analysis of customer perception about pension plan-metlife”
TRANSCRIPT
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SUMMER TRAINING
ON
ANALYSIS OF CUSTOMER PERCEPTION ABOUT PENSION PLAN-
METLIFE
Undertaken at
METLIFE INDIA INSURANCE CO.PVT.LTD
Submitted in the Partial Fulfillment of the requirementsFor the degree of
MASTER OF BUSINESS ADMINISTRATION
Under the supervision of: Submitted by
Dr.BHARAT BHUSHAN AMIT KUMAR
SESSION 2006-2008
MR DAV INSTITUTE OF MANAGEMENT STUDIES(Approved by A.I.C.T.E., Govt. of India & Affiliated to M.D. University, Rohtak)
5. K.m. Stone, Sonepat Road,ROHTAK-124023
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MR DAV INSTITUTE OF MANAGEMENTSTUDIES
(Approved by A.I.C.T.E., Govt. of India & Affiliated to M.D. University, Rohtak)5. K.m. Stone, Sonepat Road,
ROHTAK-124023
________________________________________________________________Ref No Dated
DECLARATION
I AMIT KUMAR Roll No. ______________Class M.B.A of the MR DAV Institute ofManagement Studies, Rohtak here by declares that the Summer Training Report entitledANALYSIS OF CUSTOMER PERCEPTION ABOUT PENSION PLANS-
METLIFE is an original work and the same has not been submitted to any other Institutefor the award of any other degree. A Seminar presentation of the Training Report was madeon _______________and the suggestion as approved by the faculty were duly incorporated.
Signature of supervisor Signature of the student
(Dr .BHARAT BHUSHAN) (AMIT KUMAR)
Counter Signed
Principal of the Institute
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AcknowledgementAcknowledgement
I am grateful to Mr. AKASH DAHIYA, Agency manger, MetLife India Insurance Pvt Ltd.I am grateful to Mr. AKASH DAHIYA, Agency manger, MetLife India Insurance Pvt Ltd.
(Gurgaon), for providing me with valuable opportunity to apply the theoretical concepts of(Gurgaon), for providing me with valuable opportunity to apply the theoretical concepts of
marketing of the financial services to practice at Gurgaon Branch. I express my whole-marketing of the financial services to practice at Gurgaon Branch. I express my whole-
hearted thanks to Mr.Abhinav Sharma, S.M., at Gurgaon Branch for helping me shoulder thehearted thanks to Mr.Abhinav Sharma, S.M., at Gurgaon Branch for helping me shoulder the
responsibility of a valuable marketing exercise at this Branch. I feel highly obliged for herresponsibility of a valuable marketing exercise at this Branch. I feel highly obliged for her
effort in guiding me and for her patience in answering my queries during the course of theeffort in guiding me and for her patience in answering my queries during the course of the
project.project.
I also extend my sincere thanks to my faculty guide, Dr. Bharat Bhushan, Co-ordinatorI also extend my sincere thanks to my faculty guide, Dr. Bharat Bhushan, Co-ordinator
MRDAV, ROHTAK for the encouragement, guidance and hours they invested with me toMRDAV, ROHTAK for the encouragement, guidance and hours they invested with me to
make the project a success. My sense of gratitude extends to the complete METLIFE INDIAmake the project a success. My sense of gratitude extends to the complete METLIFE INDIA
INSURANCE PVT LTD. family at Gurgaon, and my clients without whose indulgence theINSURANCE PVT LTD. family at Gurgaon, and my clients without whose indulgence the
project wouldnt have seen the light of the day.project wouldnt have seen the light of the day.
AMIT KUMAR
ROLL NO. 1802
MBA FINAL
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PREFACE
Practical training constitutes an integral part of the management studies. Training
gives an opportunity to the students to expose themselves to the industrial environment,which is quite different from the classroom teachings. The practical knowledge is an
important suffix to the theoretical knowledge.
One cannot rely merely upon theoretical knowledge. It has to be coupled with practical
for it to be fruitful. Classroom lectures make the fundamental concept of management clear
but not their application in actual practice. Positive and correct results of the classroom
learning need realities of the practical situation. It thus enables the students to undergo those
experiences, which will help them later when they join any organization.
It is in this sense that practical training in company has a significant role to play in the
subject of financial management for developing managerial and administrative skills in the
future finance managers and to enhance their analytical skills.
After liberalization the Indian economic sense is changed because of Multi National
Companies continuously coming with their technical expertise and proven management
concepts. Industrial activity in India has become a thing to watch and I really wanted to be a
part of it and it is essential for me being a finance student.
I consider myself lucky to get my summer training in Indias largest INSURANCE
COMPANY METLIFE INDIA INSURANCE CO. PVT. LTD. I underwent seven weeks of
training at gurgaon branch of METLIFE. It really helped me to get a practical insight into the
actual business environment and provide me an opportunity to make my financial
management concepts more clear.
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CONTENTS
Page No.
CERTIFICATE 1
DECLARATION 2
ACKNOWLEDGEMENT 3
PREFACE 4
CHAPTER-1 CONCEPTUAL FRAMEWORK & COMPANY PROFILE
1.1 Life Insurance. 6-12
1.2 Company product 13-151.3 Pension Plans. 16-311.4 Company Profile. 32-39
CHAPTER-2 OBJECTIVE AND RESEARCH METHODOLOGY
2.1 Objectives of report. 40-412.2 Research methodology. 42-43
a) Research Design.b) Sample Size.c) Data Collection.
d) Limitation of studyCHAPTER-3 ANALYSIS AND INTERPRETATION 44-52
CHAPTER-4 IMPLICATION & CONCLUTION 53-55
BIBLIOGRAPHY 56-57
APPENDICES 58-60 Questionnaire
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INTRODUCTIONINTRODUCTION
OFOF
LIFE INSURANCELIFE INSURANCE
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Introduction to Life Insurance
According to the U.S. Life Office Management Inc. (LOMC), "Life Insurance provides aAccording to the U.S. Life Office Management Inc. (LOMC), "Life Insurance provides a
sum of money if the person who is insured dies whilst the policy is in effect."sum of money if the person who is insured dies whilst the policy is in effect."
Life insurance has come a long way from the earlier days when it was originally conceived asLife insurance has come a long way from the earlier days when it was originally conceived as
a risk-covering medium for short periods of time, covering temporary risk situations, such asa risk-covering medium for short periods of time, covering temporary risk situations, such as
sea voyages.sea voyages. As life insurance became more established, it was realized what a useful tool itAs life insurance became more established, it was realized what a useful tool it
was for a number of situations that includes temporary needs/threats, savings, investment,was for a number of situations that includes temporary needs/threats, savings, investment,
retirement etc.retirement etc.
