Unit Linked Insurance Plan

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For the school ULIP, see University of London Institute in Paris
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Unit Linked Insurance Plan (ULIP) provides for life insurance where the policy value
at any time varies according to the value of the underlying assets at the time. ULIP is life
insurance solution that provides for the benefits of protection and flexibility in
investment. The investment is denoted as units and is represented by the value that it has
attained called as Net Asset Value (NAV).

ULIP came into play in the 1960s and is popular in many countries in the world.

As times progressed the plans were also successfully mapped along with life insurance
need to retirement planning. In today's times, ULIP provides solutions for insurance
planning, financial needs, and many types of financial planning including children’s
marriage planning.

Unit Linked Insurance Plan - is a financial product that offers you life insurance as well
as an investment like a mutual fund. Part of the premium you pay goes towards the sum
assured (amount you get in a life insurance policy) and the balance will be invested in
whichever investments you desire - equity, fixed-return or a mixture of both.

In India investments in ULIP are covered under Section 80C of IT Act.

Retrieved from "http://en.wikipedia.org/wiki/Unit_Linked_Insurance_Plan"

Categories: Insurance terms
As per the Payment of Gratuity Act 1972, an employer Contact Us
is obliged to pay gratuity to an employee after he/she
has rendered a continuous service of at least 5 years. For further information
Gratuity is payable to such an employee on: on our corporate products,
Please contact our
• Normal retirement Corporate Sales
• Resignation/early retirement Department at
1-800-11-9966.
• Death or disablement due to accident or disease
Email:
(completion of 5 years of service is not
[email protected]
necessary in such cases).
If the Employer’s Gratuity Rules provide for higher
Landline Numbers
benefits as compared to the Payment of Gratuity Act
1972, the benefits will be paid as per the Employers’ Mumbai 66479580
Gratuity Rules. 66516371
Bangalore 66938999
Tata AIG Life Retirement Assure Group Gratuity 66938925
Scheme (Unit Linked) is designed to help you bear the Delhi 66565000
financial burden of paying gratuity and provide you with 66565081
an opportunity of earning returns on the funds invested. Kolkata 64604351

How will the Employer/Trustee contribute to the

Gratuity Scheme?

Employer/Trustee of the Gratuity Scheme shall fund for

gratuity liability by:

• Remitting the recommended contribution for the

past service and an annual contribution for the
future service
• Transferring existing assets if any to Tata AIG
Life based on mutually agreed asset valuation

How does the Unit Linked Gratuity Plan Structure

work?

• The Fund will be managed on a unitized basis.

• Any contribution received will be converted into
units based on the applicable fund unit price.
• The fund value of the Gratuity Fund at any given
time is based on the unit price declared at the
close of business on the date on which the units
are allocated

Can an Employer/Trustee decide on asset allocation?

An Employer/Trustee has the flexibility to decide the
ratio of investment based on their risk taking appetite.
They can invest in any of the following :

 Upto 100% in Short Term Fixed Income Fund

 Upto 100% in Bond Fund
 Upto 100% in Growth Fund
 Upto 100% in Balanced Fund
 Upto 100% in Income Fund
 Any combination of the above with a maximum of
60% in Equity Fund

Tax Benefits for the Employer*:

• Employers contribution to approved gratuity

fund is an deductible business expenditure U/s
36(1)(v) as under:
o Initial Contribution is allowed as
deductible business expense to the extent
of 8.33% of the member's salary for each
year of employee's past service. (Rule
104)
o Ordinary annual contributions is allowed
to the extent of 8.33% of the employees
salary.
• Interest Income on the fund is non taxable in the
hands of the Trustees u/s 10(25) (iv).

Tax Benefits for the Employee*:

Gratuity received is exempt from tax up to half a months

salary for every completed year of service or Rs. 3.5
lakhs, whichever is less u/s 10(10).

* Tax benefits are available as per the provisions of

Income-tax Act, 1961 and subject to amendments
thereof from time to time. To know whether you are
eligible for above mentioned tax benefits, please consult
your own professional advisors and Tata AIG Life
Insurance Company Limited is not responsible in case
you do not get any tax benefits stated above. Please note
that the prevailing and applicable tax laws shall be final
and conclusive on the matter and Tata AIG Life
Insurance Company Limited is not responsible for the
same at any time.”
In Built Death Benefit:

As part of the scheme, an additional benefit of Life

Insurance Cover is included.

