SUMMER TRAINING REPORT

ON
RECRUITMENT OF FINANCIAL CONSULTANTS
WITH

HDFC STANDARD LIFE INSURANCE LTD.

SUBMITTED BY:
ARSHIA LOGANI
BBA(B&I) 5th SEM
06414901810

MAHARAJA SURAJMAL INSTITUTE

Recognised By UGC u/s 2(f)
Department of Business Administration
(Affiliated to Guru Gobind Singh Indraprastha University)

Table of contents
S. No.

Particulars

Pages

CERTIFICATE
ACKNOWLEDGEMENT
EXECUTIVE SUMMARY
1.

INTRODUCTION

5-14

1.1- Objectives
1.2-Scope of study
1.3-Limitations
1.4-Introduction to topic
1.5-Research Methodology

2.

COMPANY PROFILE

19-38

3.

THEORITICAL FRAMEWORK ON

39-44

RECRUITMENT OF FINANCIAL CONSULTANTS

4.

DATA ANALYSIS

45-59

5.

CONCLUSION

60-89

CERTIFICATE

This is to certify that Ms. ARSHIA LOGANI , of BBA (B&I) (M)

currently in the 5rd Semester has completed her Summer Training
Report, as a part of the fulfillment of her programme from
Maharaja Surajmal Institute, affiliated to Guru Gobind Singh
Indraprastha University under my supervision and guidance, and
submitted the same within the framework of the guidelines as
issued by the University.
She was constantly in contact with me, and the data provided is
correct and factual as verified by all sources and users.
I wish her all the best in her entire future endevour.

Mr.Jagbir Ahlawat
(Reader& Associate Prof )
Maharaja Surajmal Institute

ACKNOWLEDGEMENT
I take great pleasure to thank and acknowledge the permission and
allowance by Mr. Sanjeev Rana , BRANCH MANAGER, HDFC

STANDARD LIFE INSURANCE, DELHI REGION and his help and

inspiration provided. I extend a whole hearted thanks to Mr. ASHISH
SISODIA under whom I worked and learned a lot and for enlightening me
with their knowledge and experience to grow with the corporate working.
Their guidance at every stage of the Project enabled me to successfully
complete this project which otherwise would not have been possible
without their constant encouragement and motivation, without the support
it was not possible for me to complete the report with fullest endeavour.
I would also like to extend my thanks to my College Faculty Members Mrs.
ANKUR CHABBRA all my colleagues in the company who supported me
in carry out my operation successfully and generously and provided me
vital information/ training regarding the my project objective.

EXECUTIVE SUMMARY

I had undergone a practical training under HDFC STANDARD LIFE

INSURANCE,VIKAS PURI West Delhi. It was a good exposure for me to undergo
training in such a company to get the knowledge and experience regarding life
insurance and recruitment of capable of life insurance advisors.
Summer training is one of the major experiencing component of the knowledge, gain
of relevant of information with respect to marketing and dealing with situations in a
professional course like M.B.A. where a professional person faces a problem in a field.
I was able to get familiarized with the customer relationship and got to know how a
company measures to resolve their grievances and service them to the maximum for
future prospect and success. Field component like survey, generation of questionnaire
with respect to marketing helped me a lot and would be a great support in future.

It is good to have enthusiasm but it is essential to have training.

Training can be in all way of life. Thus I would say that this training was
beneficial educative & good exposure to me, which will certainly help in
my near future. This project was designed with respect to this company.
The project made me to get the enhanced knowledge regarding life
insurance concept and the process of recruiting of financial consultant.

*****

 OBJECTIVES OF THE PROJECT

To study the perception about the insurance industry.

To know about awareness of consumers towards insurance industry.
To identify market share in insurance industry.
To recruit financial consultants.

SCOPE OF STUDY
Actually I have got my summer internship on 2 topics
1) On Life insurance industry ,
2) On recruitment of financial consultants.

LIMITATIONS
1. Difference in the opinion of the customers and the company..
2. Company is not willing to disclose full information.
3. Biased behavior of the respondents.
4. Sample size being small, may not reflect the opinion of major segment.
5. Time frame is limited.
6. Difficulty in analyzing the data because of multiple responses given by the respondents.

INTRODUCTION - INSURANCE
The insurance sector was opened up in the year 1999 facilitating the entry
of private players into the industry. With an annual growth rate of 24.31
percent and the largest number of life insurance policies in force, the
potential of the Indian insurance industry is huge. The year 1999 saw a
revolution in the Indian insurance sector, as major structural changes took
place with the ending of Government monopoly and the passage of the
Insurance Regulatory and Development Authority (IRDA) Bill, lifting
entry restrictions for private players and allowing foreign players to enter
the market with some limits on direct foreign ownership.
According to the CSO, the insurance and banking services contribution to
the countrys GDP is 7.1 percent out of which the

gross premium

collection forms a significant part. Life insurance penetration in India was

less than 1 percent till 1990-91. During the 90s, it was between 1 and 2
percent and from 2001 it was over 2 percent. In 2003-04 it was 2.4 percent.

The impetus for increase is due to the active role played by IRDA in
licensing private players and taking positive steps in increasing the
insurance awareness among the people. Besides, the insurance companies
in general and private insurance companies in particular, are reaching out to
untapped potential in rural areas with aggressive campaigns.
Innovative products, smart marketing, and aggressive distribution have
enabled fledgling private insurance companies to sign up Indian customers
faster than anyone expected. Life insurance is viewed as a tax saving
device. People are now turning to the private sector for providing them
with new products and greater variety for their choice. The improvement in
FDI flows reflected the impact of recent initiatives aimed at creating an
enabling environment for FDI and for encouraging infusion of new
technologies and management practices. The Governments proposal to
increase the FDI cap in the insurance sector from the present 26 percent to
49 percent has raised expectations among the international insurance
companies.