History of Life InsuranceHistory of Life Insurance
Life insurance made its first appearance in England in 16Life insurance made its first appearance in England in 16 thth century.century. The first registered lifeThe first registered life
office in England was the hand in hand society in 1696.office in England was the hand in hand society in 1696. The famous 'Amicable Society' for aThe famous 'Amicable Society' for a
perpetual assurance office started its operation since 1706.perpetual assurance office started its operation since 1706. Life insurance did not prosper inLife insurance did not prosper in
the United States during the 18the United States during the 18thth century, because of serious fluctuations in death-rate.century, because of serious fluctuations in death-rate.
Life Insurance in IndiaLife Insurance in India
In India some Europeans started the first life insurance company in Bengal Presidency, viz.,In India some Europeans started the first life insurance company in Bengal Presidency, viz.,
The Orient Life Insurance in 1818.The Orient Life Insurance in 1818. The Year 1870 was a year of land mark in the history ofThe Year 1870 was a year of land mark in the history of
Indian Insurance separating the early period of pioneering attempts at life insurance from theIndian Insurance separating the early period of pioneering attempts at life insurance from the
subsequent period of steady development at the establishment of Indian life office, viz.,subsequent period of steady development at the establishment of Indian life office, viz.,
Bombay Mutual Life Assurance Society in 1871.Bombay Mutual Life Assurance Society in 1871.
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Up to end of 19Up to end of 19 thth century, the insurance was in the incept ional stage.century, the insurance was in the incept ional stage. Therefore noTherefore no
legislation was required till that usually the Indian Company Acts 1883 waslegislation was required till that usually the Indian Company Acts 1883 was
applicable.applicable. Since 1956, with the nationalization of insurance industry, the state Since 1956, with the nationalization of insurance industry, the state
run Life Insurance Corporation of India (LIC) has held the monopoly in India.run Life Insurance Corporation of India (LIC) has held the monopoly in India. ThenThen
comes the LPG (Liberalization, Privatization and Globalization) that paved entry ofcomes the LPG (Liberalization, Privatization and Globalization) that paved entry of
Private and Foreign Life Insurance players in India during the late 90's and earlierPrivate and Foreign Life Insurance players in India during the late 90's and earlier
2000's.2000's. Currently India and China are the most lucrative insurance markets in theCurrently India and China are the most lucrative insurance markets in the
world.world. They constitute the home of half of the population of the world and theirThey constitute the home of half of the population of the world and their
recent rapid economic development makes them attractive for foreign investment.recent rapid economic development makes them attractive for foreign investment.
The share of life insurance premium to GDP of India was 1.29 percent, which isThe share of life insurance premium to GDP of India was 1.29 percent, which is
abysmal in the global standard.abysmal in the global standard. Despite these opportunities, however, there is also aDespite these opportunities, however, there is also a
rough ride ahead for the new players in India.rough ride ahead for the new players in India. This is because, unlike in the West,This is because, unlike in the West,
insurance is sold more as an instrument of savings in India than as a productinsurance is sold more as an instrument of savings in India than as a product
offering for protection and security.offering for protection and security. LIC's 1996 insurance survey reveals that moreLIC's 1996 insurance survey reveals that more
than 40 percent of insurance-buyers look at insurance products as a means ofthan 40 percent of insurance-buyers look at insurance products as a means of
savings.savings. Risk coverage is only a secondary objective for them and nearly 26 percentRisk coverage is only a secondary objective for them and nearly 26 percent
of the insurance policies sold are on considerations of old age security.of the insurance policies sold are on considerations of old age security. Only 18Only 18
percent of insurance policies are sold on death risk considerationspercent of insurance policies are sold on death risk considerations..
Foreign Direct Investment (FDI) Policy in Insurance Sector
As per the current (Mar 06) FDI norms, foreign participation in an Indian insurance company
is restricted to 26.0% of its equity / ordinary share capital. The Union Budget for fiscal 2005
had
Recommended that the ceiling on foreign holding be increased to 49.0%. However, the
matter is still under discussions.
All life insurance companies have to comply with the strict regulations laid out by IRDA.
Therefore there is risk in going in for private insurance players.
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Even if Life Insurance Corporation of India (LIC), the state owned behemoth is the largest
player in the market, the private companies are coming out with better products, which are
more beneficial to the customer. Among such products are the ULIPs or the Unit Linked
Investment Plans which offer both life cover as well as scope for savings or investment
options as the customer desires. Further, these type of plans are subject to a minimum lock-in
period of three years to prevent misuse of the significant tax benefits offered to such plans
under the Income Tax Act. Hence, comparison of such products with mutual funds would be
erroneous.
The maximum commission limits as per statutory provisions are:
Agency commission for retail life insurance business:
35 - 40% for 1st year premium if the premium paying term is more
than 20 years
25 - 30% for 1st year premium if the premium paying term is more
than 15 years
10 - 15% for 1st year premium if the premium paying term is less than
10 years
7.5% - yr 2 and 3rd year and 5% - thereafter for all premium paying
terms.
In case of Mutual fund related - Unit linked policies it varies between 1.5% to 60% on the
premium paid.
o Agency commission for retail pension policies:
7.5% for 1st year premium and 2.5% thereafter
Maximum broker commission - 30%
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Referral fees to banks Max 55% for regular premium and 10% for single premium.
However in any case this fee cannot be more than the agency commission as filed
under the product.
However, the above commission may be further subject to the product wise limits
specified by IRDA while approving the product.
This entry is from Wikipedia, the leading user-contributed encyclopedia. It may not have
been reviewed by professional editors (see full disclaimer)
Features of Indian insurance industry:Features of Indian insurance industry:
Low market penetrationLow market penetration
Ever-growing middle class component in population.Ever-growing middle class component in population.
Growth of consumer movement with an increasing demand for better insuranceGrowth of consumer movement with an increasing demand for better insurance
products.products.
Inadequate application of information technology for businessInadequate application of information technology for business
Adequate fillip from the Govt. in the form of tax incentives to the insuredAdequate fillip from the Govt. in the form of tax incentives to the insured
http://www.answers.com/main/Record2?a=NR&url=http%3A%2F%2Fen.wikipedia.org%2Fwiki%2FWikipedia%3AGeneral_disclaimerhttp://www.answers.com/main/Record2?a=NR&url=http%3A%2F%2Fen.wikipedia.org%2Fwiki%2FWikipedia%3AGeneral_disclaimer -
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Insurance Regulatory and Development Authority (IRDA)Insurance Regulatory and Development Authority (IRDA)
The regulatory body for insurance IRDA has been established with the following mission:The regulatory body for insurance IRDA has been established with the following mission:
"To protect the interests of the policy holders, to regulate, promote and ensure orderly"To protect the interests of the policy holders, to regulate, promote and ensure orderly
growth of the insurance industry and for matters connected therewith or incidentalgrowth of the insurance industry and for matters connected therewith or incidental
thereto."thereto."
