Birla sun life insurance

Ulip in Birla sun life

Introduction
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 investment under a single integrated plan.

 When people see how investments in the capital market have grown over the last few years, they prefer to use their funds in ways that help them to participate in the boom in the capital market. Insurers have developed plans that combine the benefits of life insurance as well as giving various options of participating 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 some others.

UNIT LINKED INSURANCE PLAN(ULIP)

Literature review
Mr.Madhu T, made a study on ULIPs hold edge over mutual funds. The findings shows that distributors would push unit linked insurance plans (ULIPs) to earn better commission. ULIPs offer attractive frontend commissions to agents. However, independent financial advisors believe that though there is a possibility of some distributors favoring ULIPs in the short term, the new directive would be beneficial for both the industry and investors in the long run.(Mr.Madhu T, The Economic Times,June2009). Mr. Deepak Shenoy ,in his article Comparing ULIP returns to Mutual Funds, he reveals that, over the last three years, their growth mutual fund has given better returns than the "MAXIMISER" option of their ULIPs.(Deepak Shenoy, The Indian Investors Blog, August 2006).

 Mr.Murthaza and Sony, in their article An Overview on ULIP, This article is an initiative from Bajaj Allianz to create better understanding of 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.

OBJECTIVES
To understand the reason for which customers prefer ULIP as one of the best insurance investment mode rather than Mutual fund.
To find the significance difference between customers of different income with that of investment mode. To Compare Investment Options of customers in ULIPs and Mutual Funds.

LIMITATIONS

The middle class people do not know basic concept of ULIP so creating 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 not their cup of tea. Many customers are thinking that investment in share market is very risky. 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.

DATA ANALYSIS
1.The Customers who prefer ULIP as one of the best insurance investment mode rather than Mutual fund

2. Factors that influence your investment decision in a particular company.

3.People who likes to invest money in ULIP

4.People like to invest money in Mutual Funds

5.Mutual funds are more risky than ULIP products.

6.ULIPs have advantage over Mutual funds.

CONCLUSIONS
Awareness of ULIP is increasing as more number of private players are entering in life insurance industry. Mutual Fund is also getting more and more famous in Indian 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 so customers are preferring only big brands.

RECOMMENDATION & SUGGESTIONS

Mutual fund is having good growth but many customers from rural areas dont have any knowledge about Mutual fund. They think it is very risky. There is a need for insurers to undertake a demand audit in order to understand what the policyholder wants and needs. Deriving the right feedback from customers and bringing out innovative products which cater to customer demands will go a long way in tapping the market potential of the insurance and Mutual fund sector. For Birla Sun Life Insurance They should go for creating more awareness 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.

BIBLIOGRAPHY
References: 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.org www.birlasunlife.co.in www.icmrindia.org www.licindia.com www.wikipedia.og www.mba.com Journals: Study guide principles & 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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