AGENDA

1
AGENDA

• WHY UNIT LINK INSURANCE PLAN IN OUR PORTFOLIO
• WHAT WILL BE THE SALES PITCH FOR AMSURE UNIT LINK
  PRODUCT
• PV
• BUSINESS SUPPORT MATERIAL
• LAUNCH SCHEDULE

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WHY UNIT LINK INSURANCE PLAN IN OUR PORTFOLIO

• Buoyant equity market have made unit link plan
  attractive to customers.
• In 2005-2006, unit link plan was 42 of LICs new
  business premium.
• More and more companies are unitizing their
  offerings.
• Leads to higher premiums.
• Popular with affluent segment which may not have
  bought pure insurance but want tax efficient
  investment insurance tools.

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• Sales Pitch

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WHY DO WE BUY INSURANCE?

• To protect against
• risk of dying too early.
• risk of living too long.
• Forced yet an effective savings protection
  tool.
• Tax savings.

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WHAT DO WE SEEK IN A GOOD UNIT LINK INSURANCE
PLAN !

• RETURNS

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HOW?

• The key to great returns lies in successful
  investing in different asset classes i.e Asset
  Allocation

• Three major types of financial assets are
• Equity shares
• Bonds
• Cash

A unit linked fund allocates your monies between
these three asset classes in a scientifically
determined ratio and thereby offers you the
chance to get higher returns
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WHAT DO WE SEEK IN A GOOD UNIT LINK INSURANCE
PLAN !

• CHOICE OF FUNDS WITH DIFFERENT RISK-REWARD
  RATIOS.
• and
• SWITCHING ABILITY TO TAKE ADVANTAGE OF MARKET
  MOVEMENTS BY MOVING MONIES BETWEEN DIFFERENT
  FUNDS BASED ON CHANGING MARKET DYNAMICS

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WHAT DO WE SEEK IN A GOOD UNIT LINK INSURANCE
PLAN !

• Maturity Guarantee
• To ensure that while you enjoy the benefits of
  the upside in the market, you also get the safety
  net of your Maturity being guaranteed .

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Can you guess how much your childs education
will cost you?
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Escalating costs of Higher Education (in
Rs.)
ENGINEERING
3.2 lacs 5.0 lacs 2.4 lacs
YEAR 2000
MEDICINE
MBA
5.21 lacs 8.14 lacs 3.91 lacs
ENGINEERING
YEAR 2010
MEDICINE
MBA
8.50 lacs 13.26 lacs 6.37 lacs
ENGINEERING
YEAR 2020
MEDICINE
MBA
At an average annual inflation of 5 p.a.
And this is without considering the additional
increases which will happen due to colleges
arbitrarily increasing fee every 2 - 3 years
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WHAT DO WE SEEK IN A GOOD UNIT LINK INSURANCE
PLAN !

• Protection from Inflation TO ENSURE OUR SAVINGS
  HAVE THE SAME PURCHASING POWER AS TODAY
• .

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Five must have features in an Ideal ULIP

• RETURNS
• CHOICE OF FUNDS WITH DIFFERENT RISK-REWARD
  RATIOS.
• SWITCHING
• Maturity Guarantee
• INFLATION PROTECTION

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INTRODUCING MAX AMSURE SECURE RETURNS BUILDER
AN IDEAL ULIP
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CHOICE OF 4 FUNDS WITH DIFFERENT RISK - REWARD
RATIOS.
Potential Risk Return profile of the fund High
risk high returns Medium risk medium
returns Moderate risk, with guarantee Low
risk, with guarantee

• Choice of 4 funds
• GROWTH FUND Non Guaranteed fund with maximum
  70 equity investment
• - BALANCED FUND Non Guaranteed fund with
  maximum 40 equity investment
• GUARANTEED FUND (DYNAMIC) Guaranteed fund with
  maximum 30 equity investment
• GUARANTEED FUND (INCOME) Guaranteed fund with
  maximum 15 equity investment

