life gain plus consolidated

Life without compromises!!Lets plan a holiday!!

PMG/LGP/Ver 1.0/July'10 2

Life without compromises!!

Taste Bhi

Tough Bhi

Magar Pyaar se

Sab kuch chahiye…

Health Bhi

Kadi Safai

Soft Bhi


Is it true for financial decisions??

Safety of investments

Guaranteed Returns

What to do???

Higher Protection

Great Flexibility

Where will I get all this

without compromise?

???


Historically people have invested in…

Instrument % of Investme

nt

Duration in Years

Pre Tax Return

Tax Treatment

Post Tax Return

Fixed Deposit 40% 5 8.5% Taxable Interest

5.95%

Life Insurance 15% 5 - 30 6%-10% Tax Free 6% - 10%

Post Office Instruments

17%

5 7.5% - 8% Taxable Interest

5.25% -5.6%

National Savings

Certificate

6 8% Taxable Interest

5.6%

PPF 14% 15 8.5% Tax Free 8.5%

Others 14% 1-10Yrs Varies Taxable Varies

However majority with a

compromise!!

No flexibility !No protection!


Complete Financial Solution without compromise !!

Instrument % of Investme

nt

Duration in Years

Pre Tax Return

Tax Treatment

Post Tax Return

Fixed Deposit 40% 5 8.5% Taxable Interest

5.95%

Life Insurance 15% 5 - 30 6%-10% Tax Free 6% - 10%

Post Office Instruments

17%

5 7.5% - 8% Taxable Interest

5.25% -5.6%

National Savings

Certificate

6 8% Taxable Interest

5.6%

PPF 14% 15 8.5% Tax Free 8.5%

Others 14% 1-10Yrs Varies Taxable Varies


Guaranteed Returns

Higher Protection

Great Flexibility

Life Insurance

To add to the excitement of 2010…

We now bring to you another world-class product without any

compromises!!

Life Gain PlusA Traditional, participating plan…offering…

…So that you can enjoy a long holiday called…Life!


Guaranteed Returns

Higher Protection

Great Flexibility


A Perfect Solution for Life’s Holiday!!


Guaranteed Returns

Higher Protection

Great Flexibility

–Investment Pattern as regulated by IRDA

–Guaranteed addition at maturity …110% of SA on maturity

–Double Death Benefit - After 5 years – Double SA + Bonuses., Within 5 years – SA + Bonuses

–Riders for enhanced protection

–To choose tenor and

–Option to pay premiums in Limited payment period and,

–To switch between different bonus options

Safety of Investment - Investment strategy for traditional products

In line with IRDA Investment guidelines for traditional products!


Guaranteed Returns – Maturity Benefit

First premium

Issue of policy – Year 0

Premiums Paid :Rs 300,000

Maturity values:• Guaranteed MB -

Rs. 4,41,943• Non Guaranteed @ 6% -

Rs. 6,27,656• Non Guaranteed @ 10% -

Rs.10,76,410

Premium payment tenor – 15 years

Male age 30, Premium 20,000, PPT 15 yrs and Term 25 yrs

Guaranteed Maturity

110% of Sum Assured

Sum Assured Rs. 4,01,766

Maturity of policy – Year 25

SA with accrued bonus at the end of 25th Year

Guaranteed Addition – 10% of SA

+


Higher Protection – On Death….



Death at 10 years

SA + accrued bonuses

Death after 5 years –

Double SA + accrued bonuses

Double SA with accrued

bonuses on Death after 5 years of policy in force

Issue of policy –Year 0

Maturity of policy – Year 25

Death within 5 years

Guaranteed

Rs. 8,03,532

Non Guaranteed

•@ 6% - Rs. 8,33,818

•@ 10% - Rs.8,88,152

Male age 30, Premium 20,000, PPT 15 yrs and Term 25 yrs


Higher Protection – On Death & Sickness

Rider Options:

• PAB

• Term Rider

• DD Rider

• WOP Rider

• Term R&C Rider

Inbuilt Protection:

• Terminal Illness coverage- up to 50% of SA paid upfront on diagnosis of a terminal illness.


