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The following is the presentation of Unit linked insurance plan of Amsure.

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Page 1: Amsure ULIP pan

BETTER life BETTER future This material is for internal training purposes only

AGENDA

1. WHY UNIT LINK INSURANCE PLAN IN OUR PORTFOLIO

2. WHAT WILL BE THE SALES PITCH FOR AMSURE UNIT LINK PRODUCT

3. PV

4. BUSINESS SUPPORT MATERIAL

5. LAUNCH SCHEDULE

Page 2: Amsure ULIP pan

BETTER life BETTER future This material is for internal training purposes only

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 LIC’s 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.

Page 3: Amsure ULIP pan

BETTER life BETTER future This material is for internal training purposes only

Sales Pitch

Page 4: Amsure ULIP pan

BETTER life BETTER future This material is for internal training purposes only

• To protect against :– risk of dying too early.– risk of living too long.

• Forced yet an effective savings & protection tool.

• Tax savings.

WHY DO WE BUY INSURANCE?

Page 5: Amsure ULIP pan

BETTER life BETTER future This material is for internal training purposes only

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

1.RETURNS

Page 6: Amsure ULIP pan

BETTER life BETTER future This material is for internal training purposes only

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

HOW?

Page 7: Amsure ULIP pan

BETTER life BETTER future This material is for internal training purposes only

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

2. CHOICE OF FUNDS WITH DIFFERENT RISK-REWARD RATIOS.

and

3. SWITCHING : ABILITY TO TAKE ADVANTAGE OF MARKET MOVEMENTS BY MOVING MONIES BETWEEN DIFFERENT

FUNDS BASED ON CHANGING MARKET DYNAMICS

Page 8: Amsure ULIP pan

BETTER life BETTER future This material is for internal training purposes only

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

4. 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 .

Page 9: Amsure ULIP pan

9BETTER life BETTER future This material is for internal training purposes only

Can you guess how much your child’s education will cost you?

Page 10: Amsure ULIP pan

BETTER life BETTER future This material is for internal training purposes only

MBA

MEDICINE

ENGINEERING

MBA

MEDICINE

ENGINEERING

MBA

MEDICINE

ENGINEERING

YEAR2000

YEAR2010

YEAR2020

3.2 lacs5.0 lacs2.4 lacs

8.50 lacs

13.26 lacs

6.37 lacs

5.21 lacs

8.14 lacs

3.91 lacs

* At an average annual inflation of 5% p.a.

Escalating costs of Higher Education*(in Rs.)

And this is without considering the additional increases which will happen due to colleges arbitrarily increasing fee every 2 - 3 years

Page 11: Amsure ULIP pan

BETTER life BETTER future This material is for internal training purposes only

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

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

.

Page 12: Amsure ULIP pan

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1. RETURNS

2. CHOICE OF FUNDS WITH DIFFERENT RISK-REWARD RATIOS.

3. SWITCHING

4. Maturity Guarantee

5. INFLATION PROTECTION

Five must have features in an Ideal ULIP

Page 13: Amsure ULIP pan

BETTER life BETTER future This material is for internal training purposes only

INTRODUCING MAX AMSURE SECURE RETURNS BUILDER

1. RETURNS

2. CHOICE OF FUNDS

3. SWITCHES

4. GUARANTEE

5. INFLATION PROTECTION

AN IDEAL ULIP

Page 14: Amsure ULIP pan

BETTER life BETTER future This material is for internal training purposes only

CHOICE OF 4 FUNDS WITH DIFFERENT RISK - REWARD RATIOS.

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

Potential Risk Return profile of the fund

High risk high returns

Medium risk medium returns

Moderate risk, with guarantee

Low risk, with guarantee

Wid

e ch

oic

e o

f ri

sk r

etu

rn p

rofi

les

Page 15: Amsure ULIP pan

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Many Investment Choices….As per your appetite

FUNDS ALLOCATION

OF ASSETS Growth Fund

Balanced Fund

Guaranteed Fund

(Dynamic)

Guaranteed Fund (Income)

Equities 20% – 70% 10% - 40% 0% - 30% 0% - 15%

Corporate Bonds

0% - 30% 20% - 40% 0% - 50% 0% - 50%

Government Securities

0% - 30% 20% - 50% 50% - 80% 50% - 80%

Money Market instruments

0% - 20% 0% - 20% 0% - 20% 0% - 20%

Page 16: Amsure ULIP pan

BETTER life BETTER future This material is for internal training purposes only

Good Fund Performance p.a.) over last 22 Months

31.34%

10.56%

4.56%

18.58%

0%

5%

10%

15%

20%

25%

30%

35%

Growth Balanced Conservative Secure

CAGR over past 22 months

The non guaranteed funds in the product

Structure close to the structure of the two guaranteed funds

Page 17: Amsure ULIP pan

BETTER life BETTER future This material is for internal training purposes only

UP TO ENTRY AGE 50 = 100% of Allocated PremiumsAllocated Premium in 15 Year Term = 95.87% of total PremiumAllocated Premium in 20 Year Term = 96.15% of total Premium

