INDEX

SR NO. CONTENT PAGE NUMBER

10

11

12

13

14

15
 FIGURES, FLOW DIAGRAMS AND TABLES

SR NO DESCRIPTION PAGE NO.

10

11

12

13

14

15
 ACKNOWLEDGEMENT

An endeavor over a period can be successful only with the advice and support of the well
wishers, with this I would say that the satiation and euphoria that accompany the successful
completion of the project would be incomplete without the mention of the people who made it
possible. I would like to thank and express my deep sense of gratitude to my mentor Manager
- Mr. Ankur Rai. I am greatly indebted to him for providing his valuable guidance at all stages
of the study, his advice, constructive suggestions, positive and supportive attitude and
encouragement, without which it would have not been possible to complete the project.

I owe my wholehearted thanks to Mr. Naveen Sharma, Mr. Sanjay Sharma, Mr. Ranveer Sharma
and all the other staffs and workers who guided me throughout the project and cooperated with
me continuously.

I am thankful to Ms. Ashima Sharma for giving me the opportunity to work with SBI Life
Insurance.

I hope that I can build upon the knowledge and experience which I have gained in the industry
and contribute to the company as an asset with full strength, and efficiency in the coming future.
 EXECUTIVE SUMMARY

LIFE INSURANCE:
Life insurance may be defined as a contract in which the insurer, inconsideration of a certain
premium, either in a lump sum or by other periodical payments, agrees to pay the assured, or to
the person for whose benefit the policy is taken, the assured sum of money, on the happening of
a specified event contingent on the human life. Life insurance is a contract under which the
insurer (Insurance Company) inconsideration of a premium paid undertakes to pay a fixed sum
of money on the death of the insured or on the expiry of a specified period of time whichever is
earlier. In case of life insurance, the payment for life insurance policy is certain. The Event
insured against is sure to happen only the time of its happening is not known. So life insurance is
known as Life Assurance. The subject matter of insurance is life of human being. Life
insurance provides risk coverage to the life of a person. On death of the person insurance offers
protection against loss of income and compensate the titleholders of the policy.

ROLE OF LIFE INSURANCE: -

Life insurance as an investment:
Insurance products yield more than any other investment instruments and it also provides added
incentives or bonus offered by insurance companies.

Life insurance as risk cover:

Insurance is all about risk cover and protection of life. Insurance provides a unique sense of
security that no other forms of invest can provide.

Life insurance as tax planning:

Insurance serves as an excellent tax saving mechanism too.

IMPORTANCE OF LIFE INSURANCE:

Protection against untimely death:

Life insurance provides protection to the dependents of the life insured and the family of
the assured in case of his untimely death. The dependents or family members get a fixed sum of
money in case of death of the assured.

Saving for old age:

After retirement the earning capacity of a person reduces. Life insurance enables a person to
enjoy peace of mind and a sense of security in his/her

Promotion of savings:
Life insurance encourages people to save money compulsorily. When life policy is taken, the
assured is to pay premiums regularly to keep the policy in force and he cannot get back the
premiums, only surrender value can be returned to him. In case of surrender of policy, the
policyholder gets the surrendered value only after the expiry of duration of the policy.

Initiates investments:
Life Insurance Corporation encourages and mobilizes the public savings and canalizes the same
in various investments for the economic development of the country. Life insurance is
an important tool for the mobilization and investment of small savings.

Credit worthiness:
Life insurance policy can be used as a security to raise loans. It improves the credit worthiness of
business.

Social Security:
Life insurance is important for the society as a whole also. Life insurance enables a person to
provide for education and marriage of children and for construction of house. It helps a person to
make financial base for future.

Tax Benefit:
Under the Income Tax Act, premium paid is allowed as a deduction from the total income under
section 80C.
How Life Insurance Works
Life insurance is a contract between an individual with an insurable interest and a life insurance
company to transfer the financial risk of a premature death to the insurer in exchange for a
specified amount of premium. The three main components of the life insurance contract are a
death benefit, a premium payment and, in the case of permanent life insurance, a cash value
account.

Death Benefit: The death benefit is the amount of money the insureds beneficiaries will receive
from the insurer upon the death of the insured. Although the death benefit amount is determined
by the insured, the insurer must determine whether there is an insurable interest and whether the
insured can qualify for the coverage based on its underwriting requirements.

Premium Payment: Using actuarially based statistics, the insurer determines the amount of
premium it needs to cover mortality costs. Factors such as the insureds age, personal and family
medical history, and lifestyle are the main risk determinants. As long as the insured pays the
premium as agreed, the insurer remains obligated to pay the death benefit. For term policies, the
premium amount includes the cost of insurance. For permanent policies, the premium amount
includes the cost of insurance plus an amount that is deposited to a cash value account.

Cash Value: Permanent life insurance includes a cash value component which serves two
purposes. It is a savings account that allows the insured to accumulate capital that can become a
living benefit. The capital accumulates on a tax-deferred basis and can be used for any purpose
while the insured is alive. It is also used by the insurer to mitigate its risk. As the cash value
accumulates, the amount the insurer is at risk for the entire death benefit decreases, which is how
it is able to charge a fixed, level premium.
ADVANTAGES OF LIFE INSURANCE

Life insurance provides an infusion of cash for dealing with the adverse financial
consequences of the insured's death.
Life insurance enjoys favorable tax treatment unlike any other financial instrument.

Death benefits are generally income-tax-free to the beneficiary.

Death benefits may be estate-tax free if the policy is owned properly.
Cash values grow tax deferred during the insured's lifetime.
Cash value withdrawals are treated on a first-in-first-out (FIFO) basis, therefore cash
value withdrawals up to the total premiums paid are generally income-tax free.
Policy loans are income tax free.
A life insurance policy may be exchanged for another life insurance policy (or for an
annuity) without incurring current taxation.
Many life insurance policies are exceptionally flexible in terms of adjusting to the
policyholders needs. The death benefit may be decreased at any time and the premiums
may be easily reduced, skipped or increased.

DISADVANTAGES OF LIFE INSURANCES

Policyholders forego some current expenditure to pay policy premiums. Moreover, life
insurance is typically purchased for the benefit of others and usually only indirectly for
the insured person.
Cash surrender values are usually less than the premiums paid in the first several policy
years and sometimes a policy owner may not recover the premiums paid if the policy is
surrendered.
The life insurance purchase decision and the positioning of the life insurance can be
complex especially if the insurance is for estate planning, business situations or complex
family situations.
The life insurance acquisition process can be annoying and perplexing (e.g. is the life
insurance agent trustworthy? Is this the right product and carrier? How can medical
underwriting be streamlined?).
OVERVIEW OF SBI LIFE INSURANCE

INTRODUCTON

SBI Life Insurance is a joint venture life insurance company between State Bank of
India (SBI), the largest state-owned banking and financial services company in India, and BNP
Paribas Cardiff. BNP Paribas is a French multinational bank and financial services company
with global headquarters in Paris. SBI owns 70.1% of the total capital and BNP Paribas Cardiff
26% of the capital. Other investors are Value Line Pte. Ltd. and MacRitchie Investments Pte.
Ltd., holding 1.95% of the total capital each. SBI Life Insurance has an authorized capital of 20
billion (US$310 million) and a paid up capital of 10 billion (US$160 million).
State Bank Group has the unrivalled strength of over 23,000 branches across the country,
arguably the largest in the world.