Market Potential For Private Life Insurance Companies In IndiaMarket Potential For Private Life Insurance Companies In India
It has been found out that:It has been found out that:
* 85 percent of the Indians prefer LIC than any other insurance companies.* 85 percent of the Indians prefer LIC than any other insurance companies.
* 'Prevention of Loss', 'Assured Returns' and 'Long term Investment' are the important* 'Prevention of Loss', 'Assured Returns' and 'Long term Investment' are the important
factors influencing Indians in opting for Life Insurancefactors influencing Indians in opting for Life Insurance
* Only few of the Indians are aware of private life insurance companies.* Only few of the Indians are aware of private life insurance companies.
* Most of the Indians are of the opinion that private insurance companies would be* Most of the Indians are of the opinion that private insurance companies would be
able to perform well in the long run.able to perform well in the long run.
* Most of the Indians are interested in 'Money back' policies than others* Most of the Indians are interested in 'Money back' policies than others
* Most of them are interested in insuring for an amount of Rs. 1- 2 lakhs* Most of them are interested in insuring for an amount of Rs. 1- 2 lakhs
* There is significant relationship existing between monthly household income and* There is significant relationship existing between monthly household income and
amount insuredamount insured
* Based on the monthly household income, Indians prefer to their investment needs* Based on the monthly household income, Indians prefer to their investment needs
like bank deposit, post office schemes, real estate, insurance, gold, chit funds, shareslike bank deposit, post office schemes, real estate, insurance, gold, chit funds, shares
etc.etc.
Agents are mostly responsible for selling insurance products in IndiaAgents are mostly responsible for selling insurance products in India
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Private Players in Indian Life InsurancePrivate Players in Indian Life Insurance
The major players in Indian life insurance sector include:The major players in Indian life insurance sector include:
* Allianz Bajaj Life Insurance Company Ltd.,* Allianz Bajaj Life Insurance Company Ltd.,
* Aviva Life Insurance Co. India Pvt. Ltd.,* Aviva Life Insurance Co. India Pvt. Ltd.,
* AMP SANMAR Assurance Company Ltd.,* AMP SANMAR Assurance Company Ltd.,
* Birla Sun Life Insurance Company Ltd.,* Birla Sun Life Insurance Company Ltd.,
* HDFC Standard Life Insurance Company Ltd.,* HDFC Standard Life Insurance Company Ltd.,
* ICICI Prudential Life Insurance Company Ltd.,* ICICI Prudential Life Insurance Company Ltd.,
* ING Vysya Life Insurance Company Private Ltd.,* ING Vysya Life Insurance Company Private Ltd.,
** Life Insurance CorporationLife Insurance Corporation of Indiaof India
* Max New York Life Insurance Co. Ltd.,* Max New York Life Insurance Co. Ltd.,
* MetLife India Insurance Company Pvt. Ltd.,* MetLife India Insurance Company Pvt. Ltd.,
* Om Kotak Mahindra Life Insurance Co. Ltd.,* Om Kotak Mahindra Life Insurance Co. Ltd.,
* SBI Life Insurance Company Ltd.,* SBI Life Insurance Company Ltd.,
* Sahara India Insurance Company Ltd.,* Sahara India Insurance Company Ltd.,
* Tata AIG Life Insurance Company Ltd.,* Tata AIG Life Insurance Company Ltd.,
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The market share for LIC is 60 percent and other players share only the remaining 40The market share for LIC is 60 percent and other players share only the remaining 40
percent.percent.
COMPANY PRODUCT
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Product Details
No one can give you all the answers when it comes to dealing with life's ups and downs. But
we can certainly equip you to deal with life better. Please find below the various products
offered by MetLife to suit your specific need:
Accumulation
Whole Life Policy
Met 100- Limited Pay Whole life Non - Participating
Met 100- Limited Pay Whole life Participating
Endowment Policy
MET Suvidha
Money Back Policy
Met Sukh Money Back Non Participating
Met Bhavishya Multi Purpose
Met Smart Plus
Met Smart Premier
Met Smart Plus - Single Pay
Met Smart Premier - Single Pay Protection
Met Suraksha - TROP
Met Suraksha - TA
Met-Mortgage Protector SP/Limited pay (MRTA)
http://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Accumulation/Accumulation.html?QryStr=prdctDtlAccIdhttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Accumulation/Accumulation.html?QryStr=prdctDtlAccId#WholeLifePolicyhttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Accumulation/Accumulation.html?QryStr=prdctDtlAccId#Met100LimitedPayWholelifeNonParticipatinghttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Accumulation/Accumulation.html?QryStr=prdctDtlAccId#Met100LimitedPayWholelifeParticipatinghttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Accumulation/Accumulation.html?QryStr=prdctDtlAccId#EndowmentPolicyhttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Accumulation/Accumulation.html?QryStr=prdctDtlAccId#MetSuvidhahttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Accumulation/Accumulation.html?QryStr=prdctDtlAccId#MoneyBackPolicyhttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Accumulation/Accumulation.html?QryStr=prdctDtlAccId#MetSukhMoneyBackNonParticipatinghttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Accumulation/Accumulation.html?QryStr=prdctDtlAccId#MetBhavishyahttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Met%20Ultimate/MetUltimate.html?QryStr=prdctDtlMliIdhttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Met%20Ultimate/MetUltimate.html?QryStr=prdctDtlMliIdhttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Met%20Ultimate/MetUltimate.html?QryStr=prdctDtlMliIdhttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Met%20Ultimate/MetUltimate.html?QryStr=prdctDtlMliId#MetSmartPlusPremierSinglepayhttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Met%20Ultimate/MetUltimate.html?QryStr=prdctDtlMliId#MetSmartPlusPremierSinglepayhttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Met%20Ultimate/MetUltimate.html?QryStr=prdctDtlMliId#MetSmartPlusPremierSinglepayhttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Protection/Protection.html?QryStr=prdctDtlPrctnIdhttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Protection/Protection.html?QryStr=prdctDtlPrctnId#MetSuraksha-TROPhttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Protection/Protection.html?QryStr=prdctDtlPrctnId#MetSuraksha-TAhttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Protection/Protection.html?QryStr=prdctDtlPrctnId#MetMortgageProtectorSPLimitedpayMRTAhttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Accumulation/Accumulation.html?QryStr=prdctDtlAccIdhttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Accumulation/Accumulation.html?QryStr=prdctDtlAccId#WholeLifePolicyhttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Accumulation/Accumulation.html?QryStr=prdctDtlAccId#Met100LimitedPayWholelifeNonParticipatinghttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Accumulation/Accumulation.html?QryStr=prdctDtlAccId#Met100LimitedPayWholelifeParticipatinghttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Accumulation/Accumulation.html?QryStr=prdctDtlAccId#EndowmentPolicyhttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Accumulation/Accumulation.html?QryStr=prdctDtlAccId#MetSuvidhahttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Accumulation/Accumulation.html?QryStr=prdctDtlAccId#MoneyBackPolicyhttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Accumulation/Accumulation.html?QryStr=prdctDtlAccId#MetSukhMoneyBackNonParticipatinghttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Accumulation/Accumulation.html?QryStr=prdctDtlAccId#MetBhavishyahttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Met%20Ultimate/MetUltimate.html?QryStr=prdctDtlMliIdhttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Met%20Ultimate/MetUltimate.html?QryStr=prdctDtlMliIdhttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Met%20Ultimate/MetUltimate.html?QryStr=prdctDtlMliIdhttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Met%20Ultimate/MetUltimate.html?QryStr=prdctDtlMliId#MetSmartPlusPremierSinglepayhttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Met%20Ultimate/MetUltimate.html?QryStr=prdctDtlMliId#MetSmartPlusPremierSinglepayhttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Protection/Protection.html?QryStr=prdctDtlPrctnIdhttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Protection/Protection.html?QryStr=prdctDtlPrctnId#MetSuraksha-TROPhttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Protection/Protection.html?QryStr=prdctDtlPrctnId#MetSuraksha-TAhttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Protection/Protection.html?QryStr=prdctDtlPrctnId#MetMortgageProtectorSPLimitedpayMRTA 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Retirement
MET Pension - Participating Deferred Annuity
MET Advantage Plus
Add Ons
Accidental Death Benefit (ADB)
Term Rider
Waiver Of Premium
http://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Retirement/Retirement.html?QryStr=prdctDtlRetIdhttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Retirement/Retirement.html?QryStr=prdctDtlPrctnId#METPensionParticipatingDeferredAnnuityhttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Retirement/Retirement.html?QryStr=prdctDtlPrctnId#METAdvantagePlushttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Add%20Ons/AddOns.html?QryStr=prdctDtlAddIdhttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Add%20Ons/AddOns.html?QryStr=prdctDtlAddId#AccidentalDeathBenefitADBhttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Add%20Ons/AddOns.html?QryStr=prdctDtlAddId#TermRiderhttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Add%20Ons/AddOns.html?QryStr=prdctDtlAddId#WaiverOfPremiumhttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Retirement/Retirement.html?QryStr=prdctDtlRetIdhttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Retirement/Retirement.html?QryStr=prdctDtlPrctnId#METPensionParticipatingDeferredAnnuityhttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Retirement/Retirement.html?QryStr=prdctDtlPrctnId#METAdvantagePlushttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Add%20Ons/AddOns.html?QryStr=prdctDtlAddIdhttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Add%20Ons/AddOns.html?QryStr=prdctDtlAddId#AccidentalDeathBenefitADBhttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Add%20Ons/AddOns.html?QryStr=prdctDtlAddId#TermRiderhttp://www.metlife.co.in/MetIndia/Individual/Product%20Overview/Product%20Details/Add%20Ons/AddOns.html?QryStr=prdctDtlAddId#WaiverOfPremium -
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PENSION
PLAN
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PENSION PLAN
Pension plans offered by life insurance companies help individuals plan effectively for their
retirement. For, it is pension plans that provide individuals with a regular income in their
golden years.
However, since the tax benefit on such plans is limited to Rs 10,000, investments in such
plans have been somewhat subdued. Apart from the tax benefits, it is important thatindividuals evaluate pension plans from a retirement planning perspective.
This article takes a closer look at pension plans and the role they play in the individual's
retirement planning exercise.
What are pension plans?
Simply put, pension plans (also referred to as retirement plans) are offered by insurance
companies to help individuals build a retirement corpus. On maturity this corpus is invested
for generating a regular income stream, which is referred to as pension or annuity. Pension
plans are distinct from life insurance plans, which are taken to cover risk in case of an
unfortunate event.
Pension plan details
Age (Yrs)
Sum
assured
(Rs)
Tenure
(Yrs)
Annual
premium (Rs)
Maturity
amt
(@6%)
(Rs)
Maturity
amt
(@10%)
(Rs)
30 500,000 30 13,500 960,000 1,590,500
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Actual rate of return (%) 5.10 7.80
Annuity amt (Rs) 71,500 118,500
The example given above is illustrative. It will differ across insurance companies.
Let us take an individual aged 30 years who wants to buy a pension plan with a sum assured
of Rs 500,000 for a 30-year tenure. The premium to be paid for the same is approximately Rs
13,500. In case of an eventuality, the beneficiary will stand to get the sum assured of Rs
500,000 plus the bonuses/additions, if any.
In case the individual survives the tenure, he will stand to benefit to the tune of the maturity
amount as indicated in the table below. Assuming that he buys an annuity for life, the annual
amount he would get as pension would be approximately Rs 71,500 (on Rs 960,000) or Rs
118,500 (on Rs 15, 90,500). The option of receiving monthly/quarterly/half-yearly pension is
available with most life insurance companies.
However, the returns shown at 6% and 10% are not calculated on the premium paid. They are
calculated after deducting expenses from the premium. The actual compounded annual
growth rate (CAGR) on the premium works out to approximately 5.10% (for the 6% figure)
or 7.80% (for the 10% figure).
.
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Difference between conventional life insurance plans and pension plans
There are some fundamental differences between life insurance plans and pension plans, with
the objective behind both of them, being the most important. Life insurance plans aim at
covering the risk from an unfortunate event. Pension plans on the other hand work on the
opposite scenario that if an individual survives beyond an age (retirement age), he will need
to provide for himself.
The difference in objectives is the main reason for the differences in the features of life
insurance and pension plans.
Spot the difference
Conventional insurance plans Pension plans
Maturity payouts
Full maturity amount received bythe individual
Only up to one-third of the maturity amtcan be withdrawn. Remaining 2/3rd amthas to be compulsorily invested in anannuity.
Death benefitsFull maturity amount received bythe nominees/ beneficiaries
Nominees/ beneficiaries have the option ofreceiving either the entire maturity amt or
investing up to 2/3rd of the amt in anannuity.
Tax benefits
Deduction up to Rs 100,000available under Section 80C
Deduction up to Rs 10,000 available underSection 80CCC.
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Taxation of
maturity payouts
Entire maturity amt treated as taxfree in the hands of the receiver
Up to 1/3rd of the maturity amt, ifwithdrawn, is treated as tax-free. Pensionreceived on the remaining 2/3rd amt istaxed as per the individual's tax slab
Stream of income
Entire maturity amt/ death benefitreceived in one go. No provisionfor a stream of income by way ofpension.
