INTRODUCTION TO ICICI PRUDENTIAL

OVERVIEW

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank and Prudential plc engaged in business of life insurance in India. ICICI prudential is the largest private insurance company and second largest insurance in India after LIC. ICICI prudential life insurance company is a joint venture between ICICI Bank, a premier financial powerhouse, and Prudential plc, a leading international financial services group headquarters in the United Kingdom. ICICI prudential was amongst the first private sector insurance companies to begin operations in dec 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). ICICI prudential lifes capital stands at Rs 47.80 billion with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. Today, our nation-wide reach includes over 1,900 branches (inclusive of 1,074 micro offices), over 210,000advisors, and 7 banc assurance partners. For 3 years in a row, ICICI Prudential has been voted as Indias Most Trusted Private Life Insurer by the Economic Times- AC Neilson ORG Marg survey of Most Trusted Brands. As we grow our distribution, product range and customer base, we continue to tirelessly uphold our commitment to deliver world class financial solutions to customers all over India.

THE ICICI PRUDENTIAL EDGE

The ICICI Prudential edge comes from the commitment to our customers in all that they do- be it product development, distribution, the sales process or servicing. Heres a peek into what makes us lead us. 1. Our products have been developed after a clear and through understanding of customers needs. It is this research that helps us to develop Education plans that offer the ideal way to truly guarantee your childs education, retirement solutions that are the hedge against inflation and yet promise a fixed income after you retire or Health Insurance that arms you with the funds you might need to recover from a dreaded disease. 2. Having the right products in the first step, but its equally important to ensure that our customers can access them easily & quickly. To this end, ICICI Prudential has an advisor base across the length and breadth of the country, and also partners with leading banks, corporate agents and brokers to distribute our products. 3. Robust risk management and underwriting practices form the core of our business. With clear guidelines in place, we ensure equitable costing of risks and therapy ensure a smooth and hassle-free claims process. 4. Entrusted with helping our customers meet their long term goals, we adopt an investment philosophy that aims to achieve risk adjusted returns over the long term. 5. Last but definitely not the least, our team is given the opportunity to learn and grow, everyday in a multitude of ways. We believe this keeps them engaged & enthusiastic, so that they can deliver on our promise to cover you, at every step in life.

VISION AND VALUES:

The vision of ICICI pru life is to be dominant life, health, pensions player built on trust by world-class people and services. This they hope to achieve by: y Understanding the needs of customers & offering them superior products & services. y Leveraging technology to service customers quickly, efficiently and conveniently. y Developing & implementing superior risk management and investment strategies to offer sustainable and stable returns to our policy holders. y Providing an enabling environment to foster growth and learning for our employees. The success of the company will be founded in its unflinching commitment to 5 crores values- integrity, customer first, boundary less, ownership and passion. Each of the values describe what the company stands for, the qualities of our people and the way they work.

VALUES:Every member of the ICICI Prudential team is committed to 5 core values: Integrity, Customer First, Boundary less, Ownership, and Passion. These values shine forth in all we do and have become the keystones of our success.

PROMOTERS:

a) ICICI BANK LIMITED (NYSE: IBN):About ICICI Bank: ICICI Bank limited (NYSE: IBN) is Indias largest private sector bank and the second largest bank in the country with consolidated total assets of over US$100 billion as of march 31,2010. ICICI Banks subsidiaries include Indias leading private sector insurance companies and among its largest securities brokerage firms, mutual funds and private equity firms. ICICI Banks presence currently spans 19 countries, including India.

b) PRUDENTIAL PLC:Established in London in 1848, Prudential plc is an international retail financial services group with significant operations in Asia, the US and UK serving around 25 million customers, policy holders and unit holders worldwide. The company has $290 billion of assets under management and iit is one of the best capitalized insurers in the world with an Insurance Groups Directive (IGD) Capital surplus estimated $3.4 billion (at 31 dec 2009). Prudential is a leading life insurance in Asia with a presence in 12 markets and have the top three position in 7 key locations of Hongkong, India, Indonesia, Malaysia, Singapore, the Phillippines and Vietnam.

FACT SHEET:

A. THE COMPANY:ICICI Prudential life insurance company is a joint venture between ICICI Bank, a premier financial powerhouse and Prudential plc, a leading international financial services group headquarters in United Kingdom. ICICI Prudential was amongst the first private sector insurance companies to begin operations in dec 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). ICICI Prudential Lifes capital stands at Rs 4,780 crores (as of mar 31,2010) with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. For the period Apr 1, 2009 to Mar 31,2010, the company has garnered total premium of Rs 16,532 crores and has underwritten over 10 million policies since inception. The company has assets held over Rs 57,000 crores as on March 31,2010. For the past nine years, ICICI Prudential life has retained its leadership, position in the life insurance industry with a wide range of flexible products that meet the needs of the Indian customer at every step in life.

B. DISTRIBUTION:ICICI Prudential life has one of the largest distribution networks amongst private life insurers in India. It has a strong presence across India with over 1,900 branches (including 1,074 micro-offices) and an advisor base of over 210,000 (as on Mar 31,2010). The company has 7 banc assurance partners having tie-ups with ICICI Bank, Ratanagiri District Central Co-operative Bank, Ballia

Kshetriya Co-operative Bank, Renuka Nagrik, Sahakari Bank, Bhandara Urban Co-operative Bank, Balasinor Nagarik Sahakari Bank Ltd, Arvind Co-operative Bank.

C. PRODUCTS: i.

INSURANCE SOLUTIONS FOR INDIVIDUALS:ICICI Prudential Life Insurance offers a range of innovative, customer-centric products that meet the needs of customers at every stage. Its products can be enhanced with up to 4 riders, to create a customized solution for each policy holder.

ii.

SAVINGS AND SOLUTIONS:

WEALTH

CREATION

a. ICICI PRU SAVE N PROTECT is an ideal plan for those who want to accumulate funds on a regular basis while enjoying insurance protection. b. ICICI PRU CASH BAK is a single policy that combines the triple benefits of protection, savings and periodic liquidity. c. ICICI PRU LIFE TIME MAXIMA is a unit linked plan which offers potentially higher returns over the long term with flexible investment options to help you achieve yours goals. It also offers you a unique strategy that allows u to protect gains made through your funds in the equity markets from any future equity market volatility. d. ICICI PRU ASSURE WEALTH is a whole life insurance and savings unit linked plan that rewards you with a guaranteed addition and also provide you an insurance cover with the additional advantage of life cycle based portfolio strategy that allocates the investors

money across various asset classes based on his age and risk appetite. e. ICICI PRU PREMIUM WEALTH is a unit linked plan which offers potentially higher returns over the long term with flexible investment options to help you achieve your goals. It also offers you a unique strategy that allows u to protect gains made through your funds invested in the equity market from any future equity market volatility. f. ICICI PRU ACE is a unit linked plan which has no premium allocation charge for any regular premiums, which means 100% of your money is invested in funds on premium payment. It also offers you a unique strategy that allows you to protect gains made through your funds invested in the equity markets from any future equity market volatility. iii.

PROTECTION SOLUTIONS:1. ICICI PRU PURE PROTECT is a flexible and affordable team product, with which you can ensure your life and provide total security for your family in case of an unfortunate event. 2. ICICI PRU LIFE GUARD is a protection plan, which offers life cover at low cost. It is available in two option level term assurance with return of premium and single premium. 3. ICICI PRU HOME ASSURE is a mortgage reducing term assurance plan designed specifically to help customers cover their home loans in a simple and cost effective manner.

iv.

CHILD PLANS:1. ICICI PRU SMART KID MAXIMA is a policy that is designed to provide money at key educational milestones in your childs life. 2. ICICIPRU SMART KID ASSURE is a policy that not only provides money at key educational milestones in your childs life but also rewards you with a guaranteed addition.

v.

RETIREMENT SOLUTIONS:1. ICICI PRU FOREVER LIFE is a traditional retirement product that offers guaranteed returns for the first four years. 2. ICICI PRU LIFE TIME PENSION MAXIMA is a regular premium unit linked pension plan that helps you accumulate money for your retirement and offers you a unique strategy that allows you to protect gains made through your funds invested in the equity market volatility. 3. ICICI PRU IMMEDIATE ANNUITY is a single premium annuity product that guarantees income for life at the time of retirement. It offers the benefit of five payout options. 4. ICICI PRU ASSURE PENSION is a unique pension plan that assures guaranteed addition of upto 170% of the first year premium, giving investors an unmatched start towards accumulating for their retirement kitty. 5. ICICI PRU ELITE PENSION II is a unit linked pension plan that provides flexibility to the customer to pay for a limited term and lets him build a kitty for his retirement to provide an annuity for life.

vi.