In the unfortunate event of a serving employee's death,

the coverage would provide for a lump sum payment
equal to sum assured depending on the life cover opted
by the Trustees with a minimum of Rs. 1,000/-.

Want to know more?

• Download the Product Brochure. (PDF, 58 kb)

• Disclaimer.
UIN - 110L050V01

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Copyright © 2003 - 2009, Tata AIG Life Insurance Company Ltd. All Rights
Reserved.
These products are underwritten by Tata AIG Life Insurance Co. Ltd.
Registered with Insurance Regulatory & Development Authority (IRDA) under the
following
Address and Registration Number:Tata AIG Life Insurance Company Ltd.(Regn.
No.:110)
Registered & Corporate Office: Peninsula Towers, 6th floor, Peninsula Corporate
Park, Ganpatrao Kadam Marg, Lower Parel, Mumbai – 400 013.
Tata AIG Life Insurance Company Limited (Tata AIG Life) is a joint venture
company, formed by the Tata Group and American International Group, Inc. (AIG).
*Tax benefits are as per Income Tax Act, 1961, and are subject to modifications made
thereto from time to time.
Insurance is the subject matter of the solicitation.

Bajaj Allianz General Insurance Company Limited or Bajaj Allianz Insurance is a

joint venture between two of the most reputed names in the world of insurance - Bajaj
Finserv Limited and Allianz SE. Both of the names are known for their strength,
expertise and stability in the insurance sector. While Bajaj Finserv Limited holds the 74%
of the paid up capital of Rs. 110 crore, Allianz SE holds the remaining 26%. It can be
added here that Bajaj Finserv Limited has very recently demerged from Bajaj Auto
Limited.

Bajaj Allianz Insurance started its journey on May 2, 2001 when it received the
certificate of Registration from Insurance Regulatory and Development Authority
(IRDA) for conducting General Insurance business in India including Health Insurance.
As on the end of March 2009, the income of Bajaj Allianz Insurance went up to Rs. 2,866
crore with a growth of 11% over the previous year. It also registered a net profit of Rs. 95
crore, highest by any private insurer, in the last financial year.

Offerings

Bajaj Allianz General Insurance Company Ltd. offers a range of insurance products to its
clients. The following insurances are offered by the company:\
• Raat Gayi Baat Gayi • Chance Pe Dance • Paa • De Dana Dan • Radio • Blue
• Dulha Mil Gaya • 3 Idiots • Fruit & Nut • London Dreams • Main Aur Mrs Khanna
• Jail • Aao Wish Karein • Wanted • All The Best • Life Partner

Unit-linked insurance: All charged up

February 22, 2005 07:11 IST

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ULIPs provide insurance cover with investment potential but they seem to charge more
for bundling benefits.

What are ULIPs?

A unit linked insurance policy is one in which the customer is provided with a life
insurance cover and the premium paid is invested in either debt or equity products or a
combination of the two.

In other words, it enables the buyer to secure some protection for his family in the event
of his untimely death and at the same time provides him an opportunity to earn a return
on his premium paid.

In the event of the insured person's untimely death, his nominees would normally receive
an amount that is the higher of the sum assured (insurance cover) or the value of the units
(investments).

However, there are some schemes in which the policyholder receives the sum assured
plus the value of the investments.
Every insurance company has four to five ULIPs with varying investment options,
charges and conditions for withdrawals and surrender. Moreover, schemes have been
tailored to suit different customer profiles and, in that sense, offer a great deal of choice.

The advantage of ULIP is that since the investments are made for long periods, the
chances of earning a decent return are high.

Just as in the case of mutual funds, buyers who are risk averse can buy into debt schemes
while those who have an appetite for risk can opt for balanced or equity schemes.

However, the charges paid in these schemes in terms of the entry load, administrative
fees, underwriting fees, buying and selling charges and asset management charges are
fairly high and vary from insurer to insurer in the quantum as also in the manner in which
they are charged.

Tax benefits

The premiums paid for ULIPs are eligible for tax rebates under section 88 which allows a
tax rebate of 20 per cent of premiums paid for taxable income below Rs 150,000 and 15
per cent for income between Rs 150,000 and Rs 500,000.

Proceeds from ULIPs are tax-free under section 10(10D) unlike those from a mutual fund
which attract capital gains tax.

