Sumit Project

Birla Sun Life Insurance
PROJECT REPORT ON
STUDY OF PRODUCT PORTFOLIO
OF
SUBMITTED TO: SUBMITTED BY:
Dr. A K Das Sumit

Chauhan
Director BBA
(3rd year)
(Academy of 5th semester
Management Studies) 2008-2010
A report submitted in partial fulfillment of BBA programme at
2
ACKNOWLEDGEMENT
We would like to express our sincere gratitude and thanks to Mr.

Rajesh Rao, Agency Manager, Birla sun life insurance ltd,
Jaipur for giving us the guidance. We owe everything we have
gained from the project in terms of knowledge and experience to
them, as without their timely support and encouragement the
project would not have been as fruitful as it has been.
We also thank Mr. RK Saxena for his constant encouragement

and guidance at every stage of this project, acting as my faculty
guide. He has been kind enough to spare his valuable time and
share his corporate experiences, which helped me to approach the
project in the right way.
3
We are grateful also to the entire staff of Birla sun life insurance
ltd who helped us to collect the relevant data and get the real gist
of current scenario.
We would also like to extend sincere thanks to few people who

were not part of our project but without their help things would not
have been as easy as they were.
THANK YOU ALL
Sumit Chauhan
BBA (3rd year)
5th semester
4
CONTENTS
1. Introduction to insurance
5
2. Fundamental principles of insurance

6-8
3. Reasons for taking a life insurance policy

9-10
4. Vision, Mission, Values

11
5. Company Profile
12-16
6. Sales Procedure
17-19
7. Company’s Products
19-34
7.1 Flexi Plans
7.2Classic Life Premier
7.3 Gold plus II Plan
7.4 Supreme Life Plan
7.5 Platinum plus Plan
5
9. Funds by BSLI
34-39
11. Conclusion
40
12. Recommendation
41
13. Bibliography
41
14. Annexure
42-44
“Insurance, in law and economics, is a form of risk

management primarily used to hedge against the risk of a
contingent loss. Insurance is defined as the equitable
transfer of the risk of a loss, from one entity to another, in
exchange for a premium. An insurer is a company selling
the insurance. The insurance rate is a factor used to
determine the amount, called the premium, to be charged
for a certain amount of insurance coverage. Risk
management, the practice of appraising and controlling
risk, has evolved as a discrete field of study and practice.”
The evolution of human beings from the primordial ‘wild’

stage to the ‘cave dwelling’ stage is nothing but their saga
of search for security. Their quest for security is eternal.
6
Life insurance is a device invented by them to seek security

against the most important hazards against which they
found themselves quite helpless. It will not be an
exaggeration to say that progress of civilization is due to
human beings’ unending pursuit for security.
Life insurance in its modern form is a western concept.
Although it started taking shape since last 300 years, it
came to India with the arrival of the Europeans .the first life
insurance company was established in India in 1818 as
oriental life insurance company mainly by Europeans to
provide for widows of Europeans. The companies that
followed mainly catered to Europeans and charge extra
premium on Indians lives. The first Indian company,
insuring Indian lives at standard rates, was Bombay mutual
life insurance company, which was formed in 1870.this was
the year also when the first Insurance Act was passed by
the British parliament. The years subsequent to the
Swedishi Movement saw the emerging of several insurance
companies.
The end of the year 1955, there were 245 insurance
companies and provident societies out of which 16 were
non-Indian companies. These companies were nationalized
in 1956 and brought under one umbrella – the life insurance
corporation of India, which enjoyed monopoly of life
insurance business, till almost up to the end of year
2000.By enacting the IRDA Act 2000,the government of
India effectively ended LIC’s monopoly and opened the
doors for private insurance companies
7
FUNDAMENTAL PRINCIPLES OF
INSURANCE
Some useful terms in Insurance:
A) INDEMNITY
A contract of insurance contained in a fire, marine,
burglary or any other policy excepting life assurance and
personal accident and sickness insurance) is a contract of
indemnity. This means that the insured, in case of loss
against which the policy has been issued, shall be paid the
actual amount of loss not exceeding the amount of the
policy, i.e. he shall be fully indemnified. The object of
every contract of insurance is to place the insured in the
same financial position, as nearly as possible, after the loss,
as if his loss had not taken place at all. It would be against
public policy to allow an insured to make a profit out of his
loss or damage.
B) UTMOST GOOD FAITH

Since insurance shifts risk from one party to another, it is
essential that there must be utmost good faith and mutual
confidence between the insured and the insurer. In a
contract of insurance the insured knows more about the
subject matter of the contract than the insurer.
Consequently, he is duty bound to disclose accurately all
material facts and nothing should be withheld or concealed.
Any fact is material, which goes to the root of the contract
of insurance and has a bearing on the risk involved. It is
only when the insurer knows the whole truth that he is in a
position to judge
8
(a) Whether he should accept the risk and