HEALTH SOLUTIONS:1. ICICI PRU HOSPITAL CARE is a fixed benefit impatient hospitalization plan, covering various stages of treatment with a daily allowance, ICU, procedures and recuperating allowance. It covers a range of medical conditions (900 surgeries) and has a long term guaranteed coverage upto 20 years. 2. ICICI PRU CRISIS COVER is a 360-degree product that will provide long term coverage against 35 critical illnesses, total and permanent disability and death. 3. ICICI PRU MEDIASSURE is a reimbursement inpatient hospitalization health insurance policy that provides guaranteed insurability till 75 years. 4. ICICI PRU HEALTH SAVER is a comprehensive health plan which provides a reimbursement inpatient hospitalization cover along with building a health savings fund to cover any other day-to-day medical expenses.

vii.

GROUP INSURANCE SOLUTIONS:

ICICI Prudential also offers Group Insurance Solutions for companies seeking to enhance benefits to their employees. 1. GROUP GRATUITY PLAN: ICICI prudential lifes group gratuity plan helps employers fund their statutory gratuity obligation in a scientific manner and also avail of tax benefits as applicable to approved gratuity funds. 2. GROUP LEAVE ENCASHMENT PLAN: ICICI prudential lifes group offers a market linked and traditional leave encashment plan designed to aid the employer to build a fund to meet their future leave encashment liability. The contribution made will be available for payment of the benefit when it falls due.

Additionally, the product also provides for term cover for all the employees covered under the policy. 3. GROUP SUPERANNUATION PLAN: ICICI prudential life offers a flexible market linked and traditional schemes that provides substantial benefits to both employers and employees. Both defined contribution (DC) and defined benefits (DB) schemes are offered to optimize returns for members of the trust and rationalize cost. Members have the options or opting for a partial commutation of the annuity at the time of retirement. 4. GROUP IMMEDIATE ANNUITIES: ICICI prudential life realizes the importance of prudent retirement planning. With this mind, it has developed a suite of life and joint life annuities which guarantee periodic payment to annuitants upto death. Further there are options which return the purchase price on death of annuitants. These annuity options are offered to our existing super annuation customers and also to superannuation funds not managed by us. 5. GROUP TERM PLAN: ICICI prudential lifes flexible group term solution helps provide an affordable cover to members of a group. The cover could be uniform or based on designation/ rank or a multiple of salary. The benefit under the policy is paid to the beneficiary nominated by the member on his/ her death. viii.

FLEXIBLE RIDER OPTIONS:ICICI prudential life offers flexible riders, which can be added to basic policy at a marginal cost, depending on the specific needs of the customer. 1. ACCIDENT AND DISABILITY BENEFIT: If death occurs as a result of an accident during the term of the policy, the beneficiary receives an additional amount equal

to the rider sum assured under the policy. If the accident results in total and permanent disability, 10% of the rider sum assured will be paid each year, from the end of the first year after disability date for the remainder of the base policy term or 10years, which ever is lesser. 2. CRITICAL ILLNESS BENEFITS: Critical illness benefits rider provides protection against nine critical illness to the policy holder when attached to the basic plan.

D. ABOUT THE PROMOTERS: ICICI BANK: About ICICI Bank: ICICI Bank Limited (NYSE:IBN) is Indias largest private sector bank and 2nd largest bank in the country with consolidated total assets of over US $ 100 billion as of March 31,2010. ICICI Banks subsidiaries include Indias leading private sector insurance companies and among its largest securities firms: ICICI Banks presence currently spans 19 countries, including India. PRUDENTIAL PLC: Established in London in 1848, Prudential plc is an international retail financial services group with significant operations in Asia, US and the UK serving around 25 million customers, policyholders and unit holders worldwide: The company has $290 billion of assets under management and it is one of the best capitalized insurers in the world with an Insurance Groups Directive (IGD) capital surplus estimated at $3.4 billion (at 31st December 2009) Prudential is a leading life insurance in Asia with a presence in 12 markets and the top three position in 7 key locations of Hong kong, India, Indonesia, Malaysia, Singapore, The Philippines and Vietnam.

PRODUCTS OF ICICI PRUDENTIAL LIFE A.LIFE INSURANCE:What is Life Insurance? Life Insurance ensures that your family will receive financial support in your absence. Put simply, life insurance provides your family with a sum of money should something happen to you. It protects your family from financial crises. Life insurance or life assurance is a contract between the policy owner and the insurer, where the insurer agrees to pay a designated beneficiary a sum of money upon the occurrence of the insured individuals or individuals death or other event, such as terminal illness or critical illness. In return, the policy owner agrees to pay a stipulated amount at regular intervals or in lump sums. In addition to serving as a protective cover, life insurance acts as a flexible money saver scheme which empowers you to accumulate wealth to buy a new car, get your children married and then even retire comfortably life insurance also triples up as an ideal tax- saving scheme.

KEY BENEFITS OF LIFE INSURANCE: Life Insurance, especially tailored to meet your financial needs. NEED FOR LIFE INSURANCE: Today, there is no shortage of investment options for a person to choose from. Modern day investments include gold, property, fixed income instruments, mutual funds and of course, life insurance. Given the plethora of choices, it becomes imperative to make the right choice when investing your hard-earned money. Life Insurance is a unique investment that helps you to meet your dual needs- saving for lifes important goals, and protecting your assets. Let us look at these unique benefits of life insurance in detail. ASSET PROTECTION: From an investors point of view, an investment can play two roles- asset appreciation or asset protection. While most financial instruments have the underlying benefits of asset appreciation, life insurance is unique in that it gives the customer the reassurance of asset protection, along with a strong element of asset appreciation. The core benefit of life insurance is that the financial interest of ones family remain protected from circumstances such as loss of income due to critical illness or death of the policyholder. Simultaneously, insurance products have a strong inbuilt wealth creation proposition. The customer therefore benefits on two counts and life insurance occupies a unique space in the landscape of investment options available to a customer.

GOAL BASED SAVINGS: Each of us has some goals in life for which we need to save. For a young, newly married couple, it could be buying a house. Once, they decide to start a family, the goal changes to planning for education or marriage of their children. As one grows older, planning for ones retirement will begin to take precedence. Clearly, as your life stage and therefore your financial goals change, the instrument in which you invest should offer corresponding benefits pertinent to the new life stage. Life insurance is the only investment option that offers specific products tailor made for different life stages. It thus ensures that the benefits offered to the customer reflect the needs of the customer at that particular life stage and hence, ensures that the financial goals of that life stage are met. The table given below gives a general guide to the plans that are appropriate for different life stages. LIFE INSURANCE PRODUCTS Young & single Asset creation Wealth creation plan Young & just married Asset creation & Wealth creation & protection mortgage protection plans Marriage with kids Childrens education, Education insurance, asset creation & mortage protection & protection wealth creation plans Middle aged grown up kids with Planning retirement & protection Across all life stages Health plans for Retirement solutions asset & mortage protection Health insurance LIFE STAGE PRIMARY NEEDS

LIFE STAGE PROFILER: All through your life, several significant events the birth of your child, moving to a larger home, his or her education and wedding, buying a new car, retiring from work will occur at various stages and demand your financial commitment. If you plan in advance for these events, you will quite naturally be prepared when they occur. Life insurance is an effective tool that assists you to plan for your future such that you are financially equipped to meet all your goals. Our special tool, the life stage profiler, assists you to plan for a secure financial future. Which important goals should you plan for in advance? 1. Your familys protection- so that your loved ones are secure should an unfortunate event happen to you. Buying life insurance assures that your family receives a lumpsum that safety tides them over any financial crises that might occur in your absence. 2. Childs education- as parent, your primary responsibility is to ensure your childrens future. Our education insurance plans ensure your child receives money at key stages of his or her education even in your absence. 3. Savings- savings plans allows you to steadily save towards a predecided goal in a secure manner. These plans provide you with a host of benefits. You can choose the premium, the underlying fund in which you want to invest your money, the ratio between protection and investment as per your requirements. 4. Retirement- retirement plans help you secure regular income for your retired life. During the accumulation phase, you systematically save while you retire, the payout stage of the plan

begins. You then purchase an annuity, which will serve as a steady stream of income, for the rest of your life. 5. Health- an integral part for financial planning is protecting oneself against any medical emergencies as a combination of plans that look after your finances and offer you a protective health cover to ensure your financial planning is in track despite any major illness. ICICI Prudential offer 3 comprehensive benefit based products that cover major critical illnesses.

