2. Objectives Identify the need for a Unit Linked Plan 1 Outline the working of a Unit Linked Plan 2 List the Unit Linked Offerings from Tata AIG Life 3 Position the ULIP products from Tata AIG Life 4 By the end of this session you will be able to:
3. Why do people save/invest money? Purchase of small assets, starting a career Purchase of a house, car, etc. Child’s education and marriage Retirement and creating a legacy for future generations
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5. Components of an ideal portfolio Insurance Secured Income Yielding Instruments Equity/ Mutual Funds and Real Estate The percentages of each component would differ, depending on the risk appetite of the customer
6. Risk appetites and Investor Profiles Secured Income Yielding Instruments Equity/ Mutual Funds and Real Estate Secured Income Yielding Instruments Equity/ Mutual Funds and Real Estate Secured Income Yielding Instruments Equity/ Mutual Funds and Real Estate High Risk & High Return Potential Moderate Risk & Moderate Return Potential Low Risk & Low Return Potential Adventurous Balanced Cautious Great News! Unit Linked Insurance Plan (ULIP) Protection + Wealth Creation under a single plan
7. The ideal investment option Wealth Creation Protection Life Insurance Investment ULIPs
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10. How does a ULIP work? Investment Premium Growth Charges Final Value Start of the policy Appropriate sum assured & premium is selected. 1 2 Policy expenses including admin cost and cost of insurance are deducted 3 This gives the investible premium, which is invested in the funds of the customer’s choice. The Fund Management charges are deducted after the premiums are invested in the funds 4 Premiums are regularly paid. The fund value grows as per underlying fund performance. 5 The fund value is paid on maturity. In case of death, the sum assured or fund value is paid, whichever is higher. - = + =
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12. New ULIP offerings from Tata AIG Life Flexible Unit Linked Investment Plan Unit Linked Pension Plan InvestAssure Flexi
17. How does Invest Assure Flexi offer it’s flexibility? FLEXIBILITY Payment Term 5 7 13 27 40 19 36 32 Choose any term between 5 & 40 3 years 5 years 9 years 23 years 25 years 34 years 38 years 40 years 13 years Choose 3 years, multiples of 5 years or the policy term Policy Term
18. How does Invest Assure Flexi offer it’s flexibility? FLEXIBILITY Investment Funds Top-ups Large Cap Equity Fund WL Agressive Growth fund WL Stable Growth fund WL Mid-Cap Equity Fund WL Income Fund WL Short-Term Income Fund Capital Guarantee Fund Choose from 7 different funds Choose to top-up at any time
19. How does Invest Assure Flexi offer it’s flexibility? FLEXIBILITY Switching Premium Redirection Large Cap Equity Fund WL Agressive Growth fund WL Stable Growth fund WL Mid-Cap Equity Fund WL Income Fund WL Short-Term Income Fund Capital Guarantee Fund Choose to switch your funds at any time. 12 times a year with no charge Large Cap Equity Fund WL Agressive Growth fund WL Stable Growth fund WL Mid-Cap Equity Fund WL Income Fund WL Short-Term Income Fund Capital Guarantee Fund Choose to redirect your future premiums to any other funds in any proportion! Please note – switching and premium redirection into the capital guarantee fund is not allowed.
20. How does Invest Assure Flexi offer it’s flexibility? FLEXIBILITY Withdrawal Maturity Large Cap Equity Fund WL Agressive Growth fund WL Stable Growth fund Choose to withdraw from selected funds after 5 years 1 5 Choose to take a lumpsum on maturity or periodic payments over 5 years + a bonus if applicable
21. How does Invest Assure Flexi offer it’s flexibility? FLEXIBILITY Payment Term Withdrawal Investment Funds Switching Premium Redirection Top-ups Maturity Policy Term Choose any term between 5 & 40 Choose 3 years, 5 years or the policy term Choose from 7 different funds Choose to top-up at any time Choose to switch your funds at any time Choose to redirect your future premiums to any other funds in any proportion! Choose to withdraw from selected funds after 5 years Choose to take a lumpsum on maturity or periodic payments over 5 years + bonus if applicable Now… That’s What I Call Flexible!