(b) What premium he should charge.
If that were so, the insured might be tempted to bring about

the event insured against in order to get money.
C) Insurable Interest - A contract of insurance affected

without insurable interest is void. It means that the insured
must have an actual pecuniary interest and not a mere
anxiety or sentimental interest in the subject matter of the
insurance. The insured must be so situated with regard to
the thing insured that he would have benefit by its existence
and loss from its destruction. The owner of a ship run a risk
of losing his ship, the charterer of the ship runs a risk of
losing his freight and the owner of the cargo incurs the risk
of losing his goods and profit. So, all these persons have
something at stake and all of them have insurable interest.
It is the existence of insurable interest in a contract of
insurance, which distinguishes it from a mere watering
agreement.
D) Causa Proxima - The rule of causa proxima means that

the cause of the loss must be proximate or immediate and
not remote. If the proximate cause of the loss is a peril
insured against, the insured can recover. When a loss has
been brought about by two or
9
more causes, the question arises as to which is the causa

proxima, although the result could not have happened
without the remote cause. But if the loss is brought about
by any cause attributable to the misconduct of the insured,
the insurer is not liable.
E) Risk - In a contract of insurance the insurer undertakes

to protect the insured from a specified loss and the insurer
receive a premium for running the risk of such loss. Thus,
risk must attach to a policy.
F) Mitigation of Loss - In the event of some mishap to the

insured property, the insured must take all necessary steps
to mitigate or minimize the loss, just as any prudent person
would do in those circumstances. If he does not do so, the
insurer can avoid the payment of loss attributable to his
negligence. But it must be remembered that though the
insured is bound to do his best for his insurer, he is, not
bound to do so at the risk of his life.
G) Subrogation - The doctrine of subrogation is a

corollary to the principle of indemnity and applies only to
fire and marine insurance. According to it, when an insured
has received full indemnity in respect of his loss, all rights
and remedies which he has against
10
Third person will pass on to the insurer and will be

exercised for his benefit until he (the insurer) recoups the
amount he has paid under the policy. It must be clarified
here that the
Insurer’s right of subrogation arises only when he has paid
for the loss for which he is liable under the policy and this
right extends only to the rights and remedies available to
the insured in respect of the thing to which the contract of
insurance relates.
H) Contribution - Where there are two or more insurance

on one risk, the principle of contribution comes into play.
The aim of contribution is to distribute the actual amount of
loss among the different insurers who are liable for the
same risk under different policies in respect of the same
subject matter. Any one insurer may pay to the insured the
full amount of the loss covered by the policy and then
become entitled to contribution from his co-insurers in
proportion to the amount which each has undertaken to pay
in case of loss of the same subject-matter.
In other words, the right of contribution arises when
1) There are different policies, which relate to the same

subject matter
2) The policies cover the same peril which caused the
loss, and
3) All the policies are in force at the time of the loss,
and
4) One of the insurers has paid to the insured more than
his share of the loss.
11
Life Insurance Policy is a form of security for the person

who insures his life and his family. Life insurance policies
have helped trade and other economic activities to flourish
in a great manner. It has generated lots of job opportunities.
It is looked upon as a lucrative career option. Life
insurance companies have also entered the international
business scenario.
The following reasons substantiate why a life

insurance policy should be taken:
A) Early Deaths
The mortality rate is experiencing a declining trend in
many parts of the world. However it is also important to
note that the age at which People die is also ever
decreasing. Some reasons for this include unhealthy living
style, stress, pollution, and some natural calamities. This
necessitates people to make adequate measures to yield
income for their family and dependents. This could be a
serious concern if the insured happens to be the sole
breadwinner. Some individuals see this as an option to plan
their retirement.
12
B) Advancements in Health Care

The mortality rate has declined rapidly even though the fact
remains that the number of people who die at an early age
is on the increase. This is mainly due to the advancement in
healthcare and the awareness on medical facilities. This
results in an increased spending at an old age. This
increased spending is also due to increase in the costs of
living apart from paying expensive medical bills. Unless
they invest in Life insurance or other forms of insurance
like health insurance it becomes next only too impossible to
meet the financial demands especially during the old days.
C) Increase in the Cost of Living and Spending

Power
The purchasing power of the consumers and the standard of
living has experienced a steep rise over the years. The
increase in National Income and gross domestic product are
Partly responsible for this. Individuals incur many
unexpected expenses due to the growing needs. Insurance
comes in handy to meet such an unexpected expense. It
also
Makes sure that an individual is able to meticulously plan
his finances.
Insurance option is more or less an interest free loan. An
individual can cancel his insurance policy and obtain a
13
huge amount if it is imperative in meeting an urgent

expenses and he does not have alternative sources for
finance. Life insurance companies therefore do the needful
to consumers.
D) Tax Concessions
Income tax concessions are available to individuals and
corporate houses that adopt insurance policies. Many have
been making investments in Insurance with the sole aim of
enjoying tax benefits. This naturally increases spending
power. Since the investments increases the economic
activities in the country automatically increases.
VISION
14
To be a world class provider of

financial security to individuals and
corporates and to be amongst the
top three private sectors life
insurance companies in India.
MISSION
To be the first preference of our

customers by providing innovative,
need based life insurance and
retirement solutions to individuals
as well as corporates. These
solutions will be made available by
well-trained professionals through
a multi channel distribution
network and
Superior technology.
Our endeavor will be to provide

constant value addition to
customers throughout their
relationship with us, within the
regulatory framework.
We will provide career
development opportunities to our
employees and
The highest possible returns to our
shareholders.
VALUES
15
 Integrity: Honesty in
every action.
 Commitment: Deliver
on the promise
 Passion: Energized
action
 Seamlessness:
Boundary less in letter & spirit
 Speed: One step
ahead always
COMPANY PROFILE
Birla Sun Life – A Coming Together Of Values
Birla Sun Life is a joint venture between The Aditya

Birla Group, one of the largest business house in India and
Sun Life Financial Inc., a leading International Financial
Services Organization. The local knowledge of the Aditya
Birla Group combined with the expertise of Sun Life
Financial Inc. offers a formidable protection for our future.
The Aditya Birla Group is led by its chairman- Mr. Kumar

Manglam Birla. The Group has over 88000 employees
across all its units worldwide. Some of the key
16
organizations with the group are Hindalco, Grasim, Aditya

