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PROJECT REPORT
ON
UNIT LINKED POLICIES ARE THE KEY INSTRUMENT FOR GROWING THE FINANCIAL INVESTMENT OF THE POLICY HOLDERS W.R.T. HDFC STANDARD LIFE
UNDER THE KIND GUIDANCE AND SUPERVISION OF Mr. Luwangcha Surjeet Thounaojam (Sales Development Manager) HFDC Standard Life Insurance Company Limited, Khoyathong, Imphal
Submitted By: NAOREM PREMLATA DEVI BBA (5th Sem, Finance) Vijayaraje Institute of Science & Management, Gwalior
Students Declaration:
I, Naorem Premlata Devi, student of BBA 5th Semester of Vijayaraje Institute of Science & Management (VISM), hereby declared that the Project Report Title Unit Linked Policies Plan are the key instrument for growing the financial investment of the policy holders w.r.t. HDFC STANDARD LIFE submitted in partial fulfillment of the degree of Bachelor of Business Administration is my own work. I, further declare that all the facts and figures furnished in this project report are the outcome of my own observation and findings. They are first hand and original in nature. All the information gathered by me during the course of the training at HDFC STANDARD LIFE INSURANCE COMPANY LIMITED would be kept strictly Confident.
ACKNOWLEDGEMENT
It is nice to express gratitude and appreciation to everyone who is involved making this project possible. I dont have words to thank them all individually from the bottom of my heart. I wish to express my deep appreciation to Luwangcha Surjeet Thounaojam (Sales Development Manager) for providing an opportunity to work as a trainee in the company and providing the necessary guidance, encouragement, support and valuable suggestions which has been a key to success in this project. I wish to do project again in future under his guidance. At the last I would like to express my gratitude to the person who have offered their valuable guidance in completing this project.
PREFACE
I have great pleasure in doing this project on Unit Linked Policies are the key instrument for growing the financial investment of the policy holders w.r.t. HDFC STANDARD LIFE followed in HDFC STANDARD LIFE, Imphal. Need for this project arises because vocational training with project report is a part of my syllabus. Another reason is that training is one of the important aspects for a BBA student career. My project title is Unit Linked Policies are the key instrument for growing the financial investment of the policy holders w.r.t. HDFC STANDARD LIFE reason for choosing this particular topic is to find out the benefits provided by insurance company to their customers. As a BBA student, it is necessary to know deeply about customers benefit upon the unit linked policies offered by insurance companies. I have completed this report with my best effort and I hope this report will give complete satisfaction regarding relationship between the customers and insurance companies.
INDEX
Contents 1. Objective of the study 2. HDFC Standard Life Insurance Company Limited Introduction. 3. Unit Linked Insurance Plans. 4. Children Plans. 5. Retirement Plans. 6. Saving and investment Plans. 7. HDFC Standard Life Imphal. 8. Conclusion. 9. Recommendation and Suggestion. 10. Bibliography. Page No. 6 7 14 17 22 26 34 35 36 38
Range of Solutions
They have a range of individual and group solutions, which can be easily customized to specific needs. There group solutions have been designed to offer us complete flexibility combined with a low charging structure. There gross premium income, for the year ending March 31, 2009 stood at Rs.5,564.69 crores. As on March 31, 2009, the company has more than 27lakh polices in force.
strong, financially secure business and a market leader in the UK Life & Pensions sector.
3. Investment policy:
They follow a conservative investment management philosophy to ensure that their customers money is looked after well. The investment policies and actions are regularly monitored by a formal Investment Committee comprising non-executive directors and the Principal Officer & Executive Director. As a life insurance company, we understand that customers have invested their savings with them for the long term, with specific objectives in mind. Thus, their investment focus is based on the primary objective of protecting and generating good, consistent, and stable investment returns to match the investors long-term objective and return expectations, irrespective of the market condition.
