SUMMER TRAINING REPORT

ON

‘STUDY OF ULIP PRODUCTS OF SBI LIFE INSURANCE’

In Partial Fulfillment for the requirement for the award of

degree of
BACHELOR OF BUSINESS ADMINISTRATION

Session : 2019-20

Under the Guidance of: Submitted by:

Mrs. Meenakshi ketan
BBA Deptt. Roll. no. 1360710015
Univ. Roll No. :

Pt. Neki ram. Sharma govt. college

AFFILIATED TO
MAHARISHI DAYANAND UNIVERSITY, ROHTAK
 DECLARATION

I ketan, studying in Pt. Neki. Ram Sharma govt. college ROHTAK, do hereby declare that
this project titled “ STUDY OF ULIP PRODUCTS6 OF SBI LIFE INSURANCE ”, has
been prepared by me, under the guidance of Mrs. Meenakshi mam. This is after undergoing
the training in SBI Life Insurance Co. Ltd., which is in partial fulfillment of Bachelor of
Business Administration, M. D. -- University- Rohtak.
I further declare that this project report has also not been submitted
Earlier to any other university or institute for the award of any degree or diploma.

/
 PREFACE

Practical training constitutes an integral part of management studies. Training gives

an opportunity to the students to expose themselves to the industrial environment,

which is quit different from the classroom teachings. One cannot rely on theoretical

knowledge. It has to be coupled with practical to be fruitful. Training also enables the

management students to see themselves the working condition under which they have

to work in the future. It thus enables the students to undergone those experiences,

which will help them later when they join any organization.

After liberalization the Indian economic sense is changed. Industrial activity in India

has become a thing to watch & I really wanted to be a part of it &it is essential for me

being a finance student.

I underwent eight weeks of training at S.B.I. Life Insurance. I consider myself lucky

to get my summer training in such a big Company. It really helped me to get a practical

insight into actual business environment & provide me an opportunity to make my

financial management concepts more clear.

 TABLE OF CONTENTS

Sr. No. Topic

1. Company Profile

2. Introduction

3. Literature Review

4. Research Methodology

5. Data Analysis & Interpretation

6. Findings, Suggestions & Conclusion

Annexure

Bibliography
Executive

Summary
 EXECUTIVE SUMMARY
The Indian Life Insurance Company has seen a remarkable shift since the time of
establishment of the first company, Oriental Life Insurance Company in 1823. At the time
of Independence and thereafter, there were more than 200 companies operating in India
and not all of them on sound ethical principles. Many factors combined together to prompt
the then Government to nationalize the life insurance industry in 1956 to form the Life
Insurance Corporation of India.
Insurance sector was once a monopoly, with LIC as the only company, a public sector
enterprise. But nowadays the market opened up and there are many private players
competing in the market. There are thirteen private life insurance companies who have
entered the industry.

The study in the first part gives detail information on the on-job training provided the
competitive analysis of product of SBI LIFE INSURANCE PRODUCTS IN FINANCIAL
MARKET.

The paper begins by analyzing the current scenario in the industry characterized by
problems with distribution, low investor awareness, concentration of corporate investors,
investor awareness and diversity of products in order to minimize the risk by adopting risk
management techniques. At last this project also suggests some recommendation that can
help these companies in increasing there market share, awareness, product diversity and
improvement in penetration and distribution. In the end I recommend certain steps that
SEBI and IRDA should take in order to build investor confidence and trust.
 COMPANY PROFILE

SBI Life Insurance is a joint venture between the State Bank of India and Cardif SA of
France. SBI Life Insurance is registered with an authorized capital of Rs 1000 crore and
a paid up capital of Rs 500 crores.
SBI owns 74% of the total capital and Cardif the remaining 26%. State Bank of India
enjoys the largest banking franchise in India. Along with its 7 Associate Banks, SBI
Group has the unrivalled strength of over 14,500 branches across the country, arguably
the largest in the world. Cardif is a wholly owned subsidiary of BNP Paribas.
Cardif is ranked 2nd worldwide in creditor's insurance offering protection to over 35
million policyholders and net income in excess of Euro 1 billion. Cardif has also been a
pioneer in the art of selling insurance products through commercial banks in France and
in 35 more countries.
Product Portfolio:

Retirement Plan: The cost of living is experiencing fast steady rise which makes
retirement plan an important financial decision. Better known as Pension plan, this plan
takes care of financial needs after retirement by investing a part of your savings for
limited period. Pension plan provides fixed income after retirement and takes care of
daily needs. The pension plan offered by SBI Life is Lifelong Pension Plus.
Child Plan: Parenthood brings responsibilities which you cherish each day. Child Plan is
a plan specifically designed to take care of financial needs of your child. Child plan
provides with necessary funds that will take care of child’s education, marriage etc. By
investing small portion of your savings you make sure your child’s financial aspirations
are met. Child plans of SBI Life are called Smart Scholar and Scholar II.
Term Plan: A risk plan which provides comprehensive cover for your family in the
unfortunate event of untimely demise. A term life insurance plan provides good cover at
relatively nominal cost and has no survival benefits. SBI Life term plans are Smart
Shield, Saral Shield and Swadhan.

Investment Plan: Popularly known as ULIP, an investment plan invests part of your
savings in equity or debt market as per your preference. The purpose of investment plan is
to give you returns which easily beat the rising costs since the usual returns in a bank are
extremely low. ULIP’s offered by SBI Life are Smart Performer, Unit Plus Super, Saral
Maha Anand, Smart Elite, Money Back, Sanjeevan Supreme, Shubh Nivesh, Smart
Horizon and Saral Life.

Health Plan: Slightly different from health insurance, health plan provides cover for
surgery costs, critical illness. A lump sum is paid irrespective of actual hospital bill.
Hospital Cash is SBI’s health plan.