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Many Investment Choices.As per your appetite
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Good Fund Performance p.a.) over last 22 Months
CAGR over past 22 months
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Maturity Guarantee
Guarantee is on the premiums allocated in the
GUARANTEED FUNDs

• UP TO ENTRY AGE 50 100 of Allocated Premiums
• Allocated Premium in 15 Year Term 95.87 of
  total Premium
• Allocated Premium in 20 Year Term 96.15 of
  total Premium
• ENTRY AGE 50 OR MORE 85 of Allocated
  Premiums
• Allocated Premium in 15 Year Term 81.49 of
  total Premium
• Allocated Premium in 20 Year Term 81.73 of
  total Premium
• Allocated Premiums Premiums minus Allocation
  Charge
• GUARANTEE IS APPLICABLE
• IF INVESTED IN THE GUARANTEED FUNDS

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Flexibility to Maximize Returns Through SWITCHING

• Ability to move monies between different funds
  offering different risk return profiles
• Helps you take advantage of changing market
  dynamics
• Helps you change the risk return profile of
  your existing investments
• Normally done when there are perceptible changes
  in the market viz.
• when equity market ends recession and starts
  booming (or vice versa)
• when interest rates reverse a rising trend and
  start decreasing (or vice versa)

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Flexibility to Maximize Returns Through SWITCHING

• Allowed between the two guaranteed funds
• Allowed between the two non guaranteed funds
• NOT allowed between non-guaranteed funds on one
  hand and guaranteed funds on the other
• Two switches are free every policy year

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INFLATION PROTECTION

• Two options available to us
• With Inflation Protection (Increasing Sum
  Assured)
• With out Inflation Protection (Level Sum Assured)
  
• In increasing (i.e. inflation protection) option
  the Sum Assured and Premiums increase _at_ 5 every
  year - COMPOUNDED.
• Your have an option to move from Increasing
  option to Level option once during the term of
  policy subject to two policy years having been
  completed (if he decides to do so, his sum
  insured and the premium will get frozen at values
  on the date of the move)

This product protects your client if he lives to
maturity (i.e. on premiums) as well as if he dies
before maturity (i.e. on Sum Assured) hence
truly protects against inflation !!!
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INCREASING OPTION GIVES HIGHER RETURNS TOO!!
But then on maturity, for a 15 year term for age
35 ,the maturity amount will be 31 Lacs instead
of 20 Lacs
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OTHER ADVANTAGEOUS FEATURES WHICH WE OFFER

• Partial Withdrawal
• Allowed from Non-Guaranteed funds only Liquidity
  in times of needs.
• Can with draw up to 20 of non-guaranteed fund
  value in any year.
• Not allowed from Guaranteed funds.
• Option to buy Personal Accident Benefit Rider
• Till age of 60
• No rider premiums rider charges recovered by
  canceling units
• Provides additional sum assured on accidental
  death or accidental disability

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CHARGES

• Allocation Charges (recovered by deducting before
  allocating premiums to funds)
• First Year Allocation Charge - 20 of premium
• Second Year Onwards - 3 of premium
• (In increasing SA option, 1st year charge is
  recovered on increased portion of premium)
• Administration Charges (recovered by canceling
  units)
• FIXED Rs. 50 per month. Inflating at 5 per
  annum.
• VARIABLE 0.42 per month of sum assured in
  years 1 and 2.
• A very small per month for
  duration of life of policy.
• Fund Management Charges (recovered by adjusting
  in NAV)
• Growth Fund _at_ 1.25 p.a.
• Balanced Fund _at_ 1.10 p.a.
• Guaranteed Fund (Dynamic) _at_ 1.70 p.a.
• Guaranteed Fund (Income) _at_ 1.50 p.a.
• Surrender Charges (Surrenders allowed after 3rd
  policy year)
• 10 of Fund Value in 4th policy year, 5 in 5th
  policy year, NIL thereafter.