Birla Nuvo, etc.
The group is India's leading business house with a number

of key organizations. These are as follows:
1. Grasim
2. UltraTech Cement Ltd
3. Hindalco
4. Indian Aluminium Company Ltd
5. Aditya Birla Nuvo
6. Idea Cellular Ltd.
7. Birla Sun Life Insurance Co.Ltd
8. Birla Sun Life Asset Mgmt. Co.Ltd
9. Birla Sun Life Distribution Co. Ltd
10. PSI Data Systems
11. Indo Gulf Fertilizers Ltd.
12. Birla Global Finance Ltd
Sun Life Financial Inc. and its partners today have

operations in key markets worldwide, including Canada,
the United States, the United Kingdom, Hong Kong, the
Philippines, Japan, Indonesia, India, China and Bermuda.
Sun Life Financial Inc. is a leading player in the life
insurance market in Canada.
Share Holding Pattern:

In Birla-Sun Life, the two companies are having
shareholding pattern as follows:
74 %--> Aditya Birla Group
17
26 %--> Sun Life Financial Inc.
The group has 3 businesses:

1. Mutual Funds
2. Wealth Management
3. Life Insurance
Birla Sun Life Insurance co ltd. is the Life-Insurance

arm of Birla-Sun Life
Birla Sun Life Insurance in its 7 successful years of

operations has contributed significantly to the growth and
development of life insurance industry in India. It
pioneered the launch of Unit Linked Life Insurance plans
amongst the private players in India. It was the first player
in the industry to sell its policies through the
Bancassurance route and through the Internet. It was the
first private sector player to introduce a Pure Term plan in
the Indian market. This was supported by sales practices,
which brought a degree of transparency that was entirely
new to the market. The process of getting sales illustrations
signed by customers, offering a free look period on all
policies, which are now industry standards were introduced
by BSLI. Being a customer centric company, BSLI has
covered more than a million lives since inception and its
customer base is spread across more than 1000 towns and
cities in India. All this has assisted the company
18
in cementing its place amongst the leaders in the industry in

terms of new business premium income. The company has
a capital base of more than Rs.672 crores.
Many ONEs with Birla Sun Life Insurance:

BSLI is a company that has a very unique contribution in
the history of Insurance sector. The company not only has
varying plans and funds, rather also is a pioneer in many
aspects. These pioneering features of BSLI are as follows:
1. Free Look Period: BSLI offers its policyholders

with a free look period of 15 days. Client gets
freedom to have an in-depth look over all the terms
and conditions regarding his/her life-insurance
policy. If he finds policy not worth opting for, he
can also return the policy, but at BSLI, co. people
ensures this not to happen.
2. Bancassurance: BSLI pioneered Bancassurance in

India. Bancassurance means to include Banks as
one of the distribution channels with the company.
BSLI is the first company, which realized that
banks, with their huge customer base and strong
customer loyalty, are a readymade platform to
acquire new business on a more cost effective and
sustainable basis.
3. Unit Linked Life Insurance Plans: BSLI was the

first in India to introduce Unit Linked Plans. A
19
ULIP is an auspicious coming together of security

from life
4. insurance and earnings from investment. Which

means, apart from securing the future they offer
efficient returns. These plans provide the customer
with a certain number of units, in the same way as a
mutual-fund holder gets units. ULIPs offer market-
linked returns to policyholders.
5. Sales Illustrations: BSLI is the first company to

introduce Sales Illustrations in the Insurance
Industry. Sales people of BSLI give demonstrations
of fund
6. Performance on two points of projections i.e. on 6%

and 10%. Now IRDA has also made it mandatory to
have sales illustrations.
BSLI’s has launched Century SIP, a unique systematic

investment plan offering an opportunity to create wealth
with as little as Rs 1000 per month plus a life insurance
cover of up to 100 times the monthly installment.
This plan comes along with free term insurance for an

individual up to 55 years of age.
The life insurance cover comes at no extra cost to the
investor. The cover is hassle free. The investor need not go
thru any medial test to avail of the life cover. All an
20
investor needs to do is enroll for CSIP & sign a

“Declaration of Good Health”. In case of unfortunate
demise of investor the insurance claim will be directly paid
to the nominee by the insurance company (Birla Sun Life
Insurance Company).
Announcing the launch of Century SIP, Anil Kumar, CEO,

and Birla Sun Life MF said,
“This offering touches all aspects of an investor’s financial
planning needs. We wish to encourage the investment habit
among investors by providing them life insurance cover.”
Insurance cover to the investor would continue even after
the SIP’s minimum maturity tenor of 3 years. Any
individual between 18 to 46 years of age may invest in this
plan. Investment in this plan may be made through
Electronic clearing system (ECS), direct debits or post
dated cheques.
7. Others: Some other ONEs with BSLI are:
 1st to issue daily NAVs of funds for better

transparency.
 1st to have a distinct CRISIL benchmark.
 1st to disclose portfolio on a monthly basis.
21
 Policyholders can view their policy details

online; they can be accessed from BSLI
website using your unique password.
 Out of every 100 claims intimated to BSLI

