l.i.cs golden jubilee offering. new bima gold (179) introintro features benefits illustrations...

L.I.C’s “Golden Jubilee Offering” L.I.C’s “Golden Jubilee Offering”

NEW BIMA GOLD (179)

Intro features benefits illustrations


NEW BIMA GOLD (179)

Who can avail of this plan ? All male & female between 14 - 57 years Are policy terms flexible ? Yes, The options are 12, 16 or 20 years. Upto what age is risk cover available ? The maximum age at maturity is 75 years. How much sum assured can be chosen ? Minimum sum assured : Rs.50,000. Maximum sum assured : No limit.


NEW BIMA GOLD (179)

What are the modes of payment? Yly / Hly / Qly / Mly / SSS

Non-medical schemes NMS/NMG applicable

Combines the benefit of Bima Gold & Bima Kiran Free risk cover ceases at age 75 Yet another GOLD from LIC!!! Open ended scheme w.e.f. 4th Sep 2006


NEW BIMA GOLD (179)

For a policy of Rs. 2,00,000 & above, you get a rebate of Rs. 7.50 per thousandrebate of Rs. 7.50 per thousand sum assured.

For a policy of Rs. 1,00,000 to 1,95,000 you get a rebate of Rs. 5 per thousandrebate of Rs. 5 per thousand sum assured.


NEW BIMA GOLD (179)

Death CoverDeath Cover : :

On unfortunate death of the life assured, during the term of the policy, an amount equal to Sum Assured under the Basic Plan is paid provided the life cover is in force.


NEW BIMA GOLD (179)

SURVIVAL BENEFITS:-

Policy

Term

% of Sum Assured payable

At the end of years

12 15% 4th and 8th years

16 15% 4th, 8th and 12th years

20 10% 4th,8th, 12th and 16th years


NEW BIMA GOLD (179)

Maturity BenefitMaturity Benefit

Total amount of premiums paid (excluding extra/optional rider premiums) plus plus LA Less survival benefits paid


NEW BIMA GOLD (179)

Auto Cover (Premium Auto Cover (Premium Holiday)Holiday)If 2 years’ premium has been paid, and subsequent premiums not paid, full death cover shall be continue for a period of 2 years from date of First Unpaid Premium. This period of 2 years is called Auto Cover period.

During the Auto Cover period, one or more installments of premium can be paid with interest but without revival requirements and the Auto Cover period shall be available for 2 years from the revised date of FUP.


NEW BIMA GOLD (179)


NEW BIMA GOLD (179)

Loyalty Addition? Why is it ONE TIME?

Why no share of profits for Death Claims?

Will there be profits atleast equal to 75/20?

It is only a “return of premium” term insurance with money back

MISCONCEPTIONS

What is loyalty What is loyalty addition?addition? How much will How much will it be?it be?


NEW BIMA GOLD (179)

Loyalty AdditionLoyalty Addition


NEW BIMA GOLD (179)

With profitWith profit• Identical to Identical to bonusbonus• 165, 174, 165, 174, 179179

Without Without profitprofit• Meager Meager amount amount • 111, 150111, 150


This is a with-profits Plan and the policy participates in the Corporation’s with-profit assurance business

Share of profits in form of loyalty addition (one-time) is a payable on maturity.

NEW BIMA GOLD (179)


There is a misconception that Loyalty There is a misconception that Loyalty addition is just a little sweetener and addition is just a little sweetener and the main growth comes from bonus / the main growth comes from bonus / G.A.G.A.

But it will not be so in the case of New But it will not be so in the case of New Bima Gold. Actuarial analysis will show Bima Gold. Actuarial analysis will show that the actual L.A. that can be paid that the actual L.A. that can be paid will not be less than the total regular will not be less than the total regular bonus payablebonus payable on death claim, on death claim, surrender or maturity.surrender or maturity.In fact the policy holder will stand to In fact the policy holder will stand to gain more due to this conceptgain more due to this concept

NEW BIMA GOLD (179)


Reversionary bonus is declared after Reversionary bonus is declared after assessment of surplus.assessment of surplus.

On this surplus first a tax of 12.5% + 10% On this surplus first a tax of 12.5% + 10% surcharge on tax and 2% educational cess, i.e. surcharge on tax and 2% educational cess, i.e. a total of 14% has to be paid.a total of 14% has to be paid.

Thereafter 5% is the government shareThereafter 5% is the government share

Then there is also a Solvency Margin provision Then there is also a Solvency Margin provision to be madeto be made

The remainder is then distributed as bonus to The remainder is then distributed as bonus to the policy holdersthe policy holders

NEW BIMA GOLD (179)


Loyalty Additions and Final Addition Loyalty Additions and Final Addition Bonuses are not based on assessment of Bonuses are not based on assessment of surplus.surplus.

Hence there is NO TAX, NO GOVERNMENT Hence there is NO TAX, NO GOVERNMENT SHARE AND NO SOLVENCY MARGIN SHARE AND NO SOLVENCY MARGIN PROVISION to be made.PROVISION to be made.