6. Focus on Training:
Training is an integral part of their business strategy. Almost all employees have undergone training to enhance their technical skills or the softer behavioral skills to be able to deliver the service standards that their company has set for itself. Besides the mandatory training that Financial Consultants have to undergo prior to being licensed, they have developed and implemented various training modules covering various aspects including product knowledge, selling skills, objection handling skills and so on. 8
8. Transparent Dealing:
They are one of the few companies whose product details, pricing; clauses are clearly communicated to help customers take the right decision.
Their Parentage:
HDFC Limited: HDFC Limited, Indias premier housing finance institution has assisted more than 3.3 million families own a home, since its inception in 1977 across 2400 cities and towns through its network of over 250 offices. It has international offices in Dubai, London and Singapore with service associates in Saudi Arabia, Qatar, Kuwait and Oman to assist NRIs and PIOs to own a home back in India. As of December 2008, the total asset size has crossed more than Rs. 95,000 crores including the mortgage loan assets of more than Rs. 82,800 crores. The corporation has a deposit base of Rs. 17,551 crores, earning the trust of more than 9,00,000 depositors. Customer Service and satisfaction has been the mainstay of the organization. HDFC has set benchmarks for the Indian housing finance industry. Recognition for the service to the sector has come from several national and international entities including the World Bank that has lauded HDFC as a model housing finance company for the developing countries. HDFC has undertaken a lot of consultancies abroad assisting different countries including Egypt, Maldives, and Bangladesh in the setting up of housing finance companies. 9
HDFC Limited
HDFC Bank
HDFC Sales
This section will be useful for all the customers who have unit linked policies. It will help us understand how their unit-linked funds have performed vis-a vis industry benchmarks. It will also give us details of their investment philosophy covering aspects such as the investment process and risk management. For better understanding of the performance of unit linked policies, we may have a look at the Guide to Rolling performance help file. How the funds perform depend on where they have invested our premiums. The portfolio disclosure section will tell us just that! The market watch section guides us through the current market scenario to understand market trends better.
Investment Philosophy:
As a life insurance company, we understand that customers have invested their savings with us for the long term, with specific objectives in mind like protection for the family in case of death of family member, child education and marriage liabilities or just investment returns over a longer period of time. With the above in mind, our investment focus is based on the primary objective of protecting and generating good and consistent investment returns to match the investors long term objective and return expectations. Our investment success is therefore based on teamwork guided by a robust and repeatable investment process. You can click on the following links to get a better understanding of HDFC Standard Life Investment approach. * Investment process * Risk Management 11
Market Watch:
Fund Performance:
This section illustrates our unit-linked fund performance. We believe that all policyholders will find this information useful. The long-term worth of any Unit Linked policy comes from: 12
The investment returns it gives over time The effect of the charges over the lifetime of the policy The benefit illustrations we provide to all our customers at the point of sale comply with IRDA guidelines and show the effect of the charges. This investment return data allows you to see how, in general, our funds are performing. We have provided our performance figures in the following way: Rolling Performance: This is a chart analysis showing you year-on-year performance of our funds against a comparable market index Fund Meter: This is a bar chart representing returns achieved over certain pre-defined periods of time For better understanding of the Rolling Performance charts, you may have a look at the Guide to Rolling performance help file.
In Unit Linked Plans, the investments made are subject to risks associated with the capital markets. This investment risk in investment portfolio is borne by the policy holder. Thus, we should make our investment choice after considering our risk appetite and needs. Another factor that we need to consider is our future need for funds. HDFC Standard Life offers us a variety of unit-linked insurance products to suit our goals be it for our retirement planning, for our health, for our childs education and marriage or for investment purposes.
How is it constructed?
In a Unit Linked Plan, the premiums we pay are invested in the funds chosen by us after deducting allocation charges and charges including those for managing funds, policy administration and for providing insurance cover are deducted from the funds by cancelling certain units. The value of each unit of a fund is determined by dividing the total value of the funds investments by the total number of units.
3. Single premium additions to enable the policy holder to invest additional sums of money (over and above the regular premium) as and when desired, subject to conditions.