On maturity, provides for a regular streamof income. In case of an eventuality,option of pension benefits available
1. Maturity payouts
In case of conventional insurance plans, the individual receives the entire corpus on maturity.
However, in case of pension plans, the individual has the option of withdrawing up to one
third of the maturity amount in cash.
He will have to buy an annuity with (at least) the remaining two thirds amounts from any life
insurer of his choice.
2. Death benefits
In case of an eventuality under life insurance plans, the nominees receive the sum assured
plus the bonuses/ additions if any. Not all pension plans offer a life cover (as already covered
above). Also, in case of a pension plan, the nominee has the option of receiving the entireamount on maturity in cash and buying an annuity with the same.
3. Tax benefits
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Premium paid up to Rs 100,000 per annum is eligible for deduction under Section 80C in
case of insurance plans. However, premium payments towards pension plans are eligible for
deduction under Section 80CCC; the limit being set at Rs 10,000.
However, the deduction under Section 80CCC falls under the overall limit of Rs 100,000.
For example, if an individual pays a premium of Rs 15,000 for a pension plan, then the tax
benefit of Rs 10,000 only. Also, his overall tax benefit will stand reduced to Rs 90,000 (i.e.
Rs 100,000 less Rs 10,000).
4. Taxation of maturity payouts
The maturity amount in case of conventional insurance plans is treated as tax free in the
hands of the individual. However, it is slightly different in case of pension plans. Up to one
third of the maturity amount, which can be withdrawn, is treated as tax free in the hands of
the individual.
The pension, from the remaining two-thirds amount, is taxed according to the marginal rateof tax.
5. Income stream
On maturity, pension plans provide a regular source of income by way of annuities. In case
of conventional plans, the individual receives the entire maturity amount in lump sum.
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Retirement Planning
There's a day in all our lives that we look forward to with anticipation and some anxiety too -
the first day of retirement. A time when finances are crucial. A time when you want to be
sure that you are financially independent and secure.
MetLife has comprehensive plans that allow you to build a fund to enjoy financial security
on retirement
Enjoying Retirement
THERE MAY BE SOME GLORIOUS DAYS AHEAD - THE DAYS OF YOUR
RETIREMENT. No longer confined to the rigors of the professional world, you can spend
your time doing what you want to do. Don't, however, expect everything to fall magically
into place. Like most things in life, you'll get the most from retirement by planning.
Start by thinking about how you will replace your work routine with a retirement routine.
Before the last day on your job, have an idea of how that first day of retirement will be filled.
You don't want to start this new phase of your life wondering what you'll do. Take some time
to think about your lifestyle and how you're going to adapt. If getting up early for work has
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always been drudgery, plan for a leisurely beginning to your day. If sitting at a desk all day
was against your nature, now is the time to let your active self take over. Just remember, you
don't have to rush like you did to catch the train or beat the traffic! The goal is to get the most
out of a precious resource - your time.
New Choices
Ask yourself some important questions: What do you like to do? Were there things you
longed to do but didn't have time for when you were working? These are the activities you
should begin building your retirement days around. In a way, these new activities may now
be your job and can provide you with the most satisfaction. Here are just a few ideas to get
you started:
Education. Early in life, schooling involves acquiring skills, so maybe you've never
had the opportunity to study something just for the sheer joy of learning. Go to the
library and develop a list of books you've always wanted to read, and then dig in.
Outdoor activities . Cooped up in an office, factory or other building all day, you
may have longed to spend more time outdoors. Turn your garden into the show place
you know it can be. Go fishing or take up bird watching. Whatever your interest in
the outdoors, enjoy it.
Hit the road . Now you have the time to indulge your wanderlust. Make a list of the
places you want to go, and make vacation planning your hobby when you're not
roaming.
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Handwork. Woodworking, needlework and painting are just a few hands-on hobbies.
To do them well takes time, something you had little of when you were working.
Now you can perfect your craft. Make a place at home where you can work with your
hands to your heart's content.
Speak out . If an interest in politics and government has always played second fiddle
to your career, give it first place now. Whether you run for elections, work on
someone else's pre-election campaign or keep tabs on legislations that affect you, find
a way to get involved.
Pet pleasure. Perhaps you're someone who enjoys pets, and now that you have more
time on your hands, you could provide a good home for a dog, cat, bird or fish. If you
have the space and the desire, caring for a pet can be a rewarding experience. Pets can
be loyal companions and have positive effects on your well being.
To Work or Not to Work
You may find that you want to go back to work - but this time on your terms. Work has its
own rewards-the regular contact with people, the feeling of being needed, the knowledge that
you're contributing - and you may find that there's still a place in your life for work. You may
even be able to continue with your previous employer, perhaps as a consultant or a part-time
employee with valuable knowledge gained over the years.
It may seem strange to think about reentering the work force just as you're leaving it, but
many people find that, without the pressure to earn a paycheck, work can actually be
enjoyable. Others find that they're able to take a job they've always wanted, even though the
pay isn't so great.
Some take jobs that dont pay at all, deciding volunteer work is the best way to use their
retirement hours.
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Volunteering allows you to use your life experiences, skills and talents to help others in your
community. There are numerous organizations that need help. If you decide to volunteer,
choose something you enjoy and are familiar with; that way, you'll be volunteering some
time while dealing with people who have interests similar to yours. Other possibilities
include local hospitals, schools or religious organizations.
To Your Health
While you're planning your new lifestyle, be sure to consider your health. Start by thinking
about your exercise routine. Don't have one? Design one that's right for you! Moderate
exercise is necessary to help maintain your health. While you were working, the demands of
your job may have helped to keep you physically fit. If you had a regular exercise routine,
your work schedule probably helped keep you on track. Now those sources of motivation are
gone and you may need to find a way to make sure you don't become a "couch potato."
Just as important is your diet. Again, your three square meals a day may have revolved
around your work schedule. With a relaxed schedule, you may find your eating habits
relaxing a little, too. Just being aware this can happen may help you avoid it: Make a point of
eating right by taking time to prepare healthful meals that are low in fat and high in nutritious
foods such as fruits, vegetables and grains.
Before you retire, get a thorough checkup from your doctor. Have your eyes examined and
your teeth cleaned and checked, too. Scheduling these visits while you're still employed
allows you to take advantage of your health insurance. After you retire, you may have less
coverage. If you have to get new or supplemental health insurance, your rates and coverage
will be affected by your current health situation.
Think of the long term, too. Your health is likely to change over time, and there are a variety
of illnesses you're more prone to with age. So, don't forgo regular preventive health visits,
particularly for blood pressure and cholesterol level checks. Talk to your doctor about your
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family's health history and the likelihood that you'll develop a problem. Ask about the
symptoms you should watch out for, and, of course, get medical help whenever necessary.