LIFE INSURANCE PLANS:Life Insurance products assure your family will receive financial support, even in your absence. Put simply, when you buy insurance you provide your family with a sum of money, should something happen to you. It thus permanently projects your family from financial crises. In addition to serving as a protective cover, when you by insurance you create a flexible money-saving scheme, which empowers you to accumulate wealth to buy a new car, get your children educational solutions, and even retire comfortably. Today, there is no shortage of investment options for a person to choose from. Given the plethora of choices, it becomes imperative to make the right choice when investing your hardearned money and online insurance is an ideal choice in todays technology driven world. Buying life insurance online is a way to make a unique investment that helps you to meet you dual needssaving for lifes important goals, and protecting your assets.

From an investors point of view, an investment can play two roles- asset appreciation or asset protection. While most financial instruments have the underlying benefit of asset appreciation, buying life insurance online gets you the unique reassurance of asset protection, along with a strong element of asset appreciation. When you buy life insurance online the core benefit is that the financial interests of ones family remain protected from circumstances such as loss of income due to critical illness or death of policyholder. Simultaneously, buying life insurance online gives a strong inbuilt wealth creation proposition. The customer therefore benefits on two counts and online insurance products occupy a unique space in the landspace of investment options available to a customer. As your life stage and therefore your financial goals change, the instrument in which you invest should offer corresponding benefits pertinent to the new life stage. Online insurance products are the only investment option that offer specific products tailormade for different life stages. You are thus ensured that the benefits offered to the customer reflects the needs of the customer at that particular life stages and hence ensures that the financial goals of that life stage are met. On the basis of which life stage you are in and the corresponding insurance needs, ICICI Prudential plans can be categorized into the following three types: 1. Education insurance plans 2. Wealth creation plan 3. Protection plan.

TYPES OF INSURANCE PLANS- TRADITIONAL OR UNIT LINKED: (ULIP: UNIT LINKED INSURANCE PLAN)Insurance plans- At a glance Broadly, insurance plans can be distinctly divided into ULIP (Unit Linked Insurance Plans) and traditional plans. A brief detail of both segments: 1. ULIP: ULIP or unit linked insurance plans, have gained high acceptance due to the attractive features they offer. Benefits include Flexibility, Transparency, Liquidity and Fund options. a) Flexibility: A ULIP offer the customer an acute degree of flexibility: the flexibility to choose the sum assured, and to choose the desired premium amount. ULIP give the customer the option of changing the level of premium/ sum assured even after the plan has started and the flexibility to change asset allocation by switching between funds with ease. b) Transparency: ULIP offers a high degree of transparency where all charges in the plan as well as the entire net amount invested is made known to the customer ULIPs also offer the convince of tracking your investment performance or a day basis, so you can decide instantly where you want your assets allocated. c) Liquidity: A ULIP offers you the option of withdrawing money a few years into the plan, allowing for the exigencies of life. Alternatively, a ULIP will also allow for partial/ systematic withdrawal should the need arise. d) Fund operations: A ULIP will offer you a wide choice of funds, ranging through equity, debt, cash or a combination of three. The customer is also afforded the option of choosing your fund mix based on your desired asset allocation.

2. TRADITIONAL PLANS: These are the oldest types of insurance plans available. These plans cater to customers with a low risk appetite. Some of the common features of traditional plans are: a) Steady Investment: Major chunk of investible funds are in debt instruments. Steady and almost assured returns over the long term. b) Features: Death benefit is sum assured + guaranteed and vested bonus. Helps in asset creation as they are for a long tenure. Premium to sum assured ratios are fixed for each plan and age. Generally withdrawals are not allowed before maturity.

B. RETIREMENT INSURANCE: Why is retirement planning important? ANS. RETIRE FROM WORK. NOT FROM LIFE.

A retirement plan is an assurance that you will continue to earn a satisfying income and enjoy a comfortable lifestyle, even when you are no longer working. To understand why an increasing number of individuals have already started planning for their retirement, and why you should too, read on. Independence is the new way of life: A increasing number of young Indian professionals are moving away from the traditional joint family structure. Since support no longer comes easily, parents have realized the need to provide for themselves during their retirement years. Costs set to soar: Sky rocketing costs throw even a well salaried person off balance. With rates rising every day, you can imagine how high they will be when you are ready to retire. A retirement plan provides you with a steady income every month, to arm you in the face of rising costs. To understand how inflation can impact your monthly expenses, use our special tool, the inflation Index Calculator. Non-earning retirement phase is now longer: Only 4% of India working population mostly government employees- are covered by pensions. The remaining 96% comprises self employed and salaried professionals who dont have a formal, mandated provision for pensions. ICICI Prudential offers two key retirement plans. ICICI Pru Life Stage Advantage and ICICI Pru Life Time Maxima flexible income cum insurance plans that ensure you meet all your retirement requirements. So you can retire peacefully from work, but not from life.

Why to start planning for retirement right away? ANS. EXAMPLE: Both Ramesh and Vikram want to retire at the age of 60 years. To take you of his post retirement requirements, Ramesh invests a total amount of Rs 35 lakhs towards his retirement corpus. On the other hand,Vikram invests a total of Rs 50 lakhs towards his retirement. Despite investing less, Ramesh accumulates Rs 298 lakh, compared to Vikrams accumulation of Rs 216 lakh! Read on to find out how What Ramesh had in his favor was TIME. He began investing a sum of Rs 1 lakh p.a. earlier, at the age of 25 years, upto the age of 60. Ramesh, to compensate for long time, saved twice the amount invested by Ramesh i.e. Rs 2 lakh every year from the age of 35, till the age of 59 years. It is for this precise reason you should plan for your retirement now and not later: so you get the advantage of investments that multiply quickly each year, giving you the added advantage.

The graph above shows the retirement amount both Ramesh and Vikram accumulate by the age of 60 years. Please note: The assumption is that both investments appreciate at the rate of 10% per annum

ULIPs : AN INTRODUCTION:Most importantly, what are ULIPs? Here, you will find all the information you need to set your mind at ease about how to invest in ULIPs, and which ULIP is right for you. ULIPs are a category of goal based financial solutions that combine the safety of insurance protection with wealth creation opportunities. In ULIPs, a part of investment goes towards providing you life cover. The residual portion of the ULIP is invested in a fund which in turn invests in stocks or bonds; the value of investments alters with the performance of the underlying fund opted by you. Simply put, ULIPs are structured in such that the protection element are distinguishable, and hence managed according to your specific needs. In this way, the ULIP plan offers unprecedented flexibility and transparency.

WORKING OF ULIPs:It is critical that you understand how your money gets invested once you purchase a ULIP. When you decide the amount of premium to be paid and the amount of life cover you want from the ULIP, the insurer deducts some portion of the ULIP premium upfront. This portion is known as the Premium Allocation Charge, and varies from product to product. The rest of the premium is invested in the fund or mixture of funds chosen by you. Mortality charges and ULIP administration charges are thereafter deducted on a periodic (mostly monthly) basis by cancellation of units, whereas the ULIP fund management charges are adjusted from NAV on a daily basis. Since the fund of your choice has an underlying investment- either in equity or debt or a combination of the two- your fund value will reflect the performance of the underlying asset classes. At the time of maturity of your plan, you are entitled to receive the fund value as at the time of maturity. The pie- chart below illustrates the split of your ULIP premium.

ULIP CHARGES:What are the Different Kind of Charges in a ULIP? Unlike conventional traditional products charges are segregated in ULIP and thus made known to the customer. You can know the charges applicable on your ULIP through: Sales benefit illustration: A sales benefit illustrates various charges, year by year, for the term of the plan so that you know exactly how much money is deducted as charges and what is invested. Brochure: A brochure informs you about the various charges and their purpose applicable on your policy. Advisor: you should enquire your advisor about all the charge applicable on your policy. Although ULIPs offered by different insurers have varying charge structure broadly, important charges that you should know. Policy administration charges: These charges are deducted on a monthly basis to recover the expenses incurred by the insurer on servicing and maintaining the life insurance policy like paperwork, workforce, etc. Premium allocation charges: these charges are deducted upfront from the premium paid by the client. These charges account for the initial expenses incurred by the company in issuing the policy- e.g. cost of underwriting, medicals and expenses related to distribution fees. After these charges are deducted the money gets invested in the chosen fund. Mortality charges: mortality expenses are charged by life insurance companies for providing a life cover to the individual. The expenses vary with the age and either the sum assured or the sum at risk which is the difference between sum assured and fund value of the insurance policy of an individual. Mortality charges are deducted on a monthly basis.

Fund management charges: A portion of ULIP premium, depending on the fund chosen, is invested either in equities, bonds or money market instruments. Sometimes it is a combination of these. Managing these investments incurs a fund management charge (FMS). The FMS varies from fund to fund even within the same insurance company depending on the underlying assets in the fund. Usually a fund with higher equity component will have a higher FMC. The important thing to note about ULIPs that the overall charge structure for the plan comes down substantially over a long term. However it may be noted that insurers have the right to revise fees and charges over a period of time. The above can be very simply broken down into: What a ULIP is A plan which gives complete clarity about the various charges deducted and why its being deducted and so how your fund will grow over time. What a ULIP is not A plan in which you dont know where your money is going or what is happening to it.

