child plan introduction

8/7/2019 child plan introduction

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Acknowledgment

I have taken efforts in this project. However, it would not have been

possible without the kind support and help of many individuals andorganizations. I would like to extend my sincere thanks to all of them.

I am highly indebted to Mr.Rajiv Mandal (Human resource manager) forhis guidance and constant supervision as well as for providing necessary

information regarding the project & also for their support in completing

the project.

I would like to express my gratitude towards my parents & member of(Organization Name) for their kind co-operation and encouragement

which help me in completion of this project.

I would like to express my special gratitude and thanks to industrypersons for giving me such attention

My thanks and appreciations also go to my colleague in developing theproject and people who have willingly helped me out with their abilities.


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DECLARATION

I hereby declare that the project work titled CHILD PLAN is a bonfide

work carried out by me under the guidance of Mr.Rajib Mandal for

partial fulfillment of my BBA program any part of this dissertation is

not copied from any other work carried out by anybody for any other

institute/university program.

Name of the student:

Enrolment No:


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INTRODUCTION

Child insurance plans: Make an informed choice

SharePlanning does not necessarily mean about what you wishyour child would grow up to be, or have certain

characteristics, but it also essentially means you as aresponsible parent having various obligations to fulfill thatwould help him to grow better in this world.

The first thing that strikes is providing for education (graduationas well as post graduation).The most often repeated statement, Assume that a two yearMBA program in a leading business school costs Rs 5,00,000 atpresent. Your child is five years old now and will pursuethe management degree at the age of 20years. This gives you a

time frame of 15 years. Assuming that the inflation rate is 10% perannum, the education would cost Rs 2,088,624. Now that seems ahandful, doesn't it?The dynamics of planning for the child's future have changedradically over the years. The conventional method of providing forthe child was to just set aside some amount of money in a savingsbank account. These funds would then be utilized for the child's lifestages. A few parents would also make investments in fixed depositswith the intention of utilizing the maturity amount. However, it wouldbe safe to say that such an approach is not only outdated, butalso inadequate in the present scenario.Life insurance plays an important role in an individual's financialplanning exercise. Insurance can assist individuals in planning for


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their own life stages as well as provide for their child's future. It alsosecures the childs future in case of any unfortunate event. Varioustypes of child insurance products are available in the market today.

Child insurance plans have traditionally played an important role insecuring the child's future. With a plethora of children insurance plansavailable in the market, it becomes difficult for most parents toevaluate them objectively. Individuals need to understand thedynamics for planning their children so that they can best utilize thealternatives available in the market.

Parents must consider at the outset that they would have to buildas sufficient corpus for their children especially if the child is to be

sent abroad for education or a professional post graduation degreefrom the premier institutes in the country itself. As in our aboveexample, a 15 year planning time frame has raised the amountrequired considerably; parents must keep this in mind.As a parent, one would generally plan from the perspective of makingfunds available for

y Educationy Marriagey Seed capital for business


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The factors to consider while planning,

y Time frame for building a corpusy Age at which the fund would be required.y Approximate amounts to build the corpus.y Investment avenues to be considered.y The amount available to the child in case of death of parents or

disability of the premium-paying parent.Child plans come in two broad variants Traditional child plans andunit linked insurance plans (ULIPs). The primary differencebetween the two lies in the way they invest their

premium. Traditional plans invest a major portion of their moneyin debt instruments like corporate bonds and government securities(as specified by the regulator). Conversely, ULIPs can invest acrossequity and debt markets in varying proportions.

Parents have plenty of choice; they can either opt for a regularTraditional endowment plan which carries relatively lower risk

since it is invested mainly in corporate bonds and governmentsecurities. The bonuses are stable and give the parentconsiderable comfort knowing roughly how much he can expect.Regular endowment plans are suited for parents with a lowrisk appetite.Parents with some risk appetite can opt for a ULIP child plan thatinvests across equity and debt markets. The reason why ULIP childplans can prove to be significant is because over the long-term (15-20 years), equities can add considerably to the corpus you plan

to build for your child's needs. Equities are best placed to beatinflation over the long term. However, to achieve this, one must investwisely. Debt on the other hand brings stability to a portfolio. While thereturns for debt at times may seem unattractive as comparedto equities, their importance in a portfolio (ULIP) cannotbe understated.


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Parents should consider taking on some risk (by investing inequities) to beat inflation, which is the main reason the cost ofeverything right from your child's education to his marriage is

forever spiraling. Over a 15-20 year time frame, if wisely selected, aULIP even with moderate equity allocations could add considerablyto your child's corpusLife insurance has much to offer to parents looking to accumulatewealth for their child's future. There are several plans offering enoughflexibility to help parents with the same. In the end, it all boils down tomaking an informed choice and ensuring that your plan is

working in line with your expectations.


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SCOPE OF THE PROJECT

1). To trap the huge market of child plan.

2). To help the company to find out the sales

potential.

3). To know about the child plan by this project.

4). To find out the customer satisfaction.