22. How does Invest Assure Flexi offer it’s flexibility? Purchase of policy Flexibility in the premium payment term Flexibility in the policy term - 3 Flexibility to choose the premium payment term. Flexibility to invest additional money upto 4 times a year via Top-ups. Flexibility to Increase risk coverage by taking a sum assured for the top-ups at any point during the policy term. Flexibility to switch between funds to book profits or to take advantage of a better performing fund. Flexibility to withdraw from your investment via partial withdrawals. 12 free fund switches in a year. 6 11 Get a maturity bonus, depending on the number of premiums paid. Get the fund value of the regular premium fund + top-up fund, if any. Flexibility to take the maturity value immediately as a lumpsum or to take it over a certain period, upto 5 years from maturity. the Sum Assured net of all Deductible Partial Withdrawals , if any, from the Regular Premium Account , or the Regular Premium Fund Value In addition to this, for each Top-Up the death benefit will be higher of the approved Top-Up Sum Assureds) net of all Deductible Partial Withdrawals , if any, from the Top-Up Account or (ii) Top-Up Fund Value Death Flexibility to choose any term from 5 years to 40 years. 5 10
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24. Flexibility to choose the right fund WL Mid Cap Equity Fund WL Income Fund WL Short Term Fixed Income WL Aggressive Growth WL Stable Growth Large Cap Equity Fund Equities- 50-80%; Govt/ Corporate Bonds- 20-50%; Money Market Instruments- Upto 40% To provide higher returns in long term by investing primarily in Equities along with debt/ money market instruments Equities- 30-50%; Govt/ Corporate Bonds- 50-70%; Money Market Instruments- Upto 40% To provide stable returns by balancing the investment in Equities and debt/ money market instruments Equities- 80 to 100% Money Markets Upto 40% The primary investment objective of the Fund is to generate long - term capital appreciation from a portfolio that is invested pre-dominantly in large cap equity and equity linked securities Govt/ Corporate Bonds- Upto 100%; Money Market Instruments- Upto 40% To generate stable returns by investing in fixed income securities having shorter maturity periods. Under normal circumstances, the average maturity of the Fund may be in the range of 1-3 years. Govt/ Corporate Bonds- Upto 100%; Money Market Instruments- Upto 40% To generate income by investing in a range of debt and money market instruments of various maturities with a view to maximizing the optimal balance between yield, safety and liquidity. Equities- Upto 100% Money Market Upto 40% To generate long – term capital appreciation from a portfolio that is invested pre-dominantly in Mid Cap Equity and Mid Cap Equity linked securities. Allocation Objective Fund
41. Premium Allocation Charges 1.5% 10,000,000 & above 9.0% 1,000,000-9,999,999 15.0% 14.0% 13.0% 500,000-999,999 18.0% 16.0% 15.0% 25,000-499,999 19.0% 17.0% 16.0% 15,000-24,999 15-40 5-14 3 Annual Premium Band (Rs.) Premium Paying Term 1 st & 2nd Year 1.5% 2,000,000 & above 3% Less than 2,000,000 Annual Premium Band (Rs.) All Premium Paying Terms Year 3 to 5
42. Fund Management Charge FMC Fund 1.20% Large Cap Equity Fund 1.50% Capital Guarantee Fund (offer only to premium payment term>=15) 1.20% WL Mid-cap Equity Fund 0.80% WL Income Fund 0.65% WL Short Term Fixed Income Fund 1.00% WL Stable Growth 1.10% WL Aggressive Growth
45. Beat The Competition With Flexi ADDB NA ADB / APTP / DB / CI / HCB ADB / CI / WOP PB / CI (L)/ ADB / ADDL RIDERS 2 NO* 3 4 12 SW(FREE) 3 3 5 4 7 FUN(NOS) Yes Yes Yes No Yes TOP 25% 15% 24% 20% 19% PA (max) 5 - 25 10 - 40 10 - 70 10 - 75 5 - 40 years PT Regular Regular Regular Regular 3 / 5 / 10 / 15 / 20 / 25 / 30 / 35 / 40 Or equal to policy term. PPT Rs.50000 Rs.12000 Rs.15000 Rs.18000 Rs.15000 MP 75 years 70 years 70 years 75 years 80 years MA 18 Years - 60 years 0 year - 60 years 0 year - 60 years 0 year - 65 years 30 days - 70 years EA Dream Plan Horizon II New Unit Gain Plus Life time Super Invest Assure Flexi BSLI SBI Life Bajaj Allianz ICICI Prudential Tata AIG Life
46. Invest with the BEST! Business Standard dated July 9, 2007 Outlook Money dated December 15, 2007 Best Performing Equity fund in the Market!