INSURANCE CHANNELS

BANCASSURANCE
BANCASSURANC AGENCY CORPORATE
E CHANNELS

Banks have expertise on the financial needs, saving patterns and life stages of the
customers.They serve. Banks also have much lower distribution costs than insurance
companies and thusare the fastest emerging distribution channel. For insurers, tying up
with banks provides extensive geographical spread and countrywide customer access; it is
the logical route for
insurers to take.
 PARTIES TO A LIFE INSURANCE CONTRACT

a) Proposer: The proposer, also known as the premium payer or the policyholder, pays
the premium. For determining whether future premiums can be paid to keep the
contract alive, ability of the proposer is considered. All tax benefits as well as
maturity proceeds are available to the proposer.
b) Life Assured: The life assured, as known as the life insured, is the person on whose
life the policy is taken. Mortality or risk premium is charged based on the age of
the life assured. As stated above, an insurable interest should exist between the
proposer and life assured.
c) Nominee: Where the proposer and life assured are the same persons, it is mandatory
to nominate a person to receive the benefits of the insurance policy in the event the
proposer deceased before the policy matures. A nominee has to be a real person,
i.e. artificial bodies like company and trust can’t become nominee.
d) Appointee : If the nominee is a minor, an appointee is required to act on behalf of
the nominee till he / she attains majority.
e) Assignee: An insurance policy can be assigned to another person (real persons and
artificial bodies are acceptable as assignees) who then becomes the owner of the
policy and is entitled to receive policy benefits. As a result of an assignment, an
assignee supersedes the policyholder who has assigned the policy.
ADVANTAGES OF LIFE INSURANCE

Life insurance has no competition from any other business. Many people think that life
insurance is an investment or a means of saving. This is not a correct view. When a person
saves, the amount of funds available at any time is equal to the amount of money set aside
in the past, plus interest. This is so in a fixed deposit in the bank, in national savings
certificates, in mutual funds and all other savings instruments. If the money is invested in
buying shares and stocks, there is the risk of the money being lost in the fluctuations of the
stock market. Even if there is no loss, the available money at any time is the amount
invested plus appreciation. In life insurance, however, the funs available is not the total of
the savings already made (premiums paid),but the amount one wished to have at the end
of the savings period (which is the next 20 or 30 years).

Even so, a comparison with other forms of savings will show that life insurance has the
following advantages:-
a) In the event of death, the settlement is easy. The heirs can collect the moneys
quicker, because of the facility of nomination and assignment. The facility of
nomination is now available for some bank accounts.
b) There is a certain amount of compulsion to go though the plans of savings. In other
forms, if one changes the original plan of savings, this is no loss. In insurance, there
is a loss.
c) Creditors cannot claim the life insurance moneys. They can be protected against
attachments by courts.
d) Marketability and liquidity are better. A life insurance policy is property and can
be transferred or mortgaged. Loans can be raised against the policy.
 REVIEW OF LITERATURE

Marketing Research:

Marketing research is defined as the “Systematic design, collection, analysis, and

reporting of data and findings relevant to a specific marketing situation facing the
company. According to ESOMAR the world association of opinion and market research
professionals.
A company can hire the services of a marketing research firm or conduct research
in creative and affordable ways such as:

 Engaging professors or students to design and conduct studies. Many large

companies hire summer trainees from management institutions for cost effective
market research year after year. Awarding live projects to MBA students as part of
their course work is also a common practice.

 Monitoring published information and actions systematically. This may be done by

examining news papers, web sites, and industry reports and by visiting competitive
outlets.

Effective marketing research involves five steps. They are:

 Step 1: define the problem and the research objectives
 Step 2: collect the information
 Step 3: analyze the information
 Step 4: present the findings
 Step 5: make the decision.
ULIP PRODUCTS
ULIP PRODUCTS – SBI Life Insurance

ULIP PRODUCT

ULIP Stands For UNIT LINKED INSURANCE PRODUCTS . In these types of product
money is being invested in the equity market . In these types of product insurance cover is
being guaranted,but at the stage of returns there is no guarantee. Customer money may go
up and get higher returns upto 50 % returns, at the stage if the market falls, money may go
down also.So customer should aware also about such type of product
But in today competitive environment company has such type of plans in which company
is giving highest NAV guarantee . in these types of product customer have at least such
type of security that money will not go down. In this type of plans NAV (net asset value)
get freezes as per the market goes up.
Introduction:

You may have ever changing needs, but as your preferred life insurance company,
SBI Life definitely understands all your financial & insurance needs. SBI Life -
Smart Wealth Builder, a unit linked, non participating, insurance plan is an attempt
to meet all your financial & insurance needs through a single product. You can use
it the way you like. You can choose your required life insurance cover subject to a
minimum and a maximum level.

Key Features:

• Guaranteed Additions# (Conditions Apply) up to 125% of one annual regular

premium on a regular premium policy, for a 30 year policy term, subject to the
Policy being in force till the maturity date.

• Guaranteed Additions starting as early as 10th policy year onwards

• No Policy Administration fees for first 5 years for Regular and Limited Premium
Paying Term (LPPT) plans, thereby boosting your fund value

• No Premium Allocation Charge from 11th year onwards

• Enhanced investment opportunity through 7 varied Fund Options

• Life Insurance coverage, with minimum Sum Assured based on your age

• Flexible product with an option to increase/decrease your Sum Assured from 6th
policy year onwards

Product Snapshot

Age* at Entry Min: 7 years

Max: For Regular Premium & Limited
60 years
Premium:
For Single Premium: 65 years
Age* at Maturity 70 years
Plan Type Regular Premium / Limited Premium / Single Premium
Policy Term^ Regular & Limited Premium Payment - 10 years, 15 to 30 years
(both inclusive)
Single Premium - 5 to 30 years
Premium 5/8 years for Policy term of 10 years
Payment Term 5/8/10 years for Policy term of 15-30 years
Premium Amount Premium
(X 100) Plan Type Minimum Maximum
Frequency
Regular Rs.
Annual
premium 30,000
Limited Rs.
Annual Rs. 3,00,000
premium 40,000
Rs.
Single premium Single
65,000
Premium Modes Single/Yearly
Sum Assured Minimum (in Rs.) Maximum (in Rs.)
Premium Age 45 Age 45
Mode Age below Age below
years or years or
45 years 45 years
above above
Regular Higher of
Higher of 20 x AP 20 x AP
Premium (7 x AP) or
[(10 x AP )
(0.25 x
Limited or (0.50 x
Term x 15 x AP 15 x AP
Premium Term x AP)] AP)]
Single
1.25 x SP 1.1 x SP 3 x SP 1.25 x SP
Premium
* All the references to age are age as on last birthday.