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LITERATURE REVIEW

A literature review is a body of text that aims to review the critical

points of current knowledge including substantive findings as well as

theoretical and methodological contributions to a particular topic.

Literature reviews are secondary sources, and as such, do not report

any new or original experimental work.

Most often associated with academic-oriented literature, such as a

thesis, a literature review usually precedes a research proposal and

results section. Its ultimate goal is to bring the reader up to date with

current literature on a topic and forms the basis for another goal, such

as future research that may be needed in the area.

CHARACTERSTICS OF A LITERATURE REVIEW

1.It demonstrates thorough understanding of the subject of

dissertation, through review and analysis of previous research;

2.It demonstrates thorough review of previous literature

demonstrates gaps in knowledge of the topic that proposed

research will address.

3.Very importantly it demonstrates, thorough and complete

literature review, based on specified search criteria,


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demonstrates that someone has not already done dissertation

research!


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d) Summarizing of data : - Thereby necessary summary is prepared which is

essential in the project report of the summer training being done under an

organization.

Helpful Arms of Research Methodology: -

Questionnaire: - Questionnaire is a set or group of questions being

framed for the purpose of obtaining market perspective about a

particular aspect or topic.

There are two types questionnaire bing carried necessary for the market survey of

the summer training being undertaken and put for the by the trainee to the

sample people taken as a base for entire population:

a) Open ended Questionnaire: - where the people (also called

respondents) are required freedom to present their views and suggestions

for the benefits and success of the organization.

b) Close ended questionnaire : - where the respondents is limited to

the choice of answer being delivered by the interviewer itself so that quick and

fast means of responses be derived out without wasting much time. Here close

ended questionnaire being followed by me during the course of the summer

training market survey.

Sampling: - Sampling is a process of obtaining a number of

individuals taken a base for the entire population since entire

population can not be asked about the necessary objective upon which a

questionnaire is put forth needed for the responses to be derived for the purpose


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of generation of facts and customer view point regarding their perception of

particular product or services.

There are two type of sampling i) Random Sampling ii) Systematic sam

i) Random sampling : - Random sampling is a process of selecting the sample size

randomly and no choice or preference to be made about the selection of

respondents for the market survey and questionnaire to be put forth against him.

Here, Random sampling being adopted by me.

ii) Systematic sampling: - it is a sampling where the limited number of selected

respondents is figured out based on some criteria so that only those respondents

can be asked for the purpose of filing questionnaire.

Sample Size: - 105 respondents.

MARKET SURVEY

Protection of Child against uncertainty of future, saving of tax:

Both CATEGORY RESPONSES

From the survey it was drawn that child insurance plan is more a protection to a

child future against uncertainty (conferred by 51 respondents) where it is a tax

saving option (being accepted by 38 respondents). Child insurance is a service

involving both these prerequisites as depicted by remaining 16 respondents. The

following depicted this:

Protection of Children against Future uncertainty:

NUMBER OF RESPONSES, IS CHILD INSURANCE PLAN ESSENTIAL?


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It has been observed and applied as Child Life insurance is an essential service and

should be applicable to everyone, as favored by considerable 78 respondents

where it is not essential to an extent by 27 respondents from the summer training

project survey by putting forth the set questionnaire.

RESPONDENT'S QUALIFICATION

Pos t graduate 33%

Graduate 10%

Senior secondary 57%

percentage pst graduate

graduate

higher secondary


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When further enquired about the qualification of respondents, it was found that

57% of the respondents were graduates, 33% were post graduates and remaining

10% were of higher secondary out of total 105 respondents.

Further depicted in the following tabular representation: -

Post graduate 35

Graduate 59

Senior secondary 11

AGE QUALIFICAITON:

18-25 age group 39%

25 35 age group 35%

35 45 age group 20%

Above 45 age group 6%


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Further, the age qualification for agency recruitment, it was found that 39%

respondents were belonging to 18 25 age group, 35% were belonging to 25 35

age group where as 20% to 35 -45 age group and remaining 6% to above 45 age

group. Also depicted in the following tale mentioned below: -

18-25 age group 41

25 35 age group 37

35 45 age group 21

Above 45 age group 6

Age qualification

18-25

25-35

35-45

45 and above


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CAUSES OF DISSATISFACTION

Respondents had different views about the dissatisfaction from the present status

of working or occupation. Dissatisfaction has been depicted in a table below and

graphically above:

Low employment 24

Huge capital investment 12

All of the above 10

Cause if dissatisfaction total

Low employment 24

Low status 18

Low earning 36

All of the above 10

Huge capital investment 12


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causes of dissatisfaction

low employment

low status

Low earning

all of the above

Huge capital

investment


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ACCEPTANCE OF LIFE INSURANCE AS AN CARRER?

Career in insurance Total

Saying yes 22

Saying no 78

When asked about whether they would like to know about a glorified career inlife insurance agency where they can fulfill any and every desire of their life, 22

respondents agreed while 78 respondents said No and will see later sometime in

future. It has been depicted that life insurance sector should be promoted at the

wide extent as it contribute to the economy as a useful source beneficial for both

nation as well as is citizens.

