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Birla sun life insurance

Ulip in Birla sun life

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What is ULIP?

Unit Linked Insurance Plan (ULIP) is a

product offered by insurance companies that

unlike a pure insurance policy gives investors

the benefits of both insurance and investmentunder a single integrated plan.

Introduction

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UNIT LINKED INSURANCE

PLAN(ULIP) When people see how investments in the capital market

have grown over the last few years, they prefer to use theirfunds in ways that help them to participate in the boom inthe capital market.

Insurers have developed plans that combine the benefits oflife insurance as well as giving various options ofparticipating in the growth of the capital market.

Such plans are called Linked Life Insurance Plans.

They are also called Unit Linked Insurance Plans or ULIPs,

in short. A ULIP is a life insurance policy which provides a

combination of life insurance protection and investment.ULIPs contribute nearly 50% of the premium for some

insurers and more than 85% of the premium for someothers.

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Literature review

Mr.Madhu T, made a study on ULIPs hold edge over mutual

funds. The findings shows that distributors would push unitlinked insurance plans (ULIPs) to earn better commission.

ULIPs offer attractive frontend commissions to agents.However, independent financial advisors believe that thoughthere is a possibility of some distributors favoring ULIPs in

the short term, the new directive would be beneficial for boththe industry and investors in the long run.(Mr.Madhu T, TheEconomic Times,June2009).

Mr. Deepak Shenoy ,in his article Comparing ULIP returns toMutual Funds, he reveals that, over the last three years, theirgrowth mutual fund has given better returns than the"MAXIMISER" option of their ULIPs.(Deepak Shenoy, TheIndian Investors Blog, August 2006).

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Mr.Murthaza and Sony, in their article An

Overview on ULIP, This article is an initiative

from Bajaj Allianz to create better understandingof ULIPs and its benefits so that investors can avail

maximum returns from their investments.

Mr.Bernz Jayma P, made a study on Mutual Fund

disadvantages. He suggested that ,If you're new

to stock market investing you may have heard that

mutual funds would be a good way for you to get

started. That's actually good advice, but mutual

funds have their own pitfalls to watch out for.

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OBJECTIVES

To understand the reason for which customers preferULIP as one of the best insurance investment mode

rather than Mutual fund.

To find the significance difference between customersof different income with that of investment mode.

To Compare Investment Options of customers inULIPs and Mutual Funds.

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LIMITATIONS

The middle class people do not know basic concept of ULIP socreating awareness is a big challenge for me.

The findings of my research is from a small sample size.

Narrow minded thinking of middle class people as investment is nottheir cup of tea.

Many customers are thinking that investment in share market is veryrisky. As ULIP and Mutual fund both are related to share market.

A general preference to LIC and SBI over private players.

Hesitations on the part of respondents to disclose financial

information.

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DATA ANALYSIS

1.The Customers who prefer ULIP as one of the best

insurance investment mode rather than Mutual fund

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2. Factors that influence your

investment decision in a particular

company.

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3.People who likes to invest money in

ULIP

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4.People like to invest money in

Mutual Funds

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5.Mutual funds are more risky than

ULIP products.

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6.ULIPs have advantage over Mutual

funds.

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CONCLUSIONS

Awareness of ULIP is increasing as more number ofprivate players are entering in life insurance industry.

Mutual Fund is also getting more and more famous inIndian market as many private companies innovating

new funds as the investors demand. ULIP differentiate from Mutual fund in respect of

Insurance cover.

Investors in SUN LIFE INSURANCE ULIP will be

getting the advantage of life insurance cover. People are turning towards the ULIP as a good

investment option but as ULIP is in its starting phase socustomers are preferring only big brands.

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RECOMMENDATION &

SUGGESTIONS Mutual fund is having good growth but many customers from rural

areas dont have any knowledge about Mutual fund. They think it isvery risky.

There is a need for insurers to undertake a demand audit in order tounderstand what the policyholder wants and needs.

Deriving the right feedback from customers and bringing outinnovative products which cater to customer demands will go a longway in tapping the market potential of the insurance and Mutualfund sector.

For Birla Sun Life Insurance They should go for creating moreawareness about its ULIP as now also people are just investing

because BSLI is Indias most Known and Favorite brand in past. BSLI should go for innovating more and more products and

improving the distribution channels as per the area of sales.

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BIBLIOGRAPHYReferences:

1) Research Methodology, C.R Kothari, 2nd edition

2) Outlook Money, 15 May 2005, ULIP Mania.

3) The Business Line,10 June 2007, Know all About ULIPS.

Website:

Www.irdiaindia.orgwww.birlasunlife.co.in

www.icmrindia.org

www.licindia.com

www.wikipedia.og

www.mba.com

Journals:

Study guideprinciples & practices of life /general insurance. By Aima

Books published by insurance institution of India

Life insurance, by MC Gill.

Insurance watch.

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Thank you