98.28 stands cleared.
 Also the average Turn Around Time (TAT) :
(i) From the receipt of the last

requirement till dispatch of
cheque is 5 days and
(ii) From intimation of claim till its
decision & dispatch of cheque
is 36 days.
Sales Procedure of Insurance in BSLI:
22
BSLI ensures that its policyholders get the best out of the
policy offered to them by their Advisors. For this, BSLI
follows a set procedure of selling Insurance to the clients.
The sales procedure can be diagrammatically presented as
follows:
SUSPECTING
PROSPECTING
APPOINTMENT
FIRST SALES CALL
FOLLOW UPS
SALES CLOSED
OFFICE WORK
This procedure can be stepped down as follows:
23
1. Pitching the customer: The first and foremost thing is

that, client should be ready to purchase the Insurance plan.
Insurance is not a very preferable product yet in India. And,
thus, co. has to be very vigilant. Advisors, at BSLI,
maintain relationships and make the most of their
Goodwill. Insurance is a Relationship oriented business.
Keeping this in mind BSLI also initiated Bancassurance,
where Banks’ image of being loyal to the customers, plays
a major role in pitching the customer to buy Insurance.
BSLI uses following routes for distributing their Product to
general public:
a. Direct Personal Contacts (through Advisors)
b. Bancassurance (through Banks)
c. Personal Relations (through co. employees)
d. Existing Policyholders.
2. Sales Illustration: BSLI is the first company to give

demonstration of the fund performance i.e. how a certain
policy will perform or will give returns. BSLI Advisors
give sales illustration. Fund performance is shown on 6%
and 10% projections. If client find these projected returns
suitable to his/her risk profile, he go for purchasing the
policy.
3. Proposal Form: Now as client is ready to get

insured, advisor gives him the proposal form and
asks for all the documents required. Proposal form
is a 4 page document that contains all the necessary
information related to the Insured and the Owner of
the policy. Documents required along with the
proposal form are:
24
 Date-Of-Birth Proof
 Address & ID Proof
 Income Certificate
 Medical Certificates (only if Insurer is a senior
citizen)
4. After Sales Service: Now after the Insurance is

sold, follow-ups are required. Advisor needs to
maintain good relations with the policyholder.
Insurance co. can
Generate further business, only if, existing
policyholders are satisfied with the services being
provided by the advisor of the co. Thus, BSLI keeps
this in mind and Business Development Executives
continuously track the needs of the policyholders. BSLI
provides the policyholders with monthly updates of the
fund performance and
also discloses the asset portfolio of the fund. This

assists the policyholders to manage their policy
according to their risk profile. They can, thus, change
their fund allocation as well as the asset allocation in
any fund, chosen by them.
COMPANY PRODUCTS /
PLANS
25
All the plans associated with BSLI are Unit Linked Plans.
Flexi Plans
Flexi Plans have three variants. These variants are:

1. Flexi Save Plus (Endowment Plan)
2. Flexi Cash Flow (Money Back Plan)
3. Flexi Lifeline (Whole of Life Plan)
Features:
• This is a Unit Linked Plan with guaranteed
returns.
• Provides flexibility with Top-Up Facility.
• For Quarterly modal premium less than
Rs.5000, payment can be made through ECS.
• Policyholder can attach riders to the plan
according to his/her needs.
• Liquidity in the form of Partial withdrawals.
• Three Investment Fund options are available

with the policy and policyholder is free to switch
between funds anytime during the tenure of the
policy.
• The Sum Assured may be increased once in
every 5 policy years, starting from the 6th policy
year.
• Premium can be paid annually, semi-
annually, quarterly and monthly
26
Premium Invested: Collected Premium is invested in three

Investment Fund Options. These funds are:
1. Protector
2. Builder
3. Enhancer
Benefits:
1. Maturity Benefits: At maturity, Policyholder gets
the higher of the guaranteed fund value (min. 3% on
premium) or the Total Fund value.
2. Survival Benefits:
(i) At the end of every 5th Coverage Benefit Period

and the remainder on maturity, an amount
equals to the minimum of (a) or (b) mentioned
below will be reduced from the guaranteed fund
value and transferred to the holding account for
the purpose of partial withdrawals, where-
(a) Guaranteed Fund Value

(b) Sum Assured % as stated below:
• 30% if the Coverage Benefit
Period is 10 years.
Period is 15 years.
Period is 20 years.
27

Period is 25 years.
If survival benefits are not withdrawn, they will

continue to be a part of the Fund Value.
(ii) If the life insured is a minor,

policyholder can withdraw the survival
benefit payout within one month from
the scheduled payout date from the fund
value.
3. Death Benefits:
Age at time of
Death Benefits
Death
30 days to 1 year Fund Value Only
Higher of Sum Assured less all partial withdrawals made in 24
Age 1 Year to 60
months preceeding the death of life insured or the fund value or
Year
the guaranteed fund value.
On or After Higher of Sum Assured less all partial withdrawals made since
attainment of 60 the life insured attained the age 58 or the fund value or the
Years guaranteed fund value.
Charges:
1. Mortality Charges: These charges are deducted by
canceling units on a monthly basis at the prevailing
NAV. The annual mortality charges per 1000 sum
assured for sample ages are as follows:
28
Age 20 30 40 50 60
Male 1.01 1.17 2.15 5.53 13.732
6 1 0 2
Female 0.89 1.16 1.65 4.03 10.660
6 3 7 0
2. Partial Withdrawal Charges: 2 withdrawals in a

policy year are free of charge. Rs100 for every
additional partial withdrawal are charged.
Classic Life Premier
This is the plan that not only helps to save for the future but
also helps to get rich benefits from the investments,
especially at a time when the need for family protection
reduces significantly.
Features:
• The plan is a unit linked, non-participating plan.
• This plan has the option of seven-investment fund
with the flexibility to allocate the premiums in
varying proportions into the different Fund Option.
• Top up facility is there. The minimum amount of
top ups is 10000.
• The plan offers further benefits in the form of
additional units, which will be added to the Fund
value at the end of the 10th policy year.
• There is high liquidity in the form of Partial
Withdrawals and Surrender Benefits.
29
• Death Benefits, which will be higher of the Fund

value or Sum Assured, reduced by the applicable
partial withdrawals.
Eligibility:
• Entry Age:
Minimum: 30 days for 20 & 30 term
8 years for 10 terms
30 years for whole life
Maximum: For 10 years term- 60 years
For 20 years term- 50 years
For 30 years term- 40 years
For Whole Life- 60 years
• Duration:
Minimum: 10 years
Maximum: 70 years (assuming whole life to
be 100 years)
• Maturity Age: 70 years for the term- 10,20,30 years
100 years for whole life
• Premium Payment Term: For 10 years term- 3, 5yrs

or regular coverage
paying period.
For 20 yrs, 30yrs term
and Whole Life- 5yrs, 10
yrs or regular coverage
paying period.
30
Premium Investment: Premium collected is invested in

