs. It offers a full range of transparent, flexible and
value for money products. HDFC SLIC products are modern
and contemporary unitized products that offer unique
customer benefits like flexibility to choose cover levels,
indexation and partial withdrawals. (Source:
www.hdfcslic.com)
Individual Products
Protection Plans
A person can protect his family against the loss of his
income or the burden of a loan in the event of his
unfortunate demise, disability or sickness. These plans
offer valuable peace of mind at a small price. Protection
range includes our Term Assurance Plan & Loan
Cover Term Assurance Plan.
Investment Plans
24
Pension Plans
Pension Plans help to secure financial independence
even after retirement. Pension range includes Personal
Pension Plan, Unit Linked Pension, Unit Linked
Pension Plus.
Savings Plans
Group Products
25
the best and most innovative employee benefit solutions
to their employees. It offers different products for different
needs of employers ranging from term insurance plans for
pure protection to voluntary plans such as superannuation
and leave encashment.
HDFC SLIC offers the following group products to
esteemed corporate clients:
Social Product
26
insured during the year of cover, a lump sum is paid to those
member beneficiaries to help meet some of the immediate
financial needs following their loss.
Eligibility
Members of the development agency and their spouses
with:
- Minimum age at the start of the policy 18 years last
birthday
- Maximum age at the start of policy 50 years last birthday
Employees of the Development Agency are not eligible to join
the group. The group to be covered is only eligible if it
contains more than 500 members.
Premium Payments
The premium to be paid will be quoted per member in the
group and will be the same for all members of the group.
The premium can only be paid by the Development Agency as
a single lump sum that includes all premiums for the group to
be covered. Cover will not start until the premium and all the
member information in our specified format has been
received.
Benefits
On the death of each member covered by the policy during
the year of cover a lump sum equal to the sum assured will be
paid to their beneficiaries or legal heirs. Where the death is as
a result of an accident, an additional lump sum will be paid
27
equal to half the sum assured. There are no benefits paid at
the end of the year of cover and there is no surrender value
available at any time.
Prohibition of rebates
Section 41 of the Insurance Act, 1938 states
No person shall allow or offer to allow, either directly or
28
indirectly, as an inducement to any person to take out or
renew or continue an insurance in respect of any kind of risk
relating to lives or property in India, any rebate of the whole
or part of the commission payable or any rebate of the
premium shown on the policy, nor shall any person taking
out or renewing or continuing a policy accept any rebate,
except such rebate as may be allowed in accordance with
the published prospectus or tables of the insurer
If any person fails to comply with sub regulation (previous
point) above, he shall be liable to payment of a fine which
may extend to rupees five hundred
29
The premium is collected from the policy holder. He is
allotted a certain number of units based of his contribution.
The Net Asset Value is the value of each unit of the fund. It is
found by subtracting the charges and current liabilities from
the current assets and investments and dividing this number
by the total number of outstanding units.
Let us take an example. There are 100 investors and each invests Rs. 10 in a fund. The total
value of the fund is Rs. 1000 and each person is allotted 1 unit of Rs 10. Now the money (Rs.
1000) is invested in the debt or equity market. Suppose the fund value increased by 20%. As a
result the Rs. 1000 invested became Rs. 1200. Hence the value of every investor is now Rs. 12
and not Rs. 10.
30
Liquidity None High High High
Returns Low Low High High
Life Cover 1 time 1 time 1 time 10 times
amount amount amount
Tax Tax free Taxed Taxed Tax free
benefits
Tax Benefits
Sec. 80C Across All Upto Rs. 33,990 All the life
income Slabs saved on insurance plans.
investment of
31
Rs. 1,00,000.
Sec. 80 CCC Across all Upto Rs. 33,990 All the pension
income slabs. saved on plans.
Investment of
Rs.1,00,000.
TOTAL SAVINGS
Rs37,389
POSSIBLE
Rs. 33,990 under Sec. 80C and under Sec. 80 CCC ,
Rs.3,399 under Sec. 80 D, calculated for a male with
gross annual income
exceeding Rs. 10,00,000.
