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A REPORT ON PROMOTIONAL STRATEGIES ADOPTED BY ICICI PRUDENTIAL LIFE INSURANCE CO. LTD. CONTRIBUTED BY Saurabh Singh Baghel(edited)

A REPORT ON
PROMOTIONAL STRATEGIES ADOPTED BY ICICI PRUDENTIAL LIFE INSURANCE CO. LTD.

BY
Saurabh Singh Baghel
ICICI PRUDENTIAL LIFE INSURANCE CO.LTD.


TABLE OF CONTENTS
Acknowledgement
Summary
Promotional strategies
Objective and Limitations
Methodology
Conclusion
Suggestions
Industry profile
ICICI Prudential Life Insurance Co. Ltd.
SUMMARY
A successful product or service means nothing unless the benefit of such a service can be communicated clearly to the target market. An organizations promotional strategy can consist of:
Advertising: Is any non-personal paid form of communication using any form of mass media.
Public relations: Involves developing positive relationships with the organization media public. The art of good public relations is not only to obtain favorable publicity within the media, but it is also involves being able to handle successfully negative attention.
Sales promotion: Commonly used to obtain an increase in sales short term. Could involve using money off coupons or special offers.
Personal selling: Selling a product service one to one.
Direct Mail: Is the sending of publicity material to a named person within an organization. There has been a massive growth in direct mail campaigns over the last 5 years. Spending on direct mail now amounts to £18 bn a year representing 11.8% of advertising expenditure (Source: Royal Mail 2000). Organizations can pay thousands of pounds for databases, which contain names and addresses of potential customers.
Direct mail allows an organization to use their resources more effectively by allowing them to send publicity material to a named person within their target segment. By personalizing advertising, response rates increase thus increasing the chance of improving sales. Listed below are links to organization who's business involves direct mail.
Message & Media Strategy
An effective communication campaign should comprise of a well thought out message strategy. What message are you trying to put across to your target audience?. How will you deliver that message? Will it be through the appropriate use of branding? logos or slogan design?. The message should reinforce the benefit of the product and should also help the company in developing the positioning strategy of the product. Companies with effective message strategies include:
Nike: Just do it.
Toyota: The car in front is a Toyota.
Media strategy refers to how the organization is going to deliver their message. What aspects of the promotional mix will the company use to deliver their message strategy? Where will they promote? Clearly the company must take into account the readership and general behavior of their target audience before they select their media strategy. What newspapers do their target market read? What TV programmers do they watch? Effective targeting of their media campaign could save the company on valuable financial resources.
Promotion strategies
"Push or Pull"?
Marketing theory distinguishes between two main kinds of promotional strategy - "push" and "pull".
Push
A “push” promotional strategy makes use of a company's sales force and trade promotion activities to create consumer demand for a product.
The producer promotes the product to wholesalers, the wholesalers promote it to retailers, and the retailers promote it to consumers.
A good example of "push" selling is mobile phones, where the major handset manufacturers such as Nokia promote their products via retailers such as Carphone Warehouse. Personal selling and trade promotions are often the most effective promotional tools for companies such as Nokia - for example offering subsidies on the handsets to encourage retailers to sell higher volumes.
A "push" strategy tries to sell directly to the consumer, bypassing other distribution channels (e.g. selling insurance or holidays directly). With this type of strategy, consumer promotions and advertising are the most likely promotional tools.
Pull
A “pull” selling strategy is one that requires high spending on advertising and consumer promotion to build up consumer demand for a product.
If the strategy is successful, consumers will ask their retailers for the product, the retailers will ask the wholesalers, and the wholesalers will ask the producers.
A good example of a pull is the heavy advertising and promotion of children's’ toys – mainly on television. Consider the recent BBC promotional campaign for its new pre-school programme – the Fimbles. Aimed at two to four-year-olds, 130 episodes of Fimbles have been made and are featured everyday on digital children's channel CBeebies and BBC2.
As part of the promotional campaign, the BBC has agreed a deal with toy maker Fisher-Price to market products based on the show, which it hopes will emulate the popularity of the Tweenies. Under the terms of the deal, Fisher-Price will develop, manufacture and distribute a range of Fimbles products including soft, plastic and electronic learning toys for the UK and Ireland.
In 2001, BBC Worldwide (the commercial division of the BBC) achieved sales of £90m from its children's brands and properties last year. The demand created from broadcasting of the Fimbles and a major advertising campaign is likely to “pull” demand from children and encourage retailers to stock Fimbles toys in the stores for Christmas 2002

Above a pull strategy (left) push strategy (right).
Communication by the manufacturer is not only directed towards consumers to create demand. A push strategy is where the manufacturer concentrates some of their marketing effort on promoting their product to retailers to convince them to stock the product. A combination of promotional mix strategies are used at this stage aimed at the retailer including personal selling, and direct mail. The product is pushed onto the retailer, hence the name. A pull strategy is based around the manufacturer promoting their product amongst the target market to create demand. Consumers pull the product through the distribution channel forcing the wholesaler and retailer to stock it, hence the name pull strategy. Organisations tend to use both push and pull strategies to create demand from retailers and consumers.

Communication Model - AIDA

AIDA is a communication model which can be used by firms to aid them in selling their product or services. AIDA is an Acronym for Attention, Interest, Desire, Action.. When a product is launched the first goal is to grab attention. Think, how can an organisation use it skills to do this? Use well-known personalities to sell products? Once you grab attention how can you hold Interest, through promoting features, clearly stating the benefit the product has to offer? The third stage is desire, how can you make the product desirable to the consumer? By demonstrating it? The final stage is the purchase action, if the company has been successful with its strategy then the target customer should purchase the product.

Promotion through the Product lifecycle. -
As products move through the four stages of the product lifecycle different promotional strategies should be employed at these stages to ensure the healthy success and life of the product .
Stages and promotion strategies employed.( product life cycle)
Introduction
When a product is new the organizations objective will be to inform the target audience of its entry. Television, radio, magazine, coupons etc may be used to push the product through the introduction stage of the lifecycle. Push and Pull Strategies will be used at this crucial stage.
Growth
As the product becomes accepted by the target market the organization at this stage of the lifecycle the organization works on the strategy of further increasing brand awareness to encourage loyalty.
Maturity
At this stage with increased competition the organization take persuasive tactics to encourage the consumers to purchase their product over their rivals. Any differential advantage will be clearly communicated to the target audience to inform of their benefit over their competitors.
Decline
As the product reaches the decline stage the organization will use the strategy of reminding people of the product to slow the inevitable