The Nature Of Insurance

The insurance has the following characteristics which are observed in cases
of life, marine, fire and general insurance.
1 Sharing of risks: Insurance is a cooperative device to share the
financial losses which might befall on an individual or his facility on the
occurrence of specified event such as sudden death of the bread winner,
marine perils in marine insurance, fire in the fire insurance and theft
insurance etc. in the case of general insurance.
2

It is a cooperative device: A large number of persons agree to share

the loss arising sue to a particular risk. Thus, insurance is a cooperative
device.

3 Value of risk: The risk is evaluated before insuring to charge the

amount of share called premium.
4 Payment made at contingency: The payment is made at a certain
contingency insured. The Contingency may be death, fire, marine perils
etc.
5 Amount of payment: The amount of payment depends upon policy
insured.

Functions of Insurance
A Primary Functions
1 Insurance provides certainty: Insurance provide certainty of payments
at the uncertainty of losses. The element of uncertainty is reduced by
better planning and administration.
2 Insurance provides protection. The risk will occur or not, when will
occur and how much loss will be there. There are uncertainties of
happening of time and amount of losses. The main function of the
insurance is to provide protection against the losses.
3 Risk sharing: Risk is uncertain and therefore, the loss arising from the
risk is also uncertain. All business concern faces the problem of the risk
and if the concern is big enough the handling of risk becomes a
specialized function. Insurance, as a device is the outcome of the
existence of various risks in our day to day life. It spreads the whole
losses over a large number of persons who are exposed by a particular
risk.

B. Secondary Functions
1 Prevention of loss: Prevention is always better than cure. Prevention
is by far the best solution to the problem of risk. It is more effective
and cheapest method to avoid the unfortunate consequence. But
sometimes prevention is not always possible and Effective.
2 It provides capital: It provides the capital to the society. For plan
development of country there is a great need for huge amount of
capital. Now days, the insurance companies are rendering positive
help in the development of trade, commerce and industry of the
country.
3 It improves efficiency: Achievement of goals, it improves not only
his efficiency of the masses is also advanced. The insurance eliminates
worries and miseries of losses as death and destruction of property
care free person can devote his energies for better.
4.

It ensures the welfare of society: Insurance is a saga of service and

security to thee society. Security of the life and property given by insurance
bring peace of mind to the insured. The investment in LIC in welfare schemes
like electricity, housing, water supply, agro industry estates are able to solve
many problems in India.

5. It helps in economic progress: Insurance provides an initiative to

work hard for the betterment of the masses. Life insurance involves the
element of saving investment through small savings. And which has been
growing in recent yrs at an annual rate of about Rs. 400 crs, life insurance
is not a mere business organization, it has nobler welfare responsibilities
in the development of the economy.

*****

RESEARCH METHODOLOGY
Research: - is a process of collecting, analyzing, interpreting and
summarizing in a significant manner for the purpose of framing out
necessary conclusion and findings of data perceived and formulated for
deriving out the meaningful information. To carry our research necessary
telephonic calls needed to be done, suitable appointments were to be fixed
and therefore market survey is to be followed.
Objective of training: - To understand life insurance and recruitment of
capable life insurance advisors for growth prospects.
Process: Methodology or process involving in the Research followed
during the course of summer training is as follows: a) Collection of data: - This is an important aspect in formulating the
objective of research process where the data is collected via two
process: - i) Primary Sources and ii) Secondary sources
i)

Primary sources: - Where the data is collected primarily by

interviewing and personal observation and is original in nature and
accurate to the considerable extent.

ii)

Secondary sources: -Where the data is obtained from some published

and printed sources such as newspaper, magazines, websites and so
on.

b) Analyzing of collected data: - The data collected through market survey

and published sources is then processed to obtained necessary
inferences and findings for the purpose of achieving the objective as
well as to derive necessary conclusion. A considerable skill and
knowledge is involved in analyzing the data for the purpose of
interpreting thereof.
c) Interpreting of data: - it is the significant step where the data collected
and analyzed is interpreted in the forms of graphs and figures is
depicted in the report called Project report.
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 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 and ii) Systematic
sampling.
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: - 75 respondents.

*****

HDFC STANDARD LIFE INSURANCE

The Introduction
Standard Life Insurance Company Ltd. is one of India's leading private
insurance companies, which offers a range of individual and group
insurance solutions. It is a joint venture between Housing Development
Finance Corporation Limited (HDFC Ltd.), India's leading housing finance
institution and a Group Company of the Standard Life, UK. HDFC as on
March 31, 2007 holds 81.9 per cent of equity in the joint venture.
Our key strengths
Financial Expertise: As a joint venture of leading financial services
groups, HDFC Standard Life has the financial expertise required to manage
your long-term investments safely and efficiently.
Range of Solutions: We have a range of individual and group solutions,
which can be easily customised to specific needs. Our group solutions have
been designed to offer you complete flexibility combined with a low
charging structure.

Track Record so far: Our gross premium income, for the year ending
March 31, 2007 stood at Rs. 2, 856 crores and new business premium
income at Rs. 1,624 crores. The company has covered over 8,77,000 lives
year ending March 31, 2007
HDFC and Standard Life first came together for a possible joint venture, to
enter the Life Insurance market, in January 1995. It was clear from the
outset that both companies shared similar values and beliefs and a strong
relationship quickly formed. In October 1995 the companies signed a 3
year joint venture agreement. Around this time Standard Life purchased a
5% stake in HDFC, further strengthening the relationship.
The next three years were filled with uncertainty, due to changes in
government and ongoing delays in getting the IRDA (Insurance Regulatory
and Development authority) Act passed in parliament. Despite this both
companies remained firmly committed to the venture. In October 1998, the
joint venture agreement was renewed and additional resource made
available.