TYPES OF ULIPs:One of the big advantages that a ULIP offers is that whatever be your specific financial objective, chances are that there is a ULIP which is just right for you. The figure below gives a general guide to the different goals that people have at various age- groups and thus, various life- stages.

Depending on your specific life stage and the corresponding goal, there is a ULIP which can help you plan it.

A. ULIPs For Retirement Planning: Retirement is the end of active employment and brings with it the cessation of regular income. Today an increasing number of people have stated planning for their retirement for below mentioned reasons. I. Almost 96% of the working population has no formal provisions for retirement. II. With the growing nuclearization of the family structure, traditional support system of the younger earning members- is no longer available. III. Developments in the health care space leads to an increase in life expectancy. IV. Cost of living is increasing at an alarming rate. Pension plans from insurance company ensure that regular, disciplined savings in such plans can accumulate over a period of time to provide a steady income post- retirement. Usually all retirement plans have two distinctive phases. I. II. The accumulation phase when you are saving and investing during your earning years to build up a retirement corpus. And The withdrawal phase when you actually reap the benefits of your investment as your annuity payout begin.

In a typical pension plan you have the flexibility to make a lump sum payment or a regular contribution every year during year earning years. Your money is then invested in funds of your choice. You can opt to receive the annuity at any time after vesting age. (age at which you become eligible for pension chosen by you at the inception of the plan.) Most of the Unit Linked Pension Plans also come with a wide range of annuity options which gives you choice in structuring the post- retirement

benefits payouts. Also at the time of vesting you can make a lump sum taxexempted withdrawal of upto 33% of the accumulated corpus. In the retirement plan, the earlier you begin the greater you gain post retirement due to the power of compounding. Let us take an example of Gaurav and Hari. Both of them want to retire at the age of 60. Gaurav starts investing Rs. 10,000 every year from the age of 25 till the time that he retires. In all, he would have invested Rs. 350,000. If his investment were to earn 7% return every year, at the time of his retirement, Gaurav will have a retirement corpus of Rs. 13,82,368. Now, Hari starts investing 10 years later (i.e. at the age of 35) and in order to make up for the lost time, invests Rs. 15,000 every year (which is 50% more than Gauravs annual investment). So, by the time of his retirement, he would have invested Rs. 375,000. And assuming the same annual return of 7%, he will end up with a retirement corpus of Rs. 9,48,735.

So, you see how despite setting aside more than 50% of Gauravs annual contribution, Haris ends up with a retirement corpus which is almost a third lesser than Gauravs. this is the power of compounding.

B. ULIPs FOR CHILDRENS EDUCATION: One of the most important responsibilities you have as a parent is to ensure that your child gets the best possible education that can be provided. Apart from conventional schooling, it becomes important to expose your child to different activities such as dance, painting and sports training for holistic development. As a parent, you want to ensure that their development is not hampered either due to rising costs or unforeseen circumstances. Today there are ULIPs that offer money at key milestones of your childs education thus ensuring that your childs education continues unhampered even if something unfortunate happens to you. While, the death of a parent is an irreparable emotional loss, child education plans safeguard the child against the financial ramifications of the death of a parent. Apart from above mentioned benefit, child plans also offer below mentioned features: Flexibility of adding on various riders like income benefit rider, disability rider, etc to get additional benefits. For e.g. in case of income benefit rider, in the event of the death of the parent, the child will receive a regular pre- determined amount every year to meet the educational expenses. In case of unfortunate incidence of the death of the parent, not only will the child receive the sum assured immediately but will also continue to receive money at the key educational milestones.

C. ULIPs FOR LONG TERM WEALTH CREATION: ULIPs are the right insurance solutions for you if you are looking for a strong wealth creation proposition allied to a core insurance benefit. Such plans are ideal for people who are in their late 20s and early 30s and by investing in such a plan get the flexibility of using it to fund any of their long term financial goals such as purchase of a house or funding their childrens education. The added element of life cover serves to make these plans a wholesome financial investment option. Wealth creation ULIPs can be primarily classified as: Single premium- regular premium plan: Depending upon you needs and premium paying capacity you can either opt for a single premium plan where you need to pay premium only once during the term of entire policy or regular premium plans where you can premium at a frequency chosen by you depending upon your convenience. Guarantee plans- Non guarantee plans: Today there are wealth creation ULIPs which also offer guaranteed benefit. These plans are ideal insurance-cum-investment option for customers who want to enjoy the potentially higher returns (over the long term) of a market linked instrument, but without taking any market risk. On the other hand non guarantee plans comes with an inbuilt range of fund options to chose from- ranging from aggressive funds (primarily invested in equities with the general aim of capital appreciation) to conservative funds (invested in cash, bank deposits and money market instruments with aim of capital preservation) so that you can decide to invest your money in line with your market outlook, time horizon and your investment preferences and needs.

Life stage based- non life stage based: Life Stage based ULIPs factor in the fact that your priorities differ at different life stages and hence distribute your money across equity and debt. Here the initial allocation is decided as per your age since age is a significant indicator of risk appetite. Such a strategy ensures that the asset allocation at all times is in sync with your age and changing financial needs.

D. ULIPs FOR HEALTH SOLUTIONS: When you are young and working you save for various goals like marriage, education, retirement, etc. but saving for health care is never considered or left for later. During these years we have various sources of income or savings on which we can rely for health emergencies. But with increasing cost of healthcare, proportion of this spend is increasing at an alarming pace. This is forcing families to borrow or sell assets to meet expenses during medical emergencies. And during old age health care expenses increases due to health deterioration because of age and higher incidence of chronic illness. Thus it is important for you to invest in health insurance today so that tomorrow you are fully prepared to meet rising healthcare expenses, which would be incurred during old age, with the right health insurance plan. HEALTH ULIP is a recent innovation from the health insurance industry. In a health ULIP part of your premiums are allocated for investment designed specifically to build a health fund to meet future health related expenses. It aims to create a health savings kitty by investing in a long term flexible saving plan with multiple fund options. The health fund thus created allows you to claim for health related expenses of any kind and also fund your future health insurance charges. You can also avail of tax benefit on premium paid u/s 80D.

ULIPs vs TRADITIONAL COMPARISON

INSURANCE

PLANS-

A

1) Potential for better returns: Under IRDA guidelines, traditional plans have to invest at least 85% in debt instruments which results in low returns. On the other hand, ULIPs invest in market linked instruments with varying debt and equity proportions and if you wish you can even chose 100% equity option. 2) Greater transparency: Unlike ULIPs, in traditional life insurance policy youre not aware of how your money is invested, where it is invested and what is the value of your investment. 3) Flexibility in investment: the top most advantage which ULIPs offer over traditional plans is the flexibility offered to you to customize the product according to your needs: a. Flexibility to invest the money the way you want: Unlike traditional plans, ULIPs allow you full discretion to choose the fund option most appropriate to your risk appetite. b. Flexibility to change the fund allocation: ULIPs also give you the option to change the fund allocation at a later stage through fund switching facility. c. Flexibility to invest more via top- ups: Unlike traditional plans where you have to invest a FIXED premium every year, ULIPs allow you flexibility to invest more than the regular premium via top- ups which are additional investments over and above the regular premium. d. Flexibility to skip premium: In case of traditional plan, you have to pay premium for the entire duration of plan. And if by chance you skip even a single premium, your policy lapses. Whereas ULIPs allow you the flexibility to stop paying premium

usually after three policy years. Your life cover continues by deducting the mortality charges from the existing investment corpus. 4) Flexibility in insurance coverage: a. Option to choose coverage: While in case of traditional insurance plans, the premium is calculated based on sum assured, for ULIP premium payment is the key component based on which you can decide about the insurance coverage. Put simply, on the basis of premium, ULIPs allow to opt for any amount of sum assured within the specified range of minimum and maximum life coverage. b. Option to increase the risk cover: Unlike traditional plans where you have to buy a new policy each time you want to increase your insurance cover anytime. 5) Higher liquidity (better exit options): The possibility to withdraw your money before maturity (through surrender or partial withdrawals) is higher in case of ULIPs as compared to traditional plans and also the exit costs are lower. ULIPs are different and of course better than traditional insurance products; however, while in traditional plans your role is a passive one restricted to just making premium payments, ULIPs require your active involvement. You have to make a lot of decisions such as deciding about sum assured and premium to be paid, choosing between type I or type II ULIP, making a choice among various fund options available and also deciding about fund switching from time to time based on your needs, risk appetite and market outlook.