Charges:
The following charges are deducted from our policy towards the cost of benefits and administration services provided by HDFC Standard Life Insurance 1. Administration charges: A fee is charged for administration of our policy every month. Administration charges are deducted by cancelling units proportionately from each of the funds we have chosen. 2. Fund management charges: These charges are towards meeting expenses related to managing the fund. This is charged as a percentage of the funds value and is deducted before arriving at the net asset value of the fund. 3. Switch charges: we can switch between the funds available to suit our changing needs and goals. In a policy year, a fixed number of such switches are available free of cost. Subsequent to this, each switch would attract a certain charge. These charges are deducted by cancelling units proportionately from each of the funds we have chosen. 4. Surrender charges: These charges are levied for premature encashment of units. They are charged as a percentage of the fund value and depend on the policy year in which the policy has been surrendered. 5. Mortality Charges: Depending upon the age, and the amount of cover, these charges are levied towards providing a death cover to the insured. 6. Premium Allocation Charge: This charge is deducted as a fixed percentage of the premium received, and is usually charged at a higher rate in the initial years of a policy. This charge varies depending upon whether the policy is a single premium or regular premium policy, the size of the premium, premium frequency and payment mode. 7. Partial Withdrawal Charges: Lump sum withdrawals are allowed from the fund after the lapse of three years of the policy term and subject to pre-specified conditions. However, such withdrawals attract charges, as mentioned in the respective policy brochures.
HDFC Standard Life Insurance offers us the flexibility to switch between funds available under a unit linked plan. We may wish to switch between equity and debt funds, in times when there is market volatility or interest rate fluctuations. At times, changes in our financial standing, liabilities or risk profile may also require that we change our investments accordingly.
Making Withdrawals
We may also make partial withdrawals from our funds after a certain specified period, subject to a partial withdrawal charge. The withdrawal amount should be at least the minimum prescribed withdrawal amount and the fund must not fall below the minimum fund value after the withdrawal. We can make a full withdrawal of our policy before its maturity date. However, surrender charges will be applicable in this case.
CHILDRENS PLANS:
Childrens Plans helps us save so that we can fulfill our childs dreams and aspirations. These plans go a long way in securing our childs future by financing the key 16
milestones in their lives even if we are no longer around to oversee them. As a parent, we wish to provide our child with the very best that life offers, the best possible education, marriage and life style. Most of these goals have a price tag attached and unless we plan our finances carefully, we may not be able to provide the required economic support to our child when we need it the most. For example, with the high and rising costs of education, if we are not financially prepared, our child may miss an opportunity of a lifetime. Today, a 2-year MBA course at a premiere management institute would cost us nearly Rs. 3,00,000/- At a assumed 6% rate of inflation per annum, 20 years later, we would need almost Rs. 9,07,680/- to finance our child's MBA degree. An illustration of how education expenses could rise with passing time due to inflation:
So, how can we cope with these costs? Childrens Plans help us save steadily over the long term so that we can secure our childs future needs, be it higher education, marriage or anything else. A small sum invested by us regularly can help us build a decent corpus over a period of time and go a long way in providing our child a secured financial future along with.
1. HDFC Unit Linked Young Star II: As a parent, our priority is our childs future and being able to meet our childs dreams and aspirations. With our HDFC Unit Linked Young Star II, we can start building our savings today and ensure a bright future for our child. This plan provides valuable protection to our child in case we are not around. This Unit Linked Plan also gives us with an outstanding investment opportunity to maximize our savings by providing us a choice of thoroughly researched and selected investments.