BNP Paribas Cardif is the life and property & casualty insurance arm of BNP Paribas, one of the
strongest banks in the world. BNP Paribas Group, having presence in more than 80 countries
ranks highly in Retail Banking, Investment Solutions and Corporate & Investment Banking. BNP
Paribas Cardif is one of the world leaders in creditor insurance and its life and non-life insurance
units have received an AA rating from Standard & Poors.

SHARES
4%

26% SBI
BNP PARIBHAS
OTHERS
70%
 PLANS OF SBI LIFE INSURANCE

SBI PLANS

TRADITIONAL PLANS ULIP PLANS GROUPS PLANS

 TRADITIONAL PLANS
TRADITIONAL
PLANS

SAVINGS AND RETIREMENT

TERM PLANS CHILD PLANS PENSION PLANS
INVESTMENT PLANS

SMART
SMART MONEY
SMART SHIELD CHAMPION SARAL PENSION E-SHIELD
BACK
INSURANCE

SMART BACHAT SARAL SHIELD RETIRE SMART

SMART SAV SMART

ANNUITY PLUS
DHAN PLUS HMASAFAR

SMART WOMEN
ADVANTAGE

SMART MONEY
PLANNER

SMART INCOME
PROTECT

GUARENTEE
SAVINGS PLAN

SHUBH NIVESH

FLEXI SMART
 ULIP PLANS
ULIP PLANS

RETIREMENT PROTECTION
SAVINGS PLANS CHILD PLANS
PLAN PLANS

SMART BACHAT SMART SCHOLAR RETIRE SMART eINCOME SHIELD

SMART WOMEN SMART CHAMP

SARAL PENSION SMART SHIELD
ADVANTAGE INSURANCE

SMART
ANNUITY PLUS SARAL SHIELD
SWADHAN LUS

SMART
eSHIELD
HUMSAFAR

SMART MONEY
GRAMEEN BIMA
PLANNER

CSC SARAL
SANCHAY

SMART INCOME
PROTECT

SMART
GUARANTEED
SAVINGS PLAN

SMART MONEY
BACK GOLD

SHUBH NIVESH

SARAL SWADHAN

FLEXI SMART
PLUS
 GROUP PLANS

GROUP PLANS

CORPORATE GROUP LOAN GROUP MICRO

SOLUTIONS PROTECTION INSURANCE PLANS
PRODUCTS

GROUP
RETIREMENT
PROTECTION GRAMIN SHAKTI
SOLUTIONS
PLANS RINN RAKSHA

PRADHAN MANTRI
Kalyan ULIP Plus JEEVAN JYOTI
BIMA YOJANA

SAMPOORN
Swarna Jeevan
SURAKSHA

Gaurav Jeevan

CapAssure Gold
 TOP 5 TRADITIONAL PLANS

SMART
SMART
MONEY BACK SHUBH NIVESH
BACHAT
GOLD

SMART
SMART
INCOME
CHAMP
PROTECT

SMART MONEY BACK GOLD-

INTRODUCTION-Smart Money Back Gold is a savings plan with added advantage

of life cover and cash inflow at regular intervals. It is a participating traditional money
back insurance plan, meeting your various financial obligations at crucial junctures
through its wide range of policy terms. Regular payments of Survival benefits are made
at different intervals during the policy term. In the event of an unfortunate death any time
during the Policy Term, your nominee would receive the full Sum Assured plus Simple
Reversionary Bonus and Terminal Bonus, irrespective of Survival Benefits already paid.

KEY FEATURES-

Money Back options specially tailored to suit your requirements

Fixed cash inflows which can meet your various financial obligations

Survival Benefit of 110% of Sum Assured paid till maturity

Rebates on Large Sum Assured

Customize your coverage through the wide range of additional rider benefits -
SBI Life - Accidental Death Benefit Rider, SBI Life - Accidental Total and
 Permanent Disability Benefit Rider, SBI Life - Preferred Term Rider and SBI
Life - Criti Care,13 Non-Linked Rider.

Survival Benefit Installments (% of Basic Sum Assured)

Plan Options Option 1 Option 2 Option 3 Option 4

End of Policy year / Policy
12 15 20 25
term
3 20% 15%
4 15%
5 15%
6 20% 15%
8 15%
9 20% 15%
10 15%
12 50% 15% 15%
15 50% 15%
16 15%
20 50% 15%
25 50%
Total (% of Basic Sum
110% 110% 110% 110%
Assured)

PRODUCT SNAPSHOT-

Age^ at Entry Plan Option 1 - Option 2 - Option 3 - Option 4 -

Options Term 12 Term 15 Term 20 Term 25
years years years years
Min.
15 years 15 years 14 years 14 years
entry age
Max.
55 years 55 years 50 years 45 years
entry age
 Age^ at Max: 70 years (67 years for
Min: 27 years
Maturity option 1)
Sum Assured Min: Rs.75,000 (x 1,000/-) Max: No Limit*
Policy Term Option 1 Option 2 Option 3 Option 4
12 years 15 years 20 years 25 years

Premium
Same as policy term
Paying Term
Premium
Yearly / Half-yearly / Quarterly / Monthly
Frequency
Premium Min. Max.
Yearly - Rs. 4,500 No Limit
Half yearly - Rs. 2,400 No Limit
Quarterly - Rs. 1,200 No Limit
Monthly# - Rs. 400 No Limit
Premium Half-Yearly: 51.00% of annual premium
Frequency Quarterly: 26.00% of annual premium
Loading Monthly: 8.50% of annual premium

SHUBH NIVESH

INTRODUCTION-SBI Life - Shubh Nivesh is a non- linked, with profit

Endowment Assurance product with an option of Whole Life coverage. The basic
purpose is to provide Savings, Income and Insurance Cover to you and your
family. Not only can you save regularly for your future but you also have the
flexibility to receive the maturity amount as a lump sum or as a regular income for
a chosen period, depending upon your needs.

Product
Boundary
Conditions

Plan 1. Endowment options 2.Endowment with whole life option

Options
Age at Min:18 years Max: Endowment :58 Years(60 Years for SP)Endowment with Whole Life
Entry Option:50 Years

Max 65 years, which increases to 100 years if the Endowment with whole life option is taken
Maturity
Age

Policy Min: endowment option Max:30 years(endowment term).Extended life cover up to age of 100
Term 7(RS)/5(SP) years years in case of endowment with whole life option
endowment with whole
life option
15(RP)/15(SP) years

SA Min: Rs 75000 Max : no limit

Assured

(In
multiples
of 1000)

Premium Min MAX

Amounts
Annual :Rs 6000/- NO LIMITS

Half yearly: Rs 3000/-

Quarterly: Rs 1,500/-

Monthly :Rs 500/-

Single :based on min.

SA

Premium HALF- YEARLY: 51.00% of annual premium

Frequency
Loading Quarterly:26.00% of annual premium

Monthly: 8.50% of annual premium

HIGH SA RANGE REGULAR PREMIUM SINGLE PREMIUM

SUM
ASSURED 1.5 LAKH TO <3 LAKH Rs 2.25 Rs. 4.50
REBATES
3 LAKH TO <6 LAKH Rs 4.50 Rs 9.00

6 LAKH AND ABOVE Rs 6.00 Rs 12.00

RIDERS SBI LIFE-Preferred term rider
SBI LIFE-accidental death benefit rider
SBI LIFE-AD & TPD

BENEFITS

Maturity Benefit: Depending upon the plan option chosen:

1. Endowment Option
After completion of endowment term, the Basic Sum Assured + Vested
Simple Reversionary Bonuses + Terminal bonus, if any will be paid,
provided the policy is in-force.

