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    Lagnajit Ayaskant Sahoo Gourab Biswas Suchismita Das Santanu Rath Ranjeet Kumar September, 2010

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    Lagnajit Ayaskant Sahoo
    The document is a presentation about unit-linked insurance plans (ULIPs). It discusses the types of ULIPs, including those for retirement, wealth creation, and children. It compares ULIPs to mutual funds. The presentation covers the benefits of ULIPs like life insurance protection and participation in capital market growth. It also discusses the risks and fees associated with ULIPs. In the end, it outlines some attractive features of ULIPs such as flexibility, transparency, liquidity, and low minimum tenure.

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    Lagnajit Ayaskant Sahoo Gourab Biswas Suchismita Das Santanu Rath Ranjeet Kumar September, 2010

    Uploaded by

    Lagnajit Ayaskant Sahoo
    140 views23 pages
    The document is a presentation about unit-linked insurance plans (ULIPs). It discusses the types of ULIPs, including those for retirement, wealth creation, and children. It compares ULIPs to mutual funds. The presentation covers the benefits of ULIPs like life insurance protection and participation in capital market growth. It also discusses the risks and fees associated with ULIPs. In the end, it outlines some attractive features of ULIPs such as flexibility, transparency, liquidity, and low minimum tenure.

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    ULIP PLAN

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    The document is a presentation about unit-linked insurance plans (ULIPs). It discusses the types of ULIPs, including those for retirement, wealth creation, and children. It compares ULIPs to mutual funds. The presentation covers the benefits of ULIPs like life insurance protection and participation in capital market growth. It also discusses the risks and fees associated with ULIPs. In the end, it outlines some attractive features of ULIPs such as flexibility, transparency, liquidity, and low minimum tenure.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    140 views23 pages

    Lagnajit Ayaskant Sahoo Gourab Biswas Suchismita Das Santanu Rath Ranjeet Kumar September, 2010

    Uploaded by

    Lagnajit Ayaskant Sahoo
    The document is a presentation about unit-linked insurance plans (ULIPs). It discusses the types of ULIPs, including those for retirement, wealth creation, and children. It compares ULIPs to mutual funds. The presentation covers the benefits of ULIPs like life insurance protection and participation in capital market growth. It also discusses the risks and fees associated with ULIPs. In the end, it outlines some attractive features of ULIPs such as flexibility, transparency, liquidity, and low minimum tenure.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 23

    A Presentation By

    Lagnajit Ayaskant Sahoo


    Gourab Biswas
    Suchismita Das
    Santanu Rath
    Ranjeet Kumar

    September,2010

    HDF SCHOOL OF 1
    MANAGEMENT
    Plan of Presentation

     About ULIP Plan


     Types Of ULIP
     ULIP vs Mutual Fund
     Merites and Demerites
     Examples
     Merites and Demerites
     Features Of ULIP

    HDF SCHOOL OF 2
    MANAGEMENT
    Types of Life Insurance
    Products
     Conventional Plans
     Unit Linked Plans
     Annuities & Pensions
     Besides there are Group Insurance
    Plans &other special plans

    HDF SCHOOL OF 3
    MANAGEMENT
    About ULIP Plan

     ULIPs are a category of goal-based financial solutions that


    combine the safety of insurance protection with wealth
    creation opportunities. In ULIPs, a part of the investment
    goes towards providing you life cover. The residual portion of
    the ULIP is invested in a fund which in turn invests in stocks
    or bonds; the value of investments alters with the
    performance of the underlying fund opted by you.
     Combination of Life insurance protection + Investment
     Offers the benefits of Life Insurance Provides option to
    participate in the growth of capital market

    HDF SCHOOL OF 4
    MANAGEMENT
    Types Of ULIP

    HDF SCHOOL OF CONTRIBUTION OF WEBER 5


    MANAGEMENT
    Types Of ULIP

     Retirement :Most of the Unit linked pension plans also come with a
    wide range of annuity options which gives you choice in structuring the
    post-retirement benefit pay-outs. Also at the time of vesting you can
    make a lump sum tax-exempted withdrawal of up to 33 per cent of the
    accumulated corpus.
     Wealth :
    Single premium - Regular premium plan :
    Guarantee plans – Non guarantee plans
    Life Stage based – Non life Stage based
     Children
    Child education plans 
     Health
    In a health ULIP part of your premiums are allocated for
    investment designed specifically to build a health fund to meet future
    health related expenses.