Internet promotion.
The development of the World Wide Web has changed the business environment forever. Dot COM fever has taken the industry and stock markets by storm. The e-commerce revolution promises to deliver a more efficient way of conducting business. Shoppers can now purchase from the comfort of their home 24 hours a day 7 days a week. However, particularly in the UK the e-commerce revolution is hindered by two factors. Firstly the cost of logging on to the net. Consumers are still weary of the time-spent surfing, the high cost is slowing down the take-up. The number of homes that are linked to the web in the UK is only 25% of all house owners. If e-commerce businesses are to succeed the home penetration rate of Internet access must also increase. Secondly, most homes are linked to modems of 56K. As the growth of people signing on-line grows the access speed slows down. In America most consumers only spend 10 seconds browsing on a web page, before they change sites, within the UK it is 2 minutes. The future seems to be with ADSL networks which will speed up access to the Internet dramatically running at 512K per second. However, again whether this format is adapted depends much on the cost.
Owning a website is a now a crucial ingredient to the marketing mix strategy of an organization. Consumers can now obtain instant information on products or services to aid them in their crucial purchase decision. Sony Japan took pre-orders of their popular Playstaion 2 console over the net, which topped a 1 million after a few days; European football stars are now issuing press releases over the web with the sites registered under their own names. Hit rates are phenomenal.
Objective
To know the promotional strategies of Icici prudential.
To know how they face their competitor’s strategies.
To know how they survive in the cutthroat competition.
To know the products of the Icici pru .
To know the product life cycle of the Icici pru .
Limitation
Many customers are not aware about Life Insurance Companies investment cum insurance plans.
Many customers do not believe Private Company like ICICI PRUDENTIAL LIFE INSURANCE.
In market many private insurance players are dealing so that competition is very high infect in the insurance sector there is cut throat competition.
Some customer were disdissatisfied with ICICI Prudential Life Insurance and responded in anger.
Some of the customer do not gave actual information as they showed a lot of hurry.
Research methodology
Research methodology is a strategy that guides a research in providing answers to research questions and for this, research survey is being done. “Accuracy of the study depends on the systematic application of the method”. The researcher has to decide the method to be used that helps him to get a desired direction in a systematic way. This study in the following manner.
METHODOLOGY ADOPTED
QUESTIONNAIRE DESIGN
The questions were designed in an easily understandable way with the help of Ms. Shweta Dubey (Faculty Guide) and Mr. Prashant Upadhyay (U.M.) ICICI Prudential Life Insurance (Company Guide). That the respondents may not have any difficulty in answering them. The questionnaire also contained a comments section. This section was included so as to get opinion of the people regarding the ICICI Prudential Life Insurance
RANDOM SAMPLING
Sampling can be defined as a part of population. Thus random sampling may be defined as the selection of a portion from the whole population in which each elements of the population has an equal chance of being selected. A more please definition is that each element in the population has a non-zero and known probability of selection a randomly drawn sample is an unbiased sample. In this research survey 100 people were surveyed at random to get the relevant information.
SAMPLE SIZE
The sampling techniques used in this project is probability sampling techniques and the methods used in cluster sampling.
Sample Units : Jabalpur and Narsinghpur
Sample Size : 100 people
Sampling Area : The are covered in this survey was the
Jabalpur and Narsinghpur Region.
The branch covered in this survey is Jabalpur
DATA COLLECTION
STRUCTURED QUESTIONNAIRE
In this collection data, structured questionnaire is used as a tool by asking a set of standardized questions to know the behavior of the people for the ICICI Prudential Life Insurance.
INTERVIEW
The next step involved in collecting information requires discussion with people. Thus valuable information was gathered informal friendly talks with the people.
SECONDARY DATA COLLECTION
Various websites were consulted to collect literature relevant to the topic.
INTERPRETATION
Interpretation refers to the task of drawing inference from the colleted facts after an analytical study, in fact it is a search for broader meaning of research findings it is through interpretation that the researcher can well understand the abstract principle that respondents beneath his findings. The simple statistical tools will used to analyze the data collection, Bar Graphs have been used to illustrate the findings diagrammatically
ICICI PRUDENTIAL Life Insurance Co.Ltd. Advertisement like Chintamani and Jeetey Raho these are advertisement impacts on their future investments .
They are ready to invest their money in ICICI PRUDENTIAL Life Insurance Co.Ltd., if proper knowledge given by financial advisor regarding investment cum insurance plans
They are ranked no 1 in promotional ratings but they also said ICICI PRUDENTIAL Life Insurance Co.Ltd.is a branded company and it not wants any promotional strategy.
If new product launched by company so it might want induction through advertisement, so people know the new products new products launched.
They invest if new fund offered discount provided by financial advisor and tax rebates, gifts.
ICICI Pru has 40% of private life insurance market TNN[ SUNDAY, FEBRUARY 29, 2004 11:00:22 PM]
MUMBAI: ICICI Prudential Life Insurance has increased its market share among private life insurers to nearly 40%, from 33% as of end-December. The company’s first-year premium income in the April-January period stood at Rs 464.6 crore, accounting for 39.3% of the Rs 1,364 crore premium booked by all private life insurers together. Considering the entire life market, including the Rs 9,780 crore booked by Life Insurance Corporation, ICICI Pru’s market share works out to around 4.17%. The life insurance market continues to be dominated by LIC, which has about 87.8% share. This is only a marginal dip from its 88.2% share in end-December. These comparisons are only for first year or new business premium. If renewal premium were to be taken into account, LIC’s share would increase further to over 96%. According to business figures brought out by the Insurance Regulatory and Development Authority (IRDA), the first-year premium mobilized by ICICI Prudential Life Insurance in the first ten months of `03-04 amounted to Rs 464.4. This is more than twice the premium income generated by its closest rival Birla Sun Life which raised Rs 195 crore during the same period. HDFC Standard Life and Tata AIG have retained their third and fourth positions. Interestingly, there are three companies that are neck-and-neck in the battle to be among the top five with a market share of close to 7% — Allianz Bajaj, Max New York Life and SBI Life Insurance.
In the group insurance market, LIC’s share in the country is around 93%. Among the private companies, SBI Life, Birla Sun Life and HDFC Standard Life dominate the group insurance segment. SBI Life, with its group policies for mortgage loan protection and depositor insurance, has close to 45.8% of the group market among private companies. Birla Sun Life has a 23.4% share, followed by HDFC Standard Life which has a 18.4% share. Except these three companies, other players have a negligible presence in the group market
But, with over a month to go for the close of financial year, the rankings could still change dramatically. More so, because insurance companies, particularly LIC, go into an overdrive in mobilizing new business.
ICICI Prudential began their operations in 12th December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). Their nation-wide team comprises, about 500 offices, over 200,000 advisors; and 22 banc assurance partners
Suggestions about product promotional strategies of ICICI Prudential
The suggestions have been classified into two categories.
Action oriented suggestions which have been further subdivided into categories.
People (HR) oriented suggestions.
ACTION ORIENTED SUGGESTIONS
An intense AIDA model needs to be adopted the AIDA model (Awareness, Internet, Desire ,Action).
AIDA: customers are aware of majority of products of ICICI PRUDENTIAL Life Insurance Co.Ltd.
TO CREATE AWARENESS REGARDING PRODUCTS
Print & Electronic Media Advertisement should be done ( As we can see intense ad campaign of HDFC Standard Life and Bajaj Allianz.)
After the initial promotional campaign the relative advantage of ICICI PRUDENTIAL Life Insurance Co.Ltd. Over its competitor should be highlighted.
Hoardings at prime areas should be used.
PEOPLE ORIENTED SUGGESTIONS
Creating offers like lucky draws for the users of Internet.
Giving free gifts for the customer.
Industry profile
A brief history of the insurance sector
The business of life insurance in India in its existing from started in India in the year 1818 with the establishment of the Oriental Life Insurance company in Calcutta.
Some of the important milestones in the life insurance business in India are:
1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business.
1912: The Indian Life Assurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance business.
1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India.
The general insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British.
Some of the important milestones in the general insurance business in India are:
1907: The Indian Mercantile Insurance Ltd. Set up, the first company to transact all classes of general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices.
1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India assurance Company Ltd., the Oriental Insurance Company Ltd. And the United India Insurance Company Ltd. GIC incorporated as a company.
Insurance sector reforms
In 1993, Malhotra Committee, headed by former Finance secretary and RBI Governor R.N. Malhotra, was formed to evaluate the Indian insurance industry and recommend its future direction.
The Malhotra Committee was set up with the objective of completing the reforms initiated in the financial sector.
The reforms were aimed at “ creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms…”
In 1994, the committee submitted the report and some of the key recommendations included:
1. Structure
Government stake in insurance companies to be brought down to 50%.
Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations.
All the insurance companies should be given greater freedom to operate.
2. Competition
Private Companies with a minimum paid up capital of Rs. 1bn should be allowed to enter the industry.
Nop Company should deal in both Life and General Insurance through a single entity.
Foreign companies may be allowed to enter the industry in collaboration with the domestic companies.
Postal Life Insurance should be allowed to operate in the rural market.
Only one state Level Life Insurance Company should be allowed to operate in each state.
Regulatory Body
The Insurance Act should be changed.
An Insurance Regulatory body should be set up.
Controller of Insurance (Currently a part from the Finance Ministry) should be made independent.
Investments
Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50%.
GIC and its subsidiaries are not to hold more than 5% in any company (There current holdings to be brought down to this level over a period of time).
Customer Service
LIC should pay interest on delays in payments beyond 30 days.
Insurance companies must be encouraged to set up unit linked pension plans.
Computerized of operations and updating of technology to be carried out in the insurance industry.
The committee emphasized that in order to improve the customer services and increase the coverage of the insurance industry should be opened up to competition. But at the same time, the committee felt the need to exercise caution as any failure on the part of new players could ruin the public confidence in the industry
Hence, it was decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs. 100 crores. The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. For this purpose, it had proposed setting up an independent regulatory body.
The Insurance Regulatory and Development Authority
Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies.
The other decisions taken simultaneously to provide the supporting systems to the insurance sector and ion particular the life insurance companies was the launch of the IRDA’s online service for issue and renewal of licenses to agents.
The approval of institutions for imparting training to agents has also ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products.
Which are expected to be introduced by early next year. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. In the private sector 15 life insurance and 15 non-life insurance companies have been registered.
Before insurance sector was opened to the private sector Life Insurance Corporation (LIC) was the only insurance company in India. After the opening up of Insurance sector in India there has been a glut of insurance companies in India. These companies have come up with innovative and flexible insurance policies to cater to varying needs of the individual. Opening up of the Insurance sector has also forced the LIC to tighten up its belt and deliver better service. All in all it has been a bonanza for the consumer
REFERENCE SITES:-
http://www.tutor2u.net/newsmanager/templates/?a=1396&z=83
http://economictimes.indiatimes.com/articleshow/527342.cms

AN INTERESTING CONVERSATION - INVESTING IN MUTUAL FUNDS

Investing in mutual funds? Read this!