Deferred Maturity Payment option is available: Can be selected at the end

of the endowment term

2. Endowment with Whole Life Option

After completion of endowment term the Basic Sum Assured + Vested
Simple Reversionary Bonuses + Terminal bonus, if any will be paid,
provided the policy is in-force.

Deferred Maturity Payment option is available: Can be selected at the end

of the endowment term

On attainment of 100th birthday: Basic Sum Assured will be paid

Death Benefit: In the unfortunate death of the Life Assured, depending upon the
plan option chosen:
1. Endowment Option:
Death before the completion of endowment term provided the policy is in-
force :
For Regular Premium: Higher of A or B is paid to the nominee, where:
A. Sum Assured on death + Vested Simple Reversionary Bonuses +
Terminal bonus, if any.
 Sum assured on death is higher of Basic Sum Assured or a multiple of
annualized premium; where multiple is:

Policy Term Age at entry of Life Age at entry of Life

Assured less than 45 Assured 45 years or more
years
Less than 10 5 5
years
10 years or more 10 7
B. 105% of all the premiums paid.

For Single Premium: Sum Assured on death +Vested Reversionary Bonuses +

Terminal bonus, if any, is paid to the nominee

Sum assured on death is higher of Basic Sum Assured or a multiple of single

premium; where multiple is:

Age at entry of Life Age at entry of Life

Assured < 45 years Assured >= 45 years
1.25 1.10

2. Endowment with Whole Life Option

Death before the completion of endowment term provided the policy is in-
force:

Death Benefit as defined under point 1 of Endowment option, will be paid

to the nominee.

Death after completion of the endowment term and up to 100 years of age:
Basic Sum Assured benefit will be paid to the nominee.

Balance amount of Deferred Maturity Payment Option, if

availed and if any, will be paid to the nominee. However, the
nominee has an option to take the remaining installments in
lump sum which will be equal to the discounted value of the
remaining installments.

Other Benefits
Deferred Maturity Payment Option You can use this option to get income at
regular intervals. At the end of the endowment term you can either withdraw the
full sum assured along with accumulated bonuses or you can withdraw only the
bonus, leaving the basic sum assured to be drawn as income at regular intervals
over a stipulated time period of 5 , 10 , 15 or 20 years. Income will be paid at a
 frequency (Yearly/Half-Yearly/Quarterly/Monthly) of your choice.

SMART BACHAT-
Introduction
SBI Life Smart Bachat is an LPPT Endowment Plan designed to keep the
obligation of paying the premiums over a long term at bay. It helps you to shoulder
responsibility of your family and loved ones in case of any exigency. This product
comes with two options i.e. Endowment option and Endowment option with in-
built Accidental Death and Total Permanent Disability (AD&TPD) Benefit. It also
provides you with additional flexibility to choose your premium paying term as per
your convenience. With this plan you can safeguard your familys future along
with meeting your investment needs wisely.

Key Features

Flexibility to choose from two options depending on your insurance needs

Option A: Endowment Option

Option B: Endowment Option with in-built AD&TPD Benefit

Convenience of choosing
Premium Payment Term of 5, 7, 10 and 15 years

Policy Term from 10 to 25 years depending on your financial goals

Premium waiver in case of Accidental & Total Permanent Disability (only under
Option B)

Life cover throughout the policy term i.e. even after the end of Premium
Payment Term

Rebate on Large Sum Assured

Tax benefits as per prevailing norms under the Income Tax Act, 1961

SBI Life - Smart Bachat at a Glance:

 Option A: Endowment Option

Options Option B: Endowment Option with in-built Accidental

Death and Total Permanent Disability (AD&TPD)
Benefit
Minimum: Maximum: 50 years
Age^ at Entry Option A - 8 years; Option
B - 18 years
Maximum Age^ at 65 years
Maturity
Minimum: Rs.100,000 (in Maximum: No Limit
Sum Assured
multiples of Rs. 1,000)
Premium Paying Term Policy Term (Years)
(Years)
Premium Payment 5 10 25
Term and
Corresponding Policy 7 10 25
Term
10 15 25
15 20 25
Premium Frequency Yearly / Half-yearly / Quarterly / Monthly#
Half-Yearly: 51.00% of annual premium
Premium Frequency
Quarterly: 26.00% of annual premium
Loading
Monthly: 8.50 % of annual premium
Minimum Maximum
Premium Yearly: Rs. 5,100
Half yearly: Rs. 2,600
(applicable for both No Limit
options) Quarterly: Rs. 1,350
Monthly: Rs. 450

How does it work?

The plan offers two options to choose from, depending on your requirement.
Option once chosen cannot be changed.

Option A: Endowment Option

This option offers the benefits of wealth creation through Simple Reversionary
bonuses and life cover throughout the policy term.

Option B: Endowment Option with in-built Accidental Death and Total

Permanent Disability (AD&TPD) Benefit

In addition to benefits as explained under Option A, this option provides you with
benefit in case of Accidental Death or Accidental Total and Permanent Disability
of the life assured during the policy term.

Benefits

Maturity Benefit for both Options

On survival till the end of the policy term, Guaranteed Sum Assured on maturity$ +
Vested Simple Reversionary Bonuses + Terminal bonus, if any, is paid to the
policyholder.

Death Benefit for both Options

On death of the life assured during the policy term, the beneficiary is entitled to get
higher of A or B
A Sum Assured on death + Vested Simple Reversionary Bonuses + Terminal
Bonus, if any.

Where Sum Assured on death will be higher of Basic Sum Assured or 10 times
annualized$$premium.

B 105% of all the premiums paid till the date of death.

Accidental Death and Total Permanent Disability (AD&TPD) Benefit,

applicable only for
Option B

In case of Accidental Death of the life assured during the policy term,
AD&TPD Benefit would be payable in lump sum PLUS

Death benefit as explained under Death Benefit for both Options.

Policy will terminate and no further benefits will be payable

In case of Accidental Total and Permanent Disability of the life assured during the
 policy term
AD&TPD Benefit would be payable in lump sum PLUS

All future premiums would be waived off AND

The base policy continues till surrender, death or maturity, whichever is earlier.

SMART INCOME PROTECT

INTRODUCTION:
SBI Life - Smart Income Protect is a savings plan with added advantage of life
cover and regular cash inflow at the time you need. It is a participating traditional
plan where you continue to pay your regular premiums over a period of 7, 12 or 15
years. Thereafter your payout period starts, where you get guaranteed (Condition
apply$) regular annual payouts over a period of 15 years, meeting your various
financial obligations.

KEY FEATURES:

Plan that provides Insurance Cover and Regular Income.

Choose your policy term from 7 years, 12 years or 15 years.

Premium paying term will be same as policy term chosen by you.

Vested Reversionary bonuses plus Terminal bonus, if any, will be paid as lump
sum at the end of the policy term, at maturity.

Guaranteed annual payouts of 11% of Basic Sum Assured/Paid up Sum Assured

over a period of 15 years after maturity.

Alternatively, you have an option to receive the maturity benefit in a lump sum,
which will be 110% of basic sum assured plus Vested Reversionary bonuses plus
Terminal bonus, if any.