Key features

Premiums paid can be single, regular or variable. The payment period too can be regular
or variable. The risk cover (insurance cover) can be increased or decreased.

As in all insurance policies, the risk charge (mortality rate) varies with age. However, for
an individual the risk charge is always based on the age of the policyholder in the year of
commencement of the policy.

These charges are normally deducted on a monthly basis from the unit value. For
instance, if there is an increase in the value of units due to market conditions, the sum at
risk (sum assured less the value of investments) reduces and so the risk charges are lower.

The maturity benefit is not typically a fixed amount and the maturity period can be
advanced (early withdrawal) or extended.

Investments can be made in gilt funds (government securities), balanced funds (part debt,
part equity), money-market funds, growth funds (equities) or bonds (corporate bonds).

The policyholder can switch between schemes (for instance, balanced to debt or gilt to
equity). The investment risk is transferred to the policyholder.
The maturity benefit is the net asset value of the units. The value would be high or low
depending on the market conditions during the period of the policy and the performance
of the fund manager.

Thus there is no capital protection on maturity unless the scheme specially provides for it.
There could be policies that allow the policyholder to remain invested beyond the
maturity period in the event of the maturity value not being satisfactory.

What you MUST ask your agent

First-year charges: Usual

unit linked products (ULIP) are actually a mix of Mutual Fund (MF) and Life Insurance.
Its good if you want to reduce hassel of keeping track of both in your portfolio, however
remember financial institutes who bring ULIPs actually charge more fees, especially in
first few years of investment, than they do in individual insurance products and MFs.
Therefore if you can spare some time for your investment, it is best to buy 'good-old'
insurance products. And invest further in MFs to gain max benefits.

double benefit at a single

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A perfect investment plan from 18 – 60 years age group

100 % allocation from the 2nd year and more than 100% allocation from the
11th year onwards
2 new funds added for which the NAV starts from Rs.10/- from 1st Jan 2010
onwards
 Flexibility to increase or decrease your regular premium to suit your changing
needs
Unlimited switches every year which would be “free of cost”
Gain from savings on income tax

hul
Adding Vitality to life
We meet everyday needs for nutrition, hygiene and personal care with brands that help
people feel good, look good and get more out of life.

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Our mission

Vitality is at the heart of everything we do. It's in our brands, our people and our
approach to business.

Read our mission statement

Corporate Vision, Mission, Goals and Strategies

Vision
Corporate vision is a short, succinct, and inspiring statement of what the organization intends to become
and to achieve at some point in the future, often stated in competitive terms. Vision refers to the category
of intentions that are broad, all-inclusive and forward-thinking. It is the image that a business must have of
its goals before it sets out to reach them. It describes aspirations for the future, without specifying the
means that will be used to achieve those desired ends.
Warren Bennis, a noted writer on leadership, says: "To choose a direction, an executive must have
developed a mental image of the possible and desirable future state of the organization. This image, which
we call a vision, may be as vague as a dream or as precise as a goal or a mission statement."

General Electric
At General Electric (GE) the corporate vision is 'We bring good things to life'.
The corporate success depends on the vision articulated by the chief executive or the top management.
For a vision to have any impact of the employees of an organization it has to be conveyed in a dramatic
and enduring way. The most effective visions are those that inspire, usually asking employees for the best,
the most or the greatest. Make sure you keep stretch in your vision, communicate it constantly, and keep
linking the events of today to your vision, underscoring the relationship between the two.

25 Lessons from Jack Welch

Case in Point Ford Motor Company
The Ford Motor Company vision is 'to become the world's leading consumer company for automotive
products and services'.

Case in Point Ten3 Business e-Coach

The Vision of Ten3 Business e-Coach, is "To inspire innovation and help people and companies create a
more inspiring world."

Mission Statement
A mission statement is an organization's vision translated into written form. It makes concrete the leader's
view of the direction and purpose of the organization. For many corporate leaders it is a vital element in
any attempt to motivate employees and to give them a sense of priorities.
A mission statement should be a short and concise statement of goals and priorities. In turn, goals are
specific objectives that relate to specific time periods and are stated in terms of facts. The primary goal of
any business is to increase stakeholder value. The most important stakeholders are shareholders who
own the business, employees who work for the business, and clients or customers who purchase products
and/or services from the business.