C. HEALTH INSURANCE: Health insurance policies insure you against several illnesses and guarantee you stay financially secure should you ever require treatment. They safeguard your peace of mind, eliminate all worries about treatment expenses, and allow you to focus your energy on more important things like getting better. Lets learn more about the various types of health insurance available, and the best policy for you might be. Health Insurance policies in India an overview There are several health insurance or medical insurance plans in India. These can be divided into following categories based on the coverage offered: Comprehensive health insurance coverage: These plans provide you complete health coverage through a hospitalization cover while at the same time also creating a health fund to cover any other health care expenses. (health saver) Hospitalization plans: These health insurance plans cover your expenses in case you need to be hospitalized. Within this category, products may have different payout structures and limits for various heads of expenditure. The hospitalization coverage may be reimbursement based plans or fixed benefit plans. These plans aim to cover the more frequent medical expenses. (hospital care II, Medi Assure). Critical illness plans: these health insurance plans provide you coverage against critical illnesses such as heart attack, organ transplants, stroke and kidney failure among others. These plans aim to cover infrequent and higher ticket size medical expenses. (Crisis Cover).

5 REASONS WHY HEALTH INSURANCE IS A MUST:Indians at greater risk Reason 1: lifestyles have changed: Indian today suffer from high levels of stress. Long hours at work, little exercise, disregard for a healthy balanced diet and a consequent dependence on junk food have weakened our immune systems and put us at an increased risk of contracting illnesses. Reason 2: Rare non- communicable diseases are now common: Obesity, high blood pressure, strokes, and heart attacks, which were earlier considered rare, now affect an increasing number of urban Indians. Shocking Truths: y 18% of the urban population suffers from hypertension, which leads to renal failure, stroke and cardio- vascular diseases. y 30% of the population suffers heart attack before age 40 y 66% of deaths today are due to cardio- vascular diseases y Almost 3.5 million Indians suffer from diabetes y Cardio- vascular diseases (CVDs) like heart disease and stroke are the main causes of death and disability. Reason 3: Medical care is unbelievably expensive: Medical breakthroughs have resulted in cures for dreaded diseases. These cures, however, are available only to a select few. High operating expensestherapy for breast cancer costs as much as Rs. 2 lakhs for 3 days- have restricted treatment to the richest. In fact, even among the affluent groups, 20% need to sell their valuable assets so they can accumulate the required amount to meet healthcare costs.

Reason 4: Indirect costs add to financial burden: Indirect sources of expenses- travel, boarding and lodging, and even temporary loss of income- account for as much as 35% of the overall cost of treatment. Most often, we overlook this fact when planning for medical expenses.

Reason 5: Incomplete financial planning: Complete financial planning includes saving for an uncertain future, childrens education, retirement and the most important aspect of life- your health. Health is important as rising medical costs, especially in an emergency, might force you to dip into your savings which you would have assigned for your other goals. Over 40% of all Indians sell assets or dip into existing savings to meet health care costs. This could mean a severe compromise on your long cherished goals. There is certainly a better option: A comprehensive health insurance which take care of all your medical needs.

HEALTH INSURANCE PRODUCTS

ICICI Prudential offers health insurance plans under the following major need categories: Comprehensive health coverage: Health saver: A comprehensive whole life plan that covers you against hospitalization expenses and creates a health fund to cover any other health expenses. Hospitalization coverage: Medi Assure A reimbursement hospitalization plan covering hospitalization stay and treatment. The claim payout is based on actual expense incurred. Hospital care II A fixed benefit cashless hospitalization and surgical plan covering various stages of treatment and over 1000 surgeries. Critical illness coverage: Crisis cover A comprehensive health insurance policy that covers 35 critical illnesses, death and disability.

DEMYSTIFYING HEALTH INSURANCESOME TRUTHS ABOUT HEALTH INSURANCE (doubts of the people about the insurance) 1. I dont need health insurance Ans. Health insurance is a must. As medical expenses are expected to rise by 15- 20% every year. Situation: first of all, let us consider the following situations: By the year 2011# heart treatment could cost around Rs. 3.25 year Your investments maynt be enough to cover rising medical expenses. It becomes quite clear that health insurance is the need of the hour, and you will want to think about the following as well. Health care is not negotiable nor it is something you would want to compromise on. Health insurance plans like ICICI Prudentials Health Saver not only provide hospitalization cover but also build a health fund. Health fund can be used during medical emergencies without foregoing your critical goals.

2. Health insurance is a waste of money. Ans. Health insurance is not a waste of money. In fact, it helps to keep your savings intact. A health insurance plan can prevent a medical emergency from becoming a financial one. A unique health insurance plan like ICICI Prudential. Health saver gives you the following benefits.

I. II. III.

IV.

Provides you with a hospitalization cover in case of a medical emergency. A part of your premium is allocated to the health fund. Even if you dont get hospitalized, your health funds keep growing. y Also, in case of death, the fund is transferred to your nominee. y The cover continuance option (CCO) ensures that your policy continues subject to fore closure in case you are unable to pay premium, anytime after payment of the first five years premium. The health fund is a monetary safety net against medical emergencies, even for those not covered by hospitalization cover.

3. I am tied up with other priorities like my childs education and marriage. Ans. Health insurance helps you to protect important goals in life. what happens if the savings meant for your childs education need to be used for health emergency? This is when health insurance plan like ICICI Prudential health saver helps you: y Provides you financial support for health expenses. y The plan is split into two convenient components: y The cover component: This will help you to take care of any hospitalization related expenses you may have to bear. y The saving component: Your health fund, which can be used for incidental expenses like doctors consultation fees, routine tests, and even for the medicines that you buy.

The cover continuance option (CCO) ensures that your policy continues subject to foreclosure in case you are unable to pay premiums, anytime after payment of the first five years premium.

4. Health insurance policies are complicated. Ans. Just a couple of check points can help you choose a plan that suits you the best. All you need to check is whether your health insurance policy mentions clearly: y Eligibility Criteria: Whether the product suits your requirement or not. y Extent of coverage: This helps you what benefits you get at what incidences. y Coverage norms: This helps you understand what is covered under the policy and what is not. y Term period: For how much time you need to invest.

5. I cant save tax with health insurance policies. Ans. Health insurance helps you to save tax up to Rs. 15,000 u/s 80D of the income tax Act, 1961. With health insurance policies, such as ICICI Prudentials health saver you can: y Receive tax benefits u/s 80D as follows: Up to Rs. 15,000 for medical insurance premium for self, spouse and dependent children. In addition, up to Rs. 15,000 for medical insurance premium for parents (Rs. 20,000 for senior citizens)

y The 80D tax benefits is over and above the 80C benefits.

6. I should not buy a health insurance plan from a life insurance company. Ans. Health insurance bought from a trusted player, assures you of the best services and benefits in the industry. A trusted and respected life insurance company like ICICI Prudential is better place to offer health insurance services to you. Heres why: y Ranked as the MOST TRUSTED BRAND amongst the private life insurance companies, in ET- BRAND Equity Survey 2009. y Cash less hospitalization through an extensive network of hospitals. y Our in-house claim settlement, with a 24*7 claim care cell, helps to settle claims: At over 3000 network hospitals Present across 500 locations. y Funds under management worth Rs. 5,36,189 mn as on dec 31, 2009. y Over 1,900 offices covering over 1,700 locations.

7. Insurance companies talk big but dont listen when it comes to settling claims. Ans. A trusted insurance with transparent coverage norms is the another answer. At ICICI every claim is a fulfillment of a promise that we have made to our policyholders and we do our best to process the claim transparency and quickly. y We have an in-house claim settlement cell to deal with the hospitals directly rather than through a third party.

y A 24*7 claim care cell for queries, clarifications, and assistance on claims. This means that, processing of your claims is much faster. We truly believe that a hassle free claim settlement is the ultimate service we can provide to our customers.

PLANS OF ICICI PRUDENTIAL

A. ICICI PRU SMART KID MAXIMAKey benefits of ICICI Pru Smart kid Maxima: y Company will pay assured and future premiums in the unfortunate event of the death of the parent. y Avail money at the key educational milestones for child with our Partial withdrawal facility. y Option to select Dynamic P/E Fund: a unique fund that uses reference to price- earning multiple of NIFTY 50, to determine asset allocation between equity and debt. y You can also opt for the unique Trigger Portfolio Strategy to protect gains made in equity markets from any future market volatility. y Avail guaranteed Addition of 60% of annual premium to your Fund Value every five years, starting from the end of 10th policy year, on payment of all due premiums. y Avail tax benefits on premium paid and benefits received, as per prevailing tax laws.