Customize your coverage through a wide range of riders:

SBI Life - Accidental Death Benefit Rider (UIN 111B015V02)
SBI Life - Accidental Total and Permanent Disability Benefit Rider (UIN
111B016V02)
SBI Life - Criti Care 13 Non Linked Rider (UIN 111B025V02)
 SBI Life - Preferred Term Rider (UIN 111B014V02)

PRODUCT SNAPSHOT

Age^ at Entry Policy term Minimum Maximum

(years)
7 11 58
12 8 53
15 8 50
Age^ at Maturity Min: 18 years Max: 65 years
Sum Assured Min: Rs.1,00,000/- ( 1,000/-) Max*: No Limit
Policy Term 7/12/15 years
Premium Yearly / Half-yearly / Quarterly / Monthly#
Frequency
Premium Half-Yearly: 51.00% of annual premium
Frequency Quarterly: 26.00% of annual premium
Loading Monthly: 8.5% of annual premium
Payout Period 15 years
Payout Frequency Yearly

BENEFITS:

On Maturity:

Maturity Benefit as lump sum: You get Vested Reversionary Bonuses plus
Terminal Bonus, if any, at maturity.

Maturity Benefit in Installments: You will be paid yearly payouts equal to

11% of basic Sum Assured for next 15 years after maturity. This period of 15
years is your payout period. The first installment will be paid at the end of first
year during the payout period.

Alternatively, you have an option to receive the maturity benefit in a lump sum,
 which will be 110% of basic sum assured plus Vested Reversionary bonuses plus
Terminal bonus, if any at maturity.

On Death:

In the unfortunate event of death of life assured during the policy term, the
nominee will receive higher of (A,B), where:

A. Sum Assured on death + Vested Simple Reversionary Bonuses +

Terminal bonus, if any.

Where Sum Assured on Death is higher of basic Sum Assured or

guaranteed sum assured at maturity or a multiple of annualized
premium; where multiple is:

Age at entry of Life

Age at entry of Life
Policy Term Assured less than 45
Assured 45 years or more
years
7 years 5 5
12 or 15 years 10 7

B. 105% of all the premiums paid till the date of death.

The absolute amount assured to be paid on death is the basic Sum Assured and
the guaranteed sum assured at maturity is 110% of the basic sum assured.

Annualized premium is the premium payable in a year, excluding service tax, the
underwriting extra premiums, loadings for modal premiums and rider premiums,
if any.

In case of death during the payout period, all future payouts will continue to be
paid to the nominee or legal heir.

SMART CHAMP

INTRODUCTION:
SBI Life - Smart Champ Insurance, an Individual Non-linked, Participating life
insurance plan, is designed to protect your childs future educational needs. It is
designed to meet your objectives and concerns as a parent - saving for your childs
education and securing their bright future against the uncertainties of life.
About SBI Life - Smart Champ Insurance

SBI Life - Smart Champ Insurance has assured benefits which are payable
during the term of the policy. In addition, it is a participating policy and will accrue
bonuses at the end of every policy year till the child completes 18 years of age and
a final Terminal bonus, if any.

SBI Life - Smart Champ Insurance provides the insurance cover to the proposer,
who will be the life assured and the policyholder, for death and Accidental Total
Permanent Disability (ATPD) throughout the term of the policy. The ATPD benefit
is accelerated; hence the insured event is death or ATPD, whichever is earlier. On
occurrence of the insured event, the contingent benefits are payable to the
beneficiary and the insurance cover will cease thereafter. The nominee at the point
of sale must be a child whose interest you want to protect.

KEY FEATURES:

Education Needs: Guaranteed (Conditions Apply##) Smart Benefits are payable

in four equal annual installments after the child attains 18 years of age till he/she
turns 21 years of age, i.e. at the end of each of last 4 policy years. 1st installment,
2nd installment, 3rd installment and last installment of Smart Benefits are payable
at the end of the policy year in which the child completes 18, 19, 20 and 21 years
of age respectively. Each installment of Smart Benefits will consist of 25% of the
basic sum assured and 25% of the vested simple reversionary bonuses. Terminal
bonus, if any, will be paid along with the last installment of Smart Benefits. This
ensures your childs higher educational needs are met.

Triple protection for your child, in case of an unfortunate insured event any time
during the term of the policy which is in-force:

Immediate Payment: Sum assured on insured event is payable as a lump sum

on the occurrence of the insured event.

Waiver of Due Premium: To ensure that your family is not financially

burdened in your absence, all the future premium installment(s), if any, will
not be required to be paid under the policy. The policy continues to accrue
bonuses, if applicable.

Smart Benefit: Due installment(s) of Smart Benefits are payable. Terminal

bonus, if any, will be paid along with the last installment of Smart Benefits

Option to pay one-time premium (Single Premium Policy - SP Policy) or limited

premium (Limited Premium Payment Term Policy - LPPT Policy).
 Option to receive the discounted value of the future due installment(s) of
Smart Benefits plus the terminal bonus, if any, in a lump sum amount during
last 3 policy years.

SBI Life - SMART CHAMP INSURANCE AT A GLANCE :

Life Assured
Min: 21 years Max: 50 years
Age** at Entry
Child
Min: 0 years Max: 13 years
Life Assured
Maximum Age** at 70 years
Maturity Child
21 years
Basic Sum Assured Min: Rs.1,00,000 (
Max^: Rs. 1 Crore
1,000/-)
Policy Term 21 minus Childs Age at entry
Min: 8 years Max: 21 years
Premium Payment Term 18 minus Childs Age at entry
for LPPT Policy Min: 5 years Max: 18 years
Premium Frequency Single Premium / Yearly / Half-yearly / Quarterly
/ Monthly#
Premium Frequency Half-Yearly: 51.00% of annual premium
Loading Quarterly: 26.00% of annual premium
Monthly: 8.50% of annual premium
Minimum / Maximum Premium Payment Minimum Premium
Premium Mode (Rs.)
Monthly 500
Quarterly 1,500
Half-Yearly 3,000
Annual 6,000
Single 66,000

Maximum Premium : Based on the basic sum

assured
**

BENEFITS:

In the unfortunate event of death or ATPD, whichever is earlier, during the policy
term, the following benefits are payable, provided the policy is in-force:

A lump sum amount immediately:

For SP Policy: The amount of benefit is Sum Assured.
Where Sum Assured is higher of Basic Sum Assured or a multiple of Single
Premium; where multiple is:

Age at entry of Life Assured Age at entry of Life Assured

Policy Term
less than 45 years 45 years or more
All terms 1.25 1.10
For LPPT: The amount of benefit is Sum Assured
Where Sum Assured is higher of basic sum assured or multiple of annualized
premium* or 105% of all the premiums paid till the date of occurrence of the
insured event.

Where multiple is:

Age at entry of Life Assured Age at entry of Life Assured
Policy Term
less than 45 years 45 years or more
8 and 9 years 5 5
10 years or
10 7
more
*
Annualized premium is the premium payable in a year, excluding service
tax, the underwriting extra premiums and loadings for modal premiums, if
any.

No future premium installment(s), due, if any, are required to be paid. The

policy continues to accrue bonuses, if applicable.

Due installment(s) of Smart Benefits are payable. Terminal bonus, if any,

will be paid along with the last installment of Smart Benefits.

