AGENDA

1. WHY UNIT LINK INSURANCE PLAN IN OUR PORTFOLIO

3. WHAT WILL BE THE SALES PITCH FOR AMSURE UNIT LINK

PRODUCT

5. PV

7. BUSINESS SUPPORT MATERIAL

9. 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 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.

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 Sales Pitch

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purposes only
 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 !

2.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 !

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

and

6. 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 child’s
education will cost
you?

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9
internal training
purposes only
Escalating costs of Higher Education
(in Rs.)
*
ENGINEERING
3.2 lacs
YEAR MEDICINE 5.0 lacs
2000
MBA 2.4 lacs

ENGINEERING 5.21 lacs

YEAR MEDICINE 8.14 lacs
2010
MBA 3.91 lacs

ENGINEERING 8.50 lacs

YEAR MEDICINE
13.26 lacs
2020 MBA
* At an average annual inflation of 5% p.a. 6.37 lacs
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 !

2. 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
1. RETURNS

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

5. SWITCHING

7. Maturity Guarantee

9. INFLATION PROTECTION

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INTRODUCING MAX AMSURE SECURE
RETURNS BUILDER

1. RETURNS 

2. CHOICE OF FUNDS 

3. SWITCHES 

4. GUARANTEE 

5. INFLATION PROTECTION 
AN IDEAL ULIP

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CHOICE OF 4 FUNDS WITH DIFFERENT
RISK - REWARD RATIOS.
Potential Risk Return
Choice of 4 funds profile of the fund

Wide choice of risk return profiles

– GROWTH FUND : Non Guaranteed High risk high returns
fund with maximum 70% equity
investment
- BALANCED FUND : Non Guaranteed Medium risk medium
fund with maximum 40% equity returns
investment
– GUARANTEED FUND (DYNAMIC) :
Guaranteed fund with maximum 30% Moderate risk, with
equity investment guarantee

– GUARANTEED FUND (INCOME) :

Guaranteed fund with maximum 15% Low risk, with
equity investment guarantee

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Many Investment Choices….As per
your appetite
ALLOCATION FUNDS 
OF ASSETS Guaranteed
Growth Balanced Guaranteed Fund
Fund
Fund Fund (Income)
(Dynamic)

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

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

Bonds
Government 0% - 30% 20% - 50% 50% - 80% 50% - 80%
Securities
Money Market 0% - 20% 0% - 20% 0% - 20% 0% - 20%
instruments

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Good Fund
CAGR over past 22 months

Performance
35%

31.34% p.a.) over last

22 Months
30%
The non guaranteed
funds in the product

25%

18.58%
20%

Structure close to the

15%
structure of the two
10.56% guaranteed funds
10%

4.56%
5%

0%
Growth Balanced Conservative Secure

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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 @ 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!!
        Illustrated Maturity Values

Age TERM Premium Sum Assured 6% earnings 10% earnings

Increasin
        level Increasing Level g
1,386,26 2,054,49
25 3 2,209,278 8 3,117,374
1,381,53 2,047,32
35 4 2,201,863 9 3,107,237
1,359,16 2,011,96
45 8 2,169,133 8 3,060,313
1,295,27 1,912,10
55 20 50,000 500,000 0 2,072,539 4 2,925,376
    1,201,96
25     905,137 1,288,101 3 1,664,888
1,197,05
35     901,301 1,282,098 8 1,657,952
    1,172,86
45     883,205 1,255,603 1 1,625,844
    1,104,52
55 15   831,481 1,177,412 9 1,533,512

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, 1 year charge is recovered on increased portion of premium)
st

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.

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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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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

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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 @ 3% on premiums net of policy

charges

Policy Year Allocation Charges

• Multiple funds. Switching Allowed. 1 65.0%
2 7.5%
3 7.5%
• High Allocation charges (as per adjacent table) 4 5.0%
5 5.0%

• High annual charges : @ 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 Only One Fund Means

portfolio

– Only one fund, no switching

– No Inflation Protection No Switching

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 PV

SAME AS CURRENT

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

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

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

7.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

1. 28th October Hyderabad

Other Cities for local launches:

Jaipur, Chandigarh, Lucknow, Bhopal, Surat, Ahmedabad, Guwahati,

Bhubneshwar, Cochin, Bangalore

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BETTER life BETTER future This material is for
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