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VITAL STATISTICS (1)Issue / Maturity Ages,
Policy Tenure, Premium Payment period

• Entry age Minimum 91 days
• Maximum 60 years (calculated as at last
  birthday)
• Policy (Benefit) term 15 years or 20 years
• Age at maturity Minimum 18 years
• Maximum 75 years
• Premium Payment Term For full Benefit Tenure i.e.
  either 15 or 20 years
• NB
• The 15-year term will only be offered from issue
  ages 3 and above (keeping in mind the minimum
  maturity age of 18).
• The 20-year term will only be offered up to issue
  age 55 (keeping in mind the maximum maturity age
  of 75).

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VITAL STATISTICS (2)Premiums, Sum Assured,
Death Benefit

• Premium Minimum Rs 10,000
• Maximum Rs 100,000 (if entry age is between 91
  days 40 years)
• Maximum Rs 50,000 (if entry age is 41 years
  or above)
• Sum Assured Always 10 times the Premium
• Minimum SA 10,000 10 Rs 1,00,000
• Maximum SA 100,000 10 Rs 10,00,000
• Sum Assured types LEVEL or INCREASING
• LEVEL Sum Assured in this option, your sum
  assured remains 10 times your original premium as
  chosen by you
• INCREASING Sum Assured in this option, your
  sum assured and your premiums increase by 5
  p.a., compounded (but your sum assured always
  remains 10 times your premium)
• Death Benefit Higher of Sum Assured or Policy
  Fund Value from age 11 onwards
• (Till age 11, Death Benefit Policy Fund
  Value)

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VITAL STATISTICS (3)TAX BENEFITS

• Since premiums are always less than 20 of Sum
  Insured, your client will get the following tax
  benefits
• U/s 80C on premiums paid. This benefit is
  allowed up to Rs 100,000 every year
• U/s 10(10D) on maturity benefits, partial
  withdrawals and death benefit

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• COMPETITIVE SCAN

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Companies offering unit link products with no
Maturity Guarantee and no inflation indexing

• LIC of India
• HDFC Standard Life Insurance
• Bajaj Allianz Life Insurance Company Ltd
• Tata AIG

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LIC OF INDIA

• Only one Unit Link Plan available Market Plus
• No Maturity Guarantee
• A deferred Pension Plan
• Pension i.e. annuity is taxable under current
  income tax rules.
• No Inflation Protection

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AVIVA

• SAVE GUARD
• Offers 1 Maturity Guarantee fund 2 Non
  Guaranteed Fund
• Guarantee reduced if any amount switched from the
  guaranteed fund at any time during the policy
  term
• Initial Management Charge of 7 per annum of
  initial units during the policy term, subject to
  maximum of 20 years (since the minimum tenure is
  10 years, at least 70 of first year premium will
  be taken as charges the maximum could go up to
  140 of first year premium).
• No Inflation Protection.

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BIRLA SUN LIFE INSURANCE

• Flexi Save Plus Plan
• Guarantee of Return _at_ 3 on premiums net of
  policy charges
• Multiple funds. Switching Allowed.
• High Allocation charges (as per adjacent table)
• High annual charges _at_ Rs 2.88/000 SA
• No Inflation Protection

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ICICI PRUDENTIAL

• Invest Shield Life (New)
• ONLY Maturity Guarantee Product in ICICI
  Prudential portfolio
• Only one fund, no switching
• No Inflation Protection

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PV

• SAME AS CURRENT

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BUSINESS SUPPORT MATERIALS

• Flip chart detailing the sales pitch you just
  saw.
• A 15 minute video in Hindi English on Why
  Insurance
• A 15 minute video in Hindi English on Max
  Amsure Secure Return Builder.
• Brochure.
• The same will be given to platinum and above
  leaders at launch events are being mailed to
  all Founder Club Members.

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Launch Program

• 23rd October Delhi
• 24th October Kolkatta
• 25th October Mumbai
• 26th October Chennai
• 28th October Hyderabad
• Other Cities for local launches
• Jaipur, Chandigarh, Lucknow, Bhopal, Surat,
  Ahmedabad, Guwahati, Bhubneshwar, Cochin,
  Bangalore

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