Introduction
Tata AIG Life Insurance Company Limited (Tata AIG Life) is
a joint venture company, formed by the Tata Group and
American International Group, Inc. (AIG). Tata AIG Life
combines the Tata Group’s pre-eminent leadership
32
position in India and AIG’s global presence as the world’s
leading international insurance and financial services
organization. The Tata Group holds 74 per cent stake in
the insurance venture with AIG holding the balance 26
percent. Tata AIG Life provides insurance solutions to
individuals and corporate. Tata AIG Life Insurance
Company was licensed to operate in India on February 12,
2001 and started operations on April 1, 2001.
33
AIG
American International Group, Inc. (AIG), world leaders in
insurance and financial services, is the leading
international insurance organization with operations in
more than 130 countries and jurisdictions. AIG companies
serve commercial, institutional and individual customers
through the most extensive worldwide property-casualty
and life insurance networks of any insurer. In addition, AIG
companies are leading providers of retirement services,
financial services and asset management around the
world. AIG's common stock is listed on the New York Stock
Exchange as well as the stock exchanges in London, Paris,
Switzerland and Tokyo.
Tata AIG has strong brand name and recall factor which
most of its competitors lack in. Other than the public
behemoth Life Insurance Corporation (LIC) of India which
has a major hold in the market share (of approximately
79%), the private players too are having more and more
opportunities to tighten their hold of the market. Of the
private players, ICICI Prudential comes first with an almost
4.50% of the market share followed by Tata AIG with about
2.10% of the pie. The private players have everything to
work for, especially with LIC not meeting the needs of its
clientele with respect to the services they need. This
34
provides a prospect for the private sector players to
increase their share of the market. Companies with a
familiarity such as Tata AIG can especially achieve their
targets due to the brand image that the Tata group has.
(Source: www.tata-aig-life.com)
The survey also revealed that Tata AIG Life had a high
recall as a reputed brand name. The ability to provide
innovative and customer-focused service such as allowing
the maximum grace period for premium payment has not
only further distinguished Tata AIG Life from other life
insurance companies but also appealed to consumers.
35
LIC has an excellent money back policy which provides for
periodic payments of partial survival benefits as long as
the policy holder is alive. 20% of the sum assured is
payable after 5, 10, 15 and 20 years and the balance 40%
is payable at the 20th year along with accrued bonus.
(www.lic.com)
36
handicapped individuals, endowment assurance plans,
plans for high worth individuals, pension plans, unit linked
plans, special plans, social security schemes – diversified
portfolio of products. HDFC SLIC could diversify its product
portfolio. It could add more plans for high worth individuals
and women.
ICICI PRUDENTIAL
ICICI Prudential is a stiff competitor for HDFC SLIC. The
company is a merger between ICICI Bank which is the
biggest private bank in India and Prudential Plc which is a
global life insurance company.
37
magazines, bill boards, radio etc. The company has an
excellent brand ambassador – Mr. Amitabh Bacchan. His
promotion of the company builds trust and faith in the
minds of our people.
38
on 31st March 2007). It has over 72000 employees across
all its units worldwide. It is led by its Chairman - Mr. Kumar
Mangalam Birla. Some of the key organizations within the
group are Hindalco and Grasim.
Its Flexi Life Line Plan offers life long insurance cover till
the policy holder is 100 years of age. There are
39
guaranteed returns of 3% p.a. net of policy charges after
every 5 years from the eleventh policy year onwards.
However the charges are very high. The initial charges for
the first year are 65%. Hence the fund value is greatly
reduced.
BAJAJ ALLIANZ
Bajaj Allianz is a joint venture between Allianz AG with
over 110 years of experience in over 70 countries and
Bajaj Auto, a trusted automobile manufacturer for over 55
years in the Indian market. Together they are committed
to offering you financial solutions that provide all the
security you need for your family and yourself. Bajaj
Allianz is the number one private life insurer for the year
2005 – 2006. It is leading by 78 crores. It has experienced
a whopping growth of 216% in the last financial year.