# Guaranteed Additions at the specified percentages for RP, LPPT & SP, will be
given at the end of 10th policy year and every five years thereafter for policies
which are in- force.

^ In case of minor lives, policy term should be appropriately chosen so as to ensure

that at the time of maturity life assured should be a major. In case of minor lives,
date of commencement of policy and date of commencement of risk shall be same

Various charges such as ’Premium Allocation Charges’, ’Policy Administration

Charges’, ’Fund Management Charges’ etc are deducted. For the complete list of
charges and their workings, please refer the Sales Brochure.

Benefits:

• Maturity Benefit: (Applicable only for in-force policies): On completion of Policy

Term, Fund Value will be paid.

• Death Benefit: (Applicable only for in-force policies): Higher of the Fund Value
or Sum Assured is payable; with a minimum of 105% of total basic premiums
 paid till the date of intimation of death.

• Tax Benefits:
Tax deduction under Section 80 C is available. However in case the premium paid
during the financial year, exceeds 10% of the sum assured, the benefit will be
limited up to 10% of the sum assured.

Tax exemption under Section 10(10D) is available at the time of

maturity/surrender, subject to the premium not exceeding 10% of the sum assured
in any of the years during the term of the policy. However, death proceeds are
completely exempt.

Tax benefits, are as per the Income Tax laws & are subject to change from time to
time. Please consult your tax advisor for details.

## Net of partial withdrawals

For more details on risk factors, terms and conditions please read the sales brochure
carefully before concluding a sale.

1K.ver.01-03/14 WEB ENG

BEWARE OF SPURIOUS PHONE CALLS AND FICTITIOUS/FRAUDULENT
OFFERS.
IRDA clarifies to public that • IRDA or its officials do not involve in activities like sale of
any kind of insurance or financial products nor invest premiums. • IRDA does not announce
any bonus. Public receiving such phone calls are requested to lodge a police complaint
along with details of phone call, number.
Introduction:

SBI Life - Saral Maha Anand is a product created just for you, which will
pleasantly surprise you with its sheer Simplicity and Convenience! It is a unit
linked, non participating life insurance plan, which lets you manage your
investments according to your risk appetite, giving you the power to realise market
related returns on your policy. You can choose your required life insurance cover
subject to a minimum and a maximum level.

Key Features:

• No medical examination, Simple joining process^^

• Guaranteed Additions of up to 30% of one annual premium, for a 20 year policy

term, subject to the Policy being in force till the maturity date.

• 3 fund options, to enjoy market related returns as per your risk appetite.

• No Premium Allocation Charge from 11th year onwards, thereby boosting your
fund value

• Liquidity through partial withdrawals

• Option to customize the plan through SBI Life - Accidental Death Benefit
Linked Rider (UIN: 111A019V02)

• Twin Benefit of Market linked returns & insurance cover

Product Snapshot

Age at Entry ^ Minimum: 18 years Maximum: 55 years

Max. Age^ at Maturity 65 years
Policy Term 10 years / 15 years / 20 years
Premium Range (x100) Premium Minimum (in Maximum (in
Frequency Rs.) Rs.)
Yearly 15,000 29,000
Half-yearly 9,500 14,500
Quarterly 5,500 7,200
Monthly 2,000 2,400
Premium Modes Yearly / Half-yearly / Quarterly / Monthly
Sum Assured Minimum (in Rs.) Maximum (in Rs.)
Age 45 Age 45
Age below Age below
years or years or
45 years 45 years
above above
10 x AP 7 x AP 20 x AP 20 x AP

Benefits:

• Maturity Benefit: On completion of Policy Term, Fund Value will be paid.

• Death Benefit: Higher of the Fund Value or Sum Assured# is payable; with a
minimum of 105% of total basic premiums paid till the time of death

• Rider Benefits:
SBI Life - Accidental Death Benefit Linked Rider: Provides additional death
benefit, if the death occurs as a result of an accident.

• Tax Benefits
Tax deduction under Section 80 C is available. However in case the premium
paid during the financial year, exceeds 10% of the sum assured, the benefit will
be limited up to 10% of the sum assured.

Tax exemption under Section 10(10D) is available at the time of

maturity/surrender, subject to the premium not exceeding 10% of the sum
assured in any of the years during the term of the policy. However, death
proceeds are completely exempt.
 Tax benefits, are as per the provisions of the Income Tax laws & are subject to
change from time to time. Please consult your tax advisor for details.

^ All the references to age are age as on last birthday

^^ No medical underwriting if no adverse declaration is made in the proposal form
by the policyholder
# Net of partial withdrawals

For more details on risk factors, terms and conditions please read the sales
brochure carefully before concluding a sale.

