Future & Flexi Training Penultimate

1

Unit Linked Training

2

Objectives

Identify the need for a Unit Linked Plan1

Outline the working of a Unit Linked Plan2

List the Unit Linked Offerings from Tata AIG Life3

Position the ULIP products from Tata AIG Life4

By the end of this session you will be able to:

3

Why do people save/invest money?

Purchase of small assets, starting a career

Purchase of a house, car, etc.

Child’s education and marriage

Retirement and creating a legacy for future

generations

4

Various Investment Avenues available

Equity Markets

Unit Trusts/ Mutual Funds

Bank Fixed Deposits

Post Office Deposits

Real Estate

Insurance

Wealth CreationWealth Creation

Provide Secured Provide Secured ReturnsReturns

For creating a legacyFor creating a legacy

For ProtectionFor Protection

5

Components of an ideal portfolio

Insurance

Secured Income Yielding

Instruments

Equity/ Mutual Funds and Real

Estate

The percentages of each component would differ, The percentages of each component would differ, depending on the risk appetite of the customerdepending on the risk appetite of the customer

6

Risk appetites and Investor Profiles

Secured Income Yielding Instruments

Equity/ Mutual Funds and Real Estate


Equity/ Mutual Funds

and Real Estate


Equity/ Mutual Funds and Real Estate

High Risk & High Return

Potential

Moderate Risk & Moderate

Return Potential

Low Risk & Low Return

Potential

Great News!Unit Linked Insurance Plan

(ULIP)

Protection + Wealth CreationProtection + Wealth Creationunder a single planunder a single plan

7

The ideal investment option

Wealth CreationProtection

Life Insurance Investment

ULIPsULIPs

8

Advantage Of ULIPS

ULIPs harness the “Power of Compounding” to grow the value of the investment.

Compounding is “Interest earned on Interest”

Interest that is earned by the initial capital also earns interest and hence multiplying the rate at which money grows.

9

How it works

Assume a person needs 25 Lakhs for a comfortable retired life (after inflation).

How much will he need to save?Investment Amount Years Expected Return -10% Corpus- 10% Returns

11000 30 10% 25,072,578

19000 25 10% 25,419,916

33000 20 10% 25,267,998

60000 15 10% 25,075,455

125000 10 10% 25,819,002

Investment Amount Years Expected Return -6% Corpus- 6% Returns

25000 30 6% 25,238,440

37000 25 6% 25,768,980

54000 20 6% 25,074,959

87000 15 6% 25,427,734

157000 10 6% 25,857,702

Saving just Rs. 25,000 a year can help you create a corpus of Rs. 2.5 Crores over 30 years @ 6% returns.

10

Investment

Premium

Grow

th

Charges

Final ValueHow does a ULIP work?

Start of

the policy

Appropriate Appropriate sum assured & sum assured &

premium is premium is selected.selected.

1 2

Policy expenses Policy expenses including admin including admin cost and cost of cost and cost of

insurance are insurance are deducteddeducted

3

This gives the investible This gives the investible premium, which is premium, which is

invested in the funds of invested in the funds of the customer’s choice. the customer’s choice. The Fund Management The Fund Management charges are deducted charges are deducted after the premiums are after the premiums are invested in the fundsinvested in the funds

4

Premiums are Premiums are regularly paid.regularly paid.The fund value The fund value grows as per grows as per

underlying fund underlying fund performance. performance.

5

The fund value is The fund value is paid on maturity.paid on maturity.

In case of death, the sum assured or In case of death, the sum assured or fund value is paid, whichever is higher. fund value is paid, whichever is higher.

- = + =

11

The ideal solution

A unit linked insurance plan gives you A unit linked insurance plan gives you the best of both worlds:the best of both worlds:

Power Power of the of the EquityEquityMarketMarket

Protection Protection of an of an

Insurance Insurance covercover

ULIPULIP

12

New ULIP offerings from Tata AIG Life

Flexible Unit Linked Investment Plan

Unit Linked Pension Plan

InvestAssure Flexi

13

14

InvestAssure Flexi

15

Our Flexible Unit Linked Plan

InvestAssure Flexi

16

What do you want in a ULIP?

What flexible features would you like in a ULIP? Policy TermsPolicy Terms Premium Payment TermsPremium Payment Terms Investment fund choicesInvestment fund choices Adding money at any timeAdding money at any time Ability to Switch FundsAbility to Switch Funds Ability To Re-Direct PremiumsAbility To Re-Direct Premiums Withdrawal OptionsWithdrawal Options A loyalty bonus on maturityA loyalty bonus on maturity

InvestAssure Flexi

17

How does InvestAssure Flexi offer it’s flexibility?