Features:
Advantages:
a). We can customize the ideal plan for our child by choosing the premium you wish to invest along with the Sum Assured, depending on the level of protection required b). The Triple Benefit payment preference helps us secure your childs immediate and future needs. In case of our unfortunate demise or critical illness, they will pay the Sum Assured to our child (Beneficiary). Our family need not pay any further premiums. They will pay 50% of all the future premiums at the original level towards our policy and 50% of the premiums will be paid to the Beneficiary as and when due, on an annual basis. Any Death Benefit or Critical Illness cover terminates immediately c). In the long term, the key to building great maturity values is a low Fund Management Charge (FMC). They have a low FMC of only 1.25% per annum (of the funds value) d). we can choose to pay our premium as either Annually, Half-Yearly or Monthly depending on our convenience. We also have a range of convenient auto premium payment options 18
e). we can change our investment fund choices in two ways: * Switching: We can move our accumulated funds from one fund to another anytime * Premium Redirection: We can pay our future premiums into a different selection of funds, as per our need. f). Tax benefits are offered under section 80C and 10(10D) of the Income Tax Act, 1961.
Features:
Advantages:
a). This plan gives us regular Loyalty Units to boost our fund value every year. At the end of every policy year, they will increase the number of units (Loyalty Units) in each of our funds by 0.10% as long as our policy is in force (premium paying or paid up). The compounding effect of these regular additions is expected to boost our final maturity value. b).We can customize the ideal plan for our child by choosing the premium we wish to invest along with the Sum Assured, depending on the level of protection required. c).The Triple Benefit payment preference helps us secure our childs immediate and future needs. In case of our unfortunate demise or critical illness, they will pay the Sum Assured to our child (Beneficiary). Our family need not pay any further premiums. They will pay 50% of all the future premiums at the original level towards our policy and 50% of the premiums will be paid to the Beneficiary as and when due, on an annual basis. Any Death Benefit or Critical Illness cover terminates immediately 19
d). In the long term, the key to building great maturity values is a low Fund Management Charge (FMC). We have a low FMC of only 1.25% per annum (of the funds value) e). We can choose to pay our premium as either Annually, Half-Yearly or Monthly depending on your convenience. We also have a range of convenient auto premium payment options f). We can change our investment fund choices in two ways: * Switching: we can move our accumulated funds from one fund to another anytime * Premium Redirection: We can pay our future premiums into a different selection of funds, as per our need g). Tax benefits are offered under section 80C and 10(10D) of the Income Tax Act, 1961.
Features:
Advantages:
a) No need to go for medicals. Just filling a Short Medical Questionnaire will do 20
b) This plan gives us Bumper Addition to the fund value at Maturity. Our fund value will be augmented by addition of Bumper Addition, which is a percentage of our original annualized premium. c) The Triple Insurance Benefit helps us secure our childs immediate and future needs. In case of our unfortunate demise within the policy term, they will pay the Sum Assured to our child (Beneficiary). Our family need not pay any further premiums. They will pay 50% of the original regular premiums towards our policy. On maturity our child will receive the fund value plus the Bumper Additions (if eligible). d) In the long term, the key to building great maturity values is a low Fund Management Charge (FMC). They have a low FMC of only 1.25% per annum (of the funds value). e) We can choose to pay our premium as either Monthly (through Standing Instructions or ECS Mandate) or annually. We also have a range of convenient auto premium payment options. f) We can change our investment fund choices in two ways: * Switching: we can move our accumulated funds from one fund to another anytime. * Premium Redirection: we can pay our future premiums into a different selection of funds, as per our need. g) Tax benefits are offered under section 80C and 10(10D) of the Income Tax Act, 1961
RETIREMENT PLANS:
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These are the types of Retirement Plans. It provides us with financial security so that when our professional income starts to ebb, we can still live with pride without compromising on our living standards. By providing us a tool to accumulate and invest our savings, these plans give us a lump sum on retirement, which is then used to get regular income through an annuity plan. Given the high cost of living and rising inflation, employer pensions alone are not sufficient. Pension planning has therefore become critical today. Indias average life expectancy is slated to increase to over 75 years by 2050 from the present level of close to 65 years. Life spans have been increasing due to better health and sanitation conditions in the country. However, the average number of years of employment has not been rising commensurately. The result is an increase in the number of post-retirement years. Accordingly, it has become necessary to ensure regular income for life after retirement, so that we can live with pride and enjoy our twilight years.