Rider Brochure:
SBI Life - Accidental Death Benefit Linked Rider (UIN: 111A019V02)

Rider Document:
SBI Life - Accidental Death Benefit Linked Rider (UIN: 111A019V02)
50.ver.01-03/14 WEB ENG
BEWARE OF SPURIOUS PHONE CALLS AND FICTITIOUS/FRAUDULENT
OFFERS. IRDA clarifies to public that • IRDA or its officials do not involve in activities
like sale of any kind of insurance or financial products nor invest premiums. • IRDA does
not announce any bonus. Public receiving such phone calls are requested to lodge a police
complaint along with details of phone call, number.
 RIDERS

The Riders/ Value-adds are additional benefits that can be added to the basic individual
plans at a minimal additional cost. All riders have to be taken at the time of commencement
of the basic plan and the rider term has to be equal to the term of the basic plan only. There
are following type of riders: -

1. TERM BENEFIT / PREFERRED TERM BENEFIT

In the event of death during the term of this benefit, the beneficiary would receive an
additional death benefit amount, which is over and above the sum assured. The maximum
term benefit you can avail of is equal to the basic sum assured. Where the Term Benefit
cover applied for is more than Rs.10 lakhs, better rates may apply, subject to meeting
eligibility requirements.

2. ACCIDENTAL DEATH BENEFIT:

This benefit provides an additional amount (over and above the basic sum assured) to the
beneficiary in the event of the accidental death of the life insured. The maximum cover
available under this benefit is equal to the basic sum assured (subject to a maximum of
Rs.10 lakhs).

3.PERMANENT DISABILITY BENEFIT:

This benefit provides financial support in case of your permanent disability due to an
accident. The amount payable is over and above the basic sum assured and would be paid
out as an annuity. The maximum Permanent Disability Benefit that you can avail of is equal
to the basic sum assured (subject to a maximum of Rs.10 lakhs Permanent disability is
defined as a permanent and immediate inability to work, the permanent loss of use of two
limbs or a total and permanent loss of sight.
 4.CRITICAL ILLNESS BENEFIT:
This benefit can be taken with the basic life insurance plan to provide financial support in
the event of medical emergencies. On the first occurrence of critical illness during the term
of the policy, you would receive a portion of the sum assured to reduce your financial
burden in this emergency. The maximum Critical Illness Benefit that you can avail of is
equal to half the basic sum assured subject to maximum of Rs. 20 lakhs.
The list of critical illnesses is:

1. Heart attack
2. Cancer
3. Stroke
4. Coronary artery by-pass graft surgery (CABG)
5. Kidney failure
6. Major organ transplants
7. Paralysis
8. Loss of limbs
9. Aorta surgery
10. Major burns
11. Heart valve surgery
12. Blindness
 5. LIFE GUARDIAN BENEFIT:

This benefit can be availed of, only in a case where the life insured and the proposer are
two different individuals. In case of the unfortunate death of the proposer, this benefit keeps
the policy alive by waiving all future premiums on the policy.

6. ACCIDENTAL DISABILITY GUARDIAN BENEFIT:

This benefit can be availed of, only in a case where the life insured and the proposer are
two different individuals. In case the proposer is permanently disabled as a result of an
accident, this benefit keeps the policy alive by waiving all future premiums on the policy

MAJOR COMPETITORS

Earlier only LIC is present in market. And there is monopoly situation which is dangerous
to insurance fields. But as soon as globalization started the new private companies’ like-
kotak, ICICI Pru., HDFC life insurance etc companies enter in there market and
competition increase in the market. The major competitors in insurance sector are as
follows.
 Life insurance companies:-

S.No NAME OF THE COMPANY Logo

1. SBI LIFE INSURANCE CO.
LTD .

2. BIRLA SUN LIFE

INSURANCE CO. LTD

3. HDFC STANDARD LIFE

INSURANCE CO. LTD

4. TATA AIG INSURANCE CO.

LTD

5. ING VYSYA LIFE

INSURANCE COMPANY
PVT. LTD.

6. LIFE INSURANCE
CORPORATION OF INDIA

7. MAX NEW YORK LIFE

INSURANCE C0. LTD.

8. METLIFE INDIA
INSURANCE COMPANY
PVT. LTD.
9. OM SBIMAHINDRA LIFE
INSURANCE CO. LTD.

10. ALLIANZ BAJAJ LIFE

INSURANCE CO. LTD

11. TATA AIG LIFE

INSURANCE COMPANY
LIMITED

12 AMP SANMAR
ASSURANCE COMPANY
LTD.

13 AVIVA LIFE INSURANCE

CO. INDIA PVT. LTD.
GROWING OPPORTUNITY

 SBI Life Insurance

SOURCING

U U A
M M M
9 months
NON -
SOURCING
Goal sheet S
M
9 months
Stability
period Area
manage 9 months
r
Branch
manage
r
9 months

Zonal Regional
sales manager
manager

NOTE
After Unit Manager it is necessary to complete Goal Sheet. It goal sheet target is not
achieved then next promotion can’t be gained. There are following contents in goal sheet:
-
o Waited received premium(WRP)
o No. of cases.
o Active advisers.
o FOS (feet on straight)
ON THE JOB TRAINING

Field Visits:
The company is divided into 3 categories from where it generates business and functions
i.e. Alternate Channels, Tied Channel, Group Business. I visited the Tied Channel Partners
like DBS Chholamandalam along with the Asst. Managers of the company, had meetings
with the tied channel partners like Mr. Mohan Krishnamurthy & Mr. V S Somsundaram -
DBS Chholamandalam. Apart, also met some Alternate Channel Partners who visited the
office and learnt about their functioning process, marketing strategy and managing
customer relationships.