How does the policy work? y Choose the premium amount, policy term, sum assured and portfolio strategy for your policy. y After deducting the premium allocation charges, the balance amount would be invested as per the portfolio strategy of your choice. y Fund value would be payable at maturity. Alternatively, settlement options can be chosen.

y In the unfortunate event of death during the term of the policy, your nominee would receive the Sum Assured. Future premiums of your policy would be paid by the company till maturity under our Payer Waiver benefit. Thus, all the policy benefits are passed on to the nominee to ensure that the education costs of your child are taken care of, even if you are not around.

Eligibility Criteria: Min Premium Rs. 12,000 p.a. for Yearly mode Rs. 15,000 p.a. for half yearly & monthly mode 5 X Annual Premium, subject to a min. of Rs. 1,00,000 As per the max Sum assured multiples 20/ 60 years (Age complete birthday) 75 years (Age completed birthday) 0/15 years (age completed birthday) 18/30 years (Age completed birthday) 10/ 15/ 20/ 25 years

Min Sum Assured Max Sum Assured Min/ Max age at entry (parent) Max age at maturity (Parent) Min/ Max age at entry (Child) Min/ Max age at maturity (child) Policy term Trigger Portfolio Strategy:

The value of your investments in equity funds rises and falls with the fluctuations in the equity markets. Hence, we present to you, the unique Trigger Portfolio Strategy which protects the gains made from your investment in equity funds from future market volatility.

y WORKING OF THE STRATEGY Initial Asset Allocation: Multi Cap Growth Fund: 75%, Income Fund: 25% Trigger event: 15% upward or downward movement in NAV of Multi Cap Growth Fund 1. On the occurrence of the Trigger event, any Fund Value in Multi Cap Growth Fund which is in excess of three times the value of Income Fund is considered as GAINS and shifted to Money Market Fund. 2. In case there are no such gains to be capitalized, funds in Multi Cap Growth Fund and Income Fund are redistributed in a 75%:25% proportion without any transfer to or from Money Market fund. y Key benefits of this strategy Helps you capitalize gains made from equity market volatility. Protects such gains made from any future equity market volatility. Works on the principle of buy low, sell high.

Illustration: Annual premium: Rs. 20,000 Mode of premium payment: Yearly Age at entry: 30 years Sum Assured: Rs. 100,00 Portfolio Strategy: Trigger

Term = 10 years Returns @ Returns @ 6% p.a. 10% p.a. Fund value at Rs. 2,37,244 Rs. 2,91,654 Maturity

Term =15 years Returns @ Returns @ 6% p.a. 10% p.a. Rs. 4,11,701 Rs. 5,65,365

This illustration is for a healthy male with investments in Trigger Portfolio Strategy. The above are the illustrative maturity values, net of all charges, service tax and education cess. Since your policy offers variable returns, the given illustration shows two different rates (6% and 10% pa. as per the guidelines of the life council) of assumed future investment returns.

Charges under the policy: Premium allocation charge: this charge will be deducted from the premium amount at the time of premium payments and units will be allocated thereafter. Year1 Year 6 onwards 15% 10% 8% 6% 4% All top up premiums are subject to a premium allocation charge of 1% only. Year 2 Year 3 Year 4-5

Policy administration charge: there would be a fix policy administration charge of Rs. 80 per month. The policy administration charge will be levied ONLY for the first five policy years, post which NO policy administration charge will be levied. It will be charged regardless of the premium payment status.

Fund management charge(FMC): the following fund management charges will be adjusted from the NAV on a daily basis. fund Opportunities fund, multi cap growth fund, Blue chip Fund, Dynamic P/E Fund, Multi Cap Balanced Fund, Income fund 1.35% p.a. Return Money Guarantee Market Fund Fund 1.25% p.a 0.75% p.a.

FMC

Mortality Charges: Mortality charges will be deducted on the monthly basis on the Sum Assured. Additionally, Payer Waiver benefit charge would be charged on a monthly basis which would depend on age, gender, outstanding term of the policy, premium frequency and premium amount. The Payer Wavier Benefit charge will not be deducted after the death of the life assured.

Switching Charges: Four free switches are allowed every policy year. Subsequent switches would be charged Rs. 100 per switch. Any unutilized free switch cannot be carried forward to the next policy year.

Miscellaneous Charges: if there are any policy alterations during the policy term, they will be subjected to a miscellaneous charge of Rs. 250 per alteration.

B. ICICI PRU LIFE STAGE PENSION ADVANTAGE: Retirement is a phase that lets you live your life to the fullest. It is the time when you can lead a relaxed and a comfortable life in the company of your loved ones as you are no longer burdened with responsibilities. Hence, we bring to you ICICI Pru Life Stage Pension Advantage, a perfect retirement plan that will help you enjoy the good times even when you retire by building an adequate retirement corpus so that you can be free from any financial worries. Key benefits of ICICI Pru Life Stage Pension Advantage: You can redistribute your investment automatically between equity and debt; based on your opting for our unique Life Cycle based Portfolio Strategy. There is no premium allocation charge which means 100% of your money is allocated for buying units Option to select Dynamic P/E Fund: A unique fund that uses reference to price earning multiple of NIFTY 50, to determine asset allocation between equity and debt. Get 2% additional of units from the 6th policy year onwards, only on payment of due premiums, which results in more than 100% allocation of your premium to funds. Choose your retirement age and get regular income (pension) post retirement. Get tax benefits on premium paid and any benefits received under the policy as per the prevailing tax laws.

y

y y

y

y y

How does the policy work? This pension plan works in two phases:

y The first phase is Accumulation Phase wherein, you pay regular premiums towards the policy and accumulate savings for your retirement. In the unfortunate event of death during the term of the policy (before vesting): a. If Zero Sum assured is chosen, your nominee will receive Fund Value. b. If Sum Assured is chosen, your nominee will receive Sum Assured (net of applicable partial withdrawals) or Fund Value, which ever is higher. Mortality charges will be applicable. y The second phase is Annuity or Pension Phase wherein, you start receiving pension from the accumulated amount, as per your chosen pension option.

Eligibility Criteria: Min Premium Min /Max Age at 18/ 70* years Entry Modes of Yearly, Half- Min/ Max Sum 0/ As per the Premium yearly, Monthly Assured sustainability Payment matrix Min/ Max Age at 50/ 80 years Max cover 80* years Vesting ceasing age Policy Term 10 to 60 years, in *age completed multiple of 5 birthday years Illustration: Age at entry: 30 years Vesting age: 50 years Annuity Frequency: Annual Term: 20 years Sum Assured: Zero Annuity Option: Life Annuity Rs. 15,000 p.a.

Returns @ 6% p.a. pre- Returns @ 10% p.a. prevesting vesting Premium Accumulated Expected Accumulated Expected Amt (Rs.) Savings Yearly Savings yearly Annuity Annuity Rs. 20,000 Rs. 6,28,094 Rs. 41,142 Rs. ,985,992 Rs. 66,087 Rs. 50,000 Rs. 15,77,330 Rs. 1,05,722 Rs. 24,78,633 Rs. 1,70,088 This illustration is for a healthy male with 100% of his investment in Life Cycle based Portfolio Strategy. The above are the illustrative values, net of all charges, service tax and education cess. Since your policy offers variable returns, the given illustration shows two different rates (6% and 10% p.a. as per the guideline of Life Insurance Council) of the assumed future investment returns.

Charges under the policy: Premium Allocation Charge: There is NO premium allocation charge for regular premiums in this policy. However, all top-up premiums are subject to a premium allocation charge of 1% and the balance amount is used to allocate units. Fund Management Charge (FMC): The funds will the following fund management charges and these will be adjusted from the NAV on a daily basis. Fund Pension Opportunities Fund, Pension Pension Pension Multi Cap Growth fund, Return Money Pension Blue chip Fund, Pension Guarantee Market Fund Dynamic P/E Fund, Pension Multi Fund^ Cap Balanced Fund, Pension Income Fund FMC 1.35% p.a. 1.25% p.a. 0.75% p.a. ^There will be an additional charge for the investment guarantee of 0.25% p.a. for the Pension Return Guarantee Fund.

Policy Administration Charge: The policy administration charge is a percentage of the annual premium and will be charged regardless of the premium payment status. This charge will be levied ONLY for the first five years, post which NO policy administration charge would be levied. The policy administration charges are set out below: Policy year Annual Premium (Rs.) Policy Administration Charge (as a % of the annual premium) 1.1% per month 1.0% per month 0.9% per month

1 to 5

=1,00,000

Switching Charges: 4 free switches are allowed every policy year. Subsequent switches would be charged at the rate of Rs. 100 per switch. Any unutilized free switch cannot be carried forward to the next policy year. Miscellaneous Charge: If there are any policy alterations during the policy terms, they will subject to a miscellaneous charge of rs. 250 per alteration.