Around this time Standard Life purchased 2% of Infrastructure

Development Finance Company Ltd. (IDFC). Standard Life also started to
use the services of the HDFC Treasury department to advise them upon
their investments in India. Towards the end of 1999, the opening of the
market looked very promising and both companies agreed the time was
right to move the operation to the next level. Therefore, in January 2000 an
expert team from the UK joined a hand picked team from HDFC to form
the core project team, based in Mumbai.
Around this time Standard Life purchased a further 5% stake in HDFC and
a 5% stake in HDFC Bank. In a further development Standard Life agreed
to participate in the Asset Management Company promoted by HDFC to
enter the mutual fund market.

Promoters of HDFC Standard Life Insurance:

1. HDFC Limited
HDFC is Indias leading housing finance institution and has helped build
more than 23,00,000 houses since its incorporation in 1977. In Financial
Year 2003-04 its assets under management crossed Rs. 36,000 Cr. As at
March 31, 2004, outstanding deposits stood at Rs. 7,840 crores. The
depositor base now stands at around 1 million depositors.
Rated AAA by CRISIL and ICRA for the 10th consecutive year
Stable and experienced management
High service standards
Awarded The Economic Times Corporate Citizen of the year Award for
its long-standing commitment to community development.
Presented the Dream Home award for the best housing finance
provider in 2004 at the third Annual Outlook Money Awards.

Standard Life Group (Standard Life plc and its subsidiaries)

The Standard Life group has been looking after the financial needs of
customers for over 180 years. It currently has a customer base of around 7
million people who rely on the company for their insurance, pension,
investment, banking and health-care needs.
Its investment manager currently administers 125 billion in assets. It is a
leading pensions provider in the UK, and is rated by Standard & Poor's as
'strong' with a rating of A+ and as 'good' with a rating of A1 by Moody's
Standard Life was awarded the 'Best Pension Provider' in 2004, 2005 and
2006 at the Money Marketing Awards, and it was voted a 5 star life and
pensions provider at the Financial Adviser Service Awards for the last 10
years running.
The '5 Star' accolade has also been awarded to Standard Life Investments
for the last 10 years, and to Standard Life Bank since its inception in 1998.
Standard Life Bank was awarded the 'Best Flexible Mortgage Lender' at the
Mortgage Magazine Awards in

2006

Incorporation: Hdfc Standard Life Insurance Company Limited

The company was incorporated on 14th August 2000 under the name of
HDFC

Standard

Life

Insurance

Company

Limited.

Our ambition from as far back as October 1995, was to be the first private
company to re-enter the life insurance market in India. On the 23rd of
October 2000, this ambition was realised when HDFC Standard Life was
the only life company to be granted a certificate of registration. HDFC are
the main shareholders in HDFC Standard Life, with 81.4%, while Standard
Life owns 18.6%.
Given Standard Life's existing investment in the HDFC Group, this is the
maximum investment allowed under current regulations. HDFC and
Standard Life have a long and close relationship built upon shared values
and trust. The ambition of HDFC Standard Life is to mirror the success of
the parent companies and be the yardstick by which all other insurance
company's in India are measured.

Our Mission
We aim to be the top new life insurance company in the market. This does
not just mean being the largest or the most productive company in the
market, rather it is a combination of several things like Customer service of the highest order
Value for money for customers
Professionalism in carrying out business
Innovative products to cater to different needs of different customers
Use of technology to improve service standards
Increasing market share

Our Values
1 SECURITY: Providing long term financial security to our policy
holders will be our constant endeavour. We will be do this by offering
life insurance and pension products.
2 TRUST: We appreciate the trust placed by our policy holders in us.
Hence, we will aim to manage their investments very carefully and live
up to this trust.
3 INNOVATION: Recognizing the different needs of our customers, we
will be offering a range of innovative products to meet these needs. Our
mission is to be the best new life insurance company in India and these
are the values that will guide us in this.
Board of Directors:1 Mr. Deepak S Parekh is the Chairman of the Company. He is also the
Executive Chairman of Housing Development Finance Corporation
Limited (HDFC Limited).
2 Mr. Keki M Mistry is currently the Managing Director of HDFC
Limited. Mr. Alexander M Crombie is the Group Chief Executive of the
Standard Life Group in March 2004.

3 Ms. Marcia D Campbell is currently the Group Operations Director in

the Standard Life group and is responsible for Group Operations, Asia
Pacific Development, Strategy & Planning, Corporate Responsibility and
Shared Services Centre.
4 Mr. Keith N Skeoch is currently the Chief Executive in Standard Life
Investments Limited and is responsible for overseeing Investment
Process & Chief Executive Officer Function.
5 Mr. Gautam R Divan is a practising Chartered Accountant and is a
Fellow of the Institute of Chartered Accountants of India.
6 Mr. Ranjan Pant is a global Management Consultant advising
CEO/Boards on Strategy and Change Management.
7 Mr. Ravi Narain is the Managing Director & CEO of National Stock
Exchange of India Limited.
8 Mr. Deepak M Satwalekar is the Managing Director and CEO of the
Company.
9

Ms. Renu S. Karnad is the Executive director of HDFC Limited.

*****

PRODUCTS
At HDFC Standard Life, we offer a bouquet of insurance solutions to meet
every need. We cater to both, individuals as well as to companies looking
to provide benefits to their employees. This section gives you details of all
our products. We have incorporated various downloadable forms and
product details so that you can make an informed choice about buying a
policy.
For individuals, we have a range of protection, investment, pension and
savings plans that assist and nurture dreams apart from providing
protection. You can choose from a range of products to suit your life-stage
and needs.
For organisations we have a host of customised solutions that range from
Group Term Insurance, Gratuity, Leave Encashment and Superannuation
Products. These affordable plans apart from providing long term value to
the employees help in enhancing goodwill of the company.