Also, take a close look at your insurance situation and decide whether you need extra
insurance. Choosing a supplemental health policy can be complicated. Do your homework,
shop around and don't allow yourself to be pressured into a quick decision.
Home Sweet Home
At some point you may want to evaluate housing alternatives for your retirement. Start by
asking yourself how well your current home works for you. If you own your home, thinkabout the size of the house and property and the amount of upkeep required. Many folks have
paid off their loans by the time they retire, but others have not, so think about the expense of
maintaining your home. Look ahead and consider how well this home will meet your future
needs. If, for example, you're finding it difficult to climb stairs in your two-story, it may be
time for a move.
But before heading off for a change of scenery, think about how far you would be from
family and friends. Most retirement experts advise staying close to loved ones, if not under
the same roof. Remember, your life is going to change with retirement, so keeping your
relationships in place gives you a good support system to help you deal with the change.
Whats more, if you could work out a joint family with your children nothing like it.
Joint family vs. Nuclear
If you are reading this now, it is quite probable that you are from that generation where the
joint family system was held at high esteem. However, with the changing times and the
career-oriented focus of the younger society, you will have to decide on your own whether
you will be able to handle a joint family. Here are some pros and cons:
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In a joint family, as elders you do not have to worry about your security or ill-health -
your children will be there to take care of you
You could alternate as a life guide to your grandchildren - in turn they will shower
you with love and affection all the way
You could cut down on the expenses otherwise inevitable, if you choose to live away
from your children
Of course, the only con might be your state of mind - how far can you adjust to your
new role
Get Your Financial House in Order
Without adequate financing, many of your retirement dreams may remain just that - dreams.
So before you finalize retirement plans, you may want to consider professional assistance. To
get a complete picture of your financial resources, pensions, savings and any other
investments in your equation. Then talk to a professional about how best to allocate those
resources and get an idea of how much income your investments will generate.
Also, if you're expecting a lump-sum payment from your provident fund or gratuity, be
prepared to make the choice as to how you will handle it
Evaluate the costs of the retirement lifestyle you envision. Think about added expenses-for
example, health insurance if your retirement plan doesn't provide it. And be sure to figure in
taxes - unfortunately, they don't stop just because you stopped working. Think of this
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exercise as a reality check. You're sure to feel more comfortable with the retirement
decisions you make after doing the math.
Happy days ahead!
.
MET Pension - Participating Deferred Annuity
Suitability
The plan is suitable for those who want
Financial security after retirement
Tax benefit throughout the premium paying term
Multiple premium paying option
Salient Features
MET Pension is structured as a participating endowment and a participating
immediate annuity.
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Save up to Rs 33,660 in tax for every year of premium payment subject to conditions
given under income tax 1961 (* For person having a taxable income of above Rs. 10
lakhs).
Choose from various premiums paying term namely single, limited (3 year and 5
years) and regular pay.
A one-time lump sum addition equal to 10% of the face amount is payable along with
the maturity proceeds.
Withdraw up to 33% of the annuity amount tax-free and chose to buy an annuity with
the balance amount from not only MetLife but also any other insurance company.
MetLife gives you only one annuity option namely - Life annuity.
The plan is a Participating one.
No Bonus is payable for first two policy years. Thereafter a bonus as declared
by the company will be credited as reversionary bonus on the policy
anniversary. Company may also declare terminal bonus.
Reversionary Bonus: It is an insurance amount in addition to the face amount.
If declared and vested, the reversionary bonus is payable, together with the
face amount, on death of the insured person or maturity of the policy. The
bonus will be credited at rates as declared by the company, on the policy
anniversary. Terminal Bonus: if any, would be a % of accrued reversionary bonus, which
becomes payable on maturity or on death, if it occurs after the 10th policy
anniversary.
Both Reversionary and Terminal Bonus are not guaranteed as they are based
on the company's actual investment returns, mortality, persistency and
expense experience
The Premium modes available are: Annual, Semi-Annual, Quarterly, Monthly and
Payroll Savings Program (PSP).
Benefits
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chooses a vesting age (retirement) of 55 years. This vesting age would be the age when the
annuity would start. The total premiums paid would be Rs 18,550/-.
Guaranteed
Illustrated (Returns
at 3%)
Illustrated (Returns
at 6%)
Total Premium Paid (Rs.) 519,000 519,000 519,000
Total Maturity amount at vesting
(Rs.)550,000 1,215,040 2,590,895
Amount receivable under Life
Annuity *(Rs. p.a.)18,920 41,797 89,127
What You Pay Annually
Annual Premium Paid on Basic Policy (Rs.) 18,550
Annual Tax Savings u/c 80CCC (Rs.)** 5,676
Net Annual Premium if tax savings are considered (Rs.) 12,874
* The Annuities calculations shown in the table below are based on the current annuity ratesand the assumptions taken in the benefit illustration. The Annuity shown in the table are
indicative and are not guaranteed.
** If the Annual Taxable Income is more than Rs. 10,00,000 then the tax savings will be
33.66% of the amount eligible under Section 80CCC, else 30.60% /20.40% /10.20%
Note : From the assessment year 2006 - 07, deduction under Sec 80 C, 80 CCC and 80 CCD
cannot exceed Rs,1,00,000.
Other Conditions
Minimum Entry age: Age 18 years last birthday
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Minimum age for vesting age (retirement): Age 45 years last birthday
Maximum age for vesting age (retirement): Age 70 years last birthday
Minimum Face amount: Rs. 50,000
Minimum premium Amount: Annualized premium of Rs. 4,000 (not inclusive of the
Rider Premium)
Minimum policy term of 10 years
Exclusions
In the event the Insured committing suicide, whether sane or insane at that time,
within one year from the effective date of insurance cover or the date of the Policy or
the date of the last reinstatement whichever is later, the benefit is restricted to the
extent of refunding the premium(s) received without interest, if any, less any
expenses incurred by us.
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Company ProfileCompany Profile
MetLife
With over 137 years of experience, the MetLife companies serve millions of customers in the
Americas and Asia with one goal in mind to build financial freedom for everyone. The
MetLife companies are a leader in-group benefits that serve 88 of the top one hundred
FORTUNE 500* companies, and provide benefits to 37 million employees and family
members through its plans sponsors in the U.S. The MetLife companies are also ranked #1
in-group life and #1 in commercial dental in the U.S. The MetLife companies are the number
one life insurer in the U.S. with approximately US $2.8 trillion of life insuranceinforce.
In India, MetLife was incorporated in 2001, and aims to differentiate itself through
customized need based selling, simple and innovative products, and technology-backed
service experience, to tread its path to build financial freedom for everyone.
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Why I need Insurance
Life Insurance is a contract by which you can protect yourself against specific losses by
paying a premium over a period of time. Since each one of us, during our lives are faced with
numerous risks failing health, financial losses, accidents and even fatalities, our instinct
drives us to cover ourselves against those risks. Though an insurance cover cant protect you
against the emotional losses arising out of these risks, it softens the economic crisis that
usually accompanies these losses.