FFLLEEXXIIBBILILIITTYY

Payment TermPayment Term

5 7 13 27 4019 3632Choose any term between 5 & 40Choose any term between 5 & 40

Choose 3 years, multiples of 5 years Choose 3 years, multiples of 5 years or the policy termor the policy term

Policy TermPolicy Term

18



Investment FundsInvestment Funds

Top-upsTop-ups

Large Cap Large Cap Equity FundEquity Fund

WL Agressive WL Agressive Growth fundGrowth fund

WL Stable WL Stable Growth fundGrowth fund

WL Mid-Cap WL Mid-Cap Equity FundEquity Fund

WL Income WL Income FundFund

WL Short-Term WL Short-Term Income FundIncome Fund

Capital Capital Guarantee FundGuarantee Fund

Choose from 7 different fundsChoose from 7 different funds

Choose to top-up at any timeChoose to top-up at any time

19



SwitchingSwitching

Premium RedirectionPremium Redirection

Large Cap Equity Fund

WL Agressive Growth fund

WL Stable Growth fund

WL Mid-Cap Equity Fund

WL Income Fund

WL Short-Term Income Fund

Capital Guarantee Fund

Choose to switch your funds at any Choose to switch your funds at any time. 12 times a year with no chargetime. 12 times a year with no charge



WL Stable Growth fund

WL Mid-Cap Equity Fund

WL Income Fund

WL Short-Term Income Fund


Choose to redirect your future Choose to redirect your future premiums to any other funds in any premiums to any other funds in any proportion!proportion!

Please note – switching and premium redirection into the capital guarantee fund is not allowed.

20



WithdrawalWithdrawal

MaturityMaturity



WL Stable Growth fundChoose to withdraw from selected Choose to withdraw from selected

funds after 5 yearsfunds after 5 years

1 5Choose to take a lumpsum on Choose to take a lumpsum on maturity or periodic payments over 5 maturity or periodic payments over 5 years + a bonus if applicableyears + a bonus if applicable

21



Payment TermPayment Term

WithdrawalWithdrawal

Investment FundsInvestment Funds

SwitchingSwitching

Premium RedirectionPremium Redirection

Top-upsTop-ups

MaturityMaturity

Policy TermPolicy Term Choose any term between 5 & 40Choose any term between 5 & 40

Choose 3 years, 5 years or the policy termChoose 3 years, 5 years or the policy term

Choose from 7 different fundsChoose from 7 different funds

Choose to top-up at any timeChoose to top-up at any time

Choose to switch your funds at any timeChoose to switch your funds at any time

Choose to redirect your future premiums to any Choose to redirect your future premiums to any other funds in any proportion!other funds in any proportion!

Choose to withdraw from selected funds after 5 Choose to withdraw from selected funds after 5 yearsyearsChoose to take a lumpsum on maturity or Choose to take a lumpsum on maturity or periodic payments over 5 years + bonus if periodic payments over 5 years + bonus if applicableapplicable

Now…Now…

That’s What I Call Flexible!That’s What I Call Flexible!

22


Purchase of policyFlexibility in the Flexibility in the

premium payment premium payment termterm

Flexibility in the policy term

- 3

Flexibility to choose the premium payment term.

Flexibility to invest additional money upto 4 times a year via Top-ups. Flexibility to Increase risk coverage by taking a sum assured for the top-ups at any point during the policy term.

Flexibility to switch between funds to book profits or to take advantage of a better performing fund.

Flexibility to withdraw from your investment via partial withdrawals.

6 11

Get a maturity bonus, depending on the number of premiums paid.

Get the fund value of the regular premium fund + top-up fund, if any.

Flexibility to take the maturity value immediately as a lumpsum or to take it over a certain period, upto 5 years from

maturity.the Sum Assured net of all Deductible Partial Withdrawals, if any, from the Regular Premium Account ,

or the Regular Premium Fund Value

In addition to this, for each Top-Up the death benefit will be higher of the approved Top-Up Sum Assureds) net of all Deductible Partial Withdrawals, if any, from the Top-Up

Account or (ii) Top-Up Fund Value

Death

Flexibility to choose any term from 5 years to 40 years.

5 10

23

Flexibility in Investment

Flexibility to select one or a combination of 7 funds to invest in:

Although you select a single fund or set of funds to begin with, the plan offers the flexibility to : Move money from existing fund(s) to other

funds. (Switching) Redirect future premiums to another fund

(provided percentage chosen in integral percentage for each funds summing to 100%Premium allocation towards the capital guarantee fund cannot be altered)

Switching into Capital Guarantee Fund is not allowed. Pay only Rs. 100 per switch for every additional switch after the free switches.

WL WL Aggressive Aggressive

GrowthGrowth

WL Short WL Short Term Fixed Term Fixed

IncomeIncome

WL WL Income Income FundFund

WL Mid Cap WL Mid Cap Equity FundEquity Fund

Take advantage of ups and downs in the market, book profits made by growth of

fund value, or hedge against market risks

You are allowed 12 free fund switches* in a year.

WL Stable WL Stable GrowthGrowth

Large Cap Large Cap Equity Equity FundFund

Capital Capital Guarantee Guarantee

FundFund

24

Flexibility to choose the right fundFund Objective Allocation

To generate long – term capital appreciation from a portfolio that is invested pre-dominantly in Mid Cap Equity and Mid Cap Equity linked securities.

Equities- Upto 100% Money Market Upto 40%

To generate income by investing in a range of debt and money market instruments of various maturities with a view to maximizing the optimal balance between yield, safety and liquidity.