Are you the one who doesn't understand much of finance? Do numerous MFs as well as other investment options baffle you? What are the best funds available? Which funds accrue maximum profits? In an hour-long chat on rediff.com on Thursday,?Rahul Goel, CEO, Personalfn.com, and financial planning expert, answered many such queries.
Here is the transcript:
Rahul Goel says,?Good afternoon everyone!
amittendulkar asked,?hi if you provide advise on tax and financial planning ... can u advice , income is 14 lacs.have taken rebate of housing loan interest 150000 and 10000 on of .. can I manage tax better .. tax outflow is 20000 per month after all this tax saving investmentsRahul Goel answers,? amit, hi. it is best you post this question to a professional tax consultant.
samar asked,?What are the best mutual funds available in the market? Which funds accrue maximum profits? Which funds provide the best SIP options Rahul Goel answers,?samar, hi. that would depend on what your needs and profile are. a scheme which may be the "best" for me, may not be good for you. we spend a lot of time educating people in this regard. do not invest in what is best; invest in what is best suited to you.
Vikas asked? Hi, I have holding following mutual funds (SIP). Please suggest whether my portfolio is good or not? Also, please let me know your view, whether I should reorganize my portfolio? - HDFC Tax Saver : Rs .1000/- p.m. - HDFC Equity : Rs. 2000/- p.m. - Reliance Growth: Rs. 3000/- p.m. - Reliance Vision: Rs. 2000/- p.m. - Reliance Power : Rs. 2000/- p.m. - SBI Magnum Contra: Rs. 3000/- p.m. - SBI Magnum Tax Gain : Rs. 1000/- p.m. - DSPML TIGER : Rs. 2000 p.m. - ICICI Prudential Service Industries : Rs. 2000 p.m. I would like to continue with SIP in these funds for next 3 years and would like to withdraw money from all my investments after 15-20 years. Also, my monthly take home salary is Rs. 52000/- Is this much investment enough for my retirement and childs education? Can you suggest me how better I can organize my portfolio? Regards Vikas Rahul Goel answers,?vikas, hi. a couple of points to note. One, you have excessive exposure to sector funds. in our view, one should not invest in such funds at all. the other point to note is that you do not have any investment in franklin schemes. a fund like franklin flexi should definitely form a part in a equity fund portfolio. Finally, you need to get the allocation between different schemes right. Now coming to the planning needs; whether this is sufficient or not will depend on the number of years to retirement or to your child going to college. Start investing for these needs as early as you can; the more you delay, the more challenging it will become.
aayush asked? Dear Sir, I invest in Standard Chartered Enterprises fund and UTI Life Style Fund, pls. tell me what is the future of two funds and i want to invest in SIP, which is best fund for SIP purpose.
Rahul Goel answers,? aayush, hi. if you were a client of personal we would have ensured that you do not invest in these funds in the first place! Having said that, we do not think either of these schemes should form a part of your core equity fund portfolio.
tanu asked,?hi there whether ulip's are good or term plan plus mutual funds Rahul Goel answers,?tanu, hi. In nearly all instances, you will find term + mutual funds to score better. There are rare instances where ulip may make more sense. I recently got a call from a insurer trying to sell me a ulip saying that it was a mutual fund!! so you know what is better!
michael asked,? Hello Rahul. If equity investment is for the long term then why some advisors still say that there is no need to switch from dividend reinvestment option to growth? What is the correct advice? Please clarify. Rahul Goel answers? michael, hi. This is what I think. If you do not have need for money in the near term, simply let the money accumulate i.e. go for the growth option.
Mahen asked,?Hi Rahul, I have around 1 lakh to invest and I need half of it in the next 6 months and rest of the money in 11 months. What do you suggest, where should I invest? Rahul Goel answers? mahen, hi. the best option for you probably is the fixed maturity plan. These are negligible risk instruments. Take the plans which suit your liquidity needs. In case you are in the lowest income tax bracket, or pay no tax at all, also consider fixed deposits.
debraj asked,? Hi Rahul what is the maximum amount u can invest? 1 lakh or 1.1 lakh?Rahul Goel answers,?debraj, hi. i think you are referring to investments under section 80C. that would be rs 100,000 per year. there are other provisions which may entitle you to invest some more money to save tax; but that is not under Section 80C.
rahuls asked,? I have invested in mostly equity. 34% in ELSS and remaining in secondary market. in stocks, my portfolio has 4.4% Power Generation(RNRL), 7.8% Petrochemical (Rel Petro), 30.4% telecom (rel. comm), 5.1% air transport(jet, deccan), 14% Bank PSU(SBI) and 38% Construction (GMR Infra, Omaxe, DLF; in the reducing percentage share in this category). Please comment. Is this right portfolio for medium to long term...?? I am also planning to buy slowly (on declines) some more share in aviation and hotels as I see aviation and hotels bright in long term. What do you say ??
Rahul Goel answers? rahul, hi. i am unable to comment on individual stocks. But since you are managing money on your own, I trust you have several hours a day that you can dedicate to this activity.
sanoj asked,? Hi Sir, I want to invest Rs.100000 for 6 years with the dividends reinvested. Which will be the best mutual fund option to get maximum returns at the end of 7th year and how much will I get approx.? I prefer a aggressive fund Rahul Goel answers,?sanoj, hi. first if you wish to invest for 7 yrs, and do not have need for near term cash flows, then best to opt for the growth option. Now coming to returns. I think it is reasonable to expect a return of no more than 15% pa over this period from a well managed equity fund. Even though you wish to be aggressive, opt only for the well diversified equity funds; give a miss to the sector funds.
moyanka asked,? hi if we are investing in mutual fund so in which scheme we get tax rebate and heigh return also Rahul Goel answers,? moyanka, hi. some funds, which are called equity linked savings schemes (ELSS) offer you some tax benefits. These have a lock in for three years and invest in the stock markets. Over 3-5 years such funds, if you select the right one of course, should be able to deliver you about 15% pa returns.

Harsh asked? We are working couple 37 and 34 years old with 02 kids 6 and 3 years and stay in our ancestral house in Delhi and wish to buy a plot in BPTP, Faridabad which will cost 30 lacs of which I can make down payment of 12 lacs and balance 18 lacs on loan for 15 years. I seek your advise I should go for this option or should I invest 18000/- per month (which is almost equivalent to the EMI of plot) in mutual funds / SIP etc. The main aim is to build capital at the same time if can own a piece of land would be great. We earn approx 8 lacs per annum and our annual liability is approx 3.5 lacs. Also how do see the growth of property in Faridabad in comparison grown in fundsRahul Goel answers? Harsh, hi. Without commenting on the property price in faridabad specifically, we are overall bearish on property. You will need to study the local market to get a final view. With regards to whether you should buy property or invest in funds.... over the long term it is most likely that equities will outperform real estate when it comes to generating return. The other advantage is that when you buy the property you are exposed to just one market - faridabad. You cannot diversify in property and then there are a lot of maintenance related issues. If you are looking for a better return, and less of a headache, maybe mutual funds will be better. But before you take a final decision discuss this in more detail with your financial planner.
rahul asked,? I want to invest in mutual funds. But I m pretty skeptical abt dng it. So can u advice? Which is the best mutual fund which can give me maximum profits at the end of year? What are my long term benefits that i can reap? Rahul Goel answers? rahul, hi. I recommend that rather than investing in funds just because i am telling you that so and so scheme is good or not, i suggest you find yourself an honest financial planner and understand this investment opportunity in detail.
arun asked,? Which is a good opportunities fund to invest in. I have investments in HDFC Prudence, FT Prima, Reliance Vision, HDFC Top 200 and Mangum Taxgain, and feel investing in an opportunities fund will add some fizz to my portfolio. Rahul Goel answers? arun, hi. well, if you wish to invest to get some fizz in your portfolio, its entirely your call! On a lighter note, don't forget the fizz runs out as fast as it starts!
ganpath asked,? Sir, I am aged 40 years and having 2 children. Can save upto 50,000 per annum. Can I go for HDFC children Care and Pension Plan. Rahul Goel answers? ganpath, hi. you are considering investing in a ulip; there is nothing wrong with that. Have you understood the cost structure completely? Be sure before you commit monies to a ulip.

sutsi asked,? should i sell sbi blue chip?? Rahul Goel answers,? well, to start with we had not recommended this scheme to our clients. We recently posted some research on this scheme on personalfn.com . the performance definitely leaves a lot to be desired.
fgdfgd asked,? is investing in tax saving FD's advisable? Rahul Goel answers? This would depend why you are investing and also your overall profile. If you can take risk and need to grow your money, then FDs are not the right choice for you.
sa asked,? Do you think this is the best time to invest in mutual funds? Rahul Goel answers,?sa, hi. anytime is a good time to invest. But where you invest is most important in our view.
sharat asked,? I am Investing Rs.50000.00 every year in Tax saver Fund since three years to get Tax Benefit. This I am planning to continue for another Three years. Is it OK or shall I go for other tax benefit schemes? Rahul Goel answers,? sharat, hi. have atleast two schemes in your tax saving portfolio.
ajit asked,?Hi rahul,i have 24k to invest for tax planning. I have already invested in LIC and ELSS. So as per you where should i put this 24k,PPF or Pension Fund like Frankin pension fund? Pls advice. Rahul Goel answers,?ajit, hi. May be you need to put the Rs 24k exactly where you put the rest of the money! You do not have to invest in new instruments. The precise answer of course will depend on your profile and needs.
sanjieev asked,? Good afternoon arun..I am a M28, with CTC of 7L and with no liabilities for next 2 years...would it be good to invest 80% in equity(30% direct stocks+50%MF)with a time horizon of 5+ years..?? Rahul Goel answers? Yes, for such a long tenure, a predominantly equity portfolio will suit best. Since you plan to invest directly in stocks, be sure you have enough time to manage your portfolio.

