A PROJECT REPORT ON

LIFE INSURNCE : AN INVESTMENT ALTERNATIVE

SUBMITTED BY

SUMIT JAGDISH PATEL

ROLL NO.36

T.Y. (BANKING & INSURANCE)

SEMESTER VI

(2016-2017)

UNDER GUDANCE OF

PROF. DEEPAK CHAVAN

S.K. SOMAIYA DEGREE COLLEGE OF ARTS,

SCIENCE AND COMMERCE

AFFILLIATED TO UNIVERSITY OF MUMBAI

AUROBINDO, VIDYANAGAR, VIDYVIHAR

(EAST)

MUMBAI-400077
 Acknowledgement
I Mister Sumit J. Patel am Firstly indebted to god, For Answering all
my Prayers and helping me in the success Full Completion Of my
Project Business Avenue In retail banking
I also Express my Sincere thanks to Miss. Sangita kohli
principle Of S.K. Somaiya Degree Collage Of Arts Science And
Commerce ( Aurobindu) For Giving me opportunity to highlight my
creativity, in addition, I owe my sincere gratitude to my course
coordinator prathmesh tawade and project guide Prof. Deepak chavan,
Whose Dynamism and positive approach gave an effective momentum
to my project.
I am also thankful to all my friends and teachers especially
without whom my project would be nothing. Finally, I am also
thankful to my family for always being there for me and for supporting
me. This project would have not been successful without you all.
 INDEX
NO CONTENT PG. NO

1 Introduction 1

2 Policies And Plans

Life insurance policy 25
Investment plans

3 Life Insurance v/s Other Investment Alternatives 31

4 Benefit of life Insurance 34

5 Primary Survey- Analysis 44

6 Conclusion 52

7 Bibliography & Weblography 54

8 Appendix 56
EXECUTIVE SUMMARY

Money Investment is 10% inspiration and 90% perspiration

The project includes what are life insurance and its various benefits available to policy holders.
In short the project conveys that buying a life insurance is an investment and the benefits
obtained in these investments are not comparable with those of others.

Life is uncertain and it is not possible to predict the different events that can occur.
However, there is always a need to earn income to support yourself and your dependents.

Financial planning is required to understand the impact of different events on our lives
and on the quality of life for our families. It is like scenario building and understanding
what financial requirements we would have at various stages in our lives and hence trying
to reduce the financial risks that we are exposed to by proactively taking steps to guard
against at least some of these risks. These could include buying insurance cover,
investing in mutual funds, fixed deposits or government bond etc

A good investment is one which earns a decent return after providing for taxes and
inflation. The three critical factors effecting investment decisions are safety, liquidity and
expected rate of return.

Just as buying life insurance is a necessity and more important to buy it early. With
proper financial planning one can work out as to how much money an individual is
entitled to get after the end of a particular term.

So if you start saving early, you accumulate more even with lesser investment.

Life insurance and related annuity products are frequently used to provide the funding for
retirement plans and other types of plans. Planning for retirement is an important exercise
for any individual. A retirement plan from a life insurance company helps an individual
insure his life for a specific sum assured. At the same time, it helps him in accumulating a
corpus, which he receives at the time of retirement.

Life insurance is bought for several reasons. Tax benefits, of course, are a key driver for
taking life insurance.
 The saving component of life insurance pits the insurer in direct competition with other
financial institution and saving instruments, such as bank deposit, equities and mutual
fund.

Insurance may not be most beneficial to invest your hard earned money, but there are
sufficient reasons for one to believe that it can be a highly lucrative avenue to facilitate
savings.

Life Insurance Policy can be a valuable asset, both as an investment as well as indirect future
benefits