BENEFIT PAYABLE ON SURVIVAL

You will receive the Smart Benefits, which will be paid at the end of the policy
year in which the child completes 18, 19, 20 and 21 years of age, as mentioned
in the table below:
Age of Child Smart Benefits
25 % of Sum Assured + 25% of Vested Simple
18 years
Reversionary Bonus
25 % of Sum Assured + 25% of Vested Simple
19 years
Reversionary Bonus
25 % of Sum Assured + 25% of Vested Simple
20 years
Reversionary Bonus
21 years 25 % of Sum Assured + 25% of Vested Simple
Reversionary Bonus + Terminal Bonus, if any
 TOP 5 ULIP PLANS

SMART
SMART
WEALTH SMART ELITE
SCHOLAR
BUILDER

SMART SARAL MAHA

PRIVELAGE ANAND

SMART WEALTH BUILDER

INTRODUCTION:
You may have ever changing needs, but as your preferred life insurance company,
SBI Life definitely understands all your financial & insurance needs. SBI Life -
Smart Wealth Builder, a unit linked, non participating, insurance plan is an attempt
to meet all your financial & insurance needs through a single product. You can use
it the way you like. You can choose your required life insurance cover subject to a
minimum and a maximum level.

KEY FEATURES:

Guaranteed Additions up to 125% of one annual regular premium on a regular

premium policy, for a 30 year policy term, subject to the Policy being in force till
the maturity date.
 Guaranteed Additions starting as early as 10th policy year onwards

No Policy Administration fees for first 5 years for Regular and Limited Premium
Paying Term (LPPT) plans, thereby boosting your fund value

No Premium Allocation Charge from 11th year onwards

Enhanced investment opportunity through 7 varied Fund Options

Life Insurance coverage, with minimum Sum Assured based on your age

Flexible product with an option to increase/decrease your Sum Assured from

6th policy year onwards

PRODUCT SNAPSHOT

Age* at Entry Min: 7 years

Max: For Regular Premium & Limited
60 years
Premium:
For Single Premium: 65 years

Age* at 70 years
Maturity

Plan Type Regular Premium / Limited Premium / Single Premium

Policy Term^ Regular & Limited Premium Payment - 10 years, 15 to 30

years (both inclusive)
Single Premium - 5 to 30 years

Premium For LPPT:

Payment Term 5/8 Years for Policy Term of 10 Years.
5/8/10 Years for Policy Term of 15-30 Years (both inclusive)
Regular Premium - Same as Policy Term
Single Premium - One-time payment at policy inception
Premium Premium
Amount Plan Type Minimum Maximum
Frequency
(X 100)
Regular Rs.
Annual
premium 30,000

Limited Rs.
Annual Rs. 3,00,000
premium 40,000

Rs.
Single premium Single
65,000

Premium Single/Yearly
Modes

Sum Assured Minimum (in Rs.) Maximum (in Rs.)

Premium
Age 45 Age Age 45
Mode Age below
years or below 45 years or
45 years
above years above

Regular Higher of
Higher of 20 x AP 20 x AP
Premium (7 x AP) or
[(10 x AP )
(0.25 x
or (0.50 x
Limited Term x
Term x AP)] 15 x AP 15 x AP
Premium AP)]

Single
1.25 x SP 1.1 x SP 3 x SP 1.25 x SP
Premium

BENEFITS:

Maturity Benefit: (Applicable only for in-force policies): On completion of

Policy Term, Fund Value will be paid.

Death Benefit: (Applicable only for in-force policies): Higher of the Fund Value
or Sum Assured is payable; with a minimum of 105% of total basic premiums
paid till the date of intimation of death.
 Tax Benefits:
Tax deduction under Section 80 C is available. However in case the premium
paid during the financial year, exceeds 10% of the sum assured, the benefit will
be limited up to 10% of the sum assured.

Tax exemption under Section 10(10D) is available at the time of

maturity/surrender, subject to the premium not exceeding 10% of the sum
assured in any of the years during the term of the policy. However, death
proceeds are completely exempt.

Tax benefits, are as per the Income Tax laws & are subject to change from time
to time. Please consult your tax advisor for details.

SMART ELITE

INTRODUCTION:
SBI Life - Smart Elite is a Unit Linked Insurance plan - an exquisitely crafted
product, exclusively for special customers like you. It gives you flexibility to pay
premium(s) for limited term or single premium, with the freedom to stay invested
and protected for long term. Whats more, you have the power of choosing the
option best suited to your needs, at a very competitive rate. All this and more,
coming from SBI Life your preferred insurer, adds value to your investments.

KEY FEATURES:

Pay premiums only for a limited term of 5, 8 or 10 years or a Single Payment, as

per your need and enjoy benefits throughout the chosen policy term.

No Premium Allocation Charges from 6th policy year onwards, thereby

enhancing your fund value

Two protection options available: Gold Option & Platinum Option

Invest in wide range of funds and manage them as per your convenience.

Life Insurance coverage with minimum Sum Assured of 10 or 7 times of your

Annual Premium (AP), based on your age.
 Switch and redirection facility, to pilot your investments.

Option to increase/decrease your Sum Assured from 6th policy year onwards.

Accidental Death and Accidental Total and Permanent Disability (Accidental

TPD) benefit automatically comes to you as an integral part of the plan!

PRODUCT SNAPSHOT :

Age* at Entry Min: 18 years Max: 60 years

Age* at Maturity 65 years
Policy Term 5 to 20 years (both inclusive)
Premium Payment Term For Limited Premium Payment Term (LPPT) - 5 or 8
or 10 years.
For Single Premium - Single Payment.

Minimum Limited Yearly Rs 150,000

Premium Amount (X Half-yearly Rs 75,000
100) Quarterly Rs 37,500
Monthly Rs 12,500

Minimum Single Rs 200,000

Premium Amount (X
100) No limit

Maximum
Limited/Single Premium
Amount (X 100)
Premium Modes Single /Yearly /Half-yearly /Quarterly / Monthly
Sum Assured Minimum:
For LPPT -
For Ages below 45 yrs : 10 x Annual Premium
(AP)
For Ages 45yrs & above: 7 x AP

For Single Premium (SP) -

For Ages below 45 yrs : 1.25 x SP
For Ages 45yrs & above: 1.10 x SP

Maximum:
 For LPPT - For All Ages - 20 x AP
For SP For All Ages - 5 x SP
.

BENEFITS:

Maturity Benefit: On completion of Policy Term, Fund Value will be paid.

Death Benefit:
For Gold Option: Higher of Fund Value or Sum Assured# is payable; with a
minimum of 105% of total premiums paid till the time of death.

For Platinum Option: Fund Value plus Sum Assured is payable; with a
minimum of 105% of total premiums paid till the time of death.

In-built Benefit:
Accidental Death and Accidental Total and Permanent Disability
(Accident Benefit): Provides an additional benefit for Accidental Death or
Accidental TPD

Tax Benefits

Tax deduction under Section 80 C is available. However in case the premium

paid during the financial year, exceeds 10% of the sum assured, the benefit
will be limited up to 10% of the sum assured.

Tax exemption under Section 10(10D) is available at the time of

maturity/surrender, subject to the premium not exceeding 10% of the sum
assured in any of the years during the term of the policy. However, death
proceeds are completely exempt

SMART SCHOLAR

INTRODUCTION:
Life begins afresh when you become a parent. Its a joy you never felt and a feeling
you never experienced. When your child takes baby steps towards you, nothing
seems more blissful.
With this divine happiness comes a new sense of responsibility thats close to your
heart. You want to make your childs life a bed of roses or a tender cushion.