Individual Products
We at HDFC Standard Life realise that not everyone has the same kind of
needs. Keeping this in mind, we have a varied range of Products that you
can choose from to suit all your needs. These will help secure your future
as well as the future of your family.
Protection Plans
You can protect your family against the loss of your income or the burden
of a loan in the event of your unfortunate demise, disability or sickness.
These plans offer valuable peace of mind at a small price. Our Protection
range includes our Term Assurance Plan & Loan Cover Term Assurance
Plan.
Investment Plans
Our Single Premium Whole Of Life plan is well suited to meet your long
term investment needs. We provide you with attractive long term returns
through regular bonuses.

Pension Plans
Our Pension Plans help you secure your financial independence even after
retirement. Our Pension range includes our Personal Pension Plan, Unit
Linked Pension, Unit Linked Pension Plus
Savings Plans
Our Savings Plans offer you flexible options to build savings for your
future needs such as buying a dream home or fulfilling your childrens
immediate and future needs. Our Savings range includes Endowment
Assurance Plan, Unit Linked Endowment, Unit Linked Endowment Plus,
Money Back Plan, Childrens Plan, Unit Linked Youngstar, Unit Linked
Youngstar Plus .

Group Products
One-stop shop for employee-benefit solutions
HDFC Standard Life has the most comprehensive list of products for
progressive employers who wish to provide the best and most innovative
employee benefit solutions to their employees.

We offer different products for different needs of employers ranging from

term insurance plans for pure protection to voluntary plans such as
superannuation and leave encashment. We now offer the following group
products to our esteemed corporate clients:
Group Term Insurance
Group Variable Term Insurance
Group Unit-Linked Plan
An investment solution that provides funding vehicle to manage corpuses
with Gratuity, Defined Benefit or Defined Contribution Superannuation or
Leave Encashment schemes of your company
Also suitable for other employee benefit schemes such as salary saving
schemes and wealth management schemes

Social Products
Development Insurance Plan
Development Insurance plan is an insurance plan which provides life cover
to members of a Development Agency for a term of one year. On the death
of any member of the group insured during the year of cover, a lump sum is
paid to that members beneficiaries to help meet some of the immediate
financial needs following their loss.
Eligibility
Members of the development agency and their spouses with:
- Minimum age at the start of the policy 18 years last birthday
- Maximum age at the start of policy 50 years last birthday
Employees of the Development Agency are not eligible to join the group.
The group to be covered is only eligible if it contains more than 500
members.

Premium Payments
The premium to be paid will be quoted per member in the group and will
be the same for all members of the group. The premium can only be paid
by the Development Agency as a single lump sum that includes all
premiums for the group to be covered. Cover will not start until the
premium and all the member information in our specified format has been
received. The premium rate is Rs. 25 per Rs. 10,000 of lump sum, per
member.
Benefits
On the death of each member covered by the policy during the year of
cover a lump sum equal to the sum assured will be paid to their
beneficiaries or legal heirs. Where the death is as a result of an accident, an
additional lump sum will be paid equal to half the sum assured. There are
no benefits paid at the end of the year of cover and there is no surrender
value available at any time.
The role of the Development Agency
Due to the nature of the groups covered, HDFC Standard Life will be
passing certain administrative tasks onto the Development Agency. By

passing on these tasks the premium charged can be lower. These tasks
would include:
Submission of member data in a specified computer format
Collection of premiums from group members
Recording changes in the details of group members
Disbursement of claim payments and the mortality rebate (if any) to
group members
These tasks would be in addition to the usual duties of a policyholder such
as:
Payment of premiums
Reporting of claims
Keeping policy holder information up to date
Training and support will be available to give guidance on how to complete
the tasks appropriately. Since these additional tasks will impose a burden
on the Development Agency, the Development Agency may charge a Rs.
10 administration fee to their members.

Prohibition of rebates
Section 41 of the Insurance Act, 1938 states
No person shall allow or offer to allow, either directly or indirectly, as an
inducement to any person to take out or renew or continue an insurance in
respect of any kind of risk relating to lives or property in India, any rebate
of the whole or part of the commission payable or any rebate of the
premium shown on the policy, nor shall any person taking out or renewing
or continuing a policy accept any rebate, except such rebate as may be
allowed in accordance with the published prospectus or tables of the
insurer If any person fails to comply with sub regulation (previous point)
above, he shall be liable to payment of a fine which may extend to rupees
five hundred
Tax Benefits
INCOME TAX SECTION GROSS ANNUAL SALARY HOW MUCH
TAX CAN YOU SAVE? HDFC STANDARD LIFE PLANS
Sec. 80C Across All income Slabs. Upto Rs. 33,990 saved on investment
of Rs. 1,00,000. All the life insurance plans.

Sec. 80 CCC Across all income slabs. Upto Rs. 33,990 saved on
Investment of Rs.1,00,000. All the pension plans.
Sec. 80 D* Across all income slabs. Upto Rs. 3,399 saved on Investment of
Rs. 10,000. All the health insurance riders available with the conventional
plans.
TOTAL SAVINGS POSSIBLE ** Rs. 37,389
Rs. 33,990 under Sec. 80C and under Sec. 80 CCC , Rs.3,399 under Sec.
80 D, calculated for a male with gross annual income exceeding Rs.
10,00,000.
Sec. 10 (10) D

Under Sec. 10(10D), the benefits you receive are

completely tax-free, subject to the conditions laid down therein.

* Applicable to premiums paid for Critical Illness Benefit, Accelerated
Sum Assured and Waiver of Premium Benefit.
** These calculations are illustrative and based on our understanding of
current tax legislations, which are subject to change.
Please contact your tax consultant for exact calculation of your tax
liabilities.