Govt/ Corporate Bonds- Upto 100%; Money Market Instruments- Upto 40%

To generate stable returns by investing in fixed income securities having shorter maturity periods. Under normal circumstances, the average maturity of the Fund may be in the range of 1-3 years.

Govt/ Corporate Bonds- Upto 100%; Money Market Instruments- Upto 40%

To provide higher returns in long term by investing primarily in Equities along with debt/ money market instruments

Equities- 50-80%; Govt/ Corporate Bonds- 20-50%; Money Market Instruments- Upto 40%

To provide stable returns by balancing the investment in Equities and debt/ money market instruments

Equities- 30-50%; Govt/ Corporate Bonds- 50-70%; Money Market Instruments- Upto 40%

The primary investment objective of the Fund is to generate long - term capital appreciation from a portfolio that is invested pre-dominantly in large cap equity and equity linked securities

Equities- 80 to 100% Money Markets Upto 40%

WL Mid Cap Equity Fund

WL Income Fund

WL Short Term Fixed

Income

WL Aggressive

Growth

WL Stable Growth


25

Guarantees a return of the premiums Guarantees a return of the premiums paid towards this Fund onpaid towards this Fund on maturity maturity

before deduction of allocation charges.before deduction of allocation charges.

Flexibility to switch out from the fund to proportionately reduce the guaranteed benefit proportionately. Guarantee will apply only in respect of those premiums that remain in the Capital Guarantee Fund till point of guarantee/ maturity.The guarantee will not apply on premium allocated towards other funds. Further, Top Up premiums are not allowed into Capital Guarantee Fund.


Flexibility with a Flexibility with a GUARANTEE!GUARANTEE!

Capital guarantee fund is only available at the time of entering into the contract.

26

Flexibility to increase your investment

This plan offers you the flexibility to increase your investment at any time.

You can make single top-ups to the plan. Top-ups can be made for as low as Rs. 5,000

and upto 4 times a year.

Help your investments grow faster by investing single top-ups!

You can increase your sum assured by taking a life cover for each top-up*

WOW!!!*subject to underwriting

27

Top-ups and top-up sum assured

You can use top-ups effectively to: Increase your investment in the plan with lower premium

allocation charges. Increase your risk coverage via top-up sum assured.

Top up sum assured is mandatory only if…

Capital guarantee fund is not available for top-ups. The premium allocation charge for single top-up is 1.5%

of top-up premium received.

Total Top Up premium is more than 25% of the total regular premiums paid till date.

28

Flexible Premium Holiday

There maybe times when you can’t pay premiums. If the premium is paid for a minimum of 3 annual

payments, it will not lapse!

Premium holidays can be continued indefinitelycan be continued indefinitely as long as after 2 years there is a written request of the policyholder & the surrender value does not fall below 1 years premium

Automatic Premium Holiday ModeAutomatic Premium Holiday Mode

Wow!Wow!

29

Premium Holiday

If the policyholder does not give a written request the policy will be surrendered & the net value sent to the policyholder.

During the premium holiday, other than the premium allocation charge, all the normal charges will be deducted from the fund.

If annual premiums are stopped within the first 3 policy years: The policy will continue without a death benefit. However it may be revived at anytime during the revival period

of 2 years* If not revived during this period, the policy will be terminated.

*subject to fulfilling company’s revival conditions.

30

Flexible Partial Withdrawals

Allows you access to your funds via partial withdrawals after 5 years from the date of issuance.

Withdrawals are made from the top-up account first (as long as 3 years have elapsed) and then from the regular premium account if required

How does this help?

No charges for partial withdrawals madeNo charges for partial withdrawals made

You Choose When You Need The MoneyYou Choose When You Need The Money

Wow!Wow!

31

Rules relating to partial withdrawals

Partial withdrawals can be made if: The policyholder has attained 18 years of age. The withdrawal is not less than Rs 5,000 The surrender value, after withdrawal, should not fall below one

years annual premium. No more than 4 partial withdrawals are made in one policy year.

Capital Guarantee Fund: Partial withdrawals from this fund will reduce the guaranteed

amount proportionately.

32

Partial Withdrawals After 5th Policy Year

The amount of money that can be withdrawn, from the regular premium fund, is restricted to 20% percentage of the previous policy year fund value based on the following table:

Policy year/ Policy Term

5 6-9 10-19 20-40

6

N/ANo

restriction

20%7

No restriction

20%

8 onwards No restriction

33

Example – Partial Withdrawal

Mr. Vishal, aged 30 has purchased an InvestAssure Flexi Plan with a policy term 20 years and a premium payment term of 15 years, with a premium of Rs. 15,000 per annum. (Premium Multiple of 10 and 100% invested in WL Mid Cap Equity Fund)

His policy has run for 10 years.

In the 7th year his fund value is Rs. 210,237 (10% return scenario)

What is the maximum partial withdrawal that he can make?

Solution

The maximum partial withdrawal is 210,237 x 20%= Rs. 42,047

34

Maturity Bonus

Dependant on the number of premiums paid. % of regular premium fund value on maturity

Number of Regular Premiums Paid< 10

11 to 15

16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 +

% NA 2.0 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 3.0 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 4.0

Even more money, Guaranteed!Even more money, Guaranteed!