TATA AIG
40
Tata Aig is a joint venture between the Tata group and
American International Group Inc. In one of the plans the
company offers hospital cash benefit wherein it will pay
Rs. 2500 per day in case of hospitalization and Rs.12.5
lakhs in case the person suffers from any critical illness.
Annual premium is much less (about Rs. 6712) to avail
such a good benefit. Charges are relatively low compared
to HDFC SLIC for some policies.
41
2.4 HDFC Policies
HDFC Children Plans
As a parent, your priority is your child's future and being able to meet your child's
dreams and aspirations. Today, providing a good education, establishing a
professional career or even a modest wedding is expensive. Costs are increasing
fast. Just imagine how much you'll need when your child takes these important
steps in life!
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Your family need not pay any
further premiums.
Plan today to ensure a bright future for your children. Start building
savings today with our HDFC Unit Linked YoungStar Champion so
that your child is able to lead a life of respect and dignity with a
secured financial future.
Feature
The HDFC Unit Linked YoungStar Champion gives you
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HDFC Pension Plan
Features-
44
CHAPTER III
OBJECTIVES OF
STUDY
45
The main of the present study of is accomplishing the following
objective.
Proper understanding and analysis of life insurance industry.
To know about brand awareness of HDFC Life Insurance and
customer’s preference about HDFC Life Insurance.
Conduct market survey on a sample selected from the entire
population and derived opinion on that research.
According the market survey come know about how much
potential of insurance market in our city.
Training aims at recruiting maximum number of Life
Advisors and to Sell the maximum policies for the company
and bring the business for the company which ever is going at
the particular point of time.
Along with it I will be gaining the thorough knowledge of
insurance sector. This will give me in more confidence in
marketing products given to me.
As the HDFC Life Insurance well reputed company in India
it’s great chance for me to observed different products launch
by other competitor companies like ICICI prudential, Bajaj
alliance ,LIC, Max New York life etc. In all, it is to
understand the overall working of the Life insurance sector.
46
The objective behind the project is as follows:
To find the right candidate.
To about their family background, occupation, social relation,
Qualification, Age.
Finalize candidates for the IRDA training
CHAPTER IV
RESEARCH
METHODOLOGY
47
RESEARCH METHODOLOGY
TITLE:
• TITLE JUSTIFICATION:
The above title is self explanatory. The study deals mainly with
OBJECTIVE
Objective One
48
• To provide the company with information of customer's Insurance
policy if they have any and reasons for opting for that particular
policies.
Objective Two
insurance agent.
decision-making process.
large number of new players have entered the market and are vying to
49
gain market share in this rapidly improving market. The study deals with
HDFC Standard Life in focus and the various segments that it caters to.
This is a limited study which takes into consideration the responses of 100
people. This data can be explorated to take in the trends across the
industry. The significance for the industry lies in studying these trends
that emerge from the study. It is a rapiddly changing and evolving sector.
like this can attempt to guide the future of the industry based on current
trends.
50
To facilitate and provide all the useful informtaion of the studt, the
RESEARCH DESIGN
• NON-PROBABILITY
RESEARCH
SAMPLING METHODOLOGY
mind the objective of the research. A pilot study was done in order to
51
Sampling Unit:
The respondents who were asked to fill out questionnaires are the
Sample size:
The sample size was restricted to only 100, which comprised of mainly
Sampling Area :
of Country.
52
3. In a rapidly changing industry, analysis on one day or in one
segment can change very quickly. The environmental changes are vital
CHAPTER V
CHART 1:
54
Analysis:
From the chart above we find that 47% of the respondents fall in the
age group of 18 – 25 years, 25% fall in the age group of 26 – 35 years
and 17% fall in the age group of 36 – 49 years.
Therefore most of the respondents are relatively young (below 26
years of age). These individuals could be induced to purchase
insurance plans on the basis of its tax saving nature and as an
investment opportunity with high returns.
55
Female 77
CHART 2:
CHART 3:
56
Analysis:
From the chart above it can clearly be seen that 43% of
the respondents are working professionals, 23% are
students and 18% are into business. Therefore the target
market would be working individuals in the age group of
18 – 25 years having surplus income, interested in good
returns on their investment and saving income tax.