*****

LIFE INSURANCE FINANCIAL CONSULTANT

Eligibility for an Insurance Agent
Every person who has cleared higher secondary examination can become
an Agent other than a minor or the person who is convicted in any court for
crime or any legal proceedings. Men and women both can work as an
Agent. A single person can be associated with other life insurance
companies.
A training program is there to train a person who wants to become an
Agent. There is 100 Hrs. training program which can be done either with
the physical appearance in the class room or the interest basis. In the
classroom training the trainee has to be physically present in the training
session. There are difference sessions of training program. A trainee can
attend any session according to his comfort. The training period is of 25
days approx. If the trainee does not have enough time to devote in the
classroom training, then there is another option left that is training on
Internet.

On the basis of Internet the trainee has provided a login number along with
the password through which he operated his login and completed his
training hrs ,as an when convenient. Each and every hour pass on the net
under his login head will be count on his account. The test for the training
program is also on line. This is only procedure to be an Insurance Agent.
Scope of Insurance Agent
In the present scenario the living standard is becoming higher and higher
every day. Every person who has a family to survive wants to provide his
family each and every possible comfortable thing. He wants his children to
be a well dressed, to be higher qualified in a well recognized school,
colleges, institutes and wants his children to go abroad for higher
education. He wants to live a luxury life full of pleasure.
To fulfill all of his needs he has to earn more and more. Any person can be
on a job at a time or can be on a business cant fulfill his pleasure
requirement. There is a source through which he can make money in a legal
way that is insurance sector.

Becoming an insurance Agent provides him the legal source by which he can
earn money with his current status. It is the business in which you deal with
you personal contacts and can gain extra income. This business needs low
investment and not of much effort. Its all depend on your social contacts and
your skills to convince people by helping them to suggest the product which
suited them the most. As due to critical diseases, growing percentage of
accident and fear of financial crisis everyone wants to secure his or her future.
Insurance sector plays a vital role in assuring people about their future. As the
scope of insurance enhancing, the need of an insurance Agent who can guide
the potential customers is growing. Being an Insurance Agent of HDFCSTANDARD LIFE INSURANCE provides a legal mean to earn money which
protects a person from earning through a illegal source which is harmful for
society as well as himself. For the youngsters it provides great platform to
prove them. On the basis of their performance they can be recruited as unit
manager. Its recruitment procedure is very easy. A person with high educating
and well experience can be recruited after a personal interview and group
discussion. After the training program is completed the Insurance Agent has to
appear for the pre-examination conducted by IRDA. As he clear the exam he
provides a license, which is the proof of a legalized insurance Agent, which
permits him to deal in his insurance business.

RECRUITMENT PROCESS:
Steps in recruitment of Insurance Agents
Approach to the likely person
Appointment as per condition
Discuss the topic
Give the documents which includes:1 Prospectus of the company
2 Brochure
3 Companys plan
4 Questionnaire

Collect the document after its completion

Forward it to project manager

Feed it in the computer as the database

Follow up as per conditions

Modes of Contact
Personal Contacts
References
Phone Calls
Guidance as per Unit Manager

RESPONSES

*****MARKET SURVEY

60
50
40
30
20
10
0

LIFE INSURANCE IS:

51
39

Protection of
Tax benefit device
human asset value
against uncertaintyCATEGORY

10

Both

From the survey it was drawn that life insurance is more a protection of
human asset value against uncertainty (conferred by 51 respondents) where
it is a tax saving option (being accepted by 38 respondents). Life insurance
is a service involving both these prerequisites as depicted by remaining 16
respondents. The following depicted this:
Protection of human asset value against uncertainty
(figures in %age)

51

Tax benefit device

(figures in % age)

33

Both (figures in % age)

16

RESPONDENTS

IS LIFE INSURANCE ESSENTIAL?

75

NO. OF

80
70
60
50
40
Yes
No
30
RESPONSES
20
10
0

25

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

and should be applicable to every one, 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
10%
33%

Post graduate
Graduate
Senior secondary

57%

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
(in %age)

30

Graduate
(in % age)

59

Senior secondary
(in % age)

11

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
(figures in %age)

41

25 35 age group
(figures in %age)

35

35 45 age group
(figures in %age)

18

Above 45 age group

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 earning
Low employment

24

3
5
1

Low status

16 All of the above

1
Huge capital investment

NO. OF

RESPONDENTS

ABOUT CAREER IN LIFE INSURANCE

70
60

55
45

50
40
30
20
10
0
Yes

RESPONSES

No

When asked about whether they would like to know about a glorified
career in life insurance agency where they can fulfill any and every desire
of their life, 59 respondents agreed while 46 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.

RESPONDENTS

IS LIFE INSURANCE A NOBLE SERVICE?

NO. OF

100

85

80
60
40

15

Yes 20
No
0
RESPONSES

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 respondents agreed and believe that
insurance is a bettering service to human life and society as a whole where
as 19 respondents show disagreement.

RESPONDENTS

ACCEPT LIFE INSURANCE AS A CAREER?

NO. OF

50

41

40
30

18

20
10

Yes

No

0
RESPONSES

From the 59 respondents who agreed to know about the life insurance as a
career, 18 of them agreed to join HDFC Standard 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.

RESPONDENTS

IS LIFE INSURANCE INDUSTRY GROWING?

87

100
80
60
40

13

Yes 20
No
0
RESPONSES

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.

RESPONDENTS

AGREE WITH PRIVATISATION OF LIFE

INSURANCE?
70
80
70
60
50
40
30
30
20
10
0
Yes
No
RESPONSES

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.
The myth of LIC since it is a Government concern is still continue to
prevail even though people have become more advanced and they can
invest their hard earned money after undertaking their pros nad cons and
company position in the market.

*****

SWOT ANALYSIS
STRENGTHS
1. HDFC Standard life insurance offers a range of individual and group
insurance solutions.
2. HDFC Standard Life has the financial expertise required to manage

your long-term investments safely and efficiently.