Higher Flexibility

• Option to Choose Policy Term basis your life stage milestone:

– 20 Years or

– 25 Years

• Pay while your earning are higher - Limited Premium Payment option

– 10 Years PPT for 20 Year Term

– 10/15 Years PPT for 25 Year Term

• To switch between different bonus options

– Cash

– Premium Offset

– Paid up addition(PUA)


Customers have the flexibility to switch between bonus options

Flexibility - Bonuses Provide a Wide Array of Choice…

• Cash: take the amount of bonus declared as cash

• Premium Offset : the bonus amount can be used to adjust against future premiums payable

• Paid Up Additions: – The bonus amount can be used to purchase

PUA– Whereby the Sum Assured will increase the

insurance cover every year and add to base coverage

– PUA’s are participating in nature and generate further bonuses

– Can Be separately surrendered if customer wants to access the cash value of these PUA’s

SPECIA

L


Life Gain Plus – Bonus declared in 2010

Age Bonus Projection @

6%

Bonus Projection @

10%

Cash Bonus Per Rs. 1000 SA

25 4.57 11.87 7.669

30 4.69 12.21 7.884

35 4.93 12.82 8.277

40 5.27 13.70 8.850


Life Gain Plus - Plan Details

Entry age (years) 18

Max Entry age (years)

Term 20 - 55 Yrs : Term 25 - 50 Yrs

Maximum maturity age (years)

75

Policy term 20,25 years

Premium payment term

20 - 10 pay25 - 10/15 pay

Min Sum Assured (Rs)

50000

Max Sum assured (Rs)

No Limit

Riders allow ed PAB,Term, Term R&C, DD,WOP

Living benefitsSum assured w ith guaranteed additions &

accrued bonus

Death benefits

Policy in force < 5yrsSum assured

Policy in force > 5yrsDouble of Sum assured

Others benefitsGuaranteed 10% addition

Bonus once declared, is guaranteed

For details refer to product brochure..


• Tax deduction u/s 80C- On premium paid up to a maximum limit of Rs 1 Lac

• u/s 10(10D)- Tax Free proceeds (maturity& survival benefits)

Tax Benefit


Client – Prospect talk points

Hope you have started planning for

your future savings?

Your son/daughter is growing up.

Wouldn’t you want to create some

financial assets for their future

needs?

Diversify your investments: Enjoy

the guarantee return available with LGP

Daily consumption items are becoming expensive…we suggest you build a financial buffer to meet unforeseen circumstances.


A Quick Re – Cap for Life’s Holiday!!


Guaranteed Returns

Higher Protection

Great Flexibility

–Investment Pattern as regulated by IRDA

–Guaranteed addition at maturity …110% of SA on maturity

–Double Death Benefit - After 5 years – Double SA + Bonuses., Within 5 years – SA + Bonuses

–Riders for enhanced protection

–To choose tenor and

–Option to pay premiums in Limited payment period and,

–To switch between different bonus options


Enjoy Life without compromises!!

With .. Life Gain Plus

We have planned a Holiday!!


Happy Selling ☺☺☺☺

Lets see how!

Life Gain PlusLife Gain Plus -- Suitable for a LifetimeSuitable for a Lifetime

A young couple 25 to A young couple 25 to 40 years of age40 years of age

People Over 40People Over 40

Easy, Happy & Tension freeEasy, Happy & Tension freeOld AgeOld Age

LGP sales pitchFor the age group 25 -40

• Long term coverage and a plan that gives compounded bonus

• Supplements the investments you currently have, provides additional tax

benefits

• Money on maturity can be used for various purposes:

• Payment towards a housing loan

• Further education of children

• Marriage

• Holiday

• On a conservative note at 10%,By age 55, the total cash value of the fund is Rs10,32,789./-

• Partial withdrawal can supplement Money backs to meet bigger money needs.

• In case of demise spouse can utilize money as capital annuity /pension

• As and when required the cash option for bonus can be exercised.

AGE: 33

S.A Rs.3,57,450

Annual Premium: Rs.25,000

Policy term=20 yrs and PPT=10 yrs

Bonus Option: PUA

AGE: 33

S.A Rs.3,57,450

Annual Premium: Rs.25,000


Bonus Option: PUAPUA

You pay Rs 2.5 lacs in 10 yrs andyou get back Rs10.32 lacs

in 25 yrs

Mr Kamal and FamilySalaried: Marketing Manager

MrMr Kamal and FamilyKamal and FamilySalaried: Marketing ManagerSalaried: Marketing Manager

LGP sales pitchFor the age group of 41-55

• Long term coverage and a plan that gives compounded bonus

• Supplements the investments you currently have, provides additional tax

benefits

• Money on maturity can be used for various purposes

RETIREMENT

• On a conservative note at 10%,By age 68, the total cash value of the fund is Rs.9,67,863 /-

• Partial withdrawal can supplement Money backs to meet bigger money needs.

