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ULIP AS AN INVESTMENT AVENUE WITH RESPECT TO ING VYSYA BANK

Objective:
To study the concept and working mechanism of ULIPs To study in detail about ULIP product of ING Vysya Bank To study the similarities and differences between the Traditional Policies & ULIPs To have an awareness of IRDA Guidelines with respect to ULIPs

The project is a Comprehensive case study, covering single organization that is, ING Vysya Bank consisting its detail product study, recommendations and conclusion.

Introduction:
Life Insurance or life assurance is a contract between the policy owner and the insurer, where the insurer agrees to pay a sum of money upon the occurrence of the insureds death. In return, the policy owner (or policy payer) agrees to pay a stipulated amount called a premium at regular intervals. Life Insurance is a contract for payment of money to the person assured (or to the person entitled to receive the same) on the occurrence of the event insured against. Usually the contract provides for: 1. Payment of an amount on the date of maturity or at specified periodic intervals or at death if it occurs earlier. 2. Periodical payment of insurance premium by the assured, to the corporation who provides the insurance.

Who can take Life insurance policy? 1. Any person above 18 years of age, who is eligible to enter into valid contract, 2. Subject to certain conditions a policy can be taken on the life of a spouse or children.

Now life insurance policies are available in two types: 1. Traditional policies: 2. Unit linked insurance plans(ULIP5):

Now ULIPs are food in market: ULlP stands for Unit Linked Insurance Plan. It provides for life insurance where the policy value at any time varies according to the value of the underlying assets at the time. ULIP is life insurance solution that provides for the benefits of protection and flexibility in investment. The investment is d8noted as units and is represented by the value that it has attained called as Net Asset Value (NAV). ULIP came into play in the 1960s and became very popular in Western Europe and Americas. The reason that is attributed to the wide spread popularity of ULIP is because of the transparency and the flexibility which it offers. As times progressed the plans were also successfully mapped along with life insurance need to retirement planning. In todays times, ULIP provides solutions for insurance planning, financial needs, financial planning for childrens future and retirement planning. These are provided by the insurance companies or even banks. These investments can also be used for tax benefit under section 80C.

Scope of the study:


The project entitled ULIP as an Investment Avenue is a detailed study about the inception of the concept of Unit linked insurance policies and its working mechanism. The study is confined only to the analysis about the ULIPS and its effectiveness in comparison with the traditional policies. The Scope is limited only to the detailed understanding of the products of ING Vysya Bank.

Rationale for the study:


In last some years of my career and education, I have seen many people grappling with the insurance issue and complaining against the tax deducted from their monthly remuneration. Not equipped with proper knowledge of ULIPs and other insurance plans they simply invest in LIC

since it is the oldest in India. The Private Insurance companies are also not able to create brand value and trust in customers. This prodded me to study this aspect leading to this project during my MBA course with the university, hoping this concise yet comprehensive write up will help this salaried individual assessee class to save whatever extra rupee they can from their hard-earned monies. This project will also help people to get a higher return and also secure their life.

Research methodology:
Sources of data Data collection is of two types as follows: Primary data: The primary data refers to the data collected from direct questioning and which has not been collected or gathered earlier by any other research study. The data for this study was collected by interacting with insurance trainers and sales managers. A sample size of 10 people will be used in the study. Secondary data: This type of data refers to the gathering of information from the sources that have readymade data already in possession. This data has already been collected and complied. This data has been collected from the existing surveys in the company. Information will be gathered from the company brouchers, periodicals, websites and other books. After gathering the data from the Sources, the data will be analyzed, tabulated, interpreted and finally conclusions were made regarding the entire project.

Limitations of the study:


The study is limited only to ING Vysya Bank. The study does not include any comparison with product of other companies. More focused on ULIPs only.

Current information is not provided by the company staff members. Basic methodology implemented in this study is subjected to various pros & cons Respondents suggestions may or may not be correct.

Expected contributions from the study:


From the project we will study that ULIPs there by collects money or funds from the investors with similar investment goals. It is one of the ways of mobilizing the funds and channelizing them properly. Very small percentage of the population is well aware of the ULIPs. The advertisement has become an effective tool to create public awareness, thus educating them about the various avenues available to them. The switching off from the ULIPs are very low. The investment manager has to guide the investor to choose the correct available funds which they prefer. In rural areas, people have no idea about the ULIPs, while they totally depend on the agents who often cheat them. Therefore, it is the duty of the fund managers to guide investors properly. In Final, ULIPs are better than Mutual Funds and Traditional policies

Review of Literature:
Insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer, or insurance carrier, is a company selling the insurance; the insured, or policyholder, is the person or entity buying the insurance policy. The amount to be charged for a certain amount of insurance coverage is called the premium. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice. Insurance is a subject listed in the Union list in the Seventh Schedule to the Constitution of India where only centre can legislate. The insurance sector has gone through a number of phases by allowing private companies to solicit insurance and also allowing foreign direct investment of up

to 26%, the insurance sector has been a booming market. However, the largest life-insurance company in India is still owned by the government. A unit-linked insurance plan (ULIP) is a type of life insurance where the cash value of a policy varies according to the current net asset value of the underlying investment assets. It allows protection and flexibility in investment, which are not present in other types of life insurance such as whole life policies. The premium paid is used to purchase units in investment assets chosen by the policyholder. In India investments in ULIP are covered under Section 80C of IT Act. The overall limit of permissible deductions under Section 80C is Rs. 1 Lac. However, the concept of having an insurance is governed by the Insurance Regulatory and Development Authority (IRDA).[

Bibliography:
ICFAI Journal Outlook Money Magazine Websites: http://ndparking.com/ULIP.com/ www.ingVysyalife.com http://personalfn.com/ http://www.moneycontrol.com/