JAGADEESH asked? What should be the performance of NFOs of AMB Amro China Fund, ICICI Asia Fund etc? Will they similar to other NFOs or give any special advantage to us? Rahul Goel answers? jagadeesh, hi. as has been personalfn's view with all the global funds launched so far, we are not going to be telling our clients to inevst in such funds. We recently wrote a note on why are not liking anything out there in this space. You may want to read it on www.personalfn.com.
Anamika asked? Gud Afternoon Rahul, I have about 20 K of gift money lying with me which I wish to invest for the kids for use 5 years later. I want to distribute it in 5K each. Which MFs' should I consider? Which is the best SIP for Rs 2000 for 3 years? Rahul Goel answers? anamika, hi. well, i think you should consider schemes like hdfc equity and fr flexicap. Avoid sector and thematic funds. Keep the portfolio simple. Best would be to employ the services of a finanical planner... that will rid you a lot of the worries.
SEEMA asked? HELLO SIR, I am seema , i recently got married ,both of us working in a pvt ltd company,wish to buy a plot or flat in perambur near chennai city which costs 15 lacs ,i wish to buy only after 4 years. keeping in mind about the inflation rate and the increasing real estates values i can afford to make the down payment for only 5 lacs and for the bal i can go for the loan where i can pay an emi for 9000.The main aim is to own a piece of plot .My monthly expenses are 5000.our salary comes to 20000.how to plan our salary to make our dream comes true with this little salary. Kindly advise me. Regrds SEEMARahul Goel answers? seema, the answer is simple... save as much as you can; invest the monies in well managed mutual funds; since your tenure is about 4 yrs, you can opt for equity funds. Over time, disciplined investing will help you reach there.
Ravi asked,? Hi Rahul, We (DINK couple) make 27L /annum but not able to decide on owning home. Shall we live in a rented apartment or buy one?Rahul Goel answers,? ravi, hi. well, ultimately you may want to own one property; but then this may not be the best time to buy one! Where are you investing the monies currently? Is the allocation done thoughtfully or are you just investing where some friend tells you to?!!
abcxyz asked,? Is it advisable to invest in ELSS funds even if I do not require Tax saving instrument. Peformance of ELSS is similar to other equity funds. Rahul Goel answers,? May be yes. Since these funds have a lock in, the fund manager has more flexibility in planning his investments. Having said that I would prefer an open ended fund so that in case there is an emergency the money can still be taken out.
SARMA asked? Why there is no uniformity in ULIPs unlike in MF and can IRDA learn something from SEBI in cracking whip on life insurance companies who are notoriously wrong-selling Rahul Goel answers,? sarma, hi. I think all of us share the concern of mis-selling. lets hope the regulator does something about this. But this does not take away the fact that since we are investing our money, we need to take well informed decision. This requires study and/or an honest financial planner.
SP asked? Hi Rahul, Please suggest a good pension scheme for my husband (aged 33). The only insurance investment he has is in Jeevan Shree taken abt 6 yrs back. We pay 18K per mth as EMI for housing loan. Other investments such as PPF and SIP come to 10K per mth. Pls suggest some good scheme for retirement planning.
Rahul Goel answers,?hi. Since you have maybe about 25 - 30 yrs to retire, one option you have is to build a corpus by investing in equity funds and then later shifting the money to instruments which can generate monthly income. This will require some discussions with your financial planner. Before you commit monies, be sure of what you are getting into.
Sangeeta asked,? Hi Rahul, I've an outstanding housing loan of 35 lacs for which I'm paying 36000 emi. Do you think it's a good idea to preclose the loan? If I don't at the end of 20th yr, I'll be paying out almost 85lacs towards it. Please suggest Rahul Goel answers? sangeeta, hi. as we have discussed several times in this chat, whether you wish to prepay depends largely on you. If you are not comfortable with having a liability on your books, simply pay it back. Else keep it, and invest your surplus in assets which will hopefully earn more than the interest on the loan.
Jeevan asked? DO ELSS FUNDS QUALIFY FOR TAX DEDUCTION UNDER SECTION 80C? For eg: Principal Personal Tax Saver Fund? Rahul Goel answers? jeevan, hi. Thy do qualify for this tax benefit.
Pravy asked,? I want to accumulate 50 Lakhs corpus after 5 years. Please advise what kind of investment i have to make in SIP. I have taken 500Rs/month sip for SBI TAx gain, 1000Rs/Month SIP for HDFC EQUITY & 1000rS/MONTH SIP FOR RELIANCE VISION FUND. Where else do you advise me to invest to have a corpus of 50 lacs after 5 years. Rahul Goel answers? pravy, hi. assuming you wish have a maturity value of rs 50 lacs in five years, you need to set aside about rs 60,000 per month in instruments which can return you about 15% pa. So invest keeping this in mind.
Jayesh asked? Which is the best long-term investment option in Debt if I want to get regular income? MIP or Short-term Funds with Dividend Payout or SWP? Rahul Goel answers? jayesh, hi. if you can take some risk for the low risk mips, with a qtr div payout. but if you do not want to take any risk go in for fixed deposits.
saurav asked,? Hi Rahul, I live in Kualalumpur (indian citizen) and want to invest in Indian mutual funds , how do i do it sitting from here Rahul Goel answers,?
saurav, hi. the investing part is easy. First you should think about where you will invest!
Shankar asked,? Hi Rahul, thanks for your time. I have in portfolio HSBC Ad India (SIP), UTI Leadership (single), Reliance Equity (single), SBI Midcap (single), Fidelity equity (single), Franklit Prima (SIP), HDFC Long term advantage. 1) I am not sure if my distribuiton are adequately diversified 2) I would like to restrict my funds to a max of 5. Please suggest which ones should I continue with. Rahul Goel answers? shankar, hi. your portfolio in all probability needs change; quite a bit of it. For me to be able to guide you precisely, I will need to know more about you.
aayush asked,? Hi, thanks for yr. suggestion, no I am a client of personalfn, but, my second question is what is the best equity fund in SIP plan........ Rahul Goel answers,? oh! how i wish you were!! if you are looking at a long term plan, then consider having schemes like hdfc equity and fr flexi in your portfolio. Do not have more than 5/6 schemes; and of course, avoid nfos.
arunvs316 asked,? Hi rahul, Do you really think financial planning as a concept will be popular among indian masses? What do you think is the biggest challenge financial planners will face? Rahul Goel answers? Yes, it is a necessity. The challenge is the same for everyone - giving honest and credible advice, backed by great service.
Ana1 asked? What do u mean by FMP and which is the best one? Rahul Goel answers? FMPs are fixed maturity plans; these are effectively close ended debt funds.
jyoti p asked,? Is mutual fund the right product for retirement planning? if so, what should be mix of equity and debt for this purpose? Rahul Goel answers? jyoti, hi, suppose you are to retire 30 yrs from now; you need to accumulate money, right. The best place for such long term investments is the stock markets... so most of the money you save should go there. next should you invest directly or via funds? this would depend on how capacitated you are and how much time you have to manage your onn portfolio.
dalalnirav@rediffmail.com asked? Is it true that large cap funds should form the core of your portfolio? Can you suggest 2-3 good large cap funds.Rahul Goel answers? yes, in most instances. fr bluechip is a fund we like. but having said that, i would still prefer to be invested in a diversified equity fund.
Emsysprof asked,?I am 37 years old earning 10 Lakhs per annum now. How I should plan, if i wish to lead a happy retirement life after 55 years Rahul Goel answers,?well, to ensure you have a happy retirement life, employ the services of an honest finanical planner! frankly, its difficult to do this over email... on personalfn you will find a guide to retirement planning, which you may want to read.
Prasad asked? I brought DSPML technology.com @ 30.50 before 5 months, but it is declining since then, shall I hold? If yes for how much time?Rahul Goel answers? prasad, hi. in our view one should not invest in sector funds. They are inherently volatile and do not deliver the risk adjusted return they should over the long periods of time.

SEEMA asked,?susanne, hi sir, gud after noon to u, i want to build a corpus of 20 laks after 5 years , how much i hav to save per month to build this corpus i want this corpus to buy a plot .my sal is 15000 per month ,my expenses per month are 8000.is my expection above than my income .Rahul Goel answers,?seema, hi. You need to invest about rs 23,000 pm in assets yielding about 15% pa return. since you do not have this surplus do not stop your plan. Continue investing; put in more money when you have more liquidity to make up for this shortfall.
navin asked,?Dear Rahul, Hope you will certainly help in my problem. I have invested in Standard Charter Equity enterprise fund. During IPO the fund claimed that they will invest in IPO of stocks, however I see they do not have any share of recent IPO's, there is lockin of 3 yrs. Please tell me whom should I approach for this breach of trust. Thanks. Rahul Goel answers,?navin, hi. you can write to us at info@personalfn.com and we will forward to sebi. or you could write to sebi directly. their web site is
www.sebi.gov.in
vijaysh asked,? Sir, i want to invest in Bank FD .can i get tax benefit u/s 80c Rahul Goel answers? not all fds give this benefit. Be sure to select the fd which offers this benefit; your banker will be able to guide you.
rajeshrao asked,? I would like to gift my son(1year old) on his birthday with an one time investment scheme, which would be helpfull in his future. Please advise me what are the schemes available, and your valuable suggestion on this. thanks in advance. Rahul Goel answers,? rajesh, hi. best would be to put the money in a basket of well managed and well diversified equity funds. i have discussed some names earlier. but get the allocation right... speak to your financial planner.
sudip asked,?I have 2 crore rupees to invest. Currently I have invested 75 Lakh in equity (MF and direct stocks), 10 Lakh in NIFTY linked debenture, 10 Lakh in Crayon Art Fund, 5 Lakh in US Savings, 1 Crore in FD for 1 year @ 11.75%
interest. I am 35 years old and married with two small children and service is my occupation. Please suggest if I need to change my portfolio.Rahul Goel answers,?sudip, hi. with the surplus you have you will have your private banker on the phone all the time! no wonder you are invested in such exotic funds! In our view, these funds are best avoided... i am referring to the art fund and also the debenture. a large part of your money is in an FD. i am not sure why... i think you should aovoid investing ad hoc and talk to some financial planner.
Sutapa asked,?I have the plan to invest Rs. 50000 in mutual plan. Is it right time to invest in that? whether it is worthy to invest in one fund or a couple of fund. what re the fund to invest? Rahul Goel answers,?sutapa, hi. best way to invest is to do so regularly in small amounts; have a portfolio of about 5/6 schemes.
karthik asked,?Hi Rahul, My CTC is 4.2 L, and as if now i have not invested in any thing.. From last decmember I have started working and I want to investment for Tax gaining as well as future need.. Please suggest what steps I need to take from now on.. Rahul Goel answers,?karthik, hi. best step would be to find yourself an honest finanical planner. since you are liquid and are not sure what to do with your money, it will not be long before agents/disributors start throwing ideas at you...ideas which many money for them!