Life Insurance gains much more value if you are a nuclear family. Unlike in the traditional
joint family system, in a nuclear family, support from the extended family cannot be counted
upon. So it is vital that you have an insurance cover as the protective shield against
unfortunate losses.
And its not only your life you could insure against those risks. With the Insurance Industry
going through positive changes in the last few decades, now, you have a variety of risk
coverage options. For instance, products in the market range from whole life insurance to
covering risks associated with home loans.
Whats more, now you could choose life insurance as an investment option, the returns of
which you can enjoy at the most critical phases of your life for instance, at the time of your
childs admission into one of those dream institutes.
And the insurance industry is constantly evolving. So, you now have a wider option of
insurers presenting you with products that not only cover those risks, but also act as wealth
accumulation or investment avenues, which, you should definitely avail of.
Whether you are new to insurance, or an informed customer, you could always get valuable
information from us. We have attempted to cover this site with some comprehensive
information on life insurance. However, do not hesitate to leave a note for our Financial
http://var%20object%20%3D%20window.open%28%27/MetIndia/LeaveANote.html',null,%20'height=470,%20width=440,status=no,toolbar=no,menubar=no,location=no,scrollbars=no,resizable=yes')http://var%20object%20%3D%20window.open%28%27/MetIndia/LeaveANote.html',null,%20'height=470,%20width=440,status=no,toolbar=no,menubar=no,location=no,scrollbars=no,resizable=yes') -
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Advisors. Not only they could provide you with the additional information you might be
looking for, they can also help you assess your life insurance needs and invest wisely
Insurance is defined as a cooperative device to spread the loss caused by a particular riskInsurance is defined as a cooperative device to spread the loss caused by a particular risk
over a number of persons who are exposed to it and who agree to ensure themselves againstover a number of persons who are exposed to it and who agree to ensure themselves against
that risk.that risk. Risk is uncertainty of a financial loss.Risk is uncertainty of a financial loss. The insurance is also defined as a socialThe insurance is also defined as a social
device to accumulate funds to meet the uncertain losses arising through a certain risk to adevice to accumulate funds to meet the uncertain losses arising through a certain risk to a
person injured against the risk.person injured against the risk.
Mission / Vision / Values
Our Vision and Mission
Build financial freedom for all through leadership in providing financial advice and building
long-term relationships through innovative protection, accumulation and retirement products,
robust underwriting processes and creating world-class customer service experience for our
customers.
We want to provide customers in India with world-class solutions for financial security, and
in the process add significant value to our shareholders, associates and society.
Our Core Values
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We lead through Innovation to offer world class and competitive products to our
customers
We build Long Term Relationships with our customers by creating a world class
service experience through operational excellence and the innovative use of
technology
We create a Customer Centered and Result Focused Vision that inspires each one of
our Associates and has their buy-in
We are committed to creating a High Performance Organization by creating an
environment that allows each one of our Associates to perform at their peak. As a
result we will also be recognized as an Employer of Choice
We are committed to Partnering with our internal and external Customers for mutual
success
We work with Integrity, Fairness and Financial Prudence in all our dealings keeping
the interests of our Shareholders, Customers and Associates paramount
Corporate Partners
As the vital channel for MetLifes products, we have chosen some exemplary banks and
financial institutions. These will serve as the interface between our customers and us to aid us
understand the unique needs and aspirations of every Indian. And update our products with
features that form the cornerstones of financial freedom.
J&K Bank
UTI Bank
Dhanlakshmi Bank
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Karnataka Bank
VisionVision::
To make METLIFE the dominant Life and Pensions player built on trust by world-classTo make METLIFE the dominant Life and Pensions player built on trust by world-class
people and service.people and service.
This we hope to achieve by:This we hope to achieve by:
Understanding theUnderstanding the needs ofneeds of customerscustomers and offering them superior products andand offering them superior products and
serviceservice
LeveragingLeveraging technologytechnology to service customers quickly, efficiently and convenientlyto service customers quickly, efficiently and conveniently
Developing and implementing superiorDeveloping and implementing superior risk management and investment strategiesrisk management and investment strategies toto
offer sustainable and stable returns to our policyholdersoffer sustainable and stable returns to our policyholders
Providing an enabling environment to foster growth and learning for ourProviding an enabling environment to foster growth and learning for ouremployeesemployees
And above all, building transparency in all our dealings.And above all, building transparency in all our dealings.
The success of the company will be founded in its unflinching commitment to 5 coreThe success of the company will be founded in its unflinching commitment to 5 core
valuesvalues -- Integrity, Customer First, Boundaries, Ownership and Passion. Each of the values-- Integrity, Customer First, Boundaries, Ownership and Passion. Each of the values
describe what the company stands for, the qualities of our people and the way we work.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 canWe 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 ourplay 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.parentage and the commitment of our team, there are no limits to our growth.
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ManagementManagement
Rajesh RelanManaging Director
Chandar ChellaniOfficer, Agency Sales
KP SharmaAppointed Actuary
Sameer BansalDeputy Director, Bancassurance &
Business Partnership
P SankaranDeputy Director, Business Support
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MS SureshGeneral Manager, Employee Benefits
KR Anil KumarChief-Planning and Financial Controller
KS RaghavanDirector, Information Technology
Pankaj RajDeputy Director, Marketing
Vijay RaghavanDeputy Director, Strategic Initiatives &
Business Transformation
GROWTH RATE IN INSURANCE INDUSTRYGROWTH RATE IN INSURANCE INDUSTRY
20052005 20062006
Pvt. Sector insurance growth ratePvt. Sector insurance growth rate
(Premium)(Premium)84%84% 98%98%
LIC growth rate (Premium)LIC growth rate (Premium) -2%-2% 121%121%
Industry growth rate (Premium)Industry growth rate (Premium) 17%17% 113%113%
MetLife India growth rate (Premium)MetLife India growth rate (Premium) 128 %128 % 136 %136 %
MetLifeMetLife
PresencePresence20062006 20072007 20082008
BranchesBranches 4242 161161 191191
CitiesCities 3030 112112 135135
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OBJECTIVES
&RESEARCH
Mumbai
Delhi
Bangalore
Kolkata
Kochi
Chennai
Hyderabad
J &K
MAH
GUJ
RAJ
KA
R
AP
ORI
WB
ASSAM
HP
HA
R
UCHAL
UP
BIHARJKND
ACHALPRA
MP
CHATI
S
TRI
MIZ
MANI
NAGA
SIKK
MEG
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METHODOLOGY
OBJECTIVE OF REPORT
1. To examine the costumer awareness and perception about pension plan
provided by insurance company.