However, skyrocketing costs can throw even a well-laid plan off balance. With costs rising every day, we can just imagine how high they will be when we are ready to hang up our boots. So, what should we do to counter this? Its time to plan our retirement and that too sooner than later. However, skyrocketing costs can throw even a well-laid plan off balance. With costs rising every day, we can just imagine how high they will be when we are ready to hang up our boots. So, what should we do to counter this? Its time to plan our retirement and that too sooner than later.
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The above illustration shows how with each passing year our annual savings requirement would increase. For instance, if we are 30 years old and plan to retire at 60, then, with a current annual expenditure of Rs. 3,00,000/- ,we would need a corpus in excess of Rs. 2,00,00,000/- to maintain our living standards, assuming we live till 85 years and the inflation rate is 4%. To build this retirement corpus, we need to invest Rs 3,60,000/- per annum in a retirement plan that offers 8% returns per annum. In case we delay planning our retirement by 5 years then the investment amount would increase to Rs 6,90,000/- per annum.
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Features:
Advantages:
A). This plan is designed to provide us a post retirement income for life We can choose our premium, the Sum Assured and our retirement date. At the end of the policy term, we will receive the accumulated value of our funds, which will be used to provide our pension income in our golden years. B). This plan gives us Bumper Addition to the fund value on Vesting. Our fund value will be augmented by addition of Bumper Addition to the extent of 50% of our original annualized premium chosen at inception. C). On our chosen retirement (Vesting) date, we will get the value of the units in our policy. As per prevailing Government regulations; * We can take up to 1/3rd of the total benefit at Vesting (fund value + Bumper Addition) as a tax-free cash lump sum * The rest must be converted to annuity * You can buy the annuity from us or any other insurer D). In the long term, the key to building great maturity values is a low Fund Management Charge (FMC). They have a low FMC of only 1.25% per annum (of the funds value) E). If we have not opted for AAO (Asset Allocation Option), we can change our investment fund choices in two ways: * Switching: We can move our accumulated funds from one fund to another anytime. * Premium Redirection: We can pay our future premiums into a different selection of funds, as per our need. F). We can choose to pay our premium as either Monthly (through Standing Instructions or ECS Mandate), Half yearly or annually. We also have a range of convenient auto premium payment options G). Tax benefits under sections 80CCC of the Income Tax Act, 1961 subject to the provisions contained therein 24
Features:
Advantages:
A). This plan is designed to provide us a post retirement income for life We can choose our initial single premium, the investment strategy and retirement date. At the end of the policy term, we will receive the accumulated value of our funds including Bumper Additions, which will be used to provide our pension income in our golden years. B). This plan gives us Bumper Addition (for policies with term equal or greater than 15 years) to the fund value on Vesting. Our fund value will be augmented by addition of Bumper Addition to the extent of 10% of the initial single premium chosen at inception. C). On our chosen retirement (Vesting) date, we will get the value of the units in our policy. As per prevailing Government regulations; * We can take up to 1/3rd of the total benefit at Vesting (fund value + Bumper Addition if any) as a tax-free cash lump sum. * The rest must be converted to annuity. * You can buy the annuity from us or any other insurer. D). In the long term, the key to building great maturity values is a low Fund Management Charge (FMC). We have a low FMC of only 1.25% per annum (of the funds value). E). We can change our investment fund choices through switching where we can move our accumulated funds from one fund to another anytime. F). Tax benefits under sections 80CCC of the Income Tax Act, 1961 subject to the provisions contained therein. 25
However, Rs. 10,00,000/- after 15 years would be worth roughly around half of what it is today once adjusted for inflation at the rate of 4%. Therefore, an individual will need to save nearer to Rs. 50,000/- annually to reach our targeted savings at the age of 50 Years, if we consider inflation. There Savings & Investment Plans provide us the assurance of lump sum funds for us and our familys future expenses. While providing an excellent savings tool for our short term and long term financial goals, these plans also assure our family a certain sum by way of an insurance cover. With HDFC Standard Lifes range of Saving & Investment Plans, we can therefore ensure that our family always remains financially independent, even if we are not around.