47. Invest with the BEST! Tata AIG Life Investment Report- November 2007 Not Only The Best Product Not Only The Best Fund You Now Have The Best Product In The Best Fund!!!!
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50. Invest Assure Flexi at a glance For the entire term of policy. Benefit Period 3 Years/ Multiples of 5 Years/ Equal to policy term Premium Payment Period Annual/Semi-annual/Quarterly/Monthly Premium Mode 5 x Annual Premium or Term/2 x Annual Premium whichever is higher Sum Assured Rs.15,000 Minimum Premium 80 Max Age at Maturity 70 Max Issue Age 0 (30 days) Minimum Issue Age 5 – 40 Years Policy Term
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53. IA 2 Vs IA Flexi A Client Wants… A 7 Year Policy A 9 Year Policy A 11 Year Policy A 17 Year Policy Oh! They Can’t! Assumptions 15 Year policy Equity Fund Min SA of Rs 1,87,500 Aged 30 Annual Premium FMC 1.75% Premium Allocation Charge 40% Rs 25,000 Rs 10,000 Growth @10% Rs 15,501 Rs 268 Policy Admin Flat Rate Rs 456 Mortality As Per Chart Rs 227 Invest Assure 2 Rs 25,000 4,500 Rs 21,110 Rs 250 Rs 900 Rs 219 Invest Assure Flexi Annual Premium FMC 1.20% Premium Allocation Charge 18% Growth @10% Policy Admin Flat Rate Mortality As Per Chart 36.18% more in year 1!
54. What’s in it for EVERYONE? Lower Charges More Invested Fund Choice Fund Mgt Bigger Volumes More Customers Increased M. Share Increased Case Size Increased Sales More Customers More Cases Easier Convention More Income! WIN WIN WIN Ease of Sale Flagship Product Business Company Customer You
55. Positioning ULIP offerings from TALIC InvestAssure Gold InvestAssure Plus InvestAssure Future InvestAssure Flexi 1 2 ULIPS offerings 3 4
56. Positioning ULIP offerings from TALIC InvestAssure Gold InvestAssure Plus InvestAssure Future InvestAssure Flexi 1 2 3 4 Ideal offering for customers looking for investment & flexibility with lower charges Ideal offering for customers looking for an income in retirement Ideal for customers looking for a one time investment Ideal offering for customers looking for a Whole of Life Investment
64. InvestAssure Future at a glance No Under Writing Immediate Issue At Point Of Sale No Life Cover This Unit linked Pension plan has unique feature of NO LIFE COVER Premium Multiple Option I: Single Premium Option II: Regular Premium Annual/Semi-annual/Quarterly/Monthly Premium Mode Option I (Single Premium): Rs.25,000/- p.a. Option II (Regular Premium): Rs.10,000/-p.a. Premium to be chosen to be a multiple of Rs.100/-. Minimum Premium Option I: Single Premium Option II: Regular Premium Policy term or multiple of 5 from 10 years onwards. Premium Payment Period Option I (Single Premium) : 5 - 35 Years Option II (Regular Premium): : 10-35 Years Policy Term 75 years Max Age at Maturity 45 years Minimum Vesting Age Option I (Single Premium) : 70 years Option II (Regular Premium): 65 years Max Issue Age 18 years Minimum Issue Age Unit Linked Pension Plan Plan Type
65. How does InvestAssure Future Work? Advisor recommends the appropriate premium payment option as per customer needs identified. Advisor can recommend both options through 2 separate plans Advisor recommends the correct policy term for achievement of customer needs. 1 Single Premium Atleast Rs. 25,000 1 5- 35 years Max issue age- 70 years 1 2 Regular Premium Atleast Rs. 10,000 p.a. 2 10 – 35 years Max issue age 65 years 2
