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Project on Insurance
PRINCIPLES AND PRACTICES OF
BANKING & INSURANCE
FIRST YEAR BANKING AND INSURANCE (F.Y.B&I)

Presented by :
Smita Vakkar - 08
Shylaja Menon - 24
Kalavati Nawoo - 30
Bhavya Narayanan - 42
Swati Naryanan - 44
Purav Gandhi - 55
INDEX
• INTRODUCTION OF INSURANCE
• INTRODUCTION ON SBI LIFE
INSURANCE
• CURRENT STATUS OF SBI LIFE
INSURANCE
• PRODUCTS:
1. INDIVIDUAL PRODUCTS
 SBI LIFE – HORIZON
 SBI LIFE – UNIT PLUS
 SBI LIFE – UNIT PLUS CHILD
2. PENSION PRODUCT
o SBI LIFE -- UNIT PLUS II PENSION
o SBI LIFE – LIFE LONG PENSION
3. SBI SHIELD PRODUCT
4. PROTECTION CUM SAVINGS
PRODUCT
o SBI LIFE – SUDARSHAN
o SBI LIFE – SCHOLAR
5. MONEY BACK POLICY PRODUCT
o SBI LIFE – MONEY BACK
o SBI LIFE – SANJEEVAN SUPREME
6. HEALTH PRODUCT
• CONCLUSION
• ACKNOWLEDGEMENT
• BIBLOGRAPHY

INTRODUCTION OF INSURANCE
Insurance, in law and economics, is a form of risk
management primarily used to hedge against the risk of
contingent loss. Insurance is defined as the equitable
transfer of the risk of a loss, from one entity to another,
in exchange for premium. 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 the risk, has evolved as a discrete field of
study and practice.

It may seem like insurance is a waste of resources-


spending money on something that may or may not
happen. Since you cannot predict the future, it is
important to protect yourself and your possessions
against damage and harm. Insurance is all about
protection - it protects you against an unfortunate
incident such as a car accident, a robbery, or an illness.
The moment an unexpected ill-fated event happens, you
will be so glad you have insurance. Medical bills from a
minor accident can deplete your savings and force you
into bankruptcy. Insurance is not a rip off, but rather an
essential financial service.

Basically, there are four areas that most people are


concerned about

Insuring : their life, their health, their possessions, and


their finances.

Life insurance leaves money for your family if you


should die early. Some life insurance plans have savings
features. Remember, protecting your dependents
(those who count on you for financial support) in case
of your death is the main reason for life insurance.
INTRODUCTION
SBI Life Insurance Company Limited is a joint venture
between the State Bank of India and BNP Paribas
Assurance. SBI Life Insurance is registered with an
authorized capital of Rs 2000 crores and a Paid-up
capital of Rs 1000 Crores. SBI owns 74% of the total
capital and BNP Paribas Assurance the remaining 26%.

State Bank of India enjoys the largest banking franchise


in India. Along with its 7 Associate Banks, SBI Group
has the unrivalled strength of over 14,500 branches
across the country, arguably the largest in the world.

BNP Paribas Assurance is the insurance arm of BNP


Paribas - Euro Zone’s leading Bank. BNP Paribas, part of
the world's top 10 group of banks by market value and
part of Europe top 3 banking companies, is one of the
oldest foreign banks with a presence in India dating
back to 1860. BNP Paribas Assurance is the fourth
largest life insurance company in France, and a
worldwide leader in Creditor insurance products
offering protection to over 50 million clients. BNP
Paribas Assurance operates in 41 countries mainly
through the bancassurance and partnership model.

SBI Life has a unique multi-distribution model


encompassing Bancassurance, Agency and Group
Corporate.

SBI Life extensively leverages the SBI Group as a


platform for cross-selling insurance products along with
its numerous banking product packages such as
housing loans and personal loans. SBI’s access to over
100 million accounts across the country provides a
vibrant base for insurance penetration across every
region and economic strata in the country ensuring true
financial inclusion.

Agency Channel, comprising of the most productive


force of more than 63,000 Insurance Advisors, offers
door to door insurance solutions to customers.

CURRENT STATUS OF SBI LIFE


INSURANCE
SBI Life is adjudged the Best Life Insurer -
2008 by Outlook Money NDTV Profit
SBI life insurance industry has changed
not just in terms of the number of players
and product offerings but also in the way
the products are bought.
As insurance is a long-term contract,
customer stickiness is important while
judging the standing of a life insurance
company. Customer loyalty is a function
of returns and service. Key factors that
need to be looked at while measuring the
success of an insurer is the reach it has
through its sales force and the number of
locations and offices from which it
operates.
SBI LIFE INSURANCE, reach and
distribution is large if we take into
account the bank branches it uses to sell
its policies. It has done well in the area of
disclosures. However, the real clinchers
for SBI Life may have been customer
loyalty and performance.
ICRA, one of India’s leading rating
agencies, has assigned iAAA rating
indicating highest claims paying ability to
SBI Life Insurance Company Limited. This
rating reflects SBI Life’s fundamentally
financial strong position and the prospect
of meeting its policyholder’s obligations
as highest.
SBI LIFE ranks among Global Rank THREE
at MDRT ratings. All Other Indian
Companies fail to make it to Top 10 Chart.