Wow!Wow!

35

Flexible Maturity

On maturity, the fund value and any applicable bonus will be paid to you.

In the capital guarantee fund, you will get the higher of:

*Provided the premiums paid remain in the fund through out the term of the policy and all the premiums are received.

The policyholder can elect to receive their maturity benefit either via: lump sum or through periodic payments over a maximum of 5 years

The payment frequency is determined by the policyholder The value of payments depends on the fund value. During this period the death benefit is the fund value.

The value of the capital guarantee fund*

The total premium paid towards the fund*

Wow!Wow!You don’t need to take the cash when You don’t need to take the cash when

the market is down!!!the market is down!!!

You choose if you want a lumpsum or You choose if you want a lumpsum or periodic payments on maturity!!!periodic payments on maturity!!!

36

Death Benefit

In case of death, the following benefits will be payable to the nominee:

*If any partial withdrawals have been made, these may affect the amount payable on death if: The partial withdrawal is made within 24 months of the death, or Partial withdrawals were made after attaining age 60.

Death Claim higher of

Sum Assured net of all partial withdrawals* Fund Value

37

Juvenile lien

The death benefit payable in case of juveniles would be as per the following table:

Subject to a maximum death payout of Rs. 10,00,000

Insured’s age at death Percentage of sum assured/ Top-up sum assured

Less than 1 year 20%

Less than 2 years 40%



From 4 years upward 100%

38

Surrender

Surrender can be made after 3 years. Surrender Value is :

The entire policy terminates upon surrender. Surrender charges will be applied as a percentage of

Regular Premium Account Value. In case of Capital Guarantee, the return of premium

guarantee will not be applicable on surrender.

Regular Premium Account Value

- applicable Surrender Charges, if any

+ Top up Account Value

39

Flexible Cover Enhancement

Additional benefits can be attached to the policy by adding riders.

These are available for a nominal amount of additional premiums.

The following riders can be attached.

Critical Illness Rider Critical Illness Rider (Lumpsum Benefit)(Lumpsum Benefit)

Accidental Death Benefit Accidental Death Benefit (ADB) Rider(ADB) Rider

Accidental Death and Accidental Death and Dismemberment (Long Dismemberment (Long

Scale) (ADDL) RiderScale) (ADDL) Rider

Payor Benefit RiderPayor Benefit Rider(for Juvenile Plans only)(for Juvenile Plans only)

Wow!Wow!

40

Charges

41

Premium Allocation Charges

1st & 2nd Year Premium Paying Term

Annual Premium Band (Rs.) 3 5-14 15-40

15,000-24,999 16.0% 17.0% 19.0%

25,000-499,999 15.0% 16.0% 18.0%

500,000-999,999 13.0% 14.0% 15.0%

1,000,000-9,999,999 9.0%

10,000,000 & above 1.5%

Year 3 to 5Year 3 to 5All Premium All Premium

Paying TermsPaying TermsAnnual Premium Band (Rs.)Annual Premium Band (Rs.)

Less than 2,000,000 3%2,000,000 & above 1.5%

42

Fund Management Charge

Fund FMC

WL Aggressive Growth 1.10%

WL Stable Growth 1.00%

WL Short Term Fixed Income Fund 0.65%

WL Income Fund 0.80%

WL Mid-cap Equity Fund 1.20%

Capital Guarantee Fund (offer only to premium payment term>=15) 1.50%

Large Cap Equity Fund 1.20%

43

Administration & Mortality Charges

Administration: Administration: Rs 75 per month throughout the policy term. Except for a policy with annualized premium >/=Rs

50,000, where the charge is Rs 300 per month in the first year & then Rs 75 thereafter

• The administration charges cannot be increased by more than a maximum of 5% p.a.

Mortality:Mortality: Mortality/COI charges are deducted monthly in

advance from the fund by unit cancellation• The rates are based on 100% of Indian Assured Lives

Mortality (1994-96) (Modified) Ultimate.

44

Full Surrender Charges

PolicyPolicyYearYear

Surrender Charge (by term)

55 6-96-9 10-1910-19 20-4020-401-3 Not Applicable4 10% 10% 25% 25%5 5% 5% 15% 15%6 0% 0% 10% 10%7 0% 0% 0% 5%8+ 0% 0% 0% 0%

45

Beat The Competition With Flexi

Tata AIG LifeICICI

Prudential Bajaj Allianz SBI Life BSLI

InvestAssure FlexiLife time

Super New Unit Gain Plus Horizon II Dream Plan

EA 30 days30 days - - 7070 yearsyears0 year - 65 years 0 year - 60 years 0 year - 60 years 18 Years - 60 years

MA 80 years80 years 75 years 70 years 70 years 75 years

MP Rs.15000Rs.15000 Rs.18000 Rs.15000 Rs.12000 Rs.50000

PPT

3 / 5 / 10 / 15 / 20 / 3 / 5 / 10 / 15 / 20 / 25 / 30 / 35 / 40 Or 25 / 30 / 35 / 40 Or

equal to policy equal to policy term.term. Regular Regular Regular Regular

PT 55 - 40 years - 40 years 10 - 75 10 - 70 10 - 40 5 - 25

PA (max) 19%19% 20% 24% 15% 25%

TOP YesYes No Yes Yes Yes

FUN(NOS) 77 4 5 3 3

SW(FREE) 1212 4 3 NO* 2

RIDERSPBPB / / CI (L)/ ADB /CI (L)/ ADB /

ADDLADDLADB / CI / WOP

ADB / APTP / DB / CI / HCB NA ADDB

46

Invest with the BEST!