66. How does InvestAssure Future Work? Advisor recommends the appropriate fund for investment, based on customers risk appetite. Customer gets started on the plan by paying the premiums Future Equity Pension Fund Future Capital Guarantee Pension Fund* Future Growth Pension Fund Future Balanced Pension Fund Future Income Pension Fund * Please note- the Future Capital Guarantee Pension Fund is available only for a Premium Payment term of 15 years or more in case of Regular Premium Option. 3 4
77. Charges- Premium Allocation Premium Allocation Charges Option I: Single Premium Option II: Regular Premium Top – up Premium Allocation Charge 1.5% of Single Top-Up Premium 2.00% 1,00,00,000 & above 3.00% 5,00,000 to 99,99,999 4.00% 1,00,000 to 4,99,999 6.00% 25,000 to 99,999 Premium allocation charges Premium Slab 0% 6 yr onwards 3% 3-5 12% 2 15% for premium <50 k; 13% for premium >=50k 1 Premium allocation charges Premium Year
78. Charges- Surrender Option 1 Single Premium Surrender is not allowed in first 3-policy year. There are no surrender charges payables after completion of such period. Option 2 Regular Premium On Top-up Premium Account there are no Surrender charges payable . 0% 7 + 10% 6 20% 5 30% 4 Not allowed 3 Not allowed 2 Not allowed 1 Surrender Charges Premium year
79. Charges- Policy Administration & Switching Policy Administration Charge: Option 1: Single Premium Rs.25/- on a monthly basis in the first year and then may increase subject to a maximum of 5%p.a. Policy Administration Charge: Option 2: Regular Premium Rs.55/- on a monthly basis in the first year and then may increase subject to a maximum of 5%p.a. Fund Switching Charges There are 12 free switches per policy year. Thereafter a switching charge of Rs.100/- per switch will be applicable . The fund switching charge may be revised as deemed appropriate by the Company, but shall not exceed Rs.250.
80. Charges- Fund Management Charge 1.00 % Future Income Pension Fund 1.05 % Future Balanced pension Fund 1.10 % Future Growth Pension Fund 1.50 % Future Capital Guarantee pension Fund 1.25 % Future Equity Pension Fund Charges p.a. Fund
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83. Around InvestAssure Future 5 Funds: Future Equity Pension / Future Growth pension / Future Balanced Pension / Future Income Pension/ Future Capital Guarantee Pension fund Pension with Profits Fund 3 ULIP Funds : Pension Secure / Pension Growth / Pension Balanced 100% of funds can be invested in Pension with Profit Fund or Money can be allocated with min 10% in each of the 3 funds 6 Funds - Liquid Fund / Secure Managed Fund / Defensive Managed Fund / Balanced Managed Fund / Equity Managed Fund / Growth Fund 4 Funds - 1). Growth Fund 2). Balanced Fund 3). Secured Fund 4). Bond Fund. There are Four Funds to choose from - 1)Pension Maximiser 2) Pension Balancer 3)Pension Protector 4) Pension Preserver Fund Options 4 free switches per year ,on every additional switch rs 250 as switching charges 2 switches are free of charge, for every additional 0.5% of the amount switched , subject ot a max of Rs 500 per switch Switching charges of Rs. 100/- per switch after 24 free switch in the year 4 free switch is available for every policy year.Rs. 100/- for addl. Switch 4 free switch every year. Switch can be made during deferment period with a min amount