SBI LIFE INSURANCE PROVIDES US WITH A NUMBER OF


PLANS THAT SUITS THE NEEDS AND REQUIREMENTS OF
THE CUSTOMER.FOLLOWING ARE SOME OF THE
FOLLOWING:

INDIVIDUAL PRODUCT

Unit linked Plans are an attempt to meet all your financial


& insurance needs through a single non-participating
product. “You can get market linked returns which in the
long term has always proved to give better returns than
traditional savings products ".

• SBI Life - Horizon


• SBI Life - Unit Plus

• SBI Life - Unit Plus Child


SBI Life - Horizon
It is a unique, non participating Unit Linked Insurance
Plan in Indian Insurance Industry, where you need not
to be a financial market expert. This plan offers the
flexibility of Unit Linked Plan along with Automatic
Asset Allocation which provides relatively higher
returns on your money where as increasing death
benefits providing higher security to your family.

PRODUCT TYPE:
It is a unique, non-participating Unit Linked Insurance Plan.

Features

• Twin benefit of insurance cover and market linked returns


• Hassle-free investment management of funds from
inception to maturity

• Automatic rebalancing of funds at yearly intervals, free of


cost
• Higher protection, to meet your family financial needs.
• Automatic cover continuance.
• Liquidity option after 3 years
• Facility to top up your investment kitty.
• Tax benefit as per section 80C and 10(10D) of income tax
act.

Maturity Benefits:

At the end of the term you will get the fund value.
Increasing Death Benefit:

For all enforced policies , In case of death after completion of


age 7 your nominee will receive Fund Value + Sum Assured
otherwise fund value is payable.

SBI Life - Unit Plus

SBI Life - Unit Plus II Plans are an attempt to meet all


your financial & insurance needs through a single non
participating product. You get market linked returns
which in the long term has always proved to give better
returns than traditional savings products.

Product type:
This is a non-participating individual unit linked
product.

Features:
• Unmatched Flexibility to match your changing
requirement
• Choice of 5 investment funds: you can change the
allocation percentage when you want, 4 switches free
per annum
• Choice of term : Limited term or whole life.

SBI Life - Unit Plus Child


As a proud parent you want to secure your child’s
future against rising cost of education and other
necessities. Unit Plus Child Plan to suit you and your
needs best. This Plan is meant for parents in the age
group of 18-57 having a child between the age group of
0-15 years.

Features
• Market related returns to match increasing cost of
education
• Peace of Mind by giving you triples benefits.
• Loyalty units to celebrate your child reaching 18
years.
• New Investment Fund (Equity Optimizer Fund) in
addition to existing funds.
• Pay Premium for a limited period and reap benefits
over a long time.
• Flexible plan which adapts to your changing needs as
and when you want.

Pension Products
• SBI Life - Unit Plus II Pension
• SBI Life - Lifelong Pensions

SBI Life - Unit Plus II Pension


SBI Life - Unit Plus II Pension plan makes sure that you
have regular income after you retire and also helps you
to maintain your standard of living.This is a unit linked
pension plan wherein the policyholder chooses an
investment period from 5 to 52 years for a vesting age
between 50 to 70 years. You can choose to pay either
single premium or pay regular premium for the entire
policy term. Your contributions are invested into 4 fund
options as per your choice.

Product type:
This is a non participating Unit Linked Pension product.

Features
• Choice to invest & control five different funds as per
your risk appetite.
• Flexibility to choose between two options
• Pure Pension
• Pension cum Life Cover
• No medical required for Pure Pension, automatic
acceptance facility.
• Flexibility to increase regular contribution.
• Top up payments: any amount, anytime.

Death Benefit:

During accumulation phase


If you opt for option I : Pure Pension Plan
Fund value will be paid in lumpsum to nominee.
If you opt for option I : Pure Pension Plan with life cover
The higher of fund value or sum assured will be paid in
lumpsum to nominee.
SBI Life - Lifelong Pensions
Life expectancy is improving rapidly. People live longer.
You cannot work throughout your life. You will have to
retire from work. In the post retirement period you
have lot of time for yourself. You would like to do things
you have not done while you were working.You need to
have a comprehensive plan to meet your post
retirement financial needs ensuring complete peace of
mind.