Setting Goals
The major outcome of strategic road-mapping and strategic planning, after gathering all necessary
information, is the setting of goals for the organization based on its vision and mission statement. A goal is
a long-range aim for a specific period. It must be specific and realistic. Long-range goals set through
strategic planning are translated into activities that will ensure reaching the goal through operational
planning.
 Corporate Strategy
Strategy is a very broad term which commonly describes any thinking that looks at the bigger picture.
Successful companies are those that focus their efforts strategically. To meet and exceed customer
satisfaction, the business team needs to follow an overall organizational strategy. A successful strategy
adds value for the targeted customers over the long run by consistently meeting their needs better than
the competition does.
Strategy is the way in which a company orients itself towards the market in which it operates and towards
the other companies in the marketplace against which it competes. It is a plan an organization formulates
to gain a sustainable competitive advantage... More

Mission, Vision & Values

The world is changing all around us. To continue to thrive as a business over the next ten
years and beyond, we must look ahead, understand the trends and forces that will shape
our business in the future and move swiftly to prepare for what's to come. We must get
ready for tomorrow today. That's what our 2020 Vision is all about. It creates a long-term
destination for our business and provides us with a "Roadmap" for winning together with
our bottling partners.

Our Mission

Our Roadmap starts with our mission, which is enduring. It declares our purpose as a
company and serves as the standard against which we weigh our actions and decisions.

• To refresh the world...

• To inspire moments of optimism and happiness...

• To create value and make a difference.

Our Vision
Our vision serves as the framework for our Roadmap and guides every aspect of our
business by describing what we need to accomplish in order to continue achieving
sustainable, quality growth.

• People: Be a great place to work where people are inspired to be the best they can
be.
• Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate
and satisfy people's desires and needs.
• Partners: Nurture a winning network of customers and suppliers, together we
create mutual, enduring value.
• Planet: Be a responsible citizen that makes a difference by helping build and
support sustainable communities.
• Profit: Maximize long-term return to shareowners while being mindful of our
 overall responsibilities.

• Productivity: Be a highly effective, lean and fast-moving organization.

Our Winning Culture
Our Winning Culture defines the attitudes and behaviors that will be required of us to
make our 2020 Vision a reality.

Live Our Values

Our values serve as a compass for our actions and describe how we behave in the world.

• Leadership: The courage to shape a better future

• Collaboration: Leverage collective genius
• Integrity: Be real
• Accountability: If it is to be, it's up to me
• Passion: Committed in heart and mind
• Diversity: As inclusive as our brands

• Quality: What we do, we do well

Focus on the Market

• Focus on needs of our consumers, customers and franchise partners

• Get out into the market and listen, observe and learn
• Possess a world view
• Focus on execution in the marketplace every day

• Be insatiably curious
Work Smart

• Act with urgency

• Remain responsive to change
• Have the courage to change course when needed
• Remain constructively discontent

• Work efficiently
Act Like Owners

• Be accountable for our actions and inactions

• Steward system assets and focus on building value
• Reward our people for taking risks and finding better ways to solve problems

• Learn from our outcomes -- what worked and what didn’t

Be the Brand

• Inspire creativity, passion, optimism and fun

 The Business Vision and
Company Mission Statement

While a business must continually adapt to its competitive environment, there are
certain core ideals that remain relatively steady and provide guidance in the
process of strategic decision-making. These unchanging ideals form the
business vision and are expressed in the company mission statement.

In their 1996 article entitled Building Your Company's Vision, James Collins and
Jerry Porras provided a framework for understanding business vision and
articulating it in a mission statement.

The mission statement communicates the firm's core ideology and visionary
goals, generally consisting of the following three components:

1. Core values to which the firm is committed

2. Core purpose of the firm
3. Visionary goals the firm will pursue to fulfill its mission

The firm's core values and purpose constitute its core ideology and remain
relatively constant. They are independent of industry structure and the product
life cycle.

The core ideology is not created in a mission statement; rather, the mission
statement is simply an expression of what already exists. The specific phrasing
of the ideology may change with the times, but the underlying ideology remains
constant.

The three components of the business vision can be portrayed as follows:

Core Core
Values Purpose

Business
Vis
ion
 Visionary
Goals

Core Values

The core values are a few values (no more than five or so) that are central to the
firm. Core values reflect the deeply held values of the organization and are
independent of the current industry environment and management fads.