• In case of demise spouse can utilize money as capital annuity /pension

• As and when required the cash option for bonus can be exercised.

AGE: 43

S.A Rs.3,97,906

Annual Premium: Rs. 35,000


Bonus Option: PUA

AGE: 43

S.A Rs.3,97,906

Annual Premium: Rs. 35,000


Bonus Option: PUAPUA

You pay Rs 3.5 lacs in 10 yrs andyou get back Rs. 9.67 lacs

in 25 yrs

Mr AnilCollege Professor

MrMr AnilAnilCollege ProfessorCollege Professor

Operations Simplified

Consolidation of Traditional Proposal Form

Life Gain Plus, Bonus Builder and Safety Net

Old Proposal Form

New Proposal Form

1. No rural urban classification

1. Rural/urban/social sector flagging on proposal form

2. Proof of age, identity and address proof was captured in questions 7 & 14 respectively on page 1 & 2

3. Objective of insurance captured in question 24 on page 2

2. Proof of age, identity and address proof to be captured on the top of the new proposal form

3. Objective of insurance options elaborated and will now be captured on top of the form

4. Previous MNYL policies to be captured on top of the form

Page 1

Old Proposal Form

New Proposal Form

1. Gender & Date of Birth clubbed

2. Nationality options elaborated

3. Educational Qualifications omitted

4. Income Source reformatted and moved to question 8 on page 1

1. Gender & Date of Birth two separate questions

2. Only 2 options for Nationality

3. Educational Qualifications exists

4. Income Source was question number 15 on page 2

Page 1 (contd.)Section A: Personal Details

1. Nature of Business & Duties clubbed

New Proposal Form

Old Proposal Form

1. Nature of Business & Duties were separate questions

2. Occupation related question 13 reformatted and moved to page 1

2. Occupation related question 22 was on page 2

3. Driver specific question omitted

Page 1 (contd.)Section A: Personal Details

2. Work Address was question 23 being captured on page 2

3. E-mail correspondence question not there on old proposal form

Old Proposal Form

2. Work Address is now question 17 being captured on page 1

3. E-mail correspondence question included in the new proposal form

New Proposal Form

1. Address of both Proposer and Life insured captured

1. Address of only Proposer will be captured

4. Format of capturing the Address has now changed

Page 1 (contd.)

Section A: Personal Details

1. Appointee Details moved from question 12 on page 3 in the old form to question 19 on page 1 in new form

2. Address and Signatures of Appointee removed

Appointee Details

Old Proposal Form

New Proposal Form

Old Proposal Form

New Proposal Form

1. Premium Payment Term captured as a separate question

1. Premium Payment Term now being captured in the table for Type of Coverage

2. Plan & Rider name mentioned on the form

2. Plan and Rider details to be filled by the customer

Page 2

Section B: Coverage Information

1a. Mention the name of the Plan against 1a. Mention the name of the Plan against ““ Base Name PlanBase Name Plan ””

•• Coverage term Coverage term –– Policy term as per Product Specs & desire of custom er needs to Policy term as per Product Specs & desire of custom er needs to be filled.be filled.

•• Coverage amount /unit Coverage amount /unit –– Coverage amount as per the Plan chosen needs to be filled & covCoverage amount as per the Plan chosen needs to be filled & cov erage unit to be mentioned (only in case of Safety Net)erage unit to be mentioned (only in case of Safety Net)

•• Premium Paying Term Premium Paying Term –– Needs to be filled as per customerNeeds to be filled as per customer ’’s desire (Regular or Plan Specific)s desire (Regular or Plan Specific)

•• Modal Premium Modal Premium –– Premium as per mode of Premium (ANNUAL) needs to be filled.Premium as per mode of Premium (ANNUAL) needs to be filled.

1b. Mention the name of the rider opted for under R ider/Option1b. Mention the name of the rider opted for under R ider/Option

•• Coverage term Coverage term –– Rider term as per desire of customer needs to be fi lled.Rider term as per desire of customer needs to be fi lled.

•• Coverage amount Coverage amount of Riders taken needs to be filledof Riders taken needs to be filled

•• Modal Premium Modal Premium –– Rider Premium as per mode of Premium (Annual) needs to be filleRider Premium as per mode of Premium (Annual) needs to be fille d.d.