At SBI Life, we understand your needs and provide you with a flexible and all-
encompassing solution: SBI Life - Smart Scholar, a non participating Unit Linked
Insurance Plan.

Secure your childs future by gaining from the financial markets. Our specially
crafted Smart Scholar Plan is as accommodating as you are to your child.

KEY FEATURES:

Secure your childs future by gaining from the financial markets and much
more.

Dual protection for your family, in case you are not around -
Payment of base Sum Assured and
Inbuilt Premium Pay or Waiver benefit to ensure continuance of your policy

In addition, Accident Benefit which includes Accidental Death benefit and

Accidental Total and Permanent Disability (Accidental TPD) benefit, is an
integral part of the plan

Depending upon the term of the policy, Loyalty Additions would be paid
periodically, for in-force policies.

Enhanced investment opportunity through 7 varied fund options

Twin benefits of market linked return & insurance benefit

Liquidity through partial withdrawals.

PRODUCT SNAPSHOT :

Age at Entry * Child: Min: 0 years Max: 17 years

Proposer: Min: 18 Max: 57 years
years
Max. Age* at 65 years
Maturity
Policy Term Min: 8 years
 Max: 25 years less childs age at entry
On Maturity, the age of child should be between 18 to 25
years)
Premium Payment Single Premium (SP)
Terms (PPT) 5 to 25 years (subject to the limits of policy term)
Minimum:
PPT Frequency Minimum(Rs)
SP Single 75,000
Yearly 50,000
Half Yearly 25,000
5 years to 7 years
Premium Quarterly 12,500
Amounts(x100) Monthly 4,500
Yearly 24,000
Half Yearly 16,000
8 years or more
Quarterly 10,000
Monthly 4,000
Maximum : No Limit
For Single Premium:
Minimum Maximum
Across all ages Age<45 years Age=>45 years
1.25 * SP 5 * SP 1.25 * SP
Sum Assured For other PPTs:
Minimum Maximum
Age<45 years Age=>45 years Across all ages
Higher of: 10 * AP
or * T * AP 7 * AP 20 * AP

Loyalty Additions, by way of free allocation of units:

During the term of the policy loyalty units would be given for in-force policies on
completion of specific durations. Loyalty additions depend on term of the policy.
The loyalty addition at relevant policy year end will be equivalent to- 1% x
[Average fund value over the 1st day of the last 24 policy months]

Loyalty additions are payable at the end of the year(s) as per the chart below

BENEFITS:

Maturity Benefit: On completion of Policy Term, Fund Value will be paid

Death Benefit:
In the event of unfortunate death of life assured, a lump sum benefit equal to
higher of the Sum Assured or 105% of all premiums paid till date of death
will be payable.

The company continues to pay your future premium(s) on your behalf

(inbuilt Premium Payer Waiver Benefit) and the accumulated fund value will
be paid at maturity

In case of your unfortunate accidental death or accidental total and

permanent disability we pay:

Additional benefit equal to Accident benefit Sum Assured

The Accident Benefit and Premium Payor Waiver Benefit are not available
in the Single Premium policies.

Tax Benefits

Tax deduction under Section 80C is available. However in case the premium
paid during the financial year, exceeds 10% of the sum assured, the benefit will
 be limited up to 10% of the sum assured

Tax exemption under Section 10(10D) is available at the time of

maturity/surrender, subject to the premium not exceeding 10% of the sum
assured in any of the years during the term of the policy. However, death
proceeds are completely exempt

Tax benefits, are as per the provisions of the Income Tax laws & are subject to
change from time to time. Please consult your tax advisor for details

SMART PRIVILEGE

INTRODUCTION:
Life - Smart Privilege is a unit linked, non-participating life insurance plan - with
various benefits and advantages. It gives you life insurance coverage along with the
flexibility to make multiple switches and premium re-directions between eight
diverse funds with loyalty additions to boost your fund value. It does not levy any
policy administration charges thus ensuring that more of your money is working for
you. All this and more, coming from SBI Life Insurance Co. Ltd. your preferred life
insurer, adding value to your investments.

KEY FEATURES:

Flexibility of premium payment: Pay premiums throughout the policy term or for
a limited period or through a Single Payment, as per your convenience and enjoy
benefits including Life Cover, throughout the chosen policy term.

Choice of 8 different Funds: Invest in wide range of 8 funds including two new
funds - Pure Fund & Midcap Fund.

Boost your Fund Value:

No Policy Administration Charges throughout the policy term

No Premium Allocation Charge from 6th policy year onwards

Loyalty Additions starting as early as 6th policy year onwards for in-force
policies

Unlimited free switches: Manage your changing financial priorities with unlimited
free switching facility.
Liquidity through Partial Withdrawals from 6th policy year onwards

PRODUCT SNAPSHOT

Age# at Entry Minimum:

8 years for Regular/Limited premium policies
13 years for Single premium policies
Maximum: 55 years
Age at Maturity Minimum: 18 years Maximum: 70 years
Policy Term## 10 to 30 yrs (both inclusive) for Regular / Limited premium
policies
5 to 30 yrs (both inclusive) for Single premium policies
Premium Regular Premium (RP) - Same as policy term
Payment Term Limited Premium Paying Term (LPPT) -
Maximum: Policy term less 1
Minimum: 5 years
year
Single Premium (SP) - One-time payment at policy inception

Regular/Limited Minimum Maximum

Premium
Amount (In Yearly Rs 600,000
multiples of Rs. Half-yearly Rs 300,000
No Limit
100) Quarterly Rs 150,000
Monthly Rs 50,000

Single Premium
Amount (In
Minimum: Rs 600,000 Maximum: No Limit
multiples of Rs.
100)
Premium Modes Single /Yearly/Half-yearly/Quarterly/ Monthly
Sum Assured For Regular / Limited Premium-
For all Ages: Higher of 10 x Annualized Premium (AP) or
(Policy term x 0.5 x AP)

For Single Premium (SP)

For Ages below 45 years: 1.25 x SP

For Ages more than or equal to 45 years:

Minimum: 1.10 x SP Maximum: 1.25 x SP
 BENEFITS:

Maturity Benefit: (Applicable only for in-force policies): On completion of Policy

Term, Fund Value will be paid.

Death Benefit: (Applicable only for in-force policies):

Higher of Fund Value or Sum Assured* is payable; with a minimum of 105% of
total premiums paid till the date of intimation of death.

SARAL MAHA ANAND

INTRODUCTION:
SBI Life - Saral Maha Anand is a product created just for you, which will
pleasantly surprise you with its sheer Simplicity and Convenience! It is a unit
linked, non participating life insurance plan, which lets you manage your
investments according to your risk appetite, giving you the power to realize market
related returns on your policy. You can choose your required life insurance cover
subject to a minimum and a maximum level.

KEY FEATURES:

No medical examination, Simple joining process.

Guaranteed Additions of up to 30% of one annual premium, for a 20 year

policy term, subject to the Policy being in force till the maturity date.

3 fund options, to enjoy market related returns as per your risk appetite.