C. ICICI PRU LIFE TIME PENSION MAXIMA:Dont you wish to continue enjoying a comfortable life even after you stop working? At ICICI Prudential Life Insurance, we understand your needs and help you plan you for a better future. Hence, we bring to you ICICI Pru Life Time Pension Maxima, a regular premium, unit- linked pension product. This product also offers you the unique Trigger Portfolio Strategy that allows you to protect gains made through your funds invested in the equity markets from any future equity market volatility. So now, there will not be any compromise on your dreams, even when you retire. Key benefits of ICICI Pru Life Time Pension Maxima: y Protect gains made in equity markets from any future equity market volatility by opting for the unique Trigger Portfolio Strategy. y Option to select Dynamic P/E Fund: A unique fund that uses reference to price- earning multiple of NIFTY 50, to determine asset allocation between equity and debt. y Get 2% additional allocation of units from the 6th policy year onwards, only on payment of due premiums, which results in more than 100% of your premium getting allocated to funds. y Also, get Loyalty Additions equal to 1% of average Fund Value at the end of every five policy years, starting from the 10th policy year. y You have the flexibility to choose the date from which you will start receiving your pension. y Avail tax benefits on premium paid and benefits received as per the prevailing Income Tax Laws.

How does the policy work? y The first phase is Accumulation Phase wherein, you pay regular premiums towards the policy and accumulate savings for your retirement. In the unfortunate event of death during the term of the policy (before vesting), your nominee will receive Sum Assured (net of applicable partial withdrawals) or Fund Value, whichever is higher. y The second phase is Annuity or pension phase wherein, you start receiving pension from the accumulated amount, as per your chosen pension option.

Eligibility Criteria: Minimum premium Rs. 10,000 p.a. for Yearly mode Rs. 15,000 p.a. for half yearly &Monthly mode 0 / as per the sustainability matrix 18/17 years (Age completed birthday) 50/80 years (age completed birthday) 80 years (Age completed birthday) 10 to 60 years, allowed only in multiple of 5 years

Minimum/ Maximum Sum Assured Minimum/ Maximum Age at Entry Minimum/Maximum Age at Vesting Maximum cover ceasing age Policy term

Trigger Portfolio Strategy: The value of your investments in equity funds rises and falls with the fluctuations in the equity markets. Hence, we present to you, the unique Trigger Portfolio Strategy which protects the gains made from your investment in equity funds from future equity market volatility. y Working of the strategy: Initial Asset Allocation: Pension Multi Cap Growth fund: 75%, Pension Income Fund: 25%

Trigger event: 15% upward or downward movement in NAV of Pension Multi Cap Growth Fund 1. On the occurrence of the Trigger event, any Fund Value in Pension Multi Cap Growth Fund which is in excess of three times the Fund Value of the Pension Income Fund is considered as the gains and shifted to the Pension Money Market Fund. 2. In case there are no such gains to be capitalized, funds in Pension Multi Cap Growth Fund and Pension Income Fund are redistributed in a 75%:25% proportion without any transfer to or from Pension Money Market Fund.

y Key benefits of this strategy: Helps you capitalize gains made from rising equity markets. Protects such gains made from any future equity market volatility. Works on the principle of buy low, sell high.

ILLUSTRATION: Age at entry: 30 years Annual Premium: Rs. 50,000 Annuity Option: Life Annuity Policy term: 20 years Annuity Frequency: Annual Portfolio Strategy: Trigger

Returns @ 6% p.a. pre- vesting Accumulated Expected Yearly Saving Annuity Rs. 16,30,148 Rs. 1,14,773

Returns @ 10% p.a. pre- vesting Accumulated Expected Yearly Saving Annuity Rs. 25,65,130 Rs. 1,84,902

This illustration is for a male with investments in Trigger Portfolio Strategy. The above are the illustrative values, net of all charges and service tax and education cess. Since your policy offers variable returns, the above illustration shows two different rates (6% p.a. and 10% p.a. as per the guidelines of the Life Council) of the assumed future investment returns.

Charge under the policy: Premium Allocation Charge: This will be conducted from the premium amount at the time of premium payment and units will be allocated thereafter. Premium band Year 1 Year 2-3 Year 4 onwards (Rs.) 10,000 14,999 20% 6% NIL 15,000 24,999 18% 6% NIL 25,000 49,000 16% 6% NIL >= 50,000 14% 6% NIL All top up premiums are subject to a premium allocation charge of 1% only. Policy Administration Charge: this charge is a percentage of the annual premium and will be charged regardless of the premium payment status. This charge will be levied ONLY for the first five policy years, post which NO policy administration charge would be levied. The policy administration charges are set out below: Policy Year 1 to 5 Annual premium 10,000 14,999 15,000 24,999 25,000 49,999 >= 50,000 policy Administration Charege 0.75% p.m. 0.5% p.m. 0.4% p.m. 0.3% p.m.

Fund Management Charge (FMC): The following fund management charges will be adjusted from the NAV on a daily basis. Fund Pension Opportunities Fund, Pension Multi Cap Growth Fund, Pension Bluechip Fund, Pension Dynamic P/E Fund, Pension Multi Cap Balanced Fund, Pension Income Fund 1.35% p.a. Pension Return Guarantee Fund Pension Money Market Fund

FMC

1.25% p.a.

0.75% p.a.

Switching Charge: Four free switches are allowed every policy year. Subsequent switches would be charged at the rate of Rs. 100 per switch. Any unutilized free switch cannot be carried forward to the next policy year.

Miscellaneous Charges: If there are any policy alterations during the policy term, they will subject to a miscellaneous charge of Rs. 250 per alteration.

D. ICICI PRU HEALTH SAVER: Health insurance penetration in India continues to remain very low. This means that 2 out of every 5 individuals hospitalized end up borrowing money or selling assets to cover expenses due to hospitalization. Increasing health expenses further exacerbate the problem. Increasing lifestyle illnesses and growing customer awareness about health has led to a demand for a plan that covers not only hospitalization expenses but also provides for other medical expenses e.g. expenses for managing conditions like diabetes, dental care, pregnancy, and even preventive diagnostic screening. There is also an increasing need for a health plan that offers us a flexibility in premium amount. Keeping this in mind, ICICI Prudential presents, ICICI Pru Health Saver, a whole of life comprehensive health insurance policy which: a. Provides comprehensive hospitalization cover for you and your family. b. Reimburses all other medical expenses not covered in the hospitalization benefit by building a health fund for you and your family.

Key Benefits of ICICI Pru Health Saver: y Guaranteed coverage up to age 75 for you and your family against medical expenses incurred due to hospitalization. y Coverage against pre-existing illnesses & conditions after 2 years subject to acceptance by the company. y Provides comprehensive cover by allowing reimbursement for health expenses not covered by the hospitalization benefit after 3 years. y A free health check-up once every 2 years after the first year.

y No claims bonus of 5% of the annual limit for every claim free year up to a maximum of 25%. y Option to continue cover post 5 years even after stopping premiums. y Avail tax benefits under section 80D on premiums paid under the Income Tax Act, 1961

Coverage under the policy: a. Hospitalization Insurance Benefit: This benefit in your policy you cover against medical expenses that require a minimum of 24 hours hospitalization. In addition, over 125 day-care procedures are also covered. the following expenses incurred during hospitalization are covered, subject to your annual limit: Room, boarding and nursing expenses as charged by the hospital where the insured availed medical treatment. You are entitled to a single A/C room (room rent capped at 1% of annual limit per day). However for twin share A/C room there is no such cap applicable. Intensive Care Unit (ICU) charges. Fees for doctor, surgeon, anesthetist, medical practitioner, consultant and specialist. Anesthesia, blood, oxygen, operation, theatre charges, surgical appliances, medicines and drugs, diagnostic materials and x-ray, dialysis, chemotherapy, radiotherapy, cost of pacemaker, cost of artificial limbs.

Features FamilyFloater

Description With the family floater option, you can additionally cover your spouse and up to the first three dependent children under the same annual limit. In addition to hospitalization, you are also covered for Daycare procedures which require less than 24 hours of Treatment hospitalization. These include over 125 listed day care cover surgeries, parenteral chemotherapy, radiotherapy, intervention cardiology, intervention radiology, radio frequency ablation treatment, lithotripsy and dialysis. Pre & Post Pre hospitalization expenses up to 30 days prior to Hospitalizati hospitalization and post hospitalization expenses upto 60 days from the date of discharge are also covered. The pre on Cover and post hospitalization expenses would be covered only in case the expenses incurred are related to the main hospitalization event. Reimbursement of medical tests subject to a limit of Rs. medical 5,000 or 1% of the annual limit, whichever is lower, once Check-ups every two years after the first year. Up to Rs. 1,000 per policy year Ambulance charges No Claims A no claim bonus in the form of an increase in annual limit by 5% of the base annual limit is provided for every claim Bonus free year. The maximum increase over the base annual limit will be capped at 25%. In case of a claim, the accumulated no claim bonus will reduce by 10% of the base annual limit in the following year. In no circumstances will this reduction cause the annual limit to go below the base annual limit You have an access to the extensive network of over 5000 Cashless hospitals on a cashless base. Network Access Out of A co-pay of 20% on the eligible medical expenses will be applicable in case you either Network claims y Stay in single A/C room with a room rent of more than 1% of your annual limit. y Access facilities at hospitals not listed in the chosen network

b. Health Savings Benefit: This benefit entitles you to claim reimbursement for health care expenses incurred by any of the insured members from your health fund. Some of the benefits under the health savings benefit are: Medicines and drugs Diagnostic expenses Dental expenses Co-pays or deductibles as part of the medical insurance cover Other miscellaneous medical expenses not covered under medical insurance.