    HDF SCHOOL OF 6
    MANAGEMENT
    HDF SCHOOL OF 7
    MANAGEMENT
    ULIP vs Mutual Fund

    Mutual Fund ULIPs


    1. Pull money from investors and 1. It covers Insurance plus Investment
    invested in different
    securities( Equity, Debt,etc.).
    2. Mutual Fund is regulated by SEBI 2. ULIP is regulated by IRDA

    3. The main focus of Mutual Fund on 3. The main focus of ULIP on better
    low cost performance & the distribution of its
    products.
    4. We don’t receive any insurance 4. We receive insurance cover in ULIP
    cover in Mutual Fund.
    5. Mutual Fund are subject to market risk 5. ULIPs are also subject to market
    risk
    HDF SCHOOL OF 9
    MANAGEMENT
    ULIP AN EDGE
     The plans that provide both sum assured and the fund
    value on death of the life assured(FMC-Fund Mgt Charge)
    Insure Plane Name Equity Fund Equity FMC*(%)
    Exposure(%
    )
    Aviva Life Saver Plus Growth Fund 30-85 1.50
    Bajaj Allianze New Family Gain Pure Stock 80-100 1.75
    Bharati AXA Future Confidence II Grow Money 80-100 1.50
    Birla Sunlife Supreme Life Magnifire 50-90 1.25
    ICICI Prudential Life Time Plus Flexi Growth II 80-100 1.50
    ING Vysya Life Highlife Plus Equity Fund 90-100 1.50
    Max New York Life Maker Growth Fund 20-70 1.25
    Life
    Max New York Life Invest Growth Fund 20-70 1.25
    Life
    Met Life Met Smart Premier Multiplier 80-100 1.75
    SBI Life Horizon II Equity Fund 80-100 1.50
    HDF SCHOOL OF 11
    MANAGEMENT
    HDF SCHOOL OF 12
    MANAGEMENT
    Risk Profile & Earn from Market(BSLI)
    Investment Fund Risk Asset Allocation Minimu Maxi
    Option Profile m mum

    Debt instruments, Money market 90% 100%


    & Cash
    Protector Low
    Equities & equity related 0% 10%
    securities
    Debt instruments, Money market 80% 90%
    & Cash
    Builder Low

    Equities & equity related 10% 20%


    securities

    Debt instruments, Money market 65% 80%


    & Cash
    Enhancer Medium

    Equities & equity related 20% 35%


    securities
    Plan Summary(BSLI)
    Entry Age Life Insured:18-60 Years
    Policy Term 5-25Years(Maximum maturity age is 75
    years)
    Rider Accidental Death & Dismemberment
    Benefit(ADD)
    Guaranteed Fund Equals all premiums paid, less charges and
    Value guaranteed maturity benefits, accumulated
    at 3% per annum
    Partial Withdrawals Allowed after three complete policy years
    Investment Funds Protector, Enhancer, Builder
    Tax Benefit Under Section 80C and 10(10D) of the
    income tax act,1961
    Merites and Demerites
    Merits
     Varied investment options.
     Switching option depending on the market
    conditions.
     Long term investment planning (ULIP is a long
    term financial investment planning instrument that
    helps plan for higher child education / marriage /
    retirement etc.)
     ULIPs are covered under Section 80(C), 10 10(D)
    of IT Act. Hence tax benefits upto a maximum of
    Rs 100,000 investment can be claimed in these
    plans.)
    HDF SCHOOL OF 16
    MANAGEMENT
    Merites and Demerites
    Demerites:
     ULIPs are costlier when compared to traditional
    insurance policies, mutual funds etc, hence not
    advisable for short term investment purpose.
     Min 3 year lock-in period makes it difficult to exit in
    case of non performance of the fund.
     Premium allocation and other charges are quite high.
     In insurance India market, ULIP is identified as an
    inventive product for investors looking at long term
    investment planning solutions to meet their financial
    goals.

    HDF SCHOOL OF 17
    MANAGEMENT
    Charges applicable in ULIPs
     These charges are subject to various
    conditions & vary between insurers.
     Accident Benefit Charges : If the accident
    rider is availed of Administration or Fixed
    charges: Fees for the administration of the
    plan
     Flat Fee: charged every month, regardless
    of the size of the premium

    HDF SCHOOL OF 18
    MANAGEMENT
    Charges applicable in ULIPs
     Fund Administration Charges: Being a
    percentage of the fund & deducted daily
     Fund Switching Charges :Levied when there is
    a switch from one fund to another
     Insuranceor Risk Cover Charges: Premium for
    the death cove
     Service Tax
     Surrender Charges: May be charged for partial
    or full encashing of units before a certain
    period of time.

    HDF SCHOOL OF 19
    MANAGEMENT
    Features Of ULIP

    HDF SCHOOL OF 20
    MANAGEMENT
    Attractive Features of ULIPs

    Flexibility

    Flexibility to choose Sum Assured.

    Flexibility to choose premium amount.

    Option to change level of Premium
    even after the plan has started (Top
    up facility).

    Flexibility to change asset allocation
    by switching between funds
    HDF SCHOOL OF 21
    MANAGEMENT
    Attractive Features of ULIPs
     Transparency
     Changes in the plan & net amount invested are
    known to the customer
     Convenience of tracking one's investment
    performance on a daily basis.
     Liquidity
     Option to withdraw money after few years
     Low minimum tenure
     Partial / Systematic withdrawal allowed

    HDF SCHOOL OF 22
    MANAGEMENT
    HDF SCHOOL OF CONTRIBUTION OF WEBER 23
    MANAGEMENT

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