One way to determine whether a value is a core value to ask whether it would
continue to be supported if circumstances changed and caused it to be seen as a
liability. If the answer is that it would be kept, then it is core value. Another way to
determine which values are core is to imagine the firm moving into a totally
different industry. The values that would be carried with it into the new industry
are the core values of the firm.

Core values will not change even if the industry in which the company operates
changes. If the industry changes such that the core values are not appreciated,
then the firm should seek new markets where its core values are viewed as an
asset.

For example, if innovation is a core value but then 10 years down the road
innovation is no longer valued by the current customers, rather than change its
values the firm should seek new markets where innovation is advantageous.

The following are a few examples of values that some firms has chosen to be in
their core:

• excellent customer service

• pioneering technology
• creativity
• integrity
• social responsibility

Core Purpose

The core purpose is the reason that the firm exists. This core purpose is
expressed in a carefully formulated mission statement. Like the core values, the
core purpose is relatively unchanging and for many firms endures for decades or
even centuries. This purpose sets the firm apart from other firms in its industry
and sets the direction in which the firm will proceed.

The core purpose is an idealistic reason for being. While firms exist to earn a
profit, the profit motive should not be highlighted in the mission statement since it
provides little direction to the firm's employees. What is more important is how
the firm will earn its profit since the "how" is what defines the firm.

Initial attempts at stating a core purpose often result in too specific of a statement
that focuses on a product or service. To isolate the core purpose, it is useful to
ask "why" in response to first-pass, product-oriented mission statements. For
example, if a market research firm initially states that its purpose is to provide
market research data to its customers, asking "why" leads to the fact that the
data is to help customers better understand their markets. Continuing to ask
"why" may lead to the revelation that the firm's core purpose is to assist its clients
in reaching their objectives by helping them to better understand their markets.

The core purpose and values of the firm are not selected - they are discovered.
The stated ideology should not be a goal or aspiration but rather, it should
portray the firm as it really is. Any attempt to state a value that is not already held
by the firm's employees is likely to not be taken seriously.

Visionary Goals

The visionary goals are the lofty objectives that the firm's management decides
to pursue. This vision describes some milestone that the firm will reach in the
future and may require a decade or more to achieve. In contrast to the core
ideology that the firm discovers, visionary goals are selected.

These visionary goals are longer term and more challenging than strategic or
tactical goals. There may be only a 50% chance of realizing the vision, but the
firm must believe that it can do so. Collins and Porras describe these lofty
objectives as "Big, Hairy, Audacious Goals." These goals should be challenging
enough so that people nearly gasp when they learn of them and realize the effort
that will be required to reach them.

Most visionary goals fall into one of the following categories:

• Target - quantitative or qualitative goals such as a sales target or Ford's

goal to "democratize the automobile."
• Common enemy - centered on overtaking a specific firm such as the
1950's goal of Philip-Morris to displace RJR.
 • Role model - to become like another firm in a different industry or market.
For example, a cycling accessories firm might strive to become "the Nike
of the cycling industry."
• Internal transformation - especially appropriate for very large
corporations. For example, GE set the goal of becoming number one or
number two in every market it serves.

While visionary goals may require significant stretching to achieve, many

visionary companies have succeeded in reaching them. Once such a goal is
reached, it needs to be replaced; otherwise, it is unlikely that the organization will
continue to be successful. For example, Ford succeeded in placing the
automobile within the reach of everyday people, but did not replace this goal with
a better one and General Motors overtook Ford in the 1930's.

Recommended Reading

Jeffrey Abrahams, The Mission Statement Book: 301 Corporate Mission Statements from
America's Top Companies

Features 300 mission statements from companies such as:

• American Express
• AT&T Corp.
• Ben & Jerry's Homemade, Inc.
• Blockbuster Inc.
• Coca-Cola
• Exxon
• FedEx Corporation
• Ford Motor Company
• General Electric Company
• IBM
• Johnson & Johnson
• Kellogg Company
• Levi Strauss & Co.
• Microsoft Corporation
• Nike
• Southwest Airlines Co.
• Tootsie Roll Industries, Inc.
• United Parcel Service
• Washington Mutual Inc.
Sustain ITC's position as one of
India's most valuable corporations
through world class performance,
creating growing value for the
Indian economy and the To enhance the wealth generating
Company’s stakeholders capability of the enterprise in a
globalising environment,
delivering superior and
sustainable stakeholder value