Seven Investment Fund Options:
1. Assure
2. Protector
3. Builder
4. Enhancer
5. Creator
6. Magnifier
7. Maximiser
Benefits:
1. Guaranteed Addition: It is in the form of additional
units, which is added to the fund value on the 10th
policy anniversary and on every 5th policy
anniversary thereafter, while policy is in effect.
2. Partial Withdrawal Options: Partial Withdrawals

can be made after 3 policy years or when the life
insured attains maturity, whichever is later. The
minimum partial withdrawal amount is Rs.10000
3. Surrender Benefits: Policy offers the flexibility of

surrendering the policy, if the need arises. There is
no surrender charge after 6 completed policy years.
However, if the policy is surrendered within 3 years

from inception, the surrender value is paid after the
completion of the third policy anniversary.
4. Death Benefits:
31
• Below 5 years: If the death of the life

insured take place before 5 years, only the
fund value shall be payable to the policy
owner.
• Between 5 to 60 years: Higher of the fund
value or the sum assured less all applicable
partial withdrawals made in the last 24
months preceding the death of the life
insured.
• 60 years and Above: Higher of the fund
value or the sum assured less all applicable
partial withdrawals made since the life
insured attained the age of 58.
5. Maturity Benefits: On maturity of the policy, the
fund value is payable. Under the whole life option,
on maturity of the policy, when the life insured
attains the age of 100, then fund value is payable
and the policy will be terminated.
6. Tax Benefits: Tax benefits on premium payment are
governed by section 80C of the Income Tax Act
1961. Tax Exemptions on the amount received on
maturity in the unfortunate event of death and the
withdrawals are governed by section 10(10D).
7. Addition of Riders: Policy holder can customize the
plan by adding any of the following 6 riders:
1. Accidental Death & Dismemberment Rider
2. Term Rider
3. Critical Illness Rider
4. Critical Illness Plus Rider
32
5. Critical Illness Women Rider

6. Waiver of Premium Rider
Charges:
1. Premium Allocation Charges: These charges during
the premium paying term are as under:
Policy Year 1 2 or 3 Thereafter
Charge 13% 4% 2%
This charge on Top-up and underwriting extra is 2%.
2. Mortality Charge: This charge will be deducted by

cancellation of units on a monthly basis at the
prevailing NAV. The Annual Mortality charge per
1000 of the Sum at risk for sample ages are as
follows:
Age 25 35 45 55 65
Female 1.023 1.162 2.385 6.441 15.92
Male 1.083 1.363 3.110 8.571 21.06
3. Fund Management Charge: This is charged by

adjustment of the daily NAVs. The charge is:
• 1% p.a. for Assure, Protector, Builder and
Enhancer Fund.
33
• 1.25% p.a. for Creator, Magnifier and

Maximiser Fund.
4. Policy administration Charge: The charge is

deducted by canceling units on a monthly basis at
the prevailing NAV. The annual charge differs
according to the Life Insurance Coverage Sum
Assured and Life Insurance Coverage Paying
Period. The maximum charge is 6.10 and the
minimum charge is 0.00
5. Surrender Charge: These charges are levied as the

percentage of the annual life insurance coverage
Premium payable. Charges are as follows:
Policy Year 1 2 3 4 5 6 7+
Surrender
30% 20% 15% 10% 8% 6% NIL
Charge
6. Rider Premium Charge: If the riders are attached,

this charge will be realized by cancellation of units
on a monthly basis based on the equivalent monthly
rider coverage premium payable, when rider
coverage payment period equals the rider coverage
benefit period.
34
Gold Plus II Plan
The plan gives much more than a good insurance cover, an

opportunity to grow investment for the medium term. It is
worth more than Gold.
Features:
• It is a Unit Linked, Non-Participating, Insurance
plan.
• Duration of plan is 8 years.
• Premium paying term of 3 years with the flexibility
to reduce premium up to Rs. 10000 from the second
policy year.
• Plan also has Top-up facility.
• Liquidity in the form of Partial Withdrawals and
Surrender Benefits.
• Plan has 7 fund options.
• Free unlimited fund switching and premium
redirection
Eligibility:
• Entry Age: 18 to 70 years.
• Minimum Premium: Rs.50000
• Minimum sum Assured: 5 x Annual Premium
Premium Investment: Premium collected is allocated in

varying proportions in seven investment fund options.
35
Policyholder can switch between the fund options anytime

during the tenure of the policy. The seven Investment
Funds available are:
1. Assure
2. Protector
3. Builder
4. Enhancer
5. Creator
6. Magnifier
7. Maximiser
Benefits:
1. Maturity Benefits:
On maturity fund value will be paid to the
policyholder.
2. Death Benefits:
In the Unfortunate event of the Death of the Life
Insured prior to the maturity date of the policy, the
nominee gets the greater of
(a) Fund Value
(b) Sum Assured reduced for partial withdrawal
as follows:
• Before the life insured attains the
age of 60, the sum assured payable
on death is reduced by partial
withdrawals made in the
preceeding years.
• Once the Life Insured attains the
age of 60, the Sum Assured
payable on death is reduced by all
36
partial withdrawals made from age