vilbee asked,?Hi Rahul I am 32 year old female and have 50 lakhs in savings and investments, and own my home (debtfree). I may quit working soon and assuming no further income flow, and annual expense requirement on 2 lakhs per year only, what should I do with my fund of 50 lakhs with a view to safely increase wealth Rahul Goel answers,?vilbee, hi. with the kind of surplus you have, you should have no difficulty in meeting montly needs and also ensuring that your capital grows. the obvious idea for investing this money is a small portion in mips, maybe some in fds (as you can avail the return tax free upto a limit) and the rest in riskier instruments.
AAAA asked,?Should one avoid sector funds via SIP? Rahul Goel answers,?one should avoid sector funds, whether you are investing via sip or lumpsum.
Ravi_Kiran asked,?Hi Rahul, Good Afternoon. What's your view of latest NFOs Fidelity Growth, ICICI Pru Indo Asia Fund...?
Rahul Goel answers,?ravi, hi. we have recommended to our clients at personalfn to give a miss to both these funds.
amitpaithankar asked,?Hi Rahul, I have made some investment in whole life insurance policy. should i continue with this or choose another policy? Rahul Goel answers,?amit, hi. depending on the cost, you may want to continue it. i hope its a pure risk policy...
Ravi_Kiran asked,?At personalfn, the latest article about global funds is really good. As you suggested in the same, as of now do we have any global funds that invest not only in emerging (ex. asian) markets but also in all variety of economy...? Rahul Goel answers,?thanks ravi. no, as of now, we do not have any such gobal fund.
venkat asked,?what is your opinion on tata indo global infrastructure fund Rahul Goel answers,?venkat, hi. i think you should avoid investing in this fund as it carries very high risk... unless of course you have the appetite for it.

ICICI Prudential - Info you must read

Students !! Here is posted very important material .A MUST read for ALL students who have applied for the company.

ICICI Prudential Life Insurance Company ICICI Prudential is a joint venture between ICICI bank and Prudential plc, both having strong operations in their respective countries. ICICI bank is one of the leading banks in India providing quality financial services and Prudential is an international financial service provider headquartered at United Kingdom. ICICI and Prudential have respective shares of 74% and 26%. The Company started operating in December 2000. Currently, total capital with the company is Rs. 18.15 billion.
ICICI Prudential was the first insurance company in India to receive a National Insurer Financial Strength rating of AAA ( Ind.) from Fitch ratings. It has been given the honour of being among the Most Trusted Brands in the industry by Economic Times for 3 consecutive years. It has a network of 450 branches, over 1,50,000 insurance advisors and 18 bancassurance partners. As the organization grows and develops, it keeps introducing new range of products and services and enhancing the quality of plans and solutions given to the customers. The distribution network is one of the best, and is spreading across the length and breadth of the country. As on December 31, 2006, it had made imprints in over 360 cities and towns in India. It has over 1,75,000 advisors across the country, serving clients with full commitment. It has tied up with ICICI Bank, Bank of India, Federal Bank, Lord Krishna Bank, some co-operative banks, NGOs, MFIs and corporates for making inroads into the rural areas. ProductsInsurance Solutions for Individuals : ICICI Prudential Life Insurance offers several novel, customer-centric products for customers at every stage of life. The products and services offered by the organization are in various fields, such as: Savings & Wealth Creation Solutions
 Premier Life Gold
 LifeLink Super
 Invest Shield Life New
 Cash Plus
 Cash Bak
 Life Time Super & Life Time Plus
 Save 'n' Protect.Retirement Solutions
 Life Link Super Pension
 Forever Life
 Immediate Annuity
 Life Time SuperChild Plans
 Education insurance - Smart Kid Protection Solutions
 Life Guard
 Home Assure Group Insurance SolutionsICICI Prudential also offers Group Insurance Solutions for companies seeking to enhance benefits to their employees.
 Group Immediate Annuities
 Group Term Plan
 Group Superannuation Plan
 Group Gratuity Plan

TERMINOLOGY:

Accelerated payment of basic coverThis occurs when the basic cover amount is paid earlier than death or maturity. For example the policy may provide for the full payment of the death benefit in the event of total and permanent disability. Accident The term accident is sometimes defined in the policy document as follows - the accident must be caused by violent, external and visible means and cause of the injury or injuries solely and independently of any other means. Accidental death benefitBenefit, which provides for the payment of an additional sum (usually equal to the sum insured of the basic policy) in the event of death by an accident. Amount PayableThis refers to the amount that is payable according to the terms and conditions of the insurance policy to the legal owner of the insurance policy. AnnuitantThe person whose lifetime is used to measure the contractual period over which annuity payments will be made. AnnuityAnnuity contract is an agreement under which the insurance company, in return for the payment of a certain sum, makes a series of agreed payments at regular intervals from a fixed date. This continues until the death of the individual on whose life the annuity is bought. Annuity PeriodThe time span between each of the annuity income benefit payments made under the annuity contract. Typically annuity income benefits are paid monthly or annually. Anticipated Endowment An endowment where you do not have to wait for the maturity date before receiving part of the maturity amount. Applicant / owner / life of anotherThe applicant is the person on whose life insurance cover is sought. Owner is the person who has the legal title to the policy. Life of another on whose life he or she has an insurable interest. Application for reinstatementThis refers to an event when a policy has lapsed or terminated by the policy owner owing to a non-payment or late payment of a premium. The company will consider a reinstatement of the contract in the event of an application being made as prescribed by the company in terms of the outstanding premium, interest or administration fees (if any) and evidence of good health. The reinstatement and terms are at the discretion of the company. AppreciationThe increased value of one asset held by the policy, or by the total assets held by the policy over a period of time. Ask or offer priceThe price at which units or shares can be purchased. The asked or offering price means the current net asset value (NAV) per share plus sales charge, if any. For a no - load fund, the asked price is the same as the NAV. Asset allocationA system method of investing that distributes assets to a broad array of investments AssetsThe current rupee value of the pool of money shareholders have invested in a fund. AssignmentsThis is the process by which, the owner of the rights under the policy known as the assignor transfers the right to another person known as the assignee by executing a deed of assignment.

Balanced fundA fund that maintains a balanced portfolio, generally 60% bonds or preferred stocks and 40% commons stocks. Bear market A period of time in which the market, or securities in general lose money.BenchmarkA reference point that is chosen for the purposes of comparing other related values. BeneficiaryThe person or party the owner of a life insurance policy names to receive the policy benefit.Bid or sell priceThe price at which a funds units or shares are redeemed (bought back) by the fund. The bid or redemption price means the current net asset value per share, less any redemption fee or back end load. Bid / offer spreadThe difference between the bid and the offer prices.Blue chip stock fundA fund that consists of a portfolio of large or well known companies for the purposes of achieving growth. Body mass index (BMI) Used for underwriting purposes in evaluating build and determining overweight and obesity. It tells us the person's health constitution. It is expressed as weight in Kg divided by height in meters to the power of two or Kg/height2 Bond A bond is security in the form of a convertible loan with a maturity date, where the investor lends money to a company or government.Bull marketA good market in which prices of securities increase greatly over a specific period of time.

Capital Gains TaxesTaxes that are imposed at the redemption of all capital gains. CapitalizationThe value of a fund derived by the multiplication of the fund's share price by the number of outstanding shares. Most often, this is applied in order to determine the value of the specific companies. Cash Surrender Value The amount that is available to the owner if a life insurance policy is surrendered any time before the maturity date. The amount represents the cash value minus surrender charges and any outstanding loans due upon cancellation of the policy. Claim Written request by an insured for the insurance company to cover an incurred loss, usually submitted on the company's standard form.ClaimantPerson who has as interest in the policy and making a claim on the policy. Closed end fundA type of fund that offers only a fixed amount of shares, usually sold through a brokerage firm by a broker. Most funds are not closed - end funds; they offer unlimited shares and may be purchased and redeemed directly by the individual through the mail by check. Closing priceThe price of stock or other security at the end of the day, after the final trade.Collateral A temporary assignment of the monetary value of a life insurance policy as security for a loan. In the event of default, the creditor would receive proceeds or values only to the extent of his interest. Commisson A fee paid by the investor to a broker or other sales agent for investment advice and assistance.Compounding Earnings on an investment's earnings. Over time, compounding can produce significant growth in value of an investment. Contractual obligation When parties effect a contract, there are obligation that the parties assume and are legally bound to fulfill these obligations. If there are not fulfilled, the other part can resort to legal means to seek redress. Coroner The coroner is the person who is legally authorized by the government to determine the cause of death, when this is in doubt, or if there has been death which is not deemed to be due from normal illnesses. He or she does it by examining the evidence submitted including autopsy or post mortem reports, medical reports and statements from witnesses. The coroner is usually a magistrate or someone who possess legal qualification. Cover Continuance Option (CCO)An option available on specified unit linked polices, where the policy holder can choose to discontinue his premium payments after having made premium payments regularly for at least three years. In such cases, the life cover of the policy remains as is, in spite of the premium payments being discontinued. The life cover will continue till the value of the policy funds becomes 110% of the annual premium.