Product Type:
This is a Pension product.

Features
• A maximum of Rs. 1,00,000 p.a. paid as a
contribution on a pension plan is fully deductible
from the taxable income
• Minimum Guaranteed returns of 4% p.a. on your
Personal Pension Account
• It is an extremely flexible plan.

On maturity you have a choice to withdraw up to 33% from your

Pension Account in a lump sum. This withdrawal amount is tax-f

current fiscal law.

Benefits

Tax Benefit
Tax exemption u/s 80 CCC (1) of IT Act.
Maturity Benefit
You can get maturity benefits only after the accumulation period is o

of this period,the amount of your Personal Pension Account (Contribu

of administrative fee and Life cover charge, if any + Guaranteed Retu

Bonus)
Policy term:
Pure Pension
Pensio with life
n cover
Minimum 2 years 5 years
Years
Maximum 52 52 years
Years years

Who can buy this product?


If you are in the age group of 18 years to 65 years, you can opt for pu

For Pension cum Life Cover it is 18 years to 60 years.

'SBI Life - Shield'


'SBI Life - Shield' - an innovative insurance plan from SBI Life answer

requirements. Under this product, you can opt for gradual increase o

@ 5% every year or for substantial increase of cover @ 50% for every

Under both the options, you pay the same amount of premium throug
entire term of the policy. If you opt for an increasing cover now you w

require a fresh policy later. This will avoid the hassles of taking anot

insurance policy, paying more premiums and meeting the medical re

of the insurer.
Key Features:
It offers you life insurance cover at the lowest cost for a

selected term.
It is available in 3 options to suit your requirement.
Level Premium throughout the chosen term with increasing

Sum Assured, depending on the option chosen.


Tax benefit u/s 80 C and 10 (10 D) of IT Act
Attractive rebate for Female lives.
Attractive Rebates are offered for Annual / Semi- Annual

mode of Premium payment and High Sum Assured.


Attractive rider options.
Convenient premium payment options: Single and Multiple

premium payment.

Who can buy this product?


Anyone between 18 to 60 years of age is eligible for cover

under this plan..


Maximum cover age is 65 years.
Protection cum Savings
products
• SBI Life - Sudarshan
• SBI Life - Scholar

SBI Life - Sudarshan


SBI Life - Sudarshan is an Endowment Policy designed to
provide savings and protection to you and your family. You
can save regularly for the future. Thus at the end of the
plan, you will receive a substantial amount of savings
along with the accumulated bonuses declared. At the same
time, your family will be protected for death risk for the
full Sum Assured.

Key Features:
It offers you the option of tailoring your policy according
to your requirement and needs, by opting for various
extra covers (Riders) that are offered.
This is a unique product that offers you an innovative
cover (plan B) which helps you to protect your savings
against 'the financial consequences of inflation' with
constant premium for the entire duration of the plan.
It gives you protection against unfortunate terminal or
dreaded illness.
It is an insurance plan which could also act as a hedging
instrument.
With this plan you can plan your children's future
education, marriage expenses or even your own
retirement - in a most flexible manner.

Product type:
It is a traditional endowment plan i.e. saving - cum
protection product.

What is the policy term?


Minimum Maximum
Years Years
Regular Mode 8 years 30 years
Single Premium 5 years 30 years
Mode

SBI Life - Scholar


Introduction:
As a caring parent you would always want your child to get the
very best. Is there a way to protect your children against life’s
risks? Is there a way to make tomorrow safe for them?
Therefore this is the time when careful financial planning can
help you fulfill the aspirations that you have for your
children’s.
SBI Life can help you ensure that your children’s future is
secure and prosperous.
SBI Life - Scholar II is designed to protect your child’s future
educational needs.

• Twin benefit of saving for your child's education and


securing a bright future despite the uncertainties of life.
• Full risk cover throughout the policy term irrespective of
payment of survival benefits installments.
• Option to receive the installments in lump sum at the due
date of first installment of Survival benefit.
• Attractive rider options
• Attractive rebate for Female lives and High Sum Assured.
Policy term
The premium payment term depends on the age of the child and
ends when the child attains the age 18 years. You are covered
till the child attains the age 21 years.

MONEY BACK POLICY PRODUCT


Money back policy provides for periodic payments of
partial survival benefits during the term of the policy,
as long as the policy holder is alive.Money back policies
are the plans where the survival benefits are payable
only at the end of the term period, plus the added
benefit of money back policies is that they provide for
periodic payments of partial survival benefits during
the term of the policy holder is alive.