NO. OF RESPONDENTS WHO HAVE LIFE INSURANCE
POLICY IN THEIR NAME
TABLE 4:
57
Person who have life insurance
policy
Yes 103
No 167
CHART 4:
ANALYSIS:
This graph shows that out of total 270 respondents only
103 or 38% respondents have life insurance policy in their
name. Rest all don’t have a single policy in their name. So
there is a very big scope for life insurance companies to
cover these people. So in future business of life insurace
will gro further.
58
HDFC STANDARD LIFE 4
BAJAJ ALLIANZ 7
LIC 55
TATA AIG 6
ICICI PRUDENTIAL 12
ING VYSYA 6
BHARTI AXA 2
OTHERS 2
CHART 5:
59
Analysis:
In India, the largest life insurance company is Life
Insurance Corporation of India. It has been in existence in
India since 1956 and is completely owned by the
Government of India. Today the organization has grown to
2048 offices serving 18 crore policies and has a corpus of
over 340000 crore INR.
60
ANNUAL PREMIUM PAID BY INDIVIDUALS FOR LIFE
INSURANCE
TABLE 6:
CHART 6:
ANNUAL PREMIUM PAID BY INDIVIDUALS FOR LIFE
INSURANCE
61
Analysis:
From the chart above we find that, 39% of the
respondents surveyed pay an annual premium less than
Rs. 10001 towards life insurance. 25% of the respondents
pay an annual premium less than Rs. 15001 and 17% pay
an annual premium less than Rs. 25000. Hence we can
safely say that HDFC SLIC would be able to capture the
market better if it introduced products/plans where the
minimum premium starts at Rs. 5000 per annum.
Only 19% of the respondents pay more than Rs. 25000 as
premium and most products sold by HDFC SLIC have
Rs.12000 as the minimum annual premium amount. They
should introduce more products like Easy Life Plus and
Safe Guard where the minimum premium is Rs.6000 p.a.
and Rs. 12000 p.a. respectively. This would definitely
increase their market share as more individuals would be
able to afford the policies/plans offered.
62
POPULAR LIFE INSURANCE PLANS
TABLE 7:
63
Analysis:
From the chart given above we can clearly see that 45% of
the respondents hold endowment plans and 39% of the
respondents hold term insurance plans. Endowment plans
are very popular and serve two purposes – life cover and
savings.
If the policy holder dies during the policy term the
nominee gets the death benefit that is, sum assured and
accumulated bonus. On survival the policy holder receives
the survival benefit with a bonus.
A term plan is a pure risk cover plan wherein the insured
pays a lower premium for a higher sum assured. Term
insurance is the cheapest form of insurance and helps the
policy holder insure himself for a relatively low premium.
For the returns sensitive investor term plans do not find
favor as they do not offer a return in case the individual
does not die during the policy term.
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AWARENESS OF UNIT LINKED INSURANCE PLANS
TABLE 8:
Awareness of Unit Linked Plans No. of Respondents
Yes 154
No 116
CHART 8:
Analysis:
From the chart given above we find that 57% of the
respondents are aware of unit linked life insurance plans
and 43% are not aware of such plans. These plans should
be promoted through advertising. The company can
65
advertise through television, radio, newspapers, bill boards
and pamphlets. This would increase awareness and arouse
curiosity in the minds of the consumer which would enable
the company to market its products more effectively.
66
Rs. 25,001 - Rs. 50,000 41 15%
Rs. 50,001 - Rs. 1,00,000 5 2%
CHART 9:
Analysis:
From the graph above, we can clearly see that 41% of the
respondents would be willing to spend between Rs. 10001
– Rs. 25000 for life insurance. 27 % would be willing to
spend between Rs. 6001 – Rs. 10000 per annum. Only
15% would be willing to spend more than Rs. 25000 per
annum as life insurance premium.
67
reduced as most customers have already invested with
LIC, ICICI Prudential, Birla Sun Life, Bajaj Allianz etc.