3. The company has covered over 10,77,000 lives year ending March

31, 20012
4. Rated AAA by CRISIL and ICRA for the 10th consecutive year for
High service standards
5. Life insurance industry is a rapid growing and a nobler service
industry.

WEAKNESSES
1. LIC is prevalent and sustains even today a major source of
population.
2. Low number of offices and network and number of life insurance
agents.
3. Lack of knowledge and expertise.

OPPORTUNTIES
1. Life insurance has captured its mere15 20% growth therefore a
wide open untapped market is open to the company to develop, grow
and measure its success.
2. Still the number of companies are few and company has every
capabilities to grow and forward its performance areas to the widest

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. HDFC
standard life insurance is a life insurance company under which I gained a
significant knowledge with respect to life insurance, 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.
At far I can conclude that life insurance is a noble service which is very
important for every citizen to learn and realize its importance because this is
the only source which can remain the status where one is with the family bread
earner and ever when he is not.
With the growing financial sector I would like to opt this industry for my future
career advancement and as an opportunity to service this industry.

*****

RECOMMENDATIONS
Following are suggestions made for the benefits and augmentation of
the sound working of the company HDFC Standard life insurance:
1. Need to train and develop life insurance agents with more
comprehensive knowledge and skills to counter every queries of the
customer.
2. It is suggested that company should not left any stone unturned
towards sound advertisement and promotional measures on every
section whether it is printed, media or or air via radio.
3. It is also suggested that skilled management graduates need to be
places on sales and marketing of financial servies who can render
their best ideas for the accomplishment of the company goals and
objectives to the best extent.
4. Also, care need to be taken that every customers grievance should be
met with delight whether before purchase or after sales.

5. There should be an expansion measure for more offices and

6. Location of more centres for offices of the company be established

sop that company may grow its network.
7. there should more advanced measures are required to develop to
capture the needs of customer so that they can be inspire and
motivated to invest in the life insurance products being provided by
the HDFC Standard life insurance.
8. Life insurance Products should be made flexible so as to suit every
section of society.

*****

BIBLIOGRAPHY
Following are sources which helped me during my summer training:
BOOKS:
KOTHARI C.R.: Research Methodology Management, 3rd Edition
KOTLER PHILIP: Marketing Management 11th Revised edition ,2002
GUPTA S.P.: Statistical Methods Thirteen revised edition, 2001
MAGAZINES:
India Today
Business World
REFERENCES
Websites: www.hdfcinsurance.com
www.irdaindia.org
www.liccouncil.org
www.businessconnect.com

*****

QUESTIONNAIRE
Name: -
Age:-
Location: -
Occupation: -

Q.1. What do you mean by life insurance?

a) Protection of human asset value against uncertainty

b) A sum received after death

c) Both

Q.2. Do you think life insurance is essential for every one?

a) Yes

b) No

Q.3. What is your qualification?

a) Post graduate

b) Graduate

c) Senior secondary
Q.4. Do you come under:
a) 18-25 age group

b) 25 35 age group

c) 35 45 age group

d) Above 45 age group

Q.5. 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.6. 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.7 Do you perceive that life insurance business is a noble service

oriented business?
a) Yes

b) No

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

and

insurance?
a) Yes

b) No

prospering

organization

HDFC

Standard

Life

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 favour 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.
3.
4.
5.
HDFC STANDARD LIFE INSURANCE

GLOSSARY
Application for insurance: This is the form on where you state information and answer
questions from the insurance company about yourself and your history. This application
along with information from a medical examination, if taken, from your physicians, any
hospitals you may have visited and investigation are what's used by the insurance
company to decide whether or not to offer you life insurance and at what rate.

Accident Benefit: A rider or An add-on with a life policy. It compensates a

policyholder in the event of death or injury by accident
Annuity: An investment option that makes a series of regular payments to
an individual in exchange for a premium or a series of premia.
Appreciate: To grow in value
Asset: Everything owned or due to a person
Asset allocation: How your investments are spread across various asset classes

Beneficiary: The person(s) named in the policy to receive the life insurance
proceeds upon the death of the insured.

Bond: It is like an IOU. By buying a bond you loan money to a company, a

municipality, state or the Central Government
Bonus: The amount paid as return in a with-profit policy. The bonus,
expressed as a percentage of the sum assured, is generally declared every
year. The amount is linked to the profits earned by the insurer. Depending
on the time of withdrawal, there are two kinds of bonuses reversionary
and cash. A reversionary bonus can be encashed only on maturity of the
policy; a cash bonus can be withdrawn when declared
Budget: It is a tool used to monitor and control expenditures and purchases.
Cash (Surrender) Value: The amount that is available in cash for loans and
that may be available for withdrawals in a whole life insurance, universal
life insurance or survivorship life insurance policy.

Accessing Cash

Surrender Value may reduce the death benefit and may increase the risk of
lapse.
Contestability, Contestable Clause: In insurance there is a clause, which
explains the conditions under which the insurer may contest or void the life
insurance policy. This contestability is for a limited period of time, which
in most states is two years.

After that period of time the insurance

company cannot contest the policy.

Convertible Term Insurance: Term insurance which can be exchanged

(converted), at the option of the policyowner and without evidence of
insurability, for a whole life insurance policy or universal life insurance
policy.
Capital gains: Profit earned from the sale of stocks, mutual fund units and
real estate. Long-term capital gains arise from assets owned for more than a
year while short-term capital gains are made from assets owned for less
than a year.
Compound Interest: Interest computed on principal plus interest accrued
during the previous periods of the investment
Critical illness rider: A rider that provides a policyholder financial
protection in the event of a critical illness
Death benefit: The amount payable to the nominee on death of the
policyholder. The amount paid is the sum assured plus benefits applicable
(if any) less outstanding loans.
Declining term cover: A type of pure life protection insurance policy where
the premia remain the same while the life coverage keeps declining.