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Features:
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Advantages:
A). This plan gives us regular Loyalty Units to boost our fund value every year. At the end of every policy year, we will increase the number of units (Loyalty Units) in each of our funds by 0.10% as long as our policy is in force (premium paying or paid up). The compounding effect of these regular additions is expected to boost our final maturity value B). This plan provides valuable protection to our family in case us are not around. In case of our unfortunate demise during the policy term, they will pay the greater of our Sum Assured (less any withdrawals we have made in the two years before our claim) and our total fund value to our family. C). We can choose any one of 4 Additional Plan Benefit options depending on our requirement: * Life Option = Death Benefit * Extra Life Option =Death Benefit + Accidental Death Benefit * Life & Health Option = Death Benefit + Critical Illness Benefit * Extra Life & Health Option = Death Benefit + Critical Illness Benefit + Accidental Death Benefit. D). We can choose to pay our premium as either Annually, Half-Yearly or Monthly depending on our convenience. We also have a range of convenient auto premium payment options. E). We can change our investment fund choices in two ways: * Switching: we can move our accumulated funds from one fund to another anytime * Premium Redirection: we can pay our future premiums into a different selection of funds, as per our need F). Tax benefits are offered under section 80C and 10(10D) of the Income Tax Act, 1961. 2. HDFC Unit Linked Endowment II: We have always given our family the very best. And there is no reason why we should not get the best in future too. With rising costs, ensuring the best got our family will need some financial planning. With their HDFC Unit Linked Endowment II, we can start building our savings today and ensure that our family remains financially independent, even when we are not around. This Unit Linked Plan also gives us with an outstanding investment opportunity to maximize our savings by providing us a choice of thoroughly researched and selected investments.
Features:
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Advantages:
1. This plan provides valuable protection to our family in case we are not around. In case of our unfortunate demise during the policy term, they will pay the greater of our Sum Assured (less any withdrawals we have made in the two years before our claim) and our total fund value to our family. 2. We can choose any one of 4 Additional Plan Benefit options depending on our requirement: Life Option = Death Benefit Extra Life Option = Death Benefit + Accidental Death Benefit Life & Health Option = Death Benefit + Critical Illness Benefit Extra Life & Health Option = Death Benefit + Critical Illness Benefit + Accidental Death Benefit 3. In the long term, the key to building great maturity values is a low Fund Management Charge (FMC). They have a low FMC of only 1.25% per annum (of the funds value) 4. We can choose to pay our premium as either Annually, Half-Yearly or Monthly depending on our convenience. We also have a range of convenient auto premium payment options 5. We can change our investment fund choices in two ways: * Switching: we can move our accumulated funds from one fund to another anytime * Premium Redirection: we can pay our future premiums into a different selection of funds, as per our need 6. Tax benefits are offered under section 80C and 10(10D) of the Income Tax Act, 1961
independent, even when we are not around. This Unit Linked Plan also gives us with an outstanding investment opportunity to maximize our savings by providing us a choice of thoroughly researched and selected investments. In this plan, the original Sum Assured chosen by us will be automatically increased by 5% each year giving our family benefit of enhanced protection.
Features:
Advantages:
This plan provides valuable protection to our family in case we are not around. In case of our unfortunate demise during the policy term, they will pay the greater of our Sum Assured (less any withdrawals we have made in the two years before our claim) and our total fund value to our family. In the long term, the key to building great maturity values is a low Fund Management Charge (FMC). They have a low FMC of only 1.25% per annum (of the funds value) We can choose to pay our premium as either Annually, Half-Yearly or Monthly depending on our convenience. We also have a range of convenient auto premium payment options We can change our investment fund choices in two ways:
o o
Switching: we can move our accumulated funds from one fund to another anytime Premium Redirection: we can pay our future premiums into a different selection of funds, as per our need
Tax benefits are offered under section 80C and 10(10D) of the Income Tax Act, 1961
4. HDFC SimpliLife:
We have always believed in living life on our own terms. So why let the changing realities of everyday life overwhelm us and make our aspirations take a back seat? With 30
our HDFC SimpliLife Plan, we can plan now to maximize our savings and secure our and our familys future. It is a convenient plan, which saves us from the need of going for Medicals. This Unit Linked Plan gives us with an outstanding investment opportunity to maximize our savings by providing us a choice of thoroughly researched and selected investments.