TABLE 10:
3 - 5 years 51
6 - 9 years 41
10 - 15 years 95
16 - 20 years 38
21 - 25 years 24
26 - 30 years 5
68
Whole life Policy 13
CHART 10:
Analysis:
From the chart given above it can be seen that 35% of the
respondents prefer a policy term of 10 – 15 years, 19%
prefer a term of 3 – 5 years and 15% prefer a term of 6 – 9
years. This means that HDFC SLIC could introduce more
plans wherein the premium paying term is less than 15
years.
69
The outlook of insurance as a product should be changed
from something which you pay for your whole life (whole
life policy) and do not receive any benefit (the nominee
only receives the benefit in case of your death) to an
extremely useful investment opportunity with the
prospects of good returns on savings, tax saving
opportunities as well as providing for every milestone in
your life like marriage, education, children and retirement.
TABLE 11:
CHART 11:
70
Analysis:
From the chart above it can be seen that 33% of the
respondents purchase life insurance to secure their
families, 33% take life insurance to get high returns, 17%
purchase insurance on the advice of their friends and 13%
purchase insurance because of the influence of
advertisements.
71
With the introduction of the new unit linked plans in the
market, policy holders get the option to choose where
their money will be invested. They can invest their money
in the equity market, debt market, money market or a
combination of these. The debt and money markets
usually have low risk attached whereas the equity market
is a high risk investment option.
TABLE 12:
No. of
Type of Company Respondents Percentage
Government Owned
Company 127 47%
Public Limited
Company 62 23%
Private Company 49 18%
Foreign Company 32 12%
CHART 12:
PREFERRED COMPANY TYPE OF THE RESPONDENTS
72
Analysis:
From the graph above we find that 60% of the
respondents preferred to purchase insurance from a
government owned company, 29% of the respondents
preferred to purchase insurance from a public limited
company and only 4% of the respondents preferred a
foreign based company. Heavy advertising through
television, newspapers, magazines and radio is required.
TABLE 13:
73
Less than 5% 5
5% - 10% 39
11% - 15% 46
16% - 20% 49
21% - 25% 46
26% - 30% 27
31% - 40% 22
41% - 50% 14
CHART 13:
Analysis:
From the chart above it can clearly been seen that 18% of
the respondents would like 16 – 20% returns, 17% would
74
like returns between 21 – 25% and 17% would like returns
of 11 – 15% on their investments. Therefore the average
return on investment should be at least 16 – 20 %.
75
CHAPTER VI
CONCLUSION
76
CONCLUSION
77
progress is made in this field. People should not be afraid to
invest money in insurance and must use it as an effective tool for
tax planning and long term savings.
HDFC SLIC could tap the rural markets with cheaper products and
smaller policy terms. There are individuals who are willing to pay
small amounts as premium but the plans do not accept premiums
below a certain amount. It was usually found that a large number
of males were insured compared to females. Individuals below
the age of 30 (mostly male) were interested in investment plans.
This was a general conclusion drawn during prospecting clients.
CHAPTER VII
SUGGESTION
78
Finding and Suggestion
79
80
CHAPTER VIII
QUESTIONNAIRE
81
82
83
Chapter IX
Bibliography
84
By the help of Books
85
Chapter X
GLOSSARY
Cover Another word for insurance; it also refers to the amount of insurance.
Disability rider A rider that provides for additional cover in the event of
disability, or dismemberment, of the policy holder due to an accident.
86
Financial planning It covers the essential elements of a person’s financial
affairs and is aimed at achieving a person’s financial goals.
Hospital cash benefit rider A rider that provides cover for hospitalization.
Liquidity The quality of assets that can be easily and quickly converted into cash
without any, or significant, loss in value.
Market value The monetary value an asset will fetch if sold in the market today.
Policyholder The person who buys an insurance policy. Also referred to as the
‘insured’.
Riders Additional covers that can be added to a life policy, for a cost.
Sum assured The amount of cover taken under a life insurance policy, it is the
minimum amount that will be paid on death of the policyholder during the policy
term.
Whole-life plans Class of life insurance policies that provide cover through your
lifetime.
87