The result naturally is substantially The result naturally is substantially higher benefithigher benefit to the policy holder to the policy holder

NEW BIMA GOLD (179)

INSURANCE PREMIUM

RISK INVESTMENT PREMIUM

PREMIUM


NEW BIMA GOLD (179)

How much Loyalty Addition? Age: 35 Term: 20 years S.A.: 5 lakhs

Plan

Premium

Risk prem Balance

With profit

Bonus rate

T.164 2306 2306 nil No -----

T.75

32,319 “ 30,013 YES 410000

T.179 19549 “ 17243 YES ?

235552

LOYALTY ADDITION RATES (likely)

TERM PER 1000 SA12 400

16 500

20 600Intro features benefits illustrations

NEW BIMA GOLD (179)

2 TYPES OF CUSTOMERS

FIRST- CLASS OTHER CUSTOMERS CUSTOMERS


NEW BIMA GOLD (179)HOW TO POSITION THE PRODUCT ?

Intro features benefitsIntro features benefits illustrations illustrations

NEW BIMA GOLD (179)

How to convince them ?

How to win over the sale ?

FIRST CLASS CUSTOMERS

ILLUSTRATION: AGE 30 179/16 5 LAKHS

YEAR PRM IT REBATE

NET

PRM

SUR

BENEFIT

2006 18408 5522 12886

2007 18408 5522 12886

2008 18408 5522 12886

2009 18408 5522 12886

2010 51544 50000

MONEY LOCKED WITH LIC IS VERY LESS


YEAR PRM IT REBATE

NET

PRM

SUR

BENEFIT

2010 18408 5522 12886

2011 18408 5522 12886

2012 18408 5522 12886

2013 18408 5522 12886

2014 51544 50000



YEAR PRM IT REBATE

NET

PRM

SUR

BENEFIT

2014 18408 5522 12886

2015 18408 5522 12886

2016 18408 5522 12886

2017 18408 5522 12886

2018 51544 50000



YEAR PRM IT REBATE

NET

PRM

MATURITY

BENEFIT

2018 18408 5522 12886

2019 18408 5522 12886

2020 18408 5522 12886

2021 18408 5522 12886

2022 51544 158160+L.A.



NEW BIMA GOLD (179)

How to convince customers who are otherwise not comfortable ?

How to ensure policy doesn’t lapse?

OTHER CUSTOMERS

How to save your club membership?

AUTO COVER

Age 35, Term 20 Yr., S.A.Rs.5 Lakhs

Year Premia Revival Amt S B balance

1 st 19549

2nd 19549

3rd unpaid

4th unpaid 44005 50000 5995

5th 13554

6th 19549

7th unpaid

8th unpaid 44005 50000 5995

9th 13554

10th 19549

Year Premia Revival Amt S B Balance

11th unpaid

12th unpaid 44005 50000 5995

13th 13554

14th 19549

15th unpaid

16th unpaid 44005 50000 5995

17th 13554

18th 19549

19th unpaid

20th unpaid 44005 1,80,980(Guarantee)

1,36,975+3,00,000


NEW BIMA GOLD (179)STRENGTH OF NEW BIMA GOLD

Realize the true potential of our new BIMA GOLD with ILLUSTRATIONS

1.15 Lakhs YLY PREMIUM 7335 2 Lakhs YLY PREMIUM 7363

5 23000 4 20000

10 23000 8 20000

12 20000

16 20000

20 46000+94300=140300 20 (143260-80000)+120000=183260

5.14 (without tax) 8.52 (without tax)

10.72 (with tax) 14.61 (with tax)

75/20 179/20

Yield Yield

15 23000

ILLUSTRATION – 1 AGE 30 YEARS



5 24000 4 20000

10 24000 8 20000

12 20000

16 20000

20 48000+98400=146400 20 (156400-80000)+120000=196400


10.26 (with tax) 13.47 (with tax)Yield Yield

75/20 179/20

15 24000



5 26000 4 20000

10 26000 8 20000

12 20000

16 20000

20 52000+106600=158600 20 (176780-80000)+120000=216780


9.53 (with tax) 12.10 (with tax)

15 26000

Yield Yield

75/20 179/20



5 28000 4 20000

10 28000 8 20000

12 20000

16 20000

20 56000+114800=170800 20 (205780-80000)+120000=245780


8.49 (with tax) 10.71 (with tax)Yield Yield

75/20 179/20

15 28000


NEW BIMA GOLD (179)

Loyalty Addition? Why is it ONE TIME? Loyalty Addition (with profit) is a beauty which is paid on the date of maturity just like FAB

Why no share of profits for Death Claims? FAB is not given for death claims in money back plans.

Will there be profits atleast equal to 75/20? No doubt. It could be even more than that.

It is only “return of premium” term insurance with money back It is a blend of Endowment, Money Back, New Janaraksha and Bima Kiran

MISCONCEPTIONS & REALITY

l.i.cs golden jubilee offering. new bima gold (179) introintro features benefits illustrations...

Documents

concept new bima gold

case of new bima gold

survival benefits

years premium

sum assured

death cover

auto cover period

end of years