Disability / dismemberment benefit rider: A rider that provides for

additional cover in the event of disability, or dismemberment, of the policy
holder due to an accident
Dividends: Payments made by companies and mutual funds to shareholders
and unit-holders, respectively, from the income generated by it.
Dividend yield: The percentage of dividend paid on a share to the value of
the share.
Emergency fund: The money, in the form of liquid investments in bank
savings accounts, 2-in-1 accounts and liquid funds to take care of
emergencies like a job loss not covered by insurance policies.
Endowment plans: An insurance plan that provides a policyholder risk
cover and some return on investment.
Effective rate of interest: The true rate as against the nominal rate, which
may be incorrect.
Equity: The actual ownership interest in a specific asset or group of assets
Financial planning: It covers the essential elements of a persons financial
affairs and is aimed at achieving a persons financial goals.

Fixed deposit: Funds placed on deposit in a bank, company or post office at

a fixed rate of interest.
Face Amount: The amount stated on the face of the policy that will be paid
in case of death. It does not include additional amounts payable under
accidental death or other special provisions, or acquired through the
application of policy dividends.
Fixed-income investment: Any investment that provides a stated percentage
of value, say 6 per cent, on the invested amount.
Group Insurance: An insurance policy taken out by employers to provide
life cover to their employees. Cheapest form of insurance
Guaranteed additions: The amount paid as returns in assured-return
insurance plans. Guaranteed additions are expressed as a percentage of the
sum assured, with the amount payable being stated by the insurer at the
outset.
Grace Period: Life insurance premiums are due on a certain date, if you are
late in paying, policies allow a period of time where you can still pay your
premium and not lose your polcy. This is the grace period. Most policies
allow a grace period of 30 days from the due date. After the grace period,

if the premium is not paid, the policy can lapse i.e. be terminated by the
insurance company.
Insurability: Acceptability to the company of an applicant for insurance.
Where Insured or Insured Life: The person on whose life the policy is
issued.
Immediate annuity: An annuity that starts payments immediately after, or
soon after, the first premium is paid
Index fund: A scheme whose portfolio mirrors the progress of a particular
index, both in terms of composition and individual stock weight ages. Its a
passive investment option, as a funds performance will mimic the index
concerned, barring a minor tracking error.
Insured: The policyholder
Insurer: The insurance company
Investments: Assets like fixed deposits, post office savings, bonds and
stocks that are acquired for the purpose of earning a return
Investment risks: The risks that your investments face. These include the
risk of interest rate fluctuations impacting your debt investments or the
prices of equities going down.

Key person life insurance: When one has a key person in a business
without whom the business would suffer financially, key person life
insurance is often purchased which helps to reimburse the company for the
business loss incurred by the death of this person.
Level Premium (Life Insurance): Life insurance for which the premium
remains the same from year to year. The premium is normally more than
the actual cost of protection during the earlier years of the policy and less
than the actual cost in the later years. The building of a reserve is a natural
result of level premiums. The payments in the early years, together with the
interest that is to be earned, serves to balance out the underpayment of the
later years.
Level term cover rider: A rider that increases the life cover in non-term
plans, up to a maximum of the sum assured on the base policy. The rider
offers death benefit along, and serves the need for extra protection for a
specified time period.
Life annuity: An annuity that makes regular income payments till the
policyholder is alive. On the policyholders death, all income payments
cease and there are no beneficiary benefits.

Liquidity: The quality of assets that can be easily and quickly converted
into cash without any, or significant, loss in value.
Loyalty

additions:

Additional

benefits

(other

than

guaranteed

additions/bonus) paid to policyholders on maturity of certain investmentbased insurance plans for staying on through its term.
Lock-in period: The period of time for which investments made in an
investment option cannot be withdrawn.

Life Expectancy: The average number of years remaining for an individual

to live shown at each age based on long term studies by insurance
companies. These statistics as shown on charts called mortality tables..
Life Insurance: A contract between an owner (often the insured person) and
a life insurance company that guarantees the payment of a stated amount of
money on the death of the insured.
Loan (Policy Loan): A loan made by a life insurance company from its
general funds to a policy owner on the security of the cash value of a
policy.

Market value: The monetary value an asset will fetch if sold in the market
today.
Maturity date: The date on which a policy term or fixed-income investment
like fixed deposit or bond comes to an end.
Money-back plans: A variant of endowment plans where survival benefits
are disbursed through the policy term, than paid lump sum.
Net asset value (NAV): A schemes NAV is its net assets (the market value
of the financial securities it owns minus whatever it owes) divided by the
number of units it has issued.
Nominee: The person(s) nominated by the policyholder to receive the
policy benefits in the event of his death.
Participative plans: with-profit policy
Pension Plan: Investment products offered by insurance companies and
mutual funds that required the investor to make defined contributions over
regular periods, mostly every year. The contributions are invested
according to a pre-decided investment plan. At retirement, the
accumulation is paid out through regular pay-out options.