IS INSURANCE A NOBLE SERVICE?

Carrer in insurance

saying yes

saying no


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Indeed Life insurance is a noble business as it provides a needful financial support

in the situation of fatal calamity where the family is deprived by the fact to live in

future and sustains their living. When surveyed about life insurance as a noble

service. 89 respodents agreed and believe that insurance is a bettering service to

human life and society as a whole where as 19 respondents show disagreement.

ACCEPT LIFE INSURANCE AS A CAREER ?

From the 59 respondents who agreed to know about the life insurance as a

career, 18 of them agreed to join MAX NEW YORK life insurance for agency and

come to the company fore more information whereas 41 still took time to think

and postponed to some future date. People are highly dissatisfied from the

earning, status and living standard they are sustaining at present and would

definitely like to make some additional source of earning and for this agency for

life insurance would prove a boon.

NUMBER OF RESPONSES IS LIFE INSURANCE INDUSTRY GROWING?

From all 105 respondents, 92 agreed that life insurance sector is a growing

concern and will grow at a rapid pace in future where as 13 took as a mere

stagnant industry. Financial services are growing at a tremendous pace as people

are urging to make their investment in lucrative opportunities and therefore life

insurance sector is playing a vital role in educating the people to make their

investment which could secure their future, needs and living despite some fatal

calamity that might or might not occur.

AGREE WITH PRIVATISATION OF LIFE IN SURANCE?

Among 74 respondents from 105 respondents favored the privatization of the life

insurance and perceive that the people of India will know be more aware and

knowledgeable with respect to life insurance than that in the past 50 years with

the working of LIC.


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THREATS

1. People are hesitant to invest and put their hard earned money

to the private life insurance company with the fear of getting lost.

2. Belief towards LIC as it is a government corporation phobia is continue to

surmount the people of India despite lots of flaws and development and

liberalization of life insurance.

3. Alternative financial services such as mutual fund, banking services, share and

securities also pose problems and threats to the working of the life insurance

sector.

4. Illiteracy and unemployment also pose threat.

5. Rising real estate industry also pose threat as people are investing a bulk of

their money over to that industry.

CONCLUSION

Summer training is a best example for a trainee to learn about the company

working, corporate culture under which is operating the functions. Corona

advisors Pvt. Ltd. is a financial institute covering insurance, mutual funds

,commodity, shares and stocks under which I gained a significant knowledge with

respect to child insurance plan, its importance and applicability as well as

undertook the task to recruit capable life insurance advisors which is conducive

for the company to grow with more prosperity. What I taught in the management

institute utilized them fruitfully leading to the best advantage to the company

and to the best experience for mine.


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At far I can conclude that life insurance(child) is a noble service which is very

important for every citizen to learn and realize its importance because this is the

only source which secure a child future accurately as their mentors would like to.

With the growing financial sector I would like to opt this industry for my futurecareer advancement and as an opportunity to service this industry.

BIBLIOGRAPHY

Following are sources which helped me during my summer training:

A..BOOKS:

B.Mr.Rajib Mondal.: Human Resource manager, Corona advisors Pvt.Ltd.C.Internet

D.KOTLER PHILIP: Marketing Management 11th Revised edition ,2002

E.GUPTA S.P.: Statistical Methods Thirteen revised edition, 2001

MAGAZINES:

a)Business World

b)India Today

.REFERENCES

a)Websites: -

b)www. coronaadvisors.com

c)www.irdaindia.org

d)www.liccouncil.org

e)www.businessconnect.com

f)


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QUESTIONNAIRE

Name: -

Age:-

Location: -

Occupation: -

.

Q.8. Would you like to become or opt for life insurance

advisor under esteemed and prospering organization Corona advisors Pvt. Ltd. ?

a) Yes

1. What do you mean by child insurance plan?

a) general insurance

b) A sum received after a fix period of time

c) Both

Q.2.Do you spend in child plan?

A)YES B)NO

Q.3. Do you think child insurance plan is essential for every one?

a) Yes

b) No

Q.4. What is your qualification?

a) Post graduate

b) Graduate

c) Senior secondary

Q.5. Do you come under:


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a) 18-25 age group

b) 25 35 age group

c) 35 45 age group

d) Above 45 age group

Q.6. what dissatisfied you most in your occupation?

a) Low employment

b) Low earning / income

c) Low status

d) Huge capital investment

e) All of the above

Q.7. Would you like to know about a career in life insurance advisor ship where

you can fulfill every desire of your life?

a) Yes

b) No

Q.8 Do you perceive that life insurance business is a noble service oriented

business?

a) Yes

b) No

b) No


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Q.9. Do you agree that the life insurance business is a growing

industry and will grow and rapid pace in future?

A)yes B)No

Q.10. Do you favor the privatization of life insurance by the Government

where a significant number of companies now in the market for life insurance to

the customers with the alliance of multinationals?

a) Yes

b) No

Suggestions: -

1.

2.

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child plan introduction

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