58 onwards.
3. Tax Benefits:
Policyholder is eligible for tax benefits U/S 80C and
U/S 10(10D) of the Income Tax Act 1961.
• U/S 80C- Premium up to Rs.100000 is
allowed as deduction from taxable income
each year.
• U/S 10(10D) - The Benefits received under
plan are exempted from tax.
Charges:
1. Premium Allocation Charges:
It is deducted from premium when received and

before allocation of units.
Policy Policy Years

Charges 1 2 3 4+
On Policy
Premium 8% 4% 4%
On top-up
Premium 2% 2% 2% 2%
2. Fund Management Charges:

Fund Management charge not exceeding 1.5% per
annum of the fund value will be charged by
adjustments of the daily unit price. The charge is
37
• 1% p.a.- Assure, Protector, Builder and

Enhancer
• 1.25% p.a. – Creator, Magnifier and
Maximiser
3. Policy Administration Charges:

These charges are recovered by canceling units on a
monthly basis proportionately from each investment
fund. The annual Rate per 1000 of Sum Assured is:
Policy Policy Years

Charges 1 2 3 4+
Policy
Administration 19.4 19.4 19.4 14.4
Charge *
* An additional 5 per 1000 will be charged in the

first 3 policy years only on any excess Sum Assured
over Rs. 50000
4. Mortality Charges: These charges are deducted on a

monthly basis. These charges are taken by canceling
units proportionately from each of the investment
funds at that time. The annual rate per 1000 of Sum
Assured less fund value for sample ages are:
38
Age 25 35 45 55 65
Female 1.023 1.162 2.385 6.441 15.92
Male 1.083 1.363 3.110 8.571 21.06
5. Surrender Charges:
These charges are applied when the policyholder
surrender their policy in the first 3 policy years. The
surrender charge as a percentage of the annual
policy premium chosen at issue is
Policy Policy Years

Charges 1 2 3 4+
Surrender
15% 12.5% 10% nil
Charges
Supreme Life Plan
Features:
• The plan is a Unit Linked Insurance Plan.
• It provides the nominee with an increased sum
assured and builds savings faster.
• The plan offers more protection of money at
supremely low cost.
• Provides with Supreme Accidental TPD (Total
Permanent Disability).
• Policyholder gets freedom to choose premium
amount as low as Rs.25000
• The plan provides with 6 Investment Fund Options.
39
• The plan is flexible as it provides the policyholder

with Top-Up Premium facility to ensure faster
growth in the Fund Value.
• Partial Withdrawals, are allowed, after 3 years to
meet liquidity needs of the policyholder
Duration:
• Policy Term: 10, 15, 20, 25, 30, 35, 40 Years.
• Premium Payment Term: Policyholder can choose
to pay premium at short or regular intervals.
Premium Investment: Premium Collected is investment in

six investment fund options. These funds are:
1. Assure
2. Protector
3. Builder
4. Enhancer
5. Creator
6. Magnifier
Benefits:
1. Death Benefits:
• Double Death Benefits i.e. Death Benefits= Sum Assured +
Savings
• Increasing Death benefits i.e. Death
Benefit= Sum Assured + 25% every 5th year
2. Accidental TPD Benefit:
40
• Policyholder immediately gets the original sum

assured up to Rs.50 lac
• Co. pays the future premiums up to age 60.
3. Switches & Redirection:
• Policyholder gets flexibility to switch between
the fund options. Two switches are free per
annum.
Charges:
1. Mortality Charges: Charges
are deducted monthly by canceling units from the
associated fund option. The charge is 95%
2. Policy Administration
Charges: These charges are deducted monthly by
canceling units from the investment fund. The
annual charge is Rs. 720 on the first 1000 Sum
Assured in all years i.e. Rs.3.60 per 1000 Sum
Assured p.a. The additional charges for years 1-5
are as follows:
Term Band 1 Band 2 Band 3

10/15 4.75 4.25 4.00
20+ 3.75 3.25 3.00
3. Premium Allocation Charges:

These charges are 5% for the 1st policy year and 2%
for subsequent policy years.
4. Fund Management Charges:
These charges are 1 – 1.25% p.a. for all associated
funds.
41
Platinum Plus Plan
Features:
• This plan is a Unit Linked, Non-Participating,
Insurance plan.
• A policy term of 10 years.
• A premium paying term of 3 years.
• One Innovative Investment fund, namely Platinum
Plus Fund I.
• Full Liquidity after three policy years to meet any
cash needs.
• Unique Guaranteed Maturity Unit Price
representing the highest unit plus price of Platinum
Plus Fund I recorded on 88 reset dates starting on
March 17, 2008 and ending on June 15, 2015.
Eligibility:
• Entry Age of Life Insured: 18 to 70 Years.
• Minimum Annual Premium: Rs. 1,00,000
• Minimum Sum Assured: 5xAnnual Premium.
Premium Collected is invested in the Equity & Debt

Market according to the preset Asset Allocation of the
Platinum Plus Fund I.
Benefits:
1. Guaranteed Maturity Unit Price
• Minimum of Rs. 10 on the first Reset Date
42
• At maturity, is the highest Unit Price recorded on 88

