Balancing Between Risk and Returns amongst Child Insurance Plans

Anuradha Yesugade


The study is carried out to understand the awareness of individuals in terms of Risk-Return Trade off, of the Child Insurance Plans. Three Child Insurance plans, are considered namely Canara, HSBC OBC Life Insurance (Future Smart Plan), SBI Life Smart Champ Insurance and LIC Jeevan Ankur. Primary data was collected by administrating questionnaire to parents in the age group of 25 to 35 years along with interaction with them about the awareness of benefits in general and concept of nominal and real gains

            Data analysis was carried out in two parts. First Part deals with the analysis of responses of 100 respondents and second part is related to computation of NPV of amount to be received.  The result of the study revealed that the buyers of Insurance are not very systematic, critical and analytical while buying the policies in terms of real gain computations and comparison.   The most important outcome of the project is that the total amount of insurance when bifurcated into two or more policies then the process is called approximation which shall yield more sound balance of risk and return. Recommendations are: a) the insure needs to compare different plans on the basis of computation of NPV or real gains. b)  Parents need to calculate the real value on maturity whether sufficient to meet personal objectives. c) Notional PV at the year in which it may be probably received .d) Approach should consider possibility of approximation.


Risk Return Trade off, NPV, Child Insurance Plans, Approximation of Plans

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Hebbar, C.K., Shenoy S., Rao G.P. (2014). Risk Awareness and Usage of Child Insurance Plan with Special Reference To HDFC Standard Life Insurance Company in India, GJRA - GLOBAL JOURNAL FOR RESEARCH ANALYSIS Volume 3, Issue 6, 11-12.


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