Date of commencement The date on which cover begins, following acceptance of the risk by the insurer. Dating Back For non investment linked policies, the commencement date of the policy can be backdated within the same financial year. This enables the life assured to take advantage of the lower premium applicable to a younger age as the premiums is calculated with reference to the date of commencement. The insurance cover will however begin only from the date of acceptance. The extra premium on account of dating back has to be paid upfront. Death Benefit PayableThe amount payable, as stated in a life insurance policy, to the designated beneficiary(ies) upon the death of the insured. The amount paid is the face value, plus any riders that are applicable, less any outstanding loans. DeclarationThis is the statement or section of the form where the person is required to declare that the statements or answers are given fully and truthfully and that if it were not so, there would be legal consequences. Deffered AnnuityAn annuity contract under which periodic benefits are scheduled to begin at some designated future date after the date on which the annuity was purchased.Depreciation A decline in the investment's value.Doctrine of Utmost Good Faith Insurance contract is issued on the basis that the applicant truthfully and fully discloses everything he or she knows about his or her health. This arises from the recognition that the insurance company is in a disadvantageous position, as the insurer does not know anything about the applicant. Similarly, the insurance company should deal with the applicant with honesty and integrity.

EndowmentA type of insurance policy which provides for the face amount stated in the contract to be payable in a fixed date or on the life insured's earlier death. EquityA stock or the interest in capital gains received from the ownership of a stock.Ex-gratia claimThis occurs where strict liability has not been proved but the insurer may decide that it would be unduly harsh or cause hardship, not to make some payment. Such payments are made out of goodwill, without admission of liability. Ex-gratia paymentsThese are payments made by a company where the claim is a gray area, doubt exists but it may be to the benefit of the claimant and the company feels out of goodwill that some form of payment should be made. The claim is made without any admission of liability. Payment is only made on the understanding that the claimant accepts the amount in full satisfaction of all claims he or she may have on the policy. ExclusionA condition under which the benefit is not paid is referred to as exclusion. This is to avoid any misunderstanding. For example, for accidental policies, there is usually exclusion for suicide or self-inflicted injuries by the life insured. Extended Term InsuranceA provision in some policies which provides the option of continuing the insurance for a particular insured amount as per the policy condition as term insurance.

Family history The medical history affecting the applicant's immediate family. It is to look for illness that is hereditary. Focus should be on illness where the onset is before the age of 50.Fixed income securities The category of investment vehicles that offer a fixed periodic return. A fixed income security is a security or certificate showing that the investor has lent money to the issuer, who is usually a company or government, in return for fixed interest income and repayment of the principal at maturity. FIFinancial Institution.Fixed annuityAn annuity where the insurer guarantees to credit the annuity account value with a fixed rate of interest for a specified period of time, for one, three, five or even ten years. At the end of the initial time period, the insurer sets a new interest rate for the next period. Fixed InterestIncome, which remains constant and does not fluctuate, such as income derived bonds, annuities and preferences shares. The percentage return from this income varies dependent on the market price. Fixed period optionAn option on an annuity that provides that annuity payments, each of specified and equal amounts, will be paid for a certain period of time such as 10 or 15 years, even if the annuitant is still living at the end of the period. Fraudulent claimsThese are claims where a statement is made by the insured, which he knows or ought to know that it is false, and he makes it in order to benefit from a life insurance policy by dishonest means. Fund assets Amount of assets currently in the fund.
Government Bonds These are effectively financial instruments used by the government to borrow money from the public. The rates of interest and term period of government bonds are fixed.Grace Period This provision offers the policy holder additional period of time after the due date, during which the premium can be paid. The policy continues to remain in force during this grace period and the premium continues to be payable. Growth FundA fund whose primary investment objective is long-term growth of capital. It invests principally in common stocks with significant growth potential.Guaranteed insurability option An option which allows the policy owner to effect additional insurance at later dates without further evidence of health and irrespective of the date of the health of the life insured.
Hazardous avocationA hobby that has high risk for insurance purpose. Example: A deep - sea diver or a free-fall skydiver. Hazardous occupationAn occupation that has high risk for insurance purposes. Example: a window cleaner on high - rise buildings.

Immediate annuity An annuity where, income benefits begin one annuity period after the annuity is issued. If it is specified that benefits are paid annually, then the benefit payments begin one year after issue. Income fund A fund that primarily seeks current income rather than growth of capital. It will tend to invest in stocks and bonds that normally pay high dividend and interest.Interest rate riskThe possibility that a bond's or bond fund's value will decrease due to rising interest rates. Invalid contractLife insurance is a contract and the law provides that there must be an insurable interest between the life insured and the insured. If it is subsequently proven that this did not exist when the insurance contract was effected, it can be declared as not valid and set aside. InvestmentAn asset acquired for the purpose if producing income and capital gains to its owner.Investment objectiveThe financial goal (long term growth, current income, etc) that an investor or a fund pursues. Investment trustA corporation, partnership or trust that invests the pooled monies of many investors. It provides greater professional management and diversification of investments than most investors can obtain independently. Mutual funds, or "open-ended" investment companies, are the most popular for of investment company.
Joint and survivor option An option on an annuity that provides that the annuity payout will continue through the lives if two people. If one of the payees dies, payments continue to the second payee throughout that payee's lifetime.
Keyman InsuranceAn insurance policy that a company purchases on a key employee whose knowledge, network and experience is so essential that the untimely death of the employee will have a severe impact on the profitability of the company.

Lapse Termination of a life insurance contract because of non-payment of premiums. If there are non forfeiture values, the policy lapses but may remain effective reduced paid-up insurance. Large -cap A large sized company, or a mutual fund that invests in the stock of large, established well known companies.Law of large numbers A large insurance portfolio enables the actuary to predict better the number of claims. The principle reduces the number of random fluctuations of claims as the number of lives insured slowly grows. There is substantial decline in standard deviation of claims arising from pure chance with increase in number of insured. LienAt the time the policy is issued or reinstated, as a part of the underwriting decision, the company may impose a lien on the policy. This would mean that in the event of a claim arising from a specific risk or within a period, a certain agreed amount would be deducted form the claim. The insured is regarded to self insure the amount to be deducted as the company has declined to cover the specific risk or the insured has agreed to this arrangement instead of paying the extra premium. Life AnnuityAn annuity that makes regular (e.g., monthly, quarterly, etc.) income payments for the life of a person (the annuitant). The annuitant cannot outlive the payments. Upon his/her death, however, all income payments cease and there are no beneficiary benefits. Life AssuredPerson whose life is covered under a life insurance policy.Law ExpectancyThe number of years a person is expected to live as determined by actuaries using mortality (actuarial) tables This information is used to calculate annuity payments, life insurance premiums, and annual minimum distributions from IRAs. Life fundThis is a fund set up by an insurance company to which life insurance premiums of certain designated category of life policies issued are paid into. Claims and expenses occurring on these life polices are paid out of these funds.The company actuary does a valuation of the funds periodically before any profits or the company distributes dividends. The insurance company has a responsibility to exercise fairness in the way it manages the fund and the actuary will ensure that the fund is solvent at all times. Liquidity fundThe degree to which an investment may be quickly sold in exchange for cash. Funds are a liquid investment; at any time-shares may be redeemed. A 30-year savings bond is not liquid. It cannot easily be sold until the 30-tear, maturity date is reached.
M & A Mergers and acquisitions Management FeeFee levied for management of the fund and / or shareholder administrative services. Usually a fixed percentage of the total value of your fund that is assessed once in a year. Market RiskRefers to the potential of loss that is possible, as a result of the short-term validity of the stock market. Owning funds, due to their diversification, shield an investor to some market risk that a stockholder may be vulnerable to. Market timing A method of investing in which an investor may try to predict good or bad markets for the purposes of determining when to buy and sell a specific security or fund. Maturity dateThe date on which an endowment insurance policy's face amount will be paid to the policy-owner if the life insured is still living. MFMutual Fund Misrepresentation of material factsProviding the wrong facts or not giving the entire truth of a matter. This is more serious that non-disclosure. It refers to the applicant stating wrong facts or giving half-truths. They are material because if the underwriter knew of it this information, the decision might be different. Money Market InstrumentInclude short term - investments such as CD's. T-Bills, and short-term commercial bonds. Money market mutual funds invest in these types of short-term investments; as a result, there is little to no risk of losing any portion of the principle investment. Moral hazardUnderwriting the risk affecting an application based on factors such as the personal reputation and character of the applicant, business ethics or the existence of a criminal record. It concerns the intention or motivation behind the buying of a life insurance policy. MorbidityThe probability of disability of a life or group of lives.MortalityThe probability of death of a life or group of lives.Mortgage This is a form of assignment used in connection with a loan. The policy is mortgaged by the mortgager to the mortgaged who will hold it as a security for the duration of the loan until the loan and the interest is paid. In the event, the policy must be reassigned to the mortgagor if the amount is not paid by the required date, the mortgagee has the right to liquidate the policy and recover the amount and return the balance amount to the mortgagor.
Net Asset Value (NAV) The value of a fund share. Determined by dividing the total value of the fund's assets by the number of outstanding shares. This value is calculated daily by the fund. Non-disclosure of material facts An applicant fails to disclose facts that have an impact on the decision of the underwriter (had the underwriter known of this fact, the decision would have been different) Non - medical cases Cases where a medical examination is not necessary. Large number of cases are straightforward and do not have any medical problems. For cases within limits on age and the amount on cover, a medical examination is not necessary. Non-participating policyNon-participating policy is also known as a without-profit or non-par policy. The policy owner does not share in any divisible surplus made by the life insurance company. No bonus is paid on this policy. NPANon-performing Asset NSENational Stock Exchange

Offer-price The price to buy one share of a specific kind. Open-end fundA fund that does not have a fixed number of shares (as does a closed end fund or stock). The mutual fund will offer as many shares, as investors are willing to buy. These funds need to be bought through a broker. Most funds are open-ended unless otherwise noted. OptionA financial instrument that gives the investor the right to buy or sell a given number of shares of the underlying stock at a fixed price within a specified time period. Ordinary sharesA share that gives the holder part ownership of a company and entitle thee holder to share in the company profits in the form of dividends.