No Premium Allocation Charge from 11th year onwards, thereby boosting

your fund value

Liquidity through partial withdrawals

Option to customize the plan through SBI Life - Accidental Death Benefit
Linked Rider

Twin Benefit of Market linked returns & insurance cover

PRODUCT SNAPSHOT

Age at Entry ^ Minimum: 18 years Maximum: 55 years

Max. Age^ at Maturity 65 years
Policy Term 10 years / 15 years / 20 years
Premium Range (x100) Premium Minimum (in Maximum (in
Frequency Rs.) Rs.)
Yearly 15,000 29,000
Half-yearly 9,500 14,500
Quarterly 5,500 7,200
Monthly 2,000 2,400

Premium Modes Yearly / Half-yearly / Quarterly / Monthly

Sum Assured Minimum (in Rs.) Maximum (in Rs.)
Age 45 Age 45
Age below Age below
years or years or
45 years 45 years
above above
10 x AP 7 x AP 20 x AP 20 x AP

BENEFITS:

Maturity Benefit: On completion of Policy Term, Fund Value will be paid.

Death Benefit: Higher of the Fund Value or Sum Assured# is payable; with a
minimum of 105% of total basic premiums paid till the time of death

Rider Benefits:
SBI Life - Accidental Death Benefit Linked Rider: Provides additional death
benefit, if the death occurs as a result of an accident.

Tax Benefits
Tax deduction under Section 80 C is available. However in case the premium
paid during the financial year, exceeds 10% of the sum assured, the benefit will
be limited up to 10% of the sum assured.

Tax exemption under Section 10(10D) is available at the time of

maturity/surrender, subject to the premium not exceeding 10% of the sum
assured in any of the years during the term of the policy. However, death
proceeds are completely exempt.
COMPETITORS

COMPANY NBP (Fig in PRIVATE TOTAL RANK YTD

Cr.) SHARE SHARE VARIATION
IN %
SBI LIFE 10,146 20% 5.8% 1 42.8%
HDFC LIFE 8,696 17% 5.0% 2 34.0%
ICICI PRUDENTIAL 7,863 16% 4.5% 3 16.2%
MAX LIFE 3,667 7% 2.1% 4 27.3%
BAJAJ ALLIANCE 3,290 6% 1.9% 5 14.1%
 ABOUT THE PROJECT
BALANCING PRODUCT MIX
 PURPOSE OF THE QUESTIONNAIRE
An online questionnaire was prepared for the bdms and the purpose of the Questionnaire was to
check the product pitching patterns of bdms and to draw a customer outline from the data
generated. This online Questionnaire was send to the 197 bdms, 153 bdms replied and stated
their views and opinions. The data generated from online Questionnaire, I concluded that most of
the bdms are inclined towards ULIP products more than the traditional products.

Online questionnaire consists of 20 questions and importances of these questions are marked on
the scale of 1-10.

QUESTIONNAIRES RESPONSES
Question 1-which income bracket Bdms prefer more while pitching for a product? (Scale-8)

Response -

3% 7%

less than 3 lakhs

24% 3 lakhs-10 lakhs
10 lakhs-20 lakhs
66%
more than 20 lakhs

Conclusion- customers with salary range of 3 lakhs 10 lakhs are pitched more by the bdms.

Question 2-which income type of the customer bdms prefer more while pitching for a product?
(Scale-8)

Response-

35% SERVICE CLASS

65% BUSINESS CLASS

Conclusion- service class customers are pitched more by the bdms.

Question 3-which age bracket Bdms prefer more while pitching for a product? (Scale-8)

Response-

5% 1%

18-25 Years
35% 26-35 Years
36-45 Years
59%
46-55 Years

Conclusion- customers of age bracket 36-45 years are pitched more by the bdms.

Question 4 - which types of customer, Bdms prefer more to pitch the product? (Scale-8)

Response-

0% 0%
SINGLE

30% MARRIED
RETIRED
0% 70% FATHER OF TWO
NEWLY WED

Conclusion- married customers are pitched more by the bdms

Question 5-which type of area Bdms prefer more while pitching for a product? (Scale-8)

Response-
 29%
URBAN
RURAL
71%

Conclusion- customers living on urban areas are pitched more by the bdms.

Question 6-which risk appetite /tolerance of customer Bdms prefer more while pitching for a
product? (Scale-9)

Response-

26% 21% CONSERVATIVE

MODERATE

53% AGGRESSIVE

Conclusion- customers with moderate risk appetite are pitched more by the bdms.

Question 7-which type of rate of interest Bdms prefer while pitching for the product? (Scale-
10)

Response-
 24% FIXED RATE OF
INTREST
VARIABLE RATE OF
77% INTREST

Conclusion- variable rate of interest is pitched more by the bdms

This is one of the features of ULIP products.

Question 8-which type of product Bdms prefer while pitching? (Scale-10)

Response-

MARKET
DEPENDENT
37% PRODUCT
MARKET
63%
INDEPENDENT
PRODUCT

Conclusion- products which are market dependent are pitched more which is one the features
of ULIP products.

Question 9-which type of returns Bdms prefer while pitching for the product? (Scale-10)

Response-

26% FIXED RETURNS

VARIABLE
75% RETURNS
Conclusion- products with variable returns are pitched more which is one the features of ULIP
products.

Question 10-which type of savings plan Bdms prefer while pitching for the product? (Scale-8)

Response-

24%
LONG TERM PLAN
SHORT TERM PLAN
76%

Conclusion- products with long term plan are pitched more.

Question 11-which type of need base Bdms prefer more while pitching for the product? (Scale-
8)

Response-

WEALTH CREATION
19%
5% RETIREMENT
BENEFITS
76% CHILD PLAN

Conclusion- customer with a need base of wealth creation are pitched more.

Question 12-do Bdms prefer ULIP products over traditional? (Scale-10)

Response-
 37% YES
NO
63%

Conclusion- Bdms prefer ULIP products over traditional products this shows their inclination
towards ULIP more.

Question 13-while pitching does bdms check whether the product is traditional or market
linked? (Scale-10)

Response-

14%

YES
NO
86%

Conclusion- most of the bdms cross check the type of plan.

Question14- product bdms like the most?

Response
 21% SMART ELITE

42% WEALTH BUILDER

8% MONEY BACK GOLD
SMART SCHOLAR
12%
OTHERS
17%

Conclusion smart elite is liked by the 42% bdms.

CUSTOMERS OUTLINE

Traditional products must be pitched to the customers falling in these categories.

Age bracket 30 years - 45 years

Income - 3 lakhs 10 lakhs per annum

Income type service class

Appetite conservative and moderate

Need base wealth creation

Type married and father of two/one

 WAYS TO INCREASE SALES OF LIFE INSURANCE

PART 1 ANALIZING YOUR MARKET

1. Define target market. Every product or service has a market for which it is ideally
suited. Some have a wider appeal than others, but many of them are targeted at specific
audiences in their branding, features, and quality. Identify your target market by first figuring out
exactly what need your product or service meets. Think about who, specifically, has this need.
For example, you can start by narrowing down your target audience by choosing a gender, age
range, or socioeconomic group that would be most interested in your offering. Work until you've
identified the group that you think would have the most interest in your offering.

2. Identify your target market's desires. Once you have a target market, identify what
exactly it is that they will find appealing in your product and in a business in general. Consider
both when seeking to understand your target audience. To get this type of information, you can
ask customers yourself through polls or surveys or you can search online for existing data.
Additionally, you can work with your contacts in the industry to get their take on this specific
market

3. Study your competitors. Understanding your competition will help you better position
your offerings in the market. Figure out how your competitors are advertising, pricing their
products, and any new strategies they are employing. There are many ways to get this
information, including:

Online research. The simplest way to track your competitors is by researching them
online. Look up what you can on their website and through online reviews. Then, try
using a service like Google Trends to identify what people are looking for and Google
Alerts to get a notice when your business or a competitor is mentioned in the media.
Look at industry reports. Find data from trade associations, analytics firms. And
advocacy organizations.
Talk to your customers. Figure out what other products or services they've used and why
they have now chosen to use yours instead.