ENTRY AGE 50 OR MORE = 85% of Allocated PremiumsAllocated Premium in 15 Year Term = 81.49% of total PremiumAllocated Premium in 20 Year Term = 81.73% of total Premium

Allocated Premiums = Premiums minus Allocation Charge

GUARANTEE IS APPLICABLEIF INVESTED IN THE GUARANTEED FUNDS

Maturity GuaranteeGuarantee is on the premiums allocated in the GUARANTEED FUNDs

Page 18: Amsure ULIP pan

BETTER life BETTER future This material is for internal training purposes only

Flexibility to Maximize Returns Through SWITCHINGAbility 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)

Page 19: Amsure ULIP pan

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• 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

Flexibility to Maximize Returns Through SWITCHING

Page 20: Amsure ULIP pan

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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 @ 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 !!!

Page 21: Amsure ULIP pan

BETTER life BETTER future This material is for internal training purposes only

        Illustrated Maturity Values

Age TERM Premium Sum Assured 6% earnings 10% earnings

        level Increasing Level Increasing

25

20 50,000      

500,000       

1,386,263 2,209,278 2,054,498 3,117,374

35 1,381,534 2,201,863 2,047,329 3,107,237

45 1,359,168 2,169,133 2,011,968 3,060,313

55 1,295,270 2,072,539 1,912,104 2,925,376

25

15

905,137 1,288,101 1,201,963 1,664,888

35 901,301 1,282,098 1,197,058 1,657,952

45 883,205 1,255,603 1,172,861 1,625,844

55 831,481 1,177,412 1,104,529 1,533,512

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

Page 22: Amsure ULIP pan

BETTER life BETTER future This material is for internal training purposes only

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

Page 23: Amsure ULIP pan

BETTER life BETTER future This material is for internal training purposes only

CHARGESAllocation Charges (recovered by deducting before allocating premiums to funds)

First Year Allocation Charge - 20% of premiumSecond 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 @ 1.25% p.a.Balanced Fund @ 1.10% p.a.Guaranteed Fund (Dynamic) @ 1.70% p.a.Guaranteed Fund (Income) @ 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.

Page 24: Amsure ULIP pan

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

Entry age: Minimum 91 daysMaximum 60 years (calculated as at last birthday)

Policy (Benefit) term: 15 years or 20 years

Age at maturity : Minimum 18 yearsMaximum 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).

Page 25: Amsure ULIP pan

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Premium : Minimum Rs 10,000Maximum 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 PremiumMinimum SA = 10,000 * 10 = Rs 1,00,000Maximum SA = 100,000 * 10 = Rs 10,00,000

Sum Assured types LEVEL or INCREASINGLEVEL 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)

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

Page 26: Amsure ULIP pan

BETTER life BETTER future This material is for internal training purposes only

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

VITAL STATISTICS (3):TAX BENEFITS

Page 27: Amsure ULIP pan

BETTER life BETTER future This material is for internal training purposes only

COMPETITIVE SCAN

Page 28: Amsure ULIP pan

BETTER life BETTER future This material is for internal training purposes only

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

1. LIC of India

2. HDFC Standard Life Insurance

3. Bajaj Allianz Life Insurance Company Ltd

4. Tata AIG

Page 29: Amsure ULIP pan

BETTER life BETTER future This material is for internal training purposes only

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

Page 30: Amsure ULIP pan

BETTER life BETTER future This material is for internal training purposes only

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.

Page 31: Amsure ULIP pan

BETTER life BETTER future This material is for internal training purposes only

Flexi Save Plus Plan

• Guarantee of Return @ 3% on premiums net of policy charges

• Multiple funds. Switching Allowed.

• High Allocation charges (as per adjacent table)

• High annual charges : @ Rs 2.88/000 SA

• No Inflation Protection

BIRLA SUN LIFE INSURANCE

Policy Year Allocation Charges1 65.0%2 7.5%3 7.5%4 5.0%5 5.0%

Page 32: Amsure ULIP pan

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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

Fund Means

No Switching

Only One

Page 33: Amsure ULIP pan

BETTER life BETTER future This material is for internal training purposes only

PV

SAME AS CURRENT

Page 34: Amsure ULIP pan

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BUSINESS SUPPORT MATERIALS1.Flip chart detailing the sales pitch you just saw.

2.A 15 minute video in Hindi & English on ‘Why Insurance’

3.A 15 minute video in Hindi & English on ‘Max Amsure Secure Return Builder’.

4.Brochure.

The same will be given to platinum and above leaders at launch events & are being mailed to all Founder Club Members.

Page 35: Amsure ULIP pan

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Launch Program

1. 23rd October Delhi

1. 24th October Kolkatta

1. 25th October Mumbai

1. 26th October Chennai

1. 28th October Hyderabad

Other Cities for local launches:

Jaipur, Chandigarh, Lucknow, Bhopal, Surat, Ahmedabad, Guwahati, Bhubneshwar, Cochin, Bangalore

Page 36: Amsure ULIP pan

BETTER life BETTER future This material is for internal training purposes only