Interaction & Calling:

Had meetings with clients like senior manager of an IT company. Also called up customers
to check for their requirements which is based on the savings primarily, took appointments
with them in order to meet them and discuss the type of plan he is looking for, whether
completely insurance plan which is a traditional plan or other plans which involves
composition of central govt. issued or assured securities, call money, short term bank
deposits, cash, other debt securities and equities. Finally, succeeded in satisfying the
customers needs and getting good clients for the company as well, who are the key
contributors the business.
SWOT ANALYSIS OF “SBILIFE INSURANCE”

Strengths
 Rich experience of the management.
 Stabilized and loyal clients.
 Skilled and tactful staff.
Weaknesses
 Insufficient office equipments.
 Not all employees have his/her cabin.
 Work place (back office) is quite congested.
Opportunities
 Stability through increased brand awareness, market penetration and service
offerings across all categories of financial services.
 Increase in customer’s wallet share.
 Leveraging the latest technology for providing quality and client centric services.
 Growth in economy would lead to higher demand for credit.
Threats
 Increasing interest rate scenario.
 Execution risk.
 Competition from local and multinational players.
 Rising inflation could reduce savings and investments
 Rising crude oil price

INDUSTRY PROFILE

The insurance industry has faced many challenges over the last decade including:
Globalization is pushing companies to operate in different continents forcing them to enter
into new partnerships in order to improve efficiencies

Competition between the various players has resulted in increased merger and acquisition
activities driving industry convergence and value chain decomposition

The customer is more knowledgeable and demanding than ever before and this is forcing
companies to perform process integration, operational restructuring and technology
upgrades

Insurance companies are moving beyond their traditional business models and are
searching for the right combination of technology and processes to remain profitable.
Companies are investing more in information technology in order to alter their business
models and processes.
 INTRODUCTION

HISTORY OF INSURANCE
In some sense we can say that insurance appears simultaneously with appearance of human
society. We know of two types of economies in human societies: money economies (with
markets, money, financial instruments and so on) and non-money or natural economies
(without money, markets, financial instruments and so on). The second type is a more
ancient form than the first. In such an economy and community, we can see insurance in
the form of people helping each other. For example, if a house burns down, the members
of the community help build a new one. Should the same thing happen to one's neighbour,
the other neighbours must help? Otherwise, neighbours will not receive help in the future.
This type of insurance has survived to the present day in some countries where modern
money economy with its financial instruments is not widespread (for example countries in
the territory of the former Soviet Union).

Achaemenian monarchs were the first to insure their people and made it official by
registering the insuring process in governmental notary offices. The purpose of registering
was that whenever the person who presented the gift registered by the court was in trouble,
the monarch and the court would help him. Jahez, a historian and writer, writes in one of
his books on ancient Iran: "Whenever the owner of the present is in trouble or wants to
construct a building, set up a feast, have his children married, etc. the one in charge of this
in the court would check the registration. If the registered amount exceeded 10,000 Derrik,
he or she would receive an amount of twice as much."

The Greeks and Romans introduced the origins of health and life insurance c. 600 AD when
they organized guilds called "benevolent societies" which cared for the families and paid
funeral expenses of members upon death. Guilds in the Middle Ages served a similar
purpose.

Separate insurance contracts were invented in Genoa in the 14th century, as were insurance
pools backed by pledges of landed estates. These new insurance contracts allowed
insurance to be separated from investment, a separation of roles that first proved useful in
marine insurance.

The first insurance company in the United States underwrote fire insurance and was formed
in Charles Town (modern-day Charleston), South Carolina, in 1732. Company was the first
to make contributions toward fire prevention. Not only did his company warn against
certain fire hazards, it refused to insure certain buildings where the risk of fire was too
great, such as all wooden houses.

In the United States, regulation of the insurance industry is highly Balkanized, with primary
responsibility assumed by individual state insurance departments. Whereas insurance
markets have become centralized nationally and internationally, state insurance
commissioners operate individually, though at times in concert through a national
insurance commissioners' organization. In recent years, some have called for a dual state
and federal regulatory system for insurance similar to that which oversees state banks and
national banks.

CLASSIFICATION OF INSURANCE
The insurance industry in India can broadly classify in three parts. They are.

INSURANCE

LIFE GENERAL
INSURANCE INSURANCE

RE-
INSURANCE

WHAT IS LIFE INSURANCE?

A human being is an income generating asset. One’s manual labour, professional skills and
business acumen are the assets. This asset also can be lost through unexpectedly early death
or through sickness and disabilities caused by accidents. Accidents may or may not happen.
Death will happen, but the timing is uncertain. If it happens around the time of one’s
retirement, when it could be expected that the income will normally cease, the person
concerned could have made some other arrangements to meet the continuing needs. But if
it happens much earlier when the alternate arrangements are not in place, here can be losses
to the person and dependents. Insurance is necessary to help those dependent on the
income.

A person, who may have made arrangements for his needs after his retirement, also would
need insurance. This is because the arrangements would have been made on the basis of
some expectations like, likely to live for another 15 years, or that children will look after
him. If any of these expectations do not become true, the original arrangement would
become inadequate and there could be difficulties. Living too long can be as much a
problem as dying too young. Both are risks, which need to be safeguarded against.
Insurance takes care.
REVIEW OF
LITERATURE
 Review of literature:-

The union govt. introduced the insurance [amendment] bill 2001 during the monthly
concluded monsoon session of parliament. The draft bill proposes entry of operative in
insurance sector, appointment of brokers as intermediaries, and merchant for insurance
through credit cards. The bill seeks to permit co-operative concerns to enter the
underwriter business by setting up a separate society. It also permits to issue
cooperative societies to enter the distribution business. It recognizes as intermediaries
in the insurance business and enables them to receive brokerage fee. at present
cooperative societies can only enter the insurance sector by parliament they setup and
underwriter company under cooperative act.

1 According to prabhjot grafia July 26, 2016

TRUSTWORTHY PLAN- SBI pension plan is the
insurance I have low investment Good service facilitate
by sbi life insurance company member and executors

2 According to tanmay - my national pension scheme

sbi is the best In market service is quick and benefit
and many policy are coverage – 85% and claim are
normal. Which can be easily sanctioned By the
exchange.

Insurance in India: some burning issues:

 Liberalization of Indian insurance sector has been the subject of much debate for
some years. The policy makers wanted competition, development and growth of this
insurance sector which is essential for channels the investment into infrastructure
sector. At the other end the policy has the fear the insurance premium which are
substantial, would but of the country, and wanted to have cautious approach for
participation in the sector. Though some changes and some active clauses as regards to
the foreign participants were included.

Whether the insurer is old or new, private or public, expanding the market will
present multitude of challenges and opportunities that insurance sector will have still
remain under the realms of the possibilities and speculation. What is the likely impact
of opening up India’s insurance sector?