Reset Dates
2. Maturity Benefits
• Number of units multiplied by higher of Guaranteed
Maturity Unit Price or prevailing Unit Price at
maturity
3. Surrender Benefits
• Full liquidity after 3 policy years –100% Fund
Value*
4. Death Benefits
• Higher of Fund Value (as per the then
prevailing unit price) or Sum Assured (less
applicable partial withdrawals)
5. Tax Benefits
• U/S 80C- Premium up to Rs.100000 is
allowed as deduction from taxable income
each year.
• U/S 10(10D) - Benefits from the plan are
exempted from tax.
Charges:
1. Premium Allocation Charges: 10% of
premium in the first year and 4% of
premium in subsequent years.
2. Fund Management Charges: 1.00%-1.50%
p.a. for Assure & 1.50%-2.00% p.a. for

Platinum Plus Fund I.
43
3. Policy Administration Charges: These

charges are deducted monthly by canceling
units from the investment fund Assure first
and then, from Platinum Plus I, if required.
The annual charge is Rs. 720 on the first
1000 Sum Assured in all years plus Rs.6 per
1000 Sum Assured in years 1 to 3 only.
4. Mortality Charges: Charges are deducted
monthly by canceling units from the

associated investment funds. The Annual
Charges for sample ages are as follows:
Attained
25 35 45 55 65
Age
1.02 1.16 2.38 6.44
Female 15.920
3 2 5 1
1.08 1.36 3.11 8.57
Male 21.060
3 3 0 1
5. Surrender Charges: This charge, as a

percentage of the annual premium at issue,
is 16%, 13% and 10% for policy year 1, 2
and 3 respectively.
6. Revival Charge: The charge for policy
revival is Rs. 100-1000 per revival
44
FUNDS BY BSLI
Birla Sun Life Insurance, a leading Life Insurance

company, offers its clients with a long range of Funds.
These funds are designed to cater to a variety of needs of
people who are from different life stages. BSLI offers a
broad range of 12 funds, each having differing asset
allocations.
12 funds offered are:

1. Individual Protector
2. Individual Assure
3. Individual Balancer
4. Individual Builder
5. Individual Creator
6. Individual Enhancer
7. Individual Life Maximiser
8. Individual Magnifier
9. Individual Multiplier
10. Pension Nourish
11. Pension Enrich
12. Pension Growth
A new fund named Platinum Plus Fund I is also added in

this list of funds.
Asset Allocation is decided by the Fund Managers of the

company. These fund managers continuously tracks the
45
movements of volatile market and combine this volatility

with the fund requirements of the policyholders.
Accordingly he decides allocation of assets in 5 major
investment options:
 Government Securities
 Corporate Debt
 Securitized Debt
 Equity
 Money Market Instruments
Proportion of allocating the fund in these options, vary

according to the needs and fund requirements of
policyholders. The most important thing to be noticed here
is that this portfolio is decided, based on the regulations of
IRDA. Performances of these funds are rated by the rating
agency-CRISIL.
All the 12 funds by BSLI are described below along with

their respective Asset Allocations.
Individual Assure
Objective: The primary objective of this fund is to provide

Capital Protection, at a high level of safety and liquidity
through judicious investments in high quality short-term
debt.
Strategy: Generate better return with low level of risk

through investment into fixed interest securities having
short-term maturity profile.
46
Asset Allocation:
SECURITIES HOLDING
Corporate Debt 59.57%
Money Market Instruments 17.97%
TOTAL 100.00%
HOLDING
59.57% Corporate Debt
Money Market
Instruments
100.00%
TOTAL
17.97%
Individual Balancer
Objective: The objective of this fund is to achieve value

creation of the policyholder at an average risk level over
medium to long-term period.
47
Strategy: The strategy is to invest predominantly in debt

securities with an additional exposure to equity,
maintaining medium term duration profile of the portfolio.
Asset Allocation:
SECURITIES HOLDINGS
Government Securities 10.67%
Equity 23.44%
TOTAL 100.00%
HOLDINGS
10.67%
26.85%
Government Securities
Corporate Debt
Equity
39.04% Money Market Instruments
23.44%
Pension Growth
Objective: This fund option is designed to build the capital

and to generate better returns at moderate level of risk, over
48
a medium or long-term period through a balance of

investment in equity and debt.
Strategy: Generate better return with moderate level of risk

through active management of fixed income portfolio and
focus on creating long term equity portfolio which will
enhance yield of composite portfolio with low level of risk
appetite.
Asset Allocation:
SECURITIES HOLDINGS
Equity 18.63%
TOTAL 100.00%
HOLDINGS
22.06% 13.90%
Government Securities
Corporate Debt
Equity
18.63% Money Market Instruments
45.41%
Pension Enrich
49
Objective: Helps to grow the capital through enhanced

returns over a medium to long-term period through
investments in equity and debt instruments, thereby
providing a good balance between risk and return.
Strategy: To earn capital appreciation by maintaining
diversified equity portfolio and seek to earn regular return
on fixed income portfolio by active management resulting
in wealth creation for policyholders.
Asset Allocation:
SECURITIES HOLDINGS
Equity 32.69%
TOTAL 100.00%
50
H O L D IN G S
13 .5 7 % 14.35%
G o ve rn m e n t S e c u r
C o rp o ra t e D e b t
E q u it y
3 2 .6 9% M o n e y M a rk e t In s t
39.40%
CONCLUSION
Our training was a very enriching experience for us, we

have learnt so many things, and we got insight into the
insurance world. Insurance sector today playing a major
role in everyone’s life lot more than ever before life
currently there is a comprehensive range of products
covering each type of policy available in the market. We
have studied various insurance plans covered under BSLI,
and their features. BSLI also gives various Riders, which
provides extra benefits to the customers. And we came to
51
know about the pioneering features of BSLI, like sales