Total Modal premium (inclusive of base plan premium + rider premium )

Service tax on total modal premiumTotal Premium paid (inclusive of total modal premium + service tax)

Page 2

Section B: Coverage Information

Life Gain Plus Safety Net Bonus Builder

•Base Plan NameLife Gain Plus•Coverage Term20, 25 years•Coverage AmountMin – 50,000Max – No limit (subject to UW)•Premium Paying Term10 years (for 20 year plan); 10, 15 years (for 25 year plan)•Modal PremiumPremium as per mode opted for (Annual)•RiderPAB, Term (5/10), DD (10/15 year), Term R&C, WOP

•Base Plan NameSafety Net•Coverage Term10/15/20/25 or 30 years•Coverage AmountMin - 2,00,000Max - 40,00,000•Premium Paying TermRegular•Modal PremiumPremium as per mode opted for (Annual)•RiderNone

•Base Plan NameBonus Builder•Coverage TermTo age 100•Coverage AmountMin – 50,000Max – No limit (subject to UW)•Premium Paying Term20 years or to age 60, which ever is higher•Modal PremiumPremium as per mode opted for (Annual)•RiderPAB, Term, DD, WOP, OPPB, GIO

Plan wise coverage details

Product Specifications

Life Gain Plus Endowment Amsure Bonus Builder Lifeline Safety Net

Age at Entry (Last Birthday)

18 years to 55 years 18 yers to 50 years18 years to 60 years

Maximum maturity age 75 years 100 years75 Years

Minimum Face Amount Rs. 50,000/- Rs. 50,000/-Rs. 2,00,000

Maximum Face AmountNo limit (subject to underwriting)

No limit (subject to underwriting conditions) Rs. 40,00,000

Tenors20, 25 years To age 100 10/15/20/25 or 30

years

Premium Paying Terms

10 years (for 20 year plan); 10, 15 years (for 25 year plan)

20 years or to age 60, whichever is higherPremiums to be paid annually or monthly (only through direct

debit)

Regular

Riders allowed

PAB, Term (5/10), DD (10/15 year), Term R&C, WOP

The premium payment and coverage term for riders will always be less than or equal to the base policy premium

payment term

PAB, Term, DD, WOP, OPPB, GIO

The rider coverage term for riders will always be less or equal to the base policy payment term

None

Old Proposal Form

New Proposal Form

1. All the existing Coverage Details required

1. Existing Coverage Details required only for last 6 months

2. Claim made / Rejection details omitted

2. Claim made / Rejection details Being captured in question 2

Page 2Section C: Information of Life Insured

Old Proposal Form

New Proposal Form

1. Life style details moved to Section C on page 2

1. Life style details were captured under Section D on page 4

2. Foreign travel details required for next 12 months only. Question moved to Section C on page 2

2. Foreign travel details required for last 5 years and next 12 months. Details were captured under question 9 on page 4

3. Only one question will now be captured for Juvenile Applicant details

3. Three questions being captured for Juvenile Applicant details

4. Female Applicant details now has only 5 questions and is now being captured under Section C on page 3

4. Female Applicant details had 6 questions and was captured under Section D on page 4

Page 2Section C: Information of Life Insured

Old Proposal Form

New Proposal Form

1. Only Adverse Family History is required now

1. Entire Family History Required

Page 3Section D: Medical Information

Old Proposal Form

New Proposal Form

1. Medical Questions reduced from 17 to 16 (same as in UL form). Question 3rd, 5th, 6th & 7th have been clubbed in new form

1. 17 Medical Questions being captured. Question 3rd, 5th, 6th & 7th have been clubbed in new form

2. Tobacco consumption details required for only last 3 years

2. Tobacco consumption details for entire life required

3. Medical Report Enclosure being captured under question 4

Page 3

Section D: Medical Information

1.1. Coverage term Coverage term –– Policy term as per Product Specs & desire of custom er needs to Policy term as per Product Specs & desire of custom er needs to be filled.be filled.

2.2. Coverage amount /unit Coverage amount /unit –– Coverage amount as per the Plan chosen needs to be filled & covCoverage amount as per the Plan chosen needs to be filled & cov erage unit to be mentioned (only in case of Safety Net)erage unit to be mentioned (only in case of Safety Net)

3.3. Premium Paying Term Premium Paying Term –– Needs to be filled as per customerNeeds to be filled as per customer ’’s desire (Regular or Plan Specific)s desire (Regular or Plan Specific)

4.4. Modal Premium Modal Premium –– Premium as per mode of Premium (ANNUAL) needs to be filled.Premium as per mode of Premium (ANNUAL) needs to be filled.