• SBI Life - Money Back


• SBI Life - Sanjeevan Supreme

SBI Life - Money Back


Introduction:
As an individual your life is filled by dreams. You experience
different special moments in life like wedding, birth of a
child, child’s education or purchasing a new home. You have
to be financially prepared for these special moments. What
you need is easy liquidity at regular intervals with life
insurance protection to take care of these special moments.

Key Features:
The plan has a number of moneyback options specially
suited to your needs.
The cover is available at competitive premium rates.
It has guaranteed cash inflows which can meet your various
financial obligations.
In addition to normal death cover, the plan also provides
you 4 additional covers.

Product type:
It is a Traditional Saving Plan with added advantage of life
cover and guaranteed cash inflow at regular intervals.

SBI Life - Sanjeevan Supreme


Introduction:
You and your family deserve the very best in life. However
life is all about change and with rising costs and economic
instability, you may not be sure about your future incomes.
You need a product that offers you the following:
A life cover for the term of your choice.
+
At the same time does not burden you with liability to pay
premiums for the entire term.
+
Cash inflow at regular intervals.

Key Features:
The plan
moneyba
suited to
The cover
competiti
It has gua
which can
financial

Product type:
It is a Traditional Saving Plan with added advantage of life cover and
cash inflow at regular intervals.

Benefits
You can pay off all premiums over a short period of time
and be free from paying premiums for the rest of the
policy term, while enjoying all the benefits for the entire
policy term.
Enjoy the benefits of bonus additions for the entire term
of the policy.
Convenient premium payment options: Single and
Multiple premium payment.
Maturity Benefit
At the end of the growth period, you would receive
guaranteed payout in 5 years or 10 years, depending on
the plan option chosen by you. The bonuses declared by
the company get accumulated for the entire term of the
plan and you would receive total bonus along with the
final installment of Survival benefit.
Death Benefit
In the unfortunate event of death during the term of the
plan, the nominee would receive sum assured + vested
bonuses, besides receiving of the survival benefit already
paid.
Health Products:
Financial planning is incomplete without planning health insurance. D
today’s

hectic lifestyle, improper diet, lack of exercise we are at higher risk o


contingencies

of untimely serious illnesses. Sudden health problems could have de


your

pockets. Medical science has advanced by leaps and bounds in the la


decades.

There's a definite need to cover for health insurance to reduce the fi


burden.
SBI Life - Group Criti9 is a traditional non participating Group Health
plan

provides protection against 9 critical illnesses where Sum Assured is


lump

sum on diagnosis of any one of covered critical illnesses. So provides


money

at time when you need it most.

Key Features:
• Simultaneous safety and protection
Against 9 Critical Illnesses
• Simplified joining process
• Guaranteed renewability till 65 years
age
• Tax benefit under section 80D of IT A
1961

Critical Illnesses covered:


• Cancer
• Heart Attack
• Stroke
• Coronary Artery Bypass
Surgery
• Kidney Failure (End Stage Renal
Disease)
• Major Organ Transplant
• Coma
• Multiple Sclerosis
• Heart Valve Surgery

Eligibility:
This plan is offered to different groups like employee-employer
relationship, credit life groups, customers of bank / financial
institutions, depositors groups etc.

SBI Life will issue a Group Master Policy to the Group Master
Policyholder based on details contained in the proposal form.
Group Members may be enrolled either on a voluntary or
compulsory participation basis as decided by master
policyholder.

Group Size:
Minimum 50 members

Age:

Entry from minimum age of 18 yrs till the


maximum age of 55 yrs.

CONCLUSION:

The structure of an insurance policy, the quality of the insurer’s


sales force and the level of miss-selling are revealed to a large
extent by the amount of partial or full withdrawals made after
the policy has run three years. SBI Life has done considerably
better than its competitors on these parameters.

SBI LIFE, the best life insurance company in India offers a wide
variety of Products for Individuals and Groups viz... TERM
INSURANCE, ENDOWMENT POLICY, CHILD PLANS, RETIREMENT
PLANS, PENSION PLANS etc.

Insurance has now became a part in the life of the individuals so


that they can have a secure future and their dependents can live
peacefully even after the death of the earning member.

SBI LIFE INSURANCE has done well as compared to their


competitors. It has been serving to its customers from long years
with consumer satisfaction.

THUS, you can go for SBI LIFE INSURANCE plans, so that you can
secured and TENSION FREE LIFE AND LIFE FULLY.

ACKNOWLEDGEMENT

We are sincerely thankful to Prof.AARTHI KALAYANRAMAN for


giving us an opportunity to make the project on INSURANCE. She
has encouraged and given us a helpful hand with a good
flexibility & approachability in makin this project.

BIBLIOGRAPHY
The information regarding project has been collected from
various resources:

Websites :

• www.sbilife.com
• www.wikipedia.com
• www.google.com
• www.sbibank.com

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