Conceptualization:-

Insurance is an arrangement to deal with unpleasant contingencies. It is contractual

arrangement which partial or total protection against adverse, typically financial
outcomes. While there are many outcomes of risks which are insurable, there are many
more against which there can be no insurance. Broadly insurance contracts can be divided
into life and nonlife insurance. Life insurance in particulars provides protection to the
house holds against the rise of premature death of its income earning member. In
traditional; societies such as India, the joint family system itself provided an insurance
umbrella and successor to surviving family members. in modern times such arrangements
are now increasingly made to the market mechanism by buying insurance. Thus,
individual pay a price called premium to the insurance company for such a contractual
arrangement, and the insurance company in turn provides compensation if specified event
occurs or any mishappening.

By making such contractual agreement with a large number of individuals and

organizations the insurance company can spread the risk. This gives insurance its social
characteristics, in sense that it entails pooling of individual risks.

Life insurance in modern times also provide protection against other life relate risks such
as risk of longevity [i.e. risk or outliving other source of income] and risk of disease an
richness [health insurance].

Research
Methodology
 Research Methodology

RESEARCH DESIGN

 Exploratory research design

 Experimental research design
In this project I have used descriptive research design because it describes new ideas and
events.

TYPE OF DATA COLLECTION

There are two types of data used. They are primary and secondary data. Primary data is
defined as data that is collected from original sources for a specific purpose. Secondary
data is data collected from indirect sources.

PRIMARY SOURCES

These include the survey or questionnaire method, telephonic interview as well as the
personal interview methods of data collection.
In this project I have used questionnaire and telephonic interview as primary source.

SECONDARY SOURCES

These include books, the internet, company brochures, product brochures, the company
website, competitor’s websites etc, newspaper articles etc.
In this project I have used internet, company brochures, product brochures, and the
company website as a secondary source.

SAMPLING
Sampling refers to the method of selecting a sample from a given universe with a view to
draw conclusions about that universe. A sample is a representative of the universe selected
for study.

Convenience sampling is used in exploratory research where the researcher is interested in

getting an inexpensive approximation of the truth. As the name implies, the sample is
selected because they are convenient. This non probability method is often used during
preliminary research efforts to get a gross estimate of the results, without incurring the cost
or time required to select a random sample

SAMPLE SIZE
The sample size for the survey conducted was 100 respondents.

SAMPLING TECHNIQUE

Convenience sampling technique was used in the survey conducted.

PLAN OF ANALYSIS
Tables were used for the analysis of the collected data. The data is also neatly presented
with the help of statistical tools such as graphs and pie charts. Percentages and averages
have also been used to represent data clearly and effectively.

Ulip as an Investment Avenue :

Puropose of study :
1. To study the concept and mechanism of reasons why Ulips get thump up
2. To study in detail about two ULIP of sbi life insurance co. ltd.
3. To make a comparison between mutual fund and ULIPs
4. To study the comparison between mutual fund and ULIPs
5. To study the comparison between Traditional policies & ULIPs
6. To have an awareness of IRDA guidelines with respect to ULIPs

Findings
1. ULIP is gaining importance as it could the needs of small investor while offering
the due options of insurance and the investment.
2. ULIP insurance plans are purely subject to market risk.
3. If the investor invest in equity , no minimum guarantee is offered to the investor
amount.
4. If the investor is in Bond fund, there is minmum guarantee to investor amount.
 Data Analysis
& Interpretation
 TABLE-1
MINIMUM LOCK IN PERIOD
YEARS NO.OF PERCENTAGE
RESPONDENTS
3 YEARS 60 60%
4 YEARS 25 25%
5 YEARS 13 13%
NONE 2 2%
TOTAL 100 100%

70
60
50
40
NO. OF RESPONDENTS
30
20
10
0
3 YEARS 4 YEARS 5 YEARS NONE

Interpretation -:

From the survey it was found that 60% of the respondents have an average lock in period
of 3 years, 25% of the respondents have average lock in period of 4 years,13% of the
respondents have an average lock in period of 5years and 2% of the respondents have an
average lock in period of 2 years.
 TABLE-2
Q: 2 HOW DO YOU RATE THE PREMIUM AMOUNT TO BE PAID IN UNIT
LINKED PLANS OF SBI LIFE INSURANCE?

PARTICULAR NO OF PERCENTAGE
RESPONDENTS
HIGH 65 65%
MEDIUM 20 20%
LOW 15 15%
TOTAL 100 100%

70

60

50

40 NO OF
30 RESPONDENTS

20

10

0
HIGH MEDIUM LOW

Interpretation -

From the survey it was found that 65% of the respondents say that high premium amount
to be paid in unit linked plan. 20% of the respondents say that low premium amount
medium premium amount to be paid in unit linked plans and 15% of the respondents say
that low premium amount to be paid in unit linked plan.
 TABLE-3
HOW DO YOU RATE THE ADMINISTRATION CHARGES IN UNIT LINKED
PLANS OF SBI LIFE INSURANCE ?

REVIVAL PERIOD NO. OF PERCENTAGE

FROM THE DATE OF RESPONDENTS
DISCONTINUANCE
HIGH 55 55%
AVERAGE 35 35%
LOW 10 10%
TOTAL 100 100%

60

50

40

NO.OF
30
RESPONDENTS
20

10

0
HIGH AVERAGE LOW

Interpretation –
From the survey it was found that 55% of the respondents say high administration charges
in unit linked plans and 35% of the respondents say average administration charges in unit
linked plans and 10% of the respondents say low administration charges in unit linked
plans.
 TABLE-4

Q: 4 HOW DO YOU RATE THE RETURNS IN UNIT LINKED PLANS OF SBI LIFE
INSURANCE?