4. Enhance your competitive advantage. A competitive advantage is a quality of your

business or product/service that allows you sell your offerings more easily than your competitors
can. Lower costs, higher quality, greater choice, and better customer service can all be
competitive advantages. Identify one of these factors that your business gets right or in which
you outperform your competitors. If there is one area in which you routinely beat your
competitors, single that one area out. This is your competitive advantage.

Once you've identified a competitive advantage, make an effort to emphasize and

improve upon it by making changes elsewhere in your business model.
For example, if you offer a cheaper product than your competition, try to cut costs
elsewhere while maintaining the same product quality as a way to further undercut your
competitors.

PART 2 PROMOTING YOUR BUSINESS

1. Build your brand. Your "brand" is the sum of the associations and connections you have
with your customers. That is, it is your business's public face and the personality that it shows to
customers. This includes what the business and its management believes in and how your
business helps fulfill your customers' needs. First, you'll have to decide what your brand is.
Define it clearly and fully by writing out what your business wants to provide and what you, as
the business owner, believe in providing to them and your community. From here you can use
your brand in every point of contact with customers, from in-store interactions to emails.
Assess your current brand. Does it say what you want it to? If not, it's time to make a change.

2. Use content marketing. A great way to promote your brand online is to post useful
articles that will appeal to people in your target market. Digital marketers call that content
marketing.
Good content marketing attracts people to your website who might purchase the product
or service that you're selling.
Be sure the articles that are posted to your website are optimized for search engines. You
want people to find those articles when they're searching for keywords relevant to your
niche.

3. Advertise your product or service. If your customers don't know about your business,
you won't be able to sell to them. Build brand-name awareness by reaching people in your target
market with messages about how your product or service will benefit them.
 It is easy to track the effectiveness of both online advertising campaigns and "old school"
media campaigns (such as radio ads). Online advertising, however, offers a more focused
approach online versus the mass appeal of traditional advertising channels.
Advertising requires an investment. Be sure to validate the effectiveness of your
campaign so that you can determine if you're receiving a good return on investment.

4. Make the process of buying your products a safer bet (and publicize
this). Customers are more likely to buy from you if they're confident that their money won't be
going to waste. Demonstrate confidence in the quality of your products by "insuring" the
customer's purchase.
Offer a money-back guarantee
Have a generous return program
Have a "satisfaction guaranteed" policy
Use social proof. One of the best ways to use social proof online is to provide
testimonials about customers who've loved your product or service. It's best to include
full names and even pictures of the people who've given you rave reviews.

5. Build a presence in the community. One great way to build positive recognition for
your business (especially if it's a small business) is to become an active player in the
community. Look for opportunities to promote your brand by sponsoring or underwriting local
events and charitable causes or by participating in gatherings and festivals. As an added bonus,
you may even have a chance to sell your products at the events you participate in. Below are
some of the types of events and organizations you may want to be on the lookout for:
Charitable causes (dinners, auctions, fundraisers, etc.)
Non-profits with a large potential audience (college radio stations, etc.)
Local entertainment venues or organizations (community theaters, sports teams, etc.)
Large outdoor gatherings (street fairs, music festivals, etc.)
 PART 3 INCREASING SALES

1. Create new demand for your product or service. How can your product or service
appeal to people in a way that you haven't thought about yet? Try marketing it with that angle
and see if sales grow.

2. Raise prices. You might think that, to increase sales, you should lower prices in an effort to
attract more customers. While sales and discounts often lead people to purchase your product or
service, sometimes raising prices is also the right move.
If you keep the same number of customers after your price increase, then you'll definitely
raise your top line sales figure.
Higher prices often lead to a perception of increased quality. That impression could send
more business your way.

3. Offer and publicize special deals and discounts. Customers love great deals, so
special one-time offers are a great way to raise your sales in the short term. However, to take full
advantage of the sales "spike" a special deal can provide, make sure as many people know about
it as possible. This may mean mentioning upcoming deals to your existing customers,
distributing flyers or handouts, paying for advertisements, or more. Balance the costs of
publicizing your deal with the benefits you're likely to gain from it.
Percent discounts for purchases over a certain price.
Buy x, get y free deals.
Limited-time bundles.

4. Offer an opportunity to "upgrade". Why sell a product for $100 if you have a chance
of selling a different product for $150? By offering customers the chance to buy a better version
of the product they want to purchase, you boost your sales and the customer gets a better
product. Everybody wins.
If, for instance, your customer is purchasing a 21 inch (53.3 cm) television set, you might
give them an opportunity to upgrade to a 24 inch (61.0 cm) television at the checkout, for
only a little extra. The customer may or may not take the bait, but you'll never lose the
original sale unless you push very hard, so it's very difficult to lose money with this trick.

5. Offer "companion" items. Don't settle for selling one item if you can get away with
selling two! When a customer is making a purchase, you may want to offer them another item
that complements an item in their shopping cart. Recommend something your customer is likely
to need to make the most out of the purchase, like some sort of optional accessory. You can even
offer a discount on the second item to sweeten the deal!

6. Offer pertinent services and plans. Another great way to make a little extra money is
to up sell optional services or plans when the customer makes his or her purchase. Optional
warranties, protection plans, and subscriptions to services or publications related to your
customer's purchase are all things you can recommend to make a sale more profitable.
For example, if you're selling a customer a car, you might offer a warranty that covers
any problems caused by the car's workmanship as part of a package deal.

7. Offer small, inexpensive items for sale near the point of sale. One way that
businesses frequently practice "passive" upselling is by positioning small impulse-buy products
near the point of sale (cash register, checkout line, etc.) Because these small items are relatively
cheap and offer instant gratification, customers will frequently add these to their purchase. Over
time, the profits from these tiny sales can add up.
You have probably noticed this method of upselling in practice at the grocery store
checkout line, where gum, candy bars, and beverages are frequently for sale.
If you're running an e-commerce business, you still have a virtual checkout line.
Advertise small, inexpensive items within the shopping cart screens so customers can buy
additional items they might like.

PART 4 USING SMART BUSINESS STRATEGIES

1. Teach your salespeople how to demonstrate the value of your products. By

explaining or showing your customers how your products can make their daily lives better, you
can strike a personal chord with your customers and boost your sales in the process. You may
want to direct your salespeople to make reference to common uses for hot products in their sales
pitches or even have them actually show the customer your products in use.

For example, many large department stores like Costco have employees give product
demonstrations on the floor. They show customers how to cook with electric grills, how
to clean soiled carpet with steam cleaners, and so on.

2. Offer sales incentives to your employees. One time-tested way to boost sales is to
give your salespeople a reason to work extra-hard. Offering incentives to employees who make
lots of sales is a good way to maximize the selling power of your company. Below are just a few
of the types of incentives you may want to offer to high-sales members of your workforce:
 Commissions (a small percentage of each sale's cost awarded to the employee who made
the sale)
Reward packages (e.g. extra time off, gifts, etc.)
Promotions
Achievement awards (e.g. employee of the month, etc.)