Business Standard dated July 9, 2007

Outlook Money dated December 15, 2007

Best Performing Equity fund in the Market!

47

Invest with the BEST!

Tata AIG Life Investment Report- November 2007

Not Only The Best ProductNot Only The Best Product

Not Only The Best FundNot Only The Best Fund

You Now Have The Best Product In The You Now Have The Best Product In The Best Fund!!!!Best Fund!!!!

48

Features, How it works and Benefits (FHB)F H B

Issue age 30 days to 70 years Gives the flexibility to enter into this plan at a young age.

You can start saving for your child’s dreams from the time the child is born.

Life cover for the chosen term In case something happens to the customer, his nominee will get the higher of sum assured or fund value.

Your dreams are protected from the uncertainties of life.

Your family is guaranteed atleast the sum assured if your investments have not been able to grow fully.

Capital Guarantee Fund Option The customer is guaranteed a return of premiums paid towards the Capital Guarantee Fund, if the fund value is not able to grow as expected.

Your investment in your future/ your child’s future is protected.

7 funds to select from:1. WL Aggressive Growth2. WL Stable Growth3. WL Short Term Fixed Income Fund4. WL Income Fund5. WL Mid Cap Equity Fund6. Large Cap Equity Fund7. Capital Guarantee Fund

Customer can choose the fund or combination of funds according to his risk appetite.

You can use the appropriate fund(s) to invest for your specific needs.

You can hedge your investments against the ups and downs in the market.

You can switch between various funds to take advantage of the ups and downs of the market.*

Top up option. Gives the flexibility to Invest additional money in the plan over and above the regular premiums.

Allows the customer to increase coverage by taking additional sum assured for top-up.

You can invest more money to give your account value a better chance to grow faster.

You can put windfall gains to good use to create an asset for your loved ones.

* Switch in Capital guarantee fund is not allowed.

49

Features, How it works and Benefits (FHB)F H B

Client can withdraw money after 5 years from the date of issue of the policy.

Gives the customer liquidity in his investment. You have complete access to your funds in to pay for urgent and sudden expenses.**

You can withdraw money to pay for medical emergencies. **Please refer partial withdrawal table for regular premium fund

value.

Premium Holiday option

Gives the customer the option to temporarily stop paying premiums if he is unable to do so.

If you are temporarily unable to pay premiums, you can put the policy on a premium holiday.

Your policy does not lapse. You can continue to create a corpus for your loved ones.

You can continue premium payments after the premium holiday to grow your fund value.

Riders Can be attached/ are inbuilt

Payor benefit Accidental

Death Benefit (ADB) Rider

Accidental Death and Dismemberment (Long scale) (ADDL) Rider

Critical Illness Rider (Lumpsum Benefit)

The payor benefit rider is inbuilt which waives off all future premiums in case the payor dies or is totally and permanently disabled

You investment for your child’s future is protected from the eventualities of life.

Your savings can be used for what they were meant to be used.

The ADBL rider can be attached, which pays an additional sum assured in case of accidental death of the insured.

Your dreams can be achieved even in case of any unforeseen eventuality.

Your family gets more money, which can be used to stabilize themselves financially.

The ADDL rider can be attached, which pays a sum assured in case of accidental death or a specified percentage of the sum assured in case of accidental dismemberment.

Your dreams are protected from any eventuality in life. Your family will get an additional sum of money to ensure

financial stability.

The CIL Rider can be attached, which pays an additional sum assured in case of being diagnosed with a covered critical illness and survival for a period of 30 days

Your dreams can be achieved even if you are struck by a critical illness.

Eligible for a maturity bonus

A percentage of the account value is paid on maturity, depending on the number of regular premiums paid.

You get more money to make your dreams come true.

50

InvestAssure Flexi at a glance

Policy Term 5 – 40 Years

Minimum Issue Age 0 (30 days)

Max Issue Age 70

Max Age at Maturity 80

Minimum Premium Rs.15,000

Sum Assured 5 x Annual Premium or Term/2 x Annual Premium whichever is higher

Premium Mode Annual/Semi-annual/Quarterly/Monthly

Premium Payment Period 3 Years/ Multiples of 5 Years/ Equal to policy term

Benefit Period For the entire term of policy.

51

A market leading flexible product Around 80% of the insurance premium is generated through ULIP

sales.* The market is moving towards low charge products, What would

your customer like more? High Charges- Limited flexibility Lower Charges –More flexibility.

Would you prefer a higher minimum premium with unlimited sales or a lower minimum premium with limited sales?

Why more sales ?

With a WIN- WIN Plan like this, do you want your customer to invest with competition?

*source IRDA website

Low Charges High Flexibility

Limited Sales

Higher Sales

Under One PLAN!