PARTICULAR NO OF PERCENTAGE
RESPONDENTS
GOOD 60 60%
AVERAGE 30 30%
POOR 10 10%
TOTAL 100 100%

70

60

50

40 NO OF
30 RESPONDENTS

20

10

0
GOOD AVERAGE POOR

Interpretation --
From the survey it was found that amongst 100 respondents
60% of the respondents say that returs are good in ulip plan and 30% of the respondents
say that average return and 10% say that poor returns in ulip plans.
 TABLE-5
Q: 5 WHAT DO YOU FEEL AFTER INVESTING IN UNIT LINKED PLANS OF SBI
LIFE INSURANCE ?

PARTICULAR NO. OF PERCENTAGE

RESPONDENTS
GOOD 70 70%
AVERAGELY 20 20%
SATISTFIED
WITH THE
INVESTMENT
DECISION
CHEATED 10 10%
TOTAL 100 100%

80
70
60
50
NO OF
40
RESPONDENTS
30
20
10
0
GOOD AVERGELY CHEATED
SATISFIED

Interpretation -
From the survey it was found that 70% of the respondents feel good after investing in unit
linked insurance plan and 20% of the respondents feel averagely satisfied after investing
in unit linked insurance plan and10% of the respondents feel cheated after investing in unit
linked plan.
 TABLE-6
Q: 6 REASONS FOR INVESTING IN UNIT LINKED PLANS OF SBI LIFE
INSURANCE ?

NAME OF NO OF PERCENTAGE
COMPANY RESPONDENTS
RETURNS 10 10%
SCHEMES ARE 10 10%
GOOD
RECOMMEND BY 5 5%
FAMILY AND
FRIENDS
NEED TO SAVE TAX 15 15%
OFFERS MULTIPLE 60 60%
BENEFITS LIKE
INVESMENT
+INSURANCE+TAX
SAVING
TOTAL 100 100%

RETURNS

SCHEMES ARE GOOD

RECOMMENDED BY
FAMILY &FRIENDS
NEED TO SAVE TAX

OFFERS MULTIPLE
BENEFITS

Interpretation -

From the survey it was found that 10% of the respondents say returns. 10% of the
respondents say schemes are good ,5% of the respondents say recommended by family and
friends and 15% of the respondents say to save tax and 60% of the respondents say that
offers multiple benefits.
 TABLE-7

WHICH OF THE COMPANY PROVIDE BEST OF THE SERVICES TO CUSTOMERS

?

NAME OF NO OF PERCENTAGE
COMPANY RESPONDENTS
ICICI PRUDENTIAL 23 25%
SBILIFE 37 37%
INSURANCE
TATA AIG 8 8%
BAJAJ ALLIANZ 20 20%
OTHERS 12 12%
TOTAL 100 100%

ICICI PRUDENTIAL

SBI LIFE
INSURANCE
TATA AIG

BAJAJ ALLIANZ

OTHERS

Interpretation
From the survey it was found that 23% of the respondents say ICICI Pru Provide the best
service, 37% of the respondents say SBILife Insurance provide the best services to
them,20% of the respondents say Bajaj Allianz provide best service and rest of the
respondents says Other Insurance Companies provide better services.
 TABLE-8

ACCORDING TO YOU LIFE INSURANCE IS

PARTICULAR NO OF PERCENTAGE
RESPONDENTS
TAX SAVING 20 20%
PLAN
RISK COVERAGE 25 25%
FINANCIAL 15 15%
SECURITY
ALL THE ABOVE 40 40%
TOTAL 100 100%

45
40
35
30
25 NO.OF
20 RESPONDENTS
15
10
5
0
TAX RISK FINANCIAL ALL THE
SAVING COVER SECURITY ABOVE
PLAN

Interpretation --
From the survey it was found that amongst 100 respondents
25% of the respondents say risk coverage. 20% of the respondents say tax savings. 15%
of the respondents say financial security. and 40% of the respondents say all of the above.
 TABLE-9
Q: 9 HOW DO YOU RATE THE TRANPARENCY WITH THE UNIT LINKED PLANS
OF SBI LIFE INSURANCE?

YEARS NO.OF PERCENTAGE

RESPONDENTS
HIGHLY 60 60%
TRANSPARENT

AVERAGELY 30 30%
TRANSPARENT

NOT AT ALL 10 10%

TRANSPARENT

TOTAL 100 100%

70
60
50
40
30 NO. OF RESPONDENTS
20
10
0
3 YEARS

TRANSPARENT

TRANSPARENT
AVERAGELY

NOT AT ALL

Interpretation -:

From the survey it was found that 60% of the respondents say that ulip plan is highly
transparent ,30% of respondents say that ulip plan is averagely transparent ,10% of
respondents say that ulip plan is not transparent.
 TABLE-10
Q: 10 ARE YOU SATISFIED WITH UNIT LINKED PLANS OF SBI LIFE
INSURANCE?

PARTICULAR NO OF PERCENTAGE
RESPONDENTS
YES 70 70%
NO 30 30%
TOTAL 100 100%

80
70
60
50
NO OF
40
RESPONDENTS
30
20
10
0
YES NO

Interpretation -

From the survey it was found that 70% of the respondents say that ulip plan is satisfied
30% of the respondents say that ulip plan is not satisfied.
 Findings
Recommendations
Conclusion
 FINDINGS

On an analysis and evaluation of the data collected from the respondents the following
findings were found.

a) SBILife Insurance provides the best services to its customer.

b) Most of the people still want to invest there money in ICICI and Bajaj Allianz.
c) SBILife Insurance Product Provide all benefit to there customer like tax saving,
investment opportunity, pension plans etc.
d) KSIP Plan is largest selling product of SBILife and can bit any company.
e) Insurance provides is tax saving products under sec 80c and under sec 80 (80)c.
f) Insurance is the boom sector.
g) It provide GMV(Guaranty Maturity Value) in case of loss in share market
h) It provides the better return to customer.
RECOMMENDATIONS

Since SBILife Insurance co. ltd is the largest in terms of FDI invested, in terms of work
force, in terms of market share, in terms of no. of customers. All these positive stands of
the company place at the number one position. On second aspect whatever amount of
money SBIlife insurance save, can be used to increase the no. of policies, which will helpful
to increase the market share of the company. Since the customers think about the
companies in the industry, when they invest money in the life insurance industry. So it’s
necessary to increase the market share of the company. There are some recommendations.