Participating Policy A participating policy is also known as a with-profits or par policy. A participating policy charges a higher premium than a non-participating policy. In return, the policy owner shares in the life insurance company's divisible surplus, in the form of bonus allotted to the policy. The bonus is allotted in addition to the guaranteed sum assured. This bonus is paid along with the basic sum assured. Partnership InsuranceCross-insuring partners in a partnership business to effect a buyout of the deceased partner's family from the business. Physical hazardsFeatures or facts that can be observed or evaluated. This includes reports from agents, medical consultants or through investigations Policy BonusIn participating policies the company gives the policyholders a share in the profits of the company in the form of bonuses. Generally, there are two types of bonuses for insurance policies. Reversionary bonus is a guaranteed addition to your insured amount and is paid when the policy matures (i.e. when the sum assured becomes payable) or when the life assured dies. Cash Bonuses are paid out at periodical intervals. Policy face amountThis refers to the amount stated in the policy payable in the event of death or maturity.Policy loansLoans are granted on the security of the surrender value if a policy. The amount is usually restricted to a certain percentage of the surrender value and interest is payable. Loans can be repaid at any time before the policy becomes a claim, when the total indebtness is deducted and the balance is paid. If the total indebt ness exceeds the surrender value, then the policy is declared as terminated and the indebt-ness is written off. Policy TermThe period of coverage provided by an insurance policy.PortfoiloThe collection of all holdings of a fund, such as bond's and stocks. In a fund's annual report, a list of the fund's current portfolio will usually be contained Portfolio ManagerA specialist employed by a fund's advisor to invest the fund's assets in accordance with pre determined investment objectivesPremiumThis is the contribution / payment that a policyholder makes to a life insurance company to obtain insurance cover. He or she has a responsibility to ensure that the correct amount states is paid as and when it falls due as stated in the policy document. Premium waiverThis refers to all premiums due after the incident of claim is waived without any loss of benefits whatsoever unless specifically stated.PrincipalThe total amount of the initial investment plus subsequent investments.ProspectusA document, usually in the form of a booklet, that provides information about a specific mutual fund; such as the funds investment and the redemption policies. The prospectus, according to law, must always is accompanied with the application. Prospective investors should always read the mutual fund's prospectus before sending money. Purchase moneyThis is the initial amount paid to the insurance company to purchase the annuity.Pure endowmentAn endowment, which provides for the payment of the sum insured only on survival to the maturity date. On earlier death, nothing is usually paid out although some contracts may provide for the premiums paid to be refunded either with or without interest, after deducting appropriate expenses incurred.

Quality The creditworthiness of a bond issuer, which indicates the likelihood that it will be able to repay its debt.

Redemption fee Fee levied for-selling shares of your index fund. Usually a fixed percentage of the total value of your fund. RBIReserve Bank of India Reduced paid up insuranceReduced paid up insurance can be offered on a policy that has been in force long enough to acquire a cash value and where the policy holder does not wish to continue paying further premiums. The policy is converted with the consent of the policyholder whereby a reduced sum assured is payable on similar terms and conditions of the original basic policy. Reduced sum assuredWhere the sum insured proposed or existing is reduced. If such underwriting terms are offered, you are not reducing the risk but just the liability. Reinstatement / RevivalThis refers to the process where the policy that has terminated for example due to a lapse of non-payment of premium and the owner has applied for the policy to be reinstated and the company has agreed to do so on certain conditions. Renewal PremiumsPremiums that are payable after the initial premium and that are a condition for the continuation of the policy. Repudiation of a claimThis process takes place when the claims examiner looks at the policy document and the evidence submitted to him or her and makes a decision to reject it. ReturnThe value received (income plus capital) annually from an investment, usually expressed as a percentage. Reversionary annuityAn annuity provides that in the event of death of a person "A" during the lifetime of a person "B", the latter will receive an annuity for the remainder of his or her life. If "B" dies before "A", nothing is payable. Reversionary bonusThis refers to the portion of surplus distributed to with profit policyholders. They are declared annually and increase the value of the policy. It is usually expressed as a percentage of the sum insured. It can be either simple based purely in the sum insured or compound based on the sum insures plus previous bonus. Once allocated, the bonuses cannot be removed or reduced by the company. RidersAdditional or supplementary benefits that are bought together with a main life policy on the same life and are combined for the purposes of collecting one premium. They ride on and are considered as part of the main policy. They could be added, amended or deleted from the main policy, any time, subject to risk assessment. Details and the terms and conditions of the benefits are clearly indicated in the main policy document. Risk assessmentThis part of the underwriting process whereby the risk of the happening of the insured event to the life insured in evaluated and a decision is made if the case can be accepted on terms applied for by the insured. It is done by examining all information in hand and obtained as its request and using the weight of experience and statistical evidence and studies. Risk classificationThe process whereby applicants with similar levels of risk are placed in a separate basket so that the appropriate pricing is charged for the individuals within each respective basket. Risk selectionThe process whereby you determine whether a risk proposed such as an application for life insurance to the company is insurable or not insurable. Risk toleranceThe willingness of an investor to tolerate the risk if losing money for the potential to make money. Rule of 72The formula for approximating the time it will take for a given amount of money to double at a given compound interest rate. The formula is simply 72 divided by the interest rate. In six years, Rs. 1000/- will double at a compound annual rate of 12% (72 divided by 12 equals 6) Rupee Cost AveragingA system of investing in which an individual reinvests money into the same fund on a regular basis usually monthly. Often investors can choose an option in which money is automatically withdrawn from their banking account and invested into the fund at a specified time of the month.

SEBI Securities and Exchange Board of India SecuritiesThe holdings of a fund, such as stocks or bonds.Short termThe period of time in which market volatility may subject an investment to market risk of loss. The short term may be considered to be a period of two years or less. Speculative riskDerived from an intention to obtain an undue benefit from an insurance policy. Similar to a gambling wager, it is illegal.Statutory presumption of deathThe laws in most countries provide that in the event of a person who has gone missing for a certain number of years a court order can be made to declare the person as legally dead. This is usually set as seven years. It has to be proved to the court that he or she has not been heard of by anyone including those who would naturally have heard if he or she had been alive. Surrender valueThe surrender or cash value is the amount payable to the policyholder should the policyholder decide to discontinue the policy. However, the insurance protection provided under the policy will also cease. Not all insurance policies have surrender or cash values.

TDS An endorsement or attachment to a life insurance policy that provides additional term coverage for the amount specified. If the insured dies during this time, the designated beneficiary(ies) can receive death benefit proceeds.. Terminal BonusThis part of the surplus distributed is added only when the policy becomes a claim in most cases by maturity or death. It is usually expressed as a percentage of the reversionary bonuses. Third PartyThis is when a person or a company takes a policy on the life on another.TrustThis occurs when a person(s), known as settlor sets up an obligation, known as a trust for the benefit of person(s) known as beneficiaries. Trustees are appointed to carry out the terms of trust.

UTI Unit Trust of India Utmost good faithThe principle of utmost good faith requires the applicant to disclose all material facts.
Vesting age This is the age when the rights under the policy vests with the name individual. Violent, external and visibleThis is used, as a guideline to determine when death or disability is caused by an event deemed as an accident. Violence is usually present and this includes physical violence, person exerting themselves physically, carrying heavy weights or injury caused by drowning, suffocation by inhalation of gas or smoke. External is where the cuse us nit an internal injury and any cause which is external is visible. VolatilityThe degree to which a mutual fund's share price will change in value.

Waiting Period This applies when the benefit is payable after a specified period. For certain benefits, cover may only commence after a specified period. For example, if a diagnosis of cancer or heart attack is made within 180 days of the commencement of the policy the critical illness benefit is not payable. WillThis is a document drawn up by a person indicting how he or she wishes the assets to be distributed among the various beneficiaries. The last will drawn up according to the laws of the country is valid. It is only valid on death and certified by the courts to be so in the form of a probate. Willful MisrepresentationThis occurs where the applicant completing the form willfully misrepresents the facts, so as to gain advantage.WithdrawalTo redeem shares of a fund or stock. In a mutual fund, partial or full redemptions may be made. Some funds may impose an extra redemption fee to discourage market timers from pulling their money immediately after investing. If this is a fund's policy, it will stated in the prospectus. Without Profit PoliciesThese are policies which do not participate in the profits of the company With Profit PoliciesThese are policies that are issued on the basis that they participate in the profits of the company and are entitled to receive bonuses as a result. The actuary determines profits after valuing the assets and liabilities if the company and setting aside the necessary reserves and expenses. The profits are then shared by the shareholders and with the profit policyholders.

Yield Income or dividends received from a security or fund YTMYield to maturity.
OVERVIEW:

India 's leading private life insurer, ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank-one of India's foremost financial services companies-and Prudential plc- a leading international financial services group headquartered in the United Kingdom. Total capital infusion stands at Rs. 2602 crore, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%.We began our operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). Today, our nation-wide team comprises of over 680 offices, over 235,000 advisors; and 23 bancassurance partners. ICICI Prudential was the first life insurer in India to receive a National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. For three years in a row, ICICI Prudential has been voted as India's Most Trusted Private Life Insurer, by The Economic Times - AC Nielsen ORG Marg survey of 'Most Trusted Brands'. As we grow our distribution, product range and customer base, we continue to tirelessly uphold our commitment to deliver world-class financial solutions to customers all over India.

