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GOOD AFTERNOON

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INSURANCE

It is a system by which the losses suffered

by a few are spread over many, exposed to

similar risks.

The calamity is either natural or unexpected

The insured person does not gain out of this

arrangement.

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DIVISION OF

INSURANCE SECTOR

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WHAT ARE ULIPs?

1.Combination of safety of insurance protection & wealth

creation opportunities.

2.Life cover + investment in funds being opted for.

3.Types: for retirement, for childrens education, for wealth

creation, for health solution.

4.Switching funds without any extra cost.

5.Long term investment.

6.Flexible & transparent.

7.Most ULIPs provide an option to increase or decrease

premium after 3 years.

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HDFC+SLIC

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COMPANY PROFILE

1.Incorporated on 14th August, 2000.

2.Joint venture between Housing Development Finance

Corporation ltd. (HDFC) & Standard Life.

4.Rated AAA by CRISIL and ICRA.

5.Has 27 Lakh policies in force.

6.Offers a bouquet of insurance solutions catering the

needs of both individuals & organizations.

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ULIPs

HDFC unit linked wealth maximiser plus.

HDFC simple life.

HDFC unit linked enhanced life protection.

HDFC unit linked endowment. HDFC unit linked endowment plus.

HDFC unit linked wealth multiplier.

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Unit Linked Wealth

Maximiser Plus

key features No medicals in case of

eligibility, for applyingthrough Short MedicalQuestionnaire (SMQ).

One time investment at thestart of the policy.

Cover till the age of 99years.

Regular loyalty units of0.10% every year as longas the policy is notsurrendered.

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HDFC SIMPLE LIFE

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HDFC SIMPLE LIFE

Minimum annualized

Premium-20,000

Minimum sum assured-

1,00000

Minimum term period-

15 years.

Minimum age at entry-18

Maximum annualized

Premium-1,00000

Maximum sum assured-

5,00000

Maximum term period-

20 years.

Maximum age at entry-45

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CHARGES

* Policy administrative

charges-Rs 60/year

which increases every

year by 5%.

*Mortality charges-the

amount depends onthe

age of the customer.

Revival charges-Rs

250 is charged in case

of revival.

Switching charges-24switches will be free,

then Rs 100 will be

charged for every

switch.

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CHARGES

Allocation rates-

Year 1 - 80%

Year 2- 80%

Year 3- 90%

Year 4+-98%

Surrender charges-

4 annual premiums-95%

3 annual premiums-40%

2 annual premiums-15%

1 annual premium-

5%

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HDFC unit linked

enhanced life protection

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HDFC unit linked

enhanced life protection

Minimum annualized

Premium-12,000.

Sum assured will increase

at 5% every year.

Minimum term period-

10 years.

Maximum term period-

30 years

Minimum age at entry-

18 years.

Maximum age at entry-

45 years. Maximum age at maturity-

75 years.

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CHARGES

Policy administrative

charges-Rs 60/year

which increases every

year by 5%. Mortality charges-

the amount depends

on the age of the

customer.

Revival charges-Rs

250 is charged in case

of revival.

Switching charges-24switches will be free,

then Rs 100 will be

charged for every

switch.

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CHARGES

Single premium top up

allocation charges-

Paid during year 1-

97.5%

Paid during year 2-

97.5%

Paid during year 3+-

98%

Surrender charges-

4 annual premiums-95%

3 annual premiums-35%

2 annual premiums-15%

1 annual premiums-5%

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OVERALL MARKET SHARE

Market share of life insurance companie

54%

15%9% 8%

2% 4%8%

0%10%20%30%40%

50%60%

LIC

ICICIPrudential

BajajAllianz

HDF

CSL

TataAIG

Relianc

elife

Others

Companies

Percenta

ge

LIC

ICICI Prudential

Bajaj Allianz

HDFC SL

Tata AIG

Reliance life

Others

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AMOUNT OF PREMIUM COLLECTED BY

HDFCSL AS COMPARED WITH LICAmount of premium collected by HDFCSL compared with LI

3563

11360

15350

1167 931 707

0100020003000

400050006000700080009000

100001100012000

13000140001500016000

Aug'09 Aug'08 Aug'07

Premium (in crore)

LIC

HDFCSL

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READINESS TO INVEST IN ULIPs

Readiness to invest in ULIP

40%

44%

12%

4%

Yes

No

May be

Dont know

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THREATS

People are hesitant to invest and put their money

to private life insurance companies.

Alternative financial services such as mutual

funds, shares and securities pose problems. Rising real estate industry also pose threat as

people are investing a bulk of their money there.

Tough competition from other players.

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SUGGESTIONS

It should try to sell those plans which the customerrequires & not the plan where advisors benefits arehigher.

Aggressive promotion for ULIPs should be done. Returns from investment should be taken care of.

The company needs more manpower and planningto reach the desired level.

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