 OPEN SOME MORE BRANCHES IN SEMI URBAN AND RURAL AREA

SBILlife Insurance has almost its branches in urban area or metros. So in order to
increase the no. of customer, SBILife Insurance should increase the approach
towards potential customers. For that it has to increase the branches in the semi
urban cities like C, D grade cities. And the rural marketing is the best option for
SBIto increase its base in the market

 IMPROVE CUSTOMER SERVICES

In order to take the advantage of being industry leader in private sector, Sbilife
Insurance has to improve its customer services. According to my experience in the
company, a good number of customers forget to pay their premium at time so it
causes a big loss to the company.

 BRING SOME UNIT LINKED LIFE INSURANCE PLANS IN THE MARKET

Being a market leader doesn’t ensure the leadership in the future. Since after
increment in FDI from 26% to 49% all player will have the opportunity to capture
the market share. So in order to maintain its position SBILife Insurance should
-Introduce some new market linked insurance plan, which will give a competitive
advantage to the SBILife Insurance against its competitors.
 TRAINED THE FINANCIAL ADVISORS MORE EFFICIENTLY
In the changed scenario, more efficient training will be needed, so SBILife
INsurance should provide good and efficient training to their financial advisors.
Because they are the one who interact directly with the customers. So good training
will give them the right way to deal with the potential customers.

CONCLUSION
SBIlife insurance is one of the world’s largest life insurance companies. It has businesses
spread out across the globe. It currently ranks number 7 amongst the insurers in India
(Source: annual premium provided by the company)

The company faces a large amount of competition. To sustain itself it must promote its
products through advertising and improve its selling techniques. Consumers must be aware
of the new plans available at Kotak. The medium of advertising used could be television
since most of its competitors use this tool to promote their products. The company must be
promoted as an Indian company since consumers seem to have more trust in investing in
Indian firms.

The unit linked concept must be specifically promoted. The general perception of life
insurance has to change in India before 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.

SBIcould 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.

SCOPE OF STUDY
 THE ulip as an investmnent avenue entitled ‘ULIP as an investment avenue’ is a
detailed study about the inception of the concept of ULIP and its working mechanism.
The study is confined only to the analysis about the ULIPs and its effectiveness in
comparison with the traditional policies and mutual fund. The scope is limited only to
the detailed understanding of the two products of Bajaj Allianz.

LIMITATION OF STUDY
1. The study does not include any comparison with product of other companies.
2. More focus on ULIPs only
ANNEXURE
 ANNEXURE

NAME - ………………………..
DATE - ………………………..

Q: 1 WHAT IS THE MINIMUM LOCK IN PERIOD FOR ULIP?

A. 3 YEARS
B. 4 YEARS
C. 5 YEARS
D. NONE

Q: 2 HOW DO YOU RATE THE PREMIUM AMOUNT TO BE PAID IN UNIT

LINKED PLANS OF SBI LIFE INSURANCE?

A HIGH
B MEDIUM
C. LOW

Q: 3 HOW DO YOU RATE THE ADMINISTRATION CHARGES IN UNIT LINKED

PLANS OF SBI LIFE INSURANCE ?

A: HIGH
B: AVERAGE
C: LOW
Q: 4 HOW DO YOU RATE THE RETURNS IN UNIT LINKED PLANS OF SBI LIFE
INSURANCE?

A: GOOD
B. AVERAGE
B: POOR

Q: 5 WHAT DO YOU FEEL AFTER INVESTING IN UNIT LINKED PLANS OF SBI

LIFE INSURANCE ?

A: GOOD
B. AVERAGELY SATISFIED WITH THE INVESTMENT DECISION
C. CHEATED

Q: 6 REASONS FOR INVESTING IN UNIT LINKED PLANS OF SBI LIFE

INSURANCE ?

A: RETURNS
B. SCHEMES ARE GOOD
C. RECOMMENDED BY FAMILY AND FRIENDS
D NEEDS TO9 SAVE TAX
E. OFFERS MULTIPLE BENEFITS LIKE INVESTMENT+INSURANCE+ TAX
SAVING

Q: 7 WHICH OF THE COMPANY PROVIDE BEST OF THE SERVICES TO

CUSTOMERS ?
A: ICICI PRUDENTIAL B. SBILIFE INSURANCE
C. TATA AIG D.BAJAJ ALLIANG
E OTHERS
Q: 8 ACCORDING TO YOU LIFE INSURANCE

A. TAX SAVING PLAN

B. RISK COVERAGE
C. FINANCIAL SECURITY
D. ALL THE ABOVE

Q: 9 HOW DO YOU RATE THE TRANPARENCY WITH THE UNIT LINKED PLANS
OF SBI LIFE INSURANCE?

A: HIGHLY TRANSPARENT
B AVERAGELY TRANSPARENT
C.NOT AT ALL TRANSPARENT

Q: 10 ARE YOU SATISFIED WITH UNIT LINKED PLANS OF SBI LIFE

INSURANCE?

A: YES

B: NO
BIBILOGRAPHY
BIBLIOGRAPHY

 -MARKETING MANAGEMENT PHILIP KOTLER ,Tata McGraw Hill

Publication ,12th EDITION
 MARKETING RESEARCH WESTFALL BOYD, Stiffler Publication,12th
EDITION
 SALES MANAGEMENT THOMSON ,J.K. Publication, 6th EDITION.
 BUSINESS INDIA JULY 2013
 UDYOG VYPAR PATRIKA. (HALF YEARLY )EDITION
 PITCH MAGAZINE.JAN 2013
 www.sbilife.com