The benefit can be claimed after 3 completed years of the policy and is subject to the existing fund value as given below: 4th year & 5th year 20% of Health Fund 6th year to 10th year 50% of Health Fund 11th year onwards 100% of Health Fund

Claims can be made once in a policy year on producing actual bills or proof of expenses. The minimum amount that can be claimed is Rs. 1,000. To create the health fund, part of the premium paid by you is invested in unit linked funds. You have the option to chosen from two unique portfolio strategies: Lifecycle-based Portfolio Strategy Fixed Portfolio strategy.

Lifecycle-based Portfolio Strategy: This strategy takes into account your life stage. Your investments will be distributed between two funds. Health Flexi Growth and Health Protector in a proportion that depends on your age. As you move from one age band to another, we will redistribute your funds based on your age. Your investment will be allocated to the Health Flexi Growth and Health Protector Funds on a predefined schedule. Fixed Portfolio Strategy: This strategy allows you to allocate your investments into different classes based on your personal judgment. Under this strategy, you can choose to invest fully in any one fund or various funds. You have a range of seven funds to choose from.

c. Additional Benefits: Cover Continuance Option Death Benefit Increase or Decrease in Premium

Cover Continuance Option: This option ensures that your policy continues subject to foreclosure in case you are unable to pay premiums, any time after payment of the first five years premiums. All applicable charges will be automatically deducted from the units available in your fund. You will need to opt for cover continuance, if you wish to avail of this benefit. Death Benefit: In the unfortunate event of death of the primary insured member during policy shall be terminated. The fund value paid out on death of the primary

insured may be taxable in the hands of the nominee as per the prevailing tax regulations at that time. In the unfortunate event of death of any other insured members the policy would continue would continue for remaining insured members with the appropriate reduction in health insurance charges.Increase or Decrease in Premium:

You can increase or decrease the annual premium under the policy (subject to minimum premium grid), but such an increase or decrease would be allowed at next policy anniversary.

Illustration: Annual Premium: Rs. 15,000 Annual Hospitalization: Rs. 2 lacs Coverage: Single life Age at entry: 30 years

Amount available for reimbursement under Health Savings Benefit: Term Health saving Fund Value (Returns @ 6% p.a.) (Rs) 5 57,472 Amount available for reimbursement (Rs.) Health Savings Fund Value (Returns @ 10% p.a.) (Rs.) 64,190 Amount available for reimbursement (Rs.)

After 11,494.4 12,838 years After 10 1,33,952 66,976 1,66,184 83,092 years After 15 2,28,473 2,28,473 3,18,054 3,18,054 years After 20 3,37,116 3,37,116 5,35,220 5,35,220 years The above illustration is for a health male with all his investments in fixed portfolio strategy. The above illustration fund values, net of all charges,

Service tax and education cess have been charged extra as per applicable rates. Since your policy offers variable returns, the above illustration shows two different rates (6% & 10% as per the guidelines of the regulator) of assumed future investment returns. The above illustration does not assume any increase in health insurance charges which may occur due to increasing healthcare costs. The fund value assumes that no reimbursements have happened till date.

What are the charges under the policy? Premium Allocation Charge: This will be deducted from the premium payment and the balance amount will be used for allocation of units. The charges are as follows: Policy year Charges Year 1 20% Year 2-3 9% Year 4-10 2% Year 11 onwards 0%

Insurance Charges for Hospitalization Insurance Benefit: Insurance charges for this benefit will be deducted on a monthly basis as per your age by cancellation of units. Annual charges for healthy life at sample ages and annual limits of 3 lacs are as under: 25 35 45 55 Age (Yrs) 2,693 3,179 3,928 7,836 (Rs.) The above charges are valid for one year from the date of commencement of the policy and are inclusive of service tax and education cess. Thereafter the company reserves the right to change the health insurance charges subject to approval from IRDA. The charges could increase to keep in life with the increasing health care costs.

Policy Administration Charge: A policy administration charge is Rs. 60 per month where the premium payment frequency is yearly or half-yearly and Rs. 90 per month for monthly frequency. This will be recovered by cancellation of units.

Fund Management Charges: The annual fund management charges, will be adjusted from the Net Asset Value (NAV), for the various funds are as follows: Fund Health Health Health Name RGF Flexi Multiplier Growth FMC 1.50% 1.50% 1.50% (p.a.) Health Health Health Health Flexi Balancer Protector Preserver Balanced 1.00% 1.00% 0.75% 0.75%

Switching charge: 4 free switches are allowed in every policy year. Subsequent switches will be charged at Rs. 100 per switch by cancellation of units. Any unutilized free switches cannot be carried forward to subsequent years.

Investment details: Life-cycle based portfolio strategy: Your investments will be redistributed between two funds as you move from one age band to another as per below table: Age Band 18-25 (Yrs) 85% Health Flexi Growth 15% Health Protector 26-35 75% 36-45 65% 46-55 55% 56-65 45% 66-75 35% 76+ 0%

25%

35%

45%

55%

65%

100%

Quarterly Rebalancing- your fund allocation might get altered because of market movements and claims from your health savings benefit. We will visit your allocations every quarter and reset it to prescribed limits. This vital feature will ensure that you take advantage of the market movements.

Fixed Portfolio Strategy: Under this strategy you can allocate your investment among the following 7 funds: Fund Health Flexi Growth: Long term returns from an equity portfolio of large, mid and small cap companies Asset Mix Min.% Max.% Potential riskreward & 80% 100% High 0% 20%

Health Multiplier: Long term capital appreciation from an equity portfolio

Health Flexi Balanced: Balance of capital appreciation and stable returns from an equity (large, mid & small cap companies) & debt portfolio Health Balancer: Balance of growth & steady returns from an equity & debt portfolio

Equity Related Securities Debt, Money Market & Cash Equity & Related Securities Debt, Money Market & Cash Equity & Related Securities Debt, Money Market & Cash Equity & Related Securities Debt, Money Market & Cash

80% 0%

100% High 20%

0% 40%

60% Moderate 100%

0% 60%

40% Moderate 100%

Health Protector: Debt Accumulated steady income instruments, at a lower risk money market & Cash Health Preserver: Debt Protection of capital through instruments, very low risk investment money market & Cash Health Return Guarantee Debt Fund: Provides guaranteed instruments, returns through investment in money market a diversified portfolio of high & Cash quality fixed income instruments

100%

100%

Low

0% 50%

50% 100% Low

100%

100%

Low

Automatic Transfer strategy: Under the fixed portfolio strategy, you can opt to avail of the automatic transfer strategy where you can invest your premiums as a lump sum amount in our money market fund (Health Preserver) and transfer a chosen amount every month into any one of the following funds: Health Multiplier/ Health Flexi Growth. This facility will be available free of charge.

QUESTIONARE

INTRODUCTION: Name: Profession: No. of family members: Mobile no.:

QUESTIONAIRE: 1. How many policies the customer has taken from different companies?

2. What is the purpose of taking insurance? (a) Saving (c) investment (b)Protection/insurance (d) tax saving 3. From existing policy the customer is having from which he is satisfied and not? Satisfied: (a) Customer service(after sale services) (b)Returns Not satisfied: (a) Advisor knowledge (b)Misspelling (c) Proper/regular information

4. If the customer gets any good plan and ability to invest whether he will invest or not? (a) Yes (b)No 5. If the customer agrees from the above conditions then he will invest in: (a) Life insurance (b)Health insurance (c) Both 6. If interested in life insurance the object will be: (a) Saving/investment (b)Protection (c) Both 7. If interested in health insurance object will be: (a) For individual cover (b)For family floater 8. Health insurance coverage whether for: (a) Long term (b)Short term 9. Objectives for health insurance will be: (a) Critical illness (b)Hospitalization expense (c) Top up plan 10. All features available in only one product(health saver) will like this: (a) Yes (b)No 11. Any suggestions, from your side to improve the questionnaire.

RESEARCH ON HEALTH SAVER PLAN