Periodic payment investments: Investment options that have payouts in

fixed intervals. For example, money-back life insurance policies.
Permanent partial disability: Permanent loss of any body part, one eye, one
limb or one finger or a toe, or injuries that render the insured in capable of
earning an income from the date of the accident onwards from any work,
occupation or profession.
Permanent total disability: Permanent loss of use of any two limbs, or
permanent and complete loss of sight in both eyes or any other injury that
renders the insured incapable of earning an income.
Policy: The legal document issued by an insurance company to a
policyholder that states the terms and conditions of an insurance contract.
Policyholder: The person who buys an insurance policy as insured.
Policy term: period for which an insurance policy provides cover
Post office schemes: Also known as Small Savings schemes, they are
offered at post offices and carry the highest returns among fixed income
instruments. Government backing makes these instruments like Public
Provident Fund (PPF), National Savings Certificate (NSC), Kisan Vikas
Patra (KVP) and Post Office Monthly Income Scheme (POMIS) risk-free

Premium: The amount paid by the insured to the insurer to buy cover
Recurring deposit: This is offered both in post office and banks where you
are required to contribute a fixed amount ever month. It is a great tool for
making small and regular savings.
Revolving credit: A pre-established credit line, typically in a credit card,
against which a person may borrow to make purchases.
Riders: Additional covers that can be added to a life policy, for a cost
Sum assured: The amount of cover taken under a life insurance policy, it is
the minimum amount that will be paid on death of the policyholder during
the policy term.
Surrender value: The amount payable by the insurer to the owner of an
investment-based plan in case he opts to terminate the policy after three
years (the mandatory lock-in period) but before its maturity date.
Survival benefits: The amount payable to a policyholder under an
investment-based plan if he survives the policy term.
Temporary total disability: An injury that results from an accident and
renders a person immobile or affects his earning capacity temporarily.

Term plans: A plan that provides life cover for a specified period of time,
but no return on the premia paid
Terminal bonus: one-time bonus paid on maturity viawith-profit plan
Vesting date: It is a date signifying a milestone in a policy. In pension
plans, it is the date from which the policyholder starts receiving pension. In
childrens plans, it is the date from which a child becomes the owner of a
policy taken out in his name (generally, around his 18th birthday).
Waiver of premium rider: A rider that waives the premia payable on the
base policy and other riders in certain circumstances mostly related to
death, disability or injury. An important feature especially for investment
products such as childrens policies.
Wealth: The difference between the value of what you own (assets) and
what you owe (liabilities).
With-profit policy: An insurance plan in which the policyholder gets a
share of the insurers profits ( in the form of guaranteed additions / bonus).
Along with the sum assured.
Without-profit policy: An insurance plan in which the policyholder does
not get any share of the insurers profits

Whole-life plans: Class of life insurance policies that provide cover

through your lifetime.

Mutual life insurance company: A life insurance company owned by the

policyholders.

Policyholders of a mutual life insurance company may

participate in the "divisible surplus" of the life insurance company as

owners.

They can receive dividends, most commonly on whole life

policies, which can enhance the cash value, increase the insurance amount
or lower premiums.
Owner of a life insurance policy: A life insurance policy can be owned by
the insured person or an individual, a company or a trust with an insurable
interest in the insured person. Insurable interest means there would be a
financial loss by the owner in the event of the death of the insured person.
Paid-up Insurance: Insurance that will remain in force with no need to pay
additional premiums.
Participating Policy: A life insurance policy that is eligible for the payment
of dividends by the insurer (see also Dividend.)

Permanent Life Insurance: Any form of life insurance except term;

generally insurance that builds up a cash value, such as whole life.
Universal life and whole life are types of permanent life insurance.

Policy Owner: The person who owns a life insurance policy. This is usually
the insured person, but it may also be a relative of the insured, a partnership
or a corporation.
Premiums: Payments to the insurance company to buy a policy and to keep
it in force.
Renewable Term Insurance: Term insurance which can be renewed at the
end of the term, at the option of the policy owner and without evidence of
insurability, for a limited number of successive terms. The rates generally
increase at each renewal as the age of the insured increases.
Return of premium life insurance: Also known as return of premium term
life insurance, this is term life insurance for a period of time where one
receives a guaranteed return of premiums paid if you keep the policy for
the term period. For example, 20 year return of premium term would
guarantee a return of premium paid after you paid 20 years of premium.

Most of these policies also give a partial return of premium if you keep the
policy for a great part of the years.

Second to die life insurance: Life insurance that pays the benefit after two
people die. See survivorship life insurance in this glossary.
Stock life insurance company: A stock life insurance company is owned by
stockholders. Contrast this with mutual life insurance company.
Survivorship life insurance: Life insurance purchased on two individuals,
usually man and wife, where the life insurance benefit is paid after both
individuals have died. This type of life insurance became popular as a
solution to paying estate taxes. The estate tax law allowed a couple to
delay paying estate taxes until both had died.
Thus, survivorship life insurance became popular as a less expensive way
for heirs to pay estate taxes. The premiums are less than buying life
insurance on one life. By paying premiums now the theory is that one can
"pre-pay" the estate taxes because of the lump sum that comes in after the
second death. .

Term life Insurance: Term insurance is life insurance coverage for a

specified period of time. This can be at a guaranteed rate or in some cases a
guaranteed rate for a period of time and then a projected rate.
Term periods can be for 1 year, 5 years, 10 years, 15, 20 and even 30 years.
For example: 30 year level term would guarantee a level premium for 30
years based on a specified death benefit. Term life insurance is usually the
least expensive form of life coverage, at least initially. After the initial term
period of years, 5,10,15, 20, 30 etc. the policy could terminate or it can
renew at a higher premium.
If you are allowed to renew it at a higher premium (based on your then
attained age), it is called renewable term life insurance.
Universal life insurance: Universal life insurance is permanent life
insurance with premiums that are not guaranteed. To a certain degree one
can "design" a premium on this type of policy.

Universal life insurance

often can be set up with a lower premium initially than whole life
insurance.
Premiums and values are based on projections of assumed interest rates, the
cost of insurance (also known as mortality cost) and the insurance

company's expenses. The actual premium paid may increase because

interest rates may go lower or the projected cost of insurance may increase.

Waiver of premium: This is an extra or add-in (called a rider in insurance

lingo) that can be added to most individual life insurance policies which
waives (allows you to stop paying) the payment after the insured person
has been disabled (as described and defined in the insurance policy) for a
specified period of time, usually six months. At that time, the six months
premium paid along with future premium payments are waived.