52

A market leading flexible product

Only insurance plan in the market to offer 7 fund options to cater to customers with varied risk appetite

Introducing Large Cap equity fund

Offers Capital Guarantee Fund

Offers IRR higher than Top Competitors in the industry

One of the best plans to offer FV + Guaranteed maturity Bonus

How long will your customer prefer paying ….so here we have

Limited premium paying term (minimum 3 years)

Sell SP Rs 25000 & earn 2%

Sell IA Flexi Rs 25000- with PPT of 3 yrs – earn 7.5%

Remember…

Monthly production bonus- 5% of FYC for minimum 2 cases for an FYC Slab of Rs. 4,000 and above for Advisors and Rs. 2,000 and above for NLA’s

Remember…

Annual production bonus- 5% of FYC for an FYC Slab of Rs. 50,000 and above for Advisors.

53

A Client Wants…A Client Wants…A A 77 Year Policy Year PolicyA A 99 Year Policy Year Policy

A A 1111 Year Policy Year PolicyA A 1717 Year Policy Year PolicyOh! They Can’t!Oh! They Can’t!

IA 2 Vs IA FlexiIA 2 Vs IA FlexiAssumptionsAssumptions15 Year policy Equity Fund Min SA of Rs 1,87,500 Aged 30

Annual Premium

FMC1.75%

PremiumAllocation

Charge 40%

Rs 25,000 Rs 10,000

Growth@10%

Rs 15,501Rs 268

Policy Admin

Flat Rate

Rs 456

MortalityAs Per Chart

Rs 227

Invest Assure 2Invest Assure 2

Rs 25,000 4,500 Rs 21,110Rs 250 Rs 900 Rs 219

Invest Assure FlexiInvest Assure FlexiAnnual

PremiumFMC

1.20%

PremiumAllocation

Charge 18%

Growth@10%

Policy Admin

Flat Rate

MortalityAs Per Chart

36.18% more in year 1!36.18% more in year 1!

54

What’s in it for EVERYONE?

Ease of SaleFlagship Product

Business

Company

Customer

You

Lower ChargesLower ChargesMore InvestedMore InvestedFund ChoiceFund Choice

Fund MgtFund Mgt

Bigger VolumesBigger VolumesMore CustomersMore Customers

Increased M. ShareIncreased M. Share

Increased Case SizeIncreased Case SizeIncreased SalesIncreased Sales

More CustomersMore CustomersMore CasesMore Cases

Easier ConventionEasier ConventionMore Income!More Income!

55

InvestAssure GoldInvestAssure Plus

InvestAssure FutureInvestAssure Flexi

Positioning ULIP offerings from TALIC

ULIPS offerings1 2

3 4

56

Positioning ULIP offerings from TALIC

InvestAssure InvestAssure GoldGold

InvestAssure InvestAssure PlusPlus

InvestAssure InvestAssure FutureFuture

InvestAssure InvestAssure FlexiFlexi

1

2

3

4

Ideal offering for customers looking for investment & flexibility with lower charges

Ideal offering for customers looking for an income in retirement

Ideal for customers looking for a one time investment

Ideal offering for customers looking for a Whole of Life Investment

57

Summary

In this session, we have touched upon: The need for a Unit Linked Insurance Plan. The various ULIP offerings of Tata AIG Life. The Features and Benefits of InvestAssure Flexi and

InvestAssure Future. Positioning the Various InvestAssure Plans.

58

Prepare for a bright and shining Future

59

What does the future have in store?

What do people want to do when they retire?

Retirement is a time to… Relax after 35- 40 years of hard work.

• Be with your partner

• Play with grandchildren.

• Meet up with old friends.

• Travel

BUTBUT You need enough money to be able to do all this!

60

Consequences of not planning?

Dependence on your children or relatives for money

Working to earn money even after retirement.

Your Dreams would not be achieved

Would you like this sort of retired

life?

61

The Hard Facts

Life expectancy of people has increased to 64, as per the 2001 census.

People aged 60 today are expected to live till age 75* So, people need to save a sufficient amount of money to

provide for atleast 15 to 17 years after retirement.

Life Expectancy is on the riseLife Expectancy is on the rise

Are you prepared? Are your customers?Are you prepared? Are your customers?

96% of Indians have inadequate provision96% of Indians have inadequate provision

62

What do people depend on for retirement?

Provident Fund

Public Provident Fund

Superannuation

Gratuity

Traditional Life Insurance- Savings & Pension Plans

Group

Individual Pension

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Impact of inflation The following table shows the impact of inflation on the purchasing

power of money

Inflation Rate 10 years 15 years 25 years 40 years2% -18% -26% -39% -55%4% -32% -44% -62% -81%6% -44% -58% -77% -90%8% -54% -68% -85% -95%

10% -61% -76% -91% -98%

Figures are percentage by which a particular inflation rate will reduce the value of money in the indicated number of years.