procedure, SIP, etc.
While most insurance plans block money for certain period

of time, a BSLI plan gives the double benefit of life
insurance along with easy liquidity through lump sum
cash.
Birla Sun Life Insurance (BSLI), one of the largest private

life insurers, is gearing itself to take advantage of the vast
rural opportunity that has opened up as a result of the
revised definition of rural areas by the IRDA. Over the last
four years, BSLI has painstakingly built its rural
infrastructure to create a cost-effective distribution
network across the country.
Our training gave us corporate exposure, and helped in

improving our communication skills. We learnt to deal
with customers, we made them aware about various plans,
and their respective features, even helped them to select
the best plan as per their requirements.
RECOMMENDATIONS
1. Competition from public sector and foreign banks remains a

key challenge for private sector banks. They need to reorient
52
their staff and effectively utilize technology platforms to retain

customers.
2. They have to update their portfolio timely.
3. Birla Sun Life Insurance Ltd should have proper division of
departments under heads.
4. Birla Sun Life Insurance Ltd should have more pension plans.
5. Birla Sun Life Insurance Ltd should have more children plans,
and more help line plans
6. They should provide more information to the customer so that
they become more aware about insurance
BIBLIOGRAPHY
1. www.birlasunlife.com Dated 13/6/08 Time 3:30
2. www.Paisawaisa.com/LifeInsurance Dated 13/6/08 Time 4:00
3. Company brochure
4. Company brochure/ GOLD- PLUSII PLAN/ Ver 01/12/07
5. Company brochure/ Classic Life Premier/ Ver 8/9/07
53
ANNEXURE
1. Do you make investments?

A.Yes
B.No
2. How much you earn annually?

A. Below 50,000
B. 50,000-100,000
C.100, 000-1, 50,000
D. Above 150000
3. Do you know about insurance?

A. Yes
B. No
4. Do you know about BSLI?

A. Yes
B.No
54
5. How did you came to know about it?

A Newspapers
B. Online
C. Personal Reference
D. Other
6. What assets do you own?

A. Personal house
B.Car
C.Credit card
7. Where would you like to invest?

A. Mutual Fund
B.Stocks
C.Real estate
D.Insurance
55
8. What would u like to insure?

A. Vehicle
B.Life insurance
9. Which insurance plan of BSLI are

you interested in?
A.Saral Jeevan
B.Gold Plus II
C.Platinum Plus
D.Classic Life Premier
10. How do you rate our plans?
A. Average
B. Good
56
C. Excellent
57

Sumit Project

Enviado por

Dados do documento

Descrição original:

Direitos autorais

Formatos disponíveis

Compartilhar este documento

Compartilhar ou incorporar documento

Opções de compartilhamento

Você considera este documento útil?

Este conteúdo é inapropriado?

Direitos autorais:

Formatos disponíveis

Sumit Project

Enviado por

Direitos autorais:

Formatos disponíveis

Birla Sun Life Insurance

STUDY OF PRODUCT PORTFOLIO

SUBMITTED TO: SUBMITTED BY:

Dr. A K Das Sumit

A report submitted in partial fulfillment of BBA programme at

We would like to express our sincere gratitude and thanks to Mr.

We also thank Mr. RK Saxena for his constant encouragement

We would also like to extend sincere thanks to few people who

THANK YOU ALL

2. Fundamental principles of insurance

3. Reasons for taking a life insurance policy

4. Vision, Mission, Values

“Insurance, in law and economics, is a form of risk

The evolution of human beings from the primordial ‘wild’

Life insurance is a device invented by them to seek security

B) UTMOST GOOD FAITH

(a) Whether he should accept the risk and

If that were so, the insured might be tempted to bring about

C) Insurable Interest - A contract of insurance affected

D) Causa Proxima - The rule of causa proxima means that

more causes, the question arises as to which is the causa

E) Risk - In a contract of insurance the insurer undertakes

F) Mitigation of Loss - In the event of some mishap to the

G) Subrogation - The doctrine of subrogation is a

Third person will pass on to the insurer and will be

H) Contribution - Where there are two or more insurance

In other words, the right of contribution arises when

1) There are different policies, which relate to the same

Life Insurance Policy is a form of security for the person

The following reasons substantiate why a life

B) Advancements in Health Care

C) Increase in the Cost of Living and Spending

huge amount if it is imperative in meeting an urgent

To be a world class provider of

To be the first preference of our

Our endeavor will be to provide

Birla Sun Life – A Coming Together Of Values

Birla Sun Life is a joint venture between The Aditya

The Aditya Birla Group is led by its chairman- Mr. Kumar

organizations with the group are Hindalco, Grasim, Aditya

The group is India's leading business house with a number

Sun Life Financial Inc. and its partners today have

Share Holding Pattern:

26 %--> Sun Life Financial Inc.

The group has 3 businesses:

Birla Sun Life Insurance co ltd. is the Life-Insurance

Birla Sun Life Insurance in its 7 successful years of

in cementing its place amongst the leaders in the industry in

Many ONEs with Birla Sun Life Insurance:

1. Free Look Period: BSLI offers its policyholders

2. Bancassurance: BSLI pioneered Bancassurance in

3. Unit Linked Life Insurance Plans: BSLI was the

ULIP is an auspicious coming together of security

4. insurance and earnings from investment. Which

5. Sales Illustrations: BSLI is the first company to

6. Performance on two points of projections i.e. on 6%

BSLI’s has launched Century SIP, a unique systematic

This plan comes along with free term insurance for an

investor needs to do is enroll for CSIP & sign a

Announcing the launch of Century SIP, Anil Kumar, CEO,

7. Others: Some other ONEs with BSLI are:

 1st to issue daily NAVs of funds for better

 1st to have a distinct CRISIL benchmark.