Features:
Advantages:
This plan provides valuable protection to our family in case we are not around. In case of our unfortunate demise during the policy term, they will pay the Unit Fund Value plus Sum Assured to our family. In the long term, the key to building great maturity values is a low Fund Management Charge (FMC). They have a low FMC of only 1.25% per annum (of the funds value) We can choose to pay our premium as either Annually or Half-Yearly depending on our convenience. We also have a range of convenient auto premium payment options We can change our investment fund choices in two ways:
o o
Switching: We can move our accumulated funds from one fund to another anytime Premium Redirection: We can pay our future premiums into a different selection of funds, as per our need
Tax benefits are offered under section 80C and 10(10D) of the Income Tax Act, 1961
to meet our long-term investment needs and help us maintain our familys financial independence. This plan also gives regular Loyalty Units to boost our fund value each year.
Features:
Advantages:
This plan not only strives to maximise our investment return and providing longterm real growth for our money but also gives us an enhanced flexibility to suit our protection needs. This plan gives us regular Loyalty Units to boost our fund value every year. At the end of every policy year, they will increase the number of units (Loyalty Units) in each of our funds by 0.10% as long as our policy is not surrendered. The compounding effect of these regular additions is expected to boost our final proceeds. In case we opt for 1.1x Sum Assured, this plan is also available with limited underwriting wherein we will to fill a Short Medical Questionnaire (SMQ) They have a Fund Management Charge (FMC) of 1.75% per annum (of the funds value) We can change our investment fund choices through switching where we can move our accumulated funds from one fund to another anytime This is a single premium plan and subject to appropriate tax treatment under the Income Tax Act 1961. Currently Section 80C benefit is available for the premium paid into the plan subject to the limits in that section. Benefits received under Section 10(10D) will be exempt from tax subject to the limited contained therein
ensure that family maintains the same standard of living in the future, we need to make the right kind of investment today. HDFC Unit Linked Wealth Multiplier, a unique 3year premium payment Savings and Investment Plan is a tailor made plan well suited to meet our long-term investment needs and also help us maintain our familys financial independence.
Features:
Advantages:
This plan offers an excellent investment opportunity through choice of exclusive funds This plan has limited premium payment term of 3 years This plan also provides the facility of a single premium top - up They have a Fund Management Charge (FMC) of 1.75% per annum (of the fund's value) We can change your investment fund choices in two ways:
o o
Switching: we can move our accumulated funds from one fund to another anytime Premium Redirection: we can pay our future premiums into a different selection of funds, as per our need
we have a choice of paying our premium either half yearly or yearly Tax benefits are offered under section 80C and 10(10D) of the Income Tax Act, 1961
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Conclusion:
At the end of our project we feel that we have gained a lot of acknowledgement about this unit and our project Unit Linked Policy Plan helps in growing the financial investment of the policy holder with preference to HDFC Standard life Insurance Company limited. In rotation work about its working routine and collected a lot of information about its policies. During this training, it was found that most of the people are aware that instead of investing their money in bank, most of the people invested their money in insurance policies. In the current situation they thought that it is the best option for them. So at last I am giving thanks to HDFC Imphal and all the members of this branch for providing me the knowledge of the advantages provided by unit linked policies to the policy holder.
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BIBLIOGRAPHY:
Website: www.hdfcinsurance.com Catalogue: Companys Catalogue.
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