Given this situation, investing in traditional Given this situation, investing in traditional sources is not enoughsources is not enough

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InvestAssure Future at a glancePlan Type Unit Linked Pension PlanMinimum Issue Age 18 yearsMax Issue Age Option I (Single Premium) : 70 years

Option II (Regular Premium): 65 years

Minimum Vesting Age 45 yearsMax Age at Maturity 75 yearsPolicy Term Option I (Single Premium) : 5 - 35 Years

Option II (Regular Premium): : 10-35 Years Premium Multiple This Unit linked Pension plan has unique feature of

NO LIFE COVER NO LIFE COVER Premium Payment Period

Option I: Single PremiumOption II: Regular PremiumPolicy term or multiple of 5 from 10 years onwards.

Minimum Premium Option I (Single Premium): Rs.25,000/- p.a.Option II (Regular Premium): Rs.10,000/-p.a.Premium to be chosen to be a multiple of Rs.100/-.

Premium Mode Option I: Single PremiumOption II: Regular PremiumAnnual/Semi-annual/Quarterly/Monthly

No Under WritingNo Under Writing

Immediate Issue At Point Of SaleImmediate Issue At Point Of Sale

No Life CoverNo Life Cover

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How does InvestAssure Future Work?

Advisor recommends the appropriate premium payment option as per customer needs

identified.Advisor can recommend both

options through 2 separate plans

1Single Premium

Atleast Rs. 25,000

1

Advisor recommends the correct policy term for

achievement of customer needs.

5- 35 yearsMax issue age- 70 years

12

Regular PremiumAtleast Rs. 10,000 p.a.

2

10 – 35 yearsMax issue age 65 years

2

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How does InvestAssure Future Work?

Advisor recommends the appropriate fund for

investment, based on customers risk appetite.

3

Customer gets started on the plan by paying the premiums

4

Future Equity Pension Fund

Future Capital Guarantee Pension Fund*

Future Growth Pension Fund

Future Balanced Pension Fund

Future Income Pension Fund

* Please note- the Future Capital Guarantee Pension Fund is available only for a Premium Payment term of 15 years or more in case of Regular Premium Option.

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Top-ups can be made at anytime during Policy term, maximum upto 4 times a year. Minimum Rs. 5,000

How it works

PurchaseOf Policy

Customer pays a single premium or the regular premium for the chosen vesting age

On Maturity, Total Fund Value (FV) (i.e. Single/Regular premium FV+ Top up Prem

FV) plus Guaranteed Bonus are paid

In case of death, Total Fund Value (FV) (i.e. Single/Regular premium FV+ Top up Prem

FV) plus Guaranteed Bonus are paid

For Future Capital Guarantee Pension Fund , the maturity value is higher of :

a) Value of Future Capital Guarantee Pension Fund*

b) Total premium received towards capital guarantee fund*

Plus guaranteed bonus.* Subject to applicable rules

There can be Commutation * up to 33% and annuitisation 67% with open market option. * This is mandatory in case of maturity while in case of death, the nominee has an option to use death benefit partially or

entirely to purchase an annuity.

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Top up premiums

The customer can make top ups anytime during the period.

Minimum Top-Up Premium is Rs.5, 000/- and will be allowed a maximum four times a year.

Top-Up premiums can be allocated in any proportion as advised.

Top-up can not be made in Future Capital Guarantee pension fund.

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Premium Holiday

The customer can avail of premium holiday option after paying at

least 3 annual payments.

Premium Holiday is applicable for 2 years. (The period for revival)

After 2 years, the premium holiday can be continued on the request

of the policyholder*

If the policyholder does not explicitly want continuation of the

Premium Holiday, the policy is deemed to be surrendered (i.e. as a

default option).

During this period the monthly administration charge will be

deducted from the Fund.

* The fund value should have an amount such that the surrender value does not fall below one annual premium.

You can temporarily stop paying premiums should you need.Your policy will not lapse!

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Discontinuance of premiums within 3 years

The policy can be revived any time during the revival period of 2-years subject to fulfilling company’s revival conditions.

If the policyholder does not revive the policy during revival period, the policy shall be terminated.

The total fund value after deducting applicable surrender charges as on date, shall be paid at end of the 3rd year or at the end of revival period whichever is later.

Till the time of surrender, the policy account value will remain within the fund.

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Fund Switching

The policyholder can switch from one fund to another to take advantage of a better performing fund or to book profits.

Switching into the Future Capital Guarantee Pension Fund is not allowed,

Switches can be made out of Future Capital Guarantee Pension Fund with a proportionate reduction in the guarantee.

Guarantee will apply only in respect of those premiums that remain in the Future Capital Guarantee pension Fund till the maturity.

First twelve switches in each policy year are free.

Make tax free capital gains through switches!

WOW!!!

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Premium Redirection

Is allowed for future regular premium(s) (the total allocation to the

funds should be 100%)

However, premium allocation towards the Future Capital Guarantee

pension Fund cannot be altered.

No premium re-direction charge applicable.

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Guaranteed Bonus

This plan offers a guaranteed bonus on maturity or death.

The bonus is payable on the single/ regular premium account only (not on the top-up account)

Policy Year (for Single Premium Option) or Number of complete Premium years** (for

Regular Premium Option)

Bonus (% of Regular or Single premium Fund

Value)

Less than 10 0%

10-14 3.0%

15-19 4.5%

20-29 6.0%

30-35 7.0%

**One complete Premium Year refers to a complete 12-months period for which Regular Premiums have actually been paid, excluding any period of Premium Holiday.