per switch to rs 2000, after 4 swithes Rs 100 per switch deducted from accumulated units Switches 75 70 75 75 75 Maximum Pension Start Date 45 40 50 40 45 Minimum Pension Start Date Zero life cover Zero Life cover Zero life cover Min - 25,000 / Max - Equal to SP Zero Sum Assured Amount 25,000 100,000/- 25,000/- 10000/- 25,000/- Minimum Investment 70 years 65 70 65 in case of Life cover / 70 in case of No Life Cover 70 Maximum Age at Entry 18 18 18 18 18 Minimum Age at Entry IA Future SP ULIP Pension Plus SP UL Pension Plan Market Plus (SP Option) ICICI Pru LifeLink Super Pension (Single Premium) Product Name TALIC Aviva HDFC Std Life LIC ICICI Pru Company SINGLE PREMIUM ULIP PENSION PLAN COMPARISON
84. Around InvestAssure Future REGULAR PREMIUM ULIP PENSION PLAN COMPARISON 6 Funds - Liquid Fund / Secure Managed Fund/ Defensive Managed Fund / Balanced Managed Fund / Equity Managed Fund/ Growth Fund No Rider options available. N/A Without life cover Min Vesting Age - 50 Max Vesting Age – 75 Min Annual Prem - 10,000/- Min - 10 yrs Max - 40 yrs Min Age - 18 Max Age - 65 ULIP Pension(RP) HDFC SL 4 funds - Pension Maximiser II/ Pension Balancer II / Pension Protector II/ Pension Preserver. Rider’s avl. – ADB / WOP. Max of annual premium multiplies by policy term or 100,000 /- Both options avl (With / Without Life Cover) Min - 45 years Max – 75 years Rs. 10,000/- annually; 5000 half yearly; 834 monthly/- Min 10 years Min - 18 years Max - 65 years Life time Super pension(RP) I-Pru 5 Funds: Future Equity Pension / Future Growth pension / Future Balanced Pension / Future Income Pension/ Future Capital Guarantee Pension fund Pension with Profits Fund Pension Growth Fund / Pension Secure Fund /Pension Balance Fund 4 , Bond Fund / Secured Fund / Balanced Fund / Growth Fund Fund options No rider options available No options ADB rider, equal to Life Cover, sub to min 25,000 and max 50 lakhs. Rider Option N/A N/A Min SA - Rs. 50,000 Max SA - 20 times Annual Prem Min & Max SA Without life cover Without life cover Both options (with /without life cover)available Life Cover Option- With / Without Life Cover Min - 45 years Max - 75 years Min 40years; max 70 years Min Vesting Age - 40 Max Vest Age – 75 Vesting Period RP - 10,000 Annual- 6,000/- for RP; 1Lakh for Single premium Annual - 5,000/- Min Prem Term: RP - 10yrs -35 or term/2 Min5 ; max upto vesting age chosen Min 5 years Term RP Min Age-18 Max age - 65 Min Age 18 year- Max Age:65 Min Age - 18 Max Age - 70(with life cover 65) Issue Age InvestAssure Future Pension Plus (RP) Market Plus (RP) Plan Name TALIC Aviva LIC Part
85. InvestAssure Future at a glance This Unit linked Pension plan has unique feature of No life cover Premium Multiple Option I: Single Premium Option II: Regular Premium Annual/Semi-annual/Quarterly/Monthly Premium Mode Option I: Rs.25,000/- p.a. Option II: Rs.10,000/-p.a. Premium should be chosen to be a multiple of Rs.100/-. Minimum Premium Option I: Single Premium Option II: Regular Premium Policy term or multiple of 5 from 10 years onwards. Premium Payment Period Option I: 5 - 35 Years Option II: 10-35 Years Policy Term 75 years Max Age at Maturity 45 years Minimum Vesting Age Option I: 70 years Option II: 65 years Option I is Single Premium and Option II is Regular Premium Max Issue Age 18 years Minimum Issue Age Unit Linked Pension Plan Plan Type