5.5. Mention the name of the rider opted for under Rider /OptionMention the name of the rider opted for under Rider /Option

6.6. Coverage term Coverage term –– Rider term as per desire of customer needs to be fi lled.Rider term as per desire of customer needs to be fi lled.

7.7. Coverage amount Coverage amount of Riders taken needs to be filledof Riders taken needs to be filled

8.8. Modal Premium Modal Premium –– Rider Premium as per mode of Premium (Annual) needs to be filleRider Premium as per mode of Premium (Annual) needs to be fille d.d.

9.9. Modal Premium without Service Tax and Modal Premium without Service Tax and CossCoss –– Total Modal premium (inclusive of base plan premiu m + rider premium ) ..

10.10. Service Tax and Education Service Tax and Education CossCoss –– Service tax on total modal premium ..

11.11. Total Premium Paid Total Premium Paid –– Total Premium paid (inclusive of total modal premi um + service tax) ..

Plan Name to be filled

1 2 3 4

5 6 7 8

9 10 11

Proposal Form Page – 2 (Coverage Details)

� Last 2 years MNYL policies would be considered for calculating eligible SA basis enhanced medical grid

� For Medical SA will be count Single for all Traditional Products.

� If customer is taking a policy for SA Rs.5Lac. Medical SA will be count as 5Lac only.

CAT 7CAT 7CAT 7CAT 7CAT 7CAT7Above 1,00,00,00,

CAT 7CAT 6CAT 6CAT 6CAT 6CAT650,00,001 to 1,00,00,000

CAT 7CAT 6CAT 6CAT 6CAT 4CAT 430,00,001 to 50,00,000

CAT 7CAT 6CAT 6CAT 6CAT 3CAT 320,00,001 to 30,00,000

CAT 7CAT 6CAT 6CAT 5CAT 3NM15,00,00, to 20,00,000

CAT 6CAT 5CAT 5CAT 4NMNM10,00,001 to 15,00,000

CAT 5CAT 4CAT 4NMNMNM500,001 to 10,00,000

CAT 4CAT 1NMNMNMNMUp to 500,000

71 to 7556 to 7051 to 5541 to 5031 to 4018 to 30Years

AgeSum Assured (INR)

Earlier it was CAT 3

Enhanced Medical Grid for all Traditional Products

Medical & Financial calculation for Traditional Products

• If 49 years old customer is taking a Policy for Bonus Builder Plan SA is 10 Lac. He doesn’t have any previous Policy. What Medical category will be required?

• -- Non Medical.• 2. If 50 years old customer is taking a Policy for Safety Net Plan SA

15 Lacs and he has one previous Policy in year 2009 for SA 10 Lacs, Plan SRB. What Medical category will be required?

• -- CAT 5.• If 49 years old customer is taking a Policy for Life Gain Plus Plan SA 9

Lacs and Customer has one previous policy in year 2010 of 15 Lac SA, Plan Magic Builder. What Medical category will be required?

• -- CAT6.

NoNoNoNoYes-FQ Report

NoNoNoYesYes-Individual Savings Bank Account for last 6 months

NoNoYesYesYes-Property Valuation papers in individual's name

NoNoYesYesYes-Latest Car insurance papers in individual's name

YesYesYesYesYes-Salary Slip (Last 2 months)

YesYesYesYesYes-Form 16 (Last 1 year)

YesYesYesYesYes-Audited Balance Sheet + Profit & Loss A/c (Last 2 yrs)

YesYesYesYesYes-ITR (Last 2 years)

Document List ↓

Prm 1 lac& above >50L

>40L to 50L

>30L to 40L

>20L to 30LUpto 20L

Sum Assured →

Non-Term PoliciesFINANCIAL GRID

Bank Statement:• Savings Bank Account Statement of last 6 months to be submitted• Bank Statement should be in individual name (Joint Account statement only with spouse is allowed)• Estimated Income = Average Balance of last 6 months * 6Car Insurance Papers:• Car Insurance papers should be in the name of Individual• Car should not be of more than 3 years old• Estimated Income = 75% of the insured value of the car

New Financial Grid for all Products

Thank You

life gain plus consolidated

Documents