The ICICI Prudential Edge - What makes us No. 1
The ICICI Prudential edge comes from our commitment to our customers, in all that we do - be it product development, distribution, the sales process or servicing. Here's a peek into what makes us leaders.
1. Our products have been developed after a clear and thorough understanding of customers' needs. It is this research that helps us develop Education plans that offer the ideal way to truly guarantee your child's education, Retirement solutions that are a hedge against inflation and yet promise a fixed income after you retire, or Health insurance that arms you with the funds you might need to recover from a dreaded disease.
2. Having the right products is the first step, but it's equally important to ensure that our customers can access them easily and quickly. To this end, ICICI Prudential has an advisor base across the length and breadth of the country, and also partners with leading banks, corporate agents and brokers to distribute our products .
3. Robust risk management and underwriting practices form the core of our business. With clear guidelines in place, we ensure equitable costing of risks, and thereby ensure a smooth and hassle-free claims process.
4. Entrusted with helping our customers meet their long-term goals, we adopt an investment philosophy that aims to achieve risk adjusted returns over the long-term.
5. Last but definitely not the least, our 20,000 plus strong team is given the opportunity to learn and grow, every day in a multitude of ways. We believe this keeps them engaged and enthusiastic, so that they can deliver on our promise to cover you, at every step in life.
VISION AND VALUES:
Our vision: To be the dominant Life, Health and Pensions player built on trust by world-class people and service. This we hope to achieve by:
Understanding the needs of customers and offering them superior products and service
Leveraging technology to service customers quickly, efficiently and conveniently
Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to our policyholders
Providing an enabling environment to foster growth and learning for our employees
And above all, building transparency in all our dealings.

The success of the company will be founded in its unflinching commitment to 5 core values -- Integrity, Customer First, Boundaryless, Ownership and Passion. Each of the values describe what the company stands for, the qualities of our people and the way we work. We do believe that we are on the threshold of an exciting new opportunity, where we can play a significant role in redefining and reshaping the sector. Given the quality of our parentage and the commitment of our team, there are no limits to our growth.
Our values : Every member of the ICICI Prudential team is committed to 5 core values: Integrity, Customer First, Boundaryless, Ownership, and Passion. These values shine forth in all we do, and have become the keystones of our success.

PROMOTERS:
ICICI Bank ICICI Bank (NYSE:IBN) is India's second largest bank and largest private sector bank with over 50 years presence in financial services and with assets of over Rs 3569.32 bn (USD 88 billion) as on June 30, 2007. The Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries in the areas of investment banking, life and non-life insurance, private equity and asset management. ICICI Bank is a leading player in the retail banking market and services its large customer base through a network of over 950 branches (including extension counters), 3469 ATMs, call centers and internet banking (www.icicibank.com) to ensure that customers have access to its services at all times. Prudential PlcEstablished in London in 1848, Prudential plc, through its businesses in the UK and Europe, the US and Asia, provides retail financial services products and services to more than 20 million customers, policyholder and unit holders and manages over £256 billion of funds worldwide (as of 30 June 2007). In Asia, Prudential is the leading European life insurance company with life operations in China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand, Vietnam. Prudential is the second largest retail fund manager for Asian sourced assets ex-Japan as at June 2006. Its fund management business has expanded into a total of ten markets: China, Hong Kong, India, Japan, Korea, Malaysia, Singapore, Taiwan, Vietnam and United Arab Emirates.

FACT SHEET:
The CompanyICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse, and Prudential plc, a leading international financial services group headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). ICICI Prudential's capital stands at Rs. 2602 crore with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. For the period April 30, 2007 to July 31, 2007, the company garnered Rs. 1415 crore of weighted retail + group new business premiums and wrote over 5 million retail policies. The company has assets held to the tune of over Rs. 20,000 crore. ICICI Prudential is also the only private life insurer in India to receive a National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. The AAA (Ind) rating is the highest rating, and is a clear assurance of ICICI Prudential's ability to meet its obligations to customers at the time of maturity or claims. For the past six years, ICICI Prudential has retained its leadership position among private life insurer in the country, with a wide range of flexible products that meet the needs of the Indian customer at every step in life. Distribution ICICI Prudential has one of the largest distribution networks amongst private life insurers in India. It has a strong presence across India with over 680 branches and over 235,000 advisors. The company has over 23 bancassurnace partners, having tie-ups with ICICI Bank, Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank, Idukki District Co-operative Bank, Jalgaon Peoples Co-operative Bank, Shamrao Vithal Co-op Bank, Ernakulam Bank, 9 Bank of India sponsored Regional Rural Banks (RRBs), Sangli Urban Co-operative Bank, Baramati Co-operative Bank, Ballia Kshetriya Gramin Bank, The Haryana State Co-operative Bank and Imphal Urban Cooperative Bank Limited. ProductsInsurance Solutions for Individuals ICICI Prudential Life Insurance offers a range of innovative, customer-centric products that meet the needs of customers at every life stage. Its products can be enhanced with up to 7 riders, to create a customized solution for each policyholder. Savings & Wealth Creation Solutions

Save'n'Protectis a traditional endowment savings plan that offers life protection along with adequate returns.
CashBakis an anticipated endowment policy ideal for meeting milestone expenses like a child's marriage, expenses for a child's higher education or purchase of an asset. It is available for terms of 15 and 20 years.
LifeTime Super & LifeTime Plusare unit-linked plans that offer customers the flexibility and control to customize the policy to meet the changing needs at different life stages. Each offer 6 fund options - Preserver, Protector, Balancer, Maximiser, Flexi Growth and Flexi Balanced.
LifeLink Super is a single premium unit linked insurance plan which combines life insurance cover with the opportunity to stay invested in the stock market.
Premier Life Gold is a limited premium paying plan specially structured for long-term wealth creation.
InvestShield Life New is a unit linked plan that provides premium guarantee on the invested premiums and ensures that the customer receives only the benefits of fund appreciation without any of the risks of depreciation.
InvestShield Cashbak is a unit linked plan that provides premium guarantee on the invested premiums along with flexible liquidity options.
Protection Solutions

LifeGuardis a protection plan, which offers life cover at low cost. It is available in 3 options - level term assurance, level term assurance with return of premium & single premium.
HomeAssureis a mortgage reducing term assurance plan designed specifically to help customers cover their home loans in a simple and cost-effective manner.
Education insurance plans

Education insurance under the SmartKid brand provides guaranteed educational benefits to a child along with life insurance cover for the parent who purchases the policy. The policy is designed to provide money at important milestones in the child's life. SmartKid plans are also available in unit-linked form - both single premium and regular premium.
Retirement Solutions

ForeverLife is a traditional retirement product that offers guaranteed returns for the first 4 years and then declares bonuses annually.
LifeTime Super Pensionis a regular premium unit linked pension plan that helps one accumulate over the long term and offers 5 annuity options (life annuity, life annuity with return of purchase price, joint life last survivor annuity with return of purchase price, life annuity guaranteed for 5, 10 and 15 years & for life thereafter, joint life, last survivor annuity without return of purchase price) at the time of retirement.
LifeLink Super Pension is a single premium unit linked pension plan.
Immediate Annuity is a single premium annuity product that guarantees income for life at the time of retirement. It offers the benefit of 5 payout options.
Health Solutions

Health Assure and Health Assure Plus: Health Assure is a regular premium plan which provides long term cover against 6 critical illnesses by providing policyholder with financial assistance, irrespective of the actual medical expenses. Health Assure Plus offers the added advantage of an equivalent life insurance cover.
Cancer Care: is a regular premium plan that pays cash benefit on the diagnosis as well as at different stages in the treatment of various cancer conditions.
Diabetes Care: Diabetes Care is a unique critical illness product specially developed for individuals with Type 2 diabetes and pre-diabetes. It makes payments on diagnosis on any of 6 diabetes related critical illnesses, and also offers a coordinated care approach to managing the condition. Diabetes Care Plus also offers life cover.
Hospital Care: is a fixed benefit plan covering various stages of treatment - hospitalisation, ICU, procedures & recuperating allowance. It covers a range of medical conditions (900 surgeries) and has a long term guaranteed coverage upto 20 years.
Crisis Cover : is a 360-degree product that will provide long-term coverage against 35 critical illnesses, total and permanent disability, and death.
Group Insurance Solutions ICICI Prudential also offers Group Insurance Solutions for companies seeking to enhance benefits to their employees.Group Gratuity Plan: ICICI Pru's group gratuity plan helps employers fund their statutory gratuity obligation in a scientific manner. The plan can also be customized to structure schemes that can provide benefits beyond the statutory obligations. Group Superannuation Plan: ICICI Pru offers both defined contribution (DC) and defined benefit (DB) superannuation schemes to optimise returns for the members of the trust and rationalise the cost. Members have the option of choosing from various annuity options or opting for a partial commutation of the annuity at the time of retirement. Group Immediate Annuities:In addition to the annuities offered to existing superannuation customers, we offer immediate annuities to superannuation funds not managed by us.Group Term Plan: ICICI Pru's flexible group term solution helps provide affordable cover to members of a group. The cover could be uniform or based on designation/rank or a multiple of salary. The benefit under the policy is paid to the beneficiary nominated by the member on his/her death. Flexible Rider Options ICICI Pru Life offers flexible riders, which can be added to the basic policy at a marginal cost, depending on the specific needs of the customer.

1.
Accident & disability benefit: If death occurs as the result of an accident during the term of the policy, the beneficiary receives an additional amount equal to the rider sum assured under the policy. If an accident results in total and permanent disability, 10% of rider sum assured will be paid each year, from the end of the 1st year after the disability date for the remainder of the base policy term or 10 years, whichever is lesser. If the death occurs while travelling in an authorized mass transport vehicle, the beneficiary will be entitled to twice the sum assured as additional benefit