2. To evaluate marketing practices adopted by METLIFE about pension
plan policy.
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RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
Research Methodology means the procedure for conducting a systematic and planned
approach to carry out research project for the purpose of achieving the objectives. A useful
research is, therefore, compelled to follow certain scientific rules or steps and stipulation,
planning and executive the research.
The content of research methodology are stated below:
a) RESEARCH DESIGN: The research is exploratory in nature. The design of
research is exploratory also termed, as formulative research. The major
emphasis was a discovery of ideas and insights.
b) SAMPLE SIZE AND TECHNIQUES:The sample size is
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50 policyholders on the basis of Convenience sampling.
c) DATA COLLECTION:To get required information data collected is primary
and secondary.
PRIMARY DATA: The primary data is collected through survey method.
By the instruments structured questionnaire and personal interviews.
SECONDARY DATA: Secondary data is collected through websites,
journals, and magazines.
LIMITATION OF STUDY
Time is very limited.
Sometime respondents dont want to disclose some relevant information.
Another limitation was that some staff members were either reducing or hesitated
to provide the required information.
Another limitation was lack of professional knowledge. The trainee being a
student may not be able to analyses the data as a professional could do.
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ANALYSIS&
INTERPRETATION
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Question 1: Are you satisfied with the plan being provided to you by METLIFE?
1) Satisfied -46
2) Not satisfied -4
satisfied
unsatisfied
8%
92%
INTERPRETATION
In this question 46 respondents are satisfied with the plan provided by METLIFE while 4 of
the respondent are unsatisfied by the services.
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RESULT: Greater number of plan holder is satisfied.
Question 2: Do you feel the timings to avail this plan is right.
1) Satisfied -47
2) Unsatisfied -3
0
10
20
30
40
50
satisfied unsatisfied
Series1
INTERPRETATION
In this question 47 respondents are satisfied with the timings for availing the plan while 3 are
unsatisfied.
RESULT: Ample number of plan holders is satisfied.
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Question 3: Are you satisfied with the METLIFE agents dealing with this pension plan?
1) Satisfied -44
2) Unsatisfied -6
satisfied
unsatisfied
12%
88%
INTERPRETATION
In this question 44 respondents are satisfied with the dealings of the agents of METLIFE
While 6 of the respondents are unsatisfied with the dealings and behavior of agents.
RESULT: Mostly plan holders are satisfied.
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Question 4: Do you feel that this service of plan is really beneficial for you?
1) Beneficial -44
2) Not beneficial -6
0
10
20
30
40
50
benificial not benificial
Series1
INTERPRETATION
In this question 44 of the respondents have responded that this services is reallybeneficial while 6 of the respondents are unsatisfied with this services.
RESULT: Majority has responded that the services are really beneficial.
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Question 5: Do you require any constant updates or guidance related to this
Pension plan.
1) Required -23
2) Not required -27
21
22
23
24
25
26
27
required not required
Series1
INTERPRETATION
In this question 23 of the respondents required updates of plan while 27 of the respondentdont require.
RESULT: Mostly plan holders dont require it.
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Question 6: Are you being provided any extra facility with this plan?
1) Having full knowledge 1
2) Having part knowledge 8
3) Having no knowledge-1
4) Not commented -40
0
5
10
15
20
25
30
35
40
Having full
knowledge
Not
commented
Series1
IERPRETATION
In this question only 1 respondent had full knowledge about the extra facilities while 8are having part knowledge only, 1 of them had no knowledge and 40 are not commentedupon.
RESULT: Ample number of respondents has not commented.
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Question 7: Is the METLIFE providing any security on this plan?
1) Yes -38
2) No -2
3) Not commented -10
Yes
No
Not commented
4%
76%
20%
INTERPRETATION
In this question 38 respondents are stated that security is provided by METLIFE while 2 havereplied in negative and 10 have not commented.
RESULT: Majority of the plan holders has replied in positive.
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Question 8: Have you applied other plan for your family?
1) Yes -15
2) No -34
3) Not disclosed -1
yes
no
not disclosed
2%30%
68%
INTERPRETATION
In this question 15 have applied, while 34 havent applied and 1 hasnt commented.
RESULT: Maximum number of plan holders hasnt applied.
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IMPLICATION
&
CONCLUSION
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FINDINGS
After the thorough research program some findings are there which I found and these are.
92% are satisfied with the plan of METLIFE, 94% are satisfied with the timing.
88% are satisfied with the dealing of the agents of METLIFE.
88% think that plan provided to them is beneficial.
46% say that they require updates and guidance and 54% dont require any
updates and guidance.
76% says that MetLife provide security for their service and 4% says no.
68% say that they applied other plan for there family and 30% say no.
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IMPLICATION
The following are some of the suggestion and recommendation that have evolved out after
analysis of the study entitled ANALYSIS OF CUSTOMER PERCEPTION ABOUT
PENSION PLAN METLIFE.
Better services should be provided to the customer.
Grace period should be given to customer while paying premium.
Agents should have sufficient knowledge about plan while dealing with customer.
Online premium facility should be provided to customer.
Constant updates or guidance should be provided to customer on time.
Proper information should be provided on their forms monthly.
Proper advertisement should be made to aware the people about the plans.
CONCLUSION
Most of the people are satisfied with the services provided by the company and the timings
of the services. Clients are also satisfied the dealings of the agents done with them. Many
people think that the services provide many benefit to them but few people say that they are
not provided proper guidances and updates and expect the company to provide them. Most
of the people are satisfied and happy with the future security of the plan and more of the
people are also applying for other plan for their families.
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BIBLIOGRAPHY
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BIBLIOGRAPHY
BOOKS
Kothari, CR Research methodology, Vishwas Prakashan,
New Delhi, 1990.
Beri, GC, Marketing Research, Tata Mc Graw Hill,
New Delhi, Millennium Edition.2000.
MAGAZINES AND NEWSPAPER
Annual Report of METLIFE.
Economics Times.
METLIFE Circular and Instruction.
Times of India.
WEBSITES
www.metlife.co.in
www.google.com
http://www.licindia.com/http://www.licindia.com/ -
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APPENDICES
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QUESTIONNAIRE
PLAN HOLDERS
Name
Occupation..
Age
Question 1): Are you satisfied with the plan being provided to you by METLIFE?
Yes No
Question 2): Do you feel the timings to avail this plan is right?
Yes No
Question 3): Are you satisfied with the MetLife agents dealing with this plan?
Yes No
Question 4): Do you feel that this service of plan is really beneficial for you?
Yes No
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Question 5): Do you require any constant updates or guidance related to this plan.
Yes No
Question 6): Are you being provided any extra facility with this plan?
Yes No
Question 7): Is the METLIFE providing any security on this plan?
Yes No
Question 8): Have you applied other plan for your family?
Yes No
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