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Maturity Benefit

On maturity, the following benefits are payable:

MaturityMaturityBenefitsBenefits

* Provided the premium remains within the Future capital guarantee Pension fund throughout the term of the policy.

This guarantee will be applicable only if all due premiums have been paid.

The guarantee will not apply on premiums allocated towards other funds. Further, guarantee will also not apply on death during the policy term/ Surrender.

Single / Regular Premium Account Value and Top-Up Account Value valued at Unit price at date

of Maturity plus Guaranteed Bonus

For Future Capital Guarantee Pension Fund benefit will be higher of:

a) Value of Future Capital Guarantee Pension Fund b) Total premium received towards capital guarantee

fund* Plus Guaranteed bonus

There will be Commutation up to 33% and annuitisation 67% with open market option.

Get lumpsum on maturity +Get pension for life!

WOW!!!

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Death Benefit & Surrender

In case of death, Total Fund Value (i.e. Single/Regular prem FV+ Top

up Prem FV) plus Guaranteed Bonus will be paid to the nominee.

Surrender can be made anytime after completion of three policy

years.

Surrender Value is Single / Regular Premium Account Value less

applicable Surrender Charges, if any plus Top-Up Account Value.

The entire policy terminates upon Surrender.

Surrender charges will be applied as a percentage of Single / Regular

Premium Account Value.

In case of Future Capital Guarantee Pension Fund, the return of premium guarantee will not be applicable on surrender.

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Charges

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Charges- Premium Allocation

Premium Allocation Charges

Option I: Single Premium

Premium Slab Premium allocation charges

25,000 to 99,999 6.00%

1,00,000 to 4,99,999 4.00%

5,00,000 to 99,99,999 3.00%

1,00,00,000 & above 2.00%

Option II: Regular Premium

Premium YearPremium allocation charges

1 15% for premium <50 k; 13% for premium >=50k

2 12%

3-5 3%

6 yr onwards 0%

Top – up Premium Allocation Charge

1.5% of Single Top-Up Premium

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Charges- Surrender

Option 1Option 1Single PremiumSingle Premium

Surrender is not allowed in first 3-policy year. There are no surrender charges payables after completion of such period.

Option 2Option 2Regular PremiumRegular Premium

Premium year Surrender Charges1 Not allowed2 Not allowed3 Not allowed4 30%5 20%6 10%

7 + 0%

On Top-up Premium Account there are no Surrender charges payable.

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Charges- Policy Administration & Switching

Policy Administration Charge:Policy Administration Charge:Option 1: Single PremiumOption 1: Single Premium

Rs.25/- on a monthly basis in the first year and then may increase subject to a maximum of 5%p.a.

Policy Administration Charge:Policy Administration Charge:Option 2: Regular PremiumOption 2: Regular Premium

Rs.55/- on a monthly basis in the first year and then may increase subject to a maximum of 5%p.a.

Fund Switching ChargesFund Switching Charges

There are 12 free switches per policy year.

Thereafter a switching charge of Rs.100/- per switch will be

applicable .The fund switching charge may

be revised as deemed appropriate by the Company, but shall not

exceed Rs.250.

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Charges- Fund Management Charge

Fund Fund Charges p.a.Charges p.a.

Future Equity Pension Fund 1.25 %

Future Capital Guarantee pension Fund 1.50 %

Future Growth Pension Fund 1.10 %

Future Balanced pension Fund 1.05 %

Future Income Pension Fund 1.00 %

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Features, How it works and Benefits (FHB)

FF HH BBFuture Capital Guarantee Fund Option

The customer is guaranteed a return of premiums paid towards the Future Capital Guarantee Pension Fund, if the fund value is not able to grow as expected.

Your investment for your future/ your child’s future is protected.

5 funds to select from:1. Future Equity Pension

Fund2. Future Capital Guarantee

pension Fund3. Future Growth Pension

Fund4. Future Balanced pension

Fund5. Future Income Pension

Fund

Customer can choose the fund or combination of funds according to his risk appetite.

You can use the appropriate fund(s) to invest for your specific needs.

You can hedge your investments against the ups and downs in the market.

You can switch between various funds to take advantage of the ups and downs of the market.*

Top up option. Gives the flexibility to Invest additional money in the plan over.

You can invest more money to give your account value a better chance to grow faster.

You can put windfall gains to good use to create an asset for your loved ones.

* Switch in Capital guarantee fund is not allowed.

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Features, How it works and Benefits (FHB)

F H BPremium Holiday option

Gives the customer the option to temporarily stop paying premiums if he is unable to do so.

If you are temporarily unable to pay premiums, you can put the policy on a premium holiday.

Your policy does not lapse. You can continue to create a corpus for your loved ones.

You can continue premium payments after the premium holiday to grow your fund value.

Eligible for a Guaranteed bonus

A percentage of the account value is paid on maturity or death, depending on the number of regular premiums paid in case of Regular Premium or Policy year in case of Single Premium.

You get more money to make your dreams come true.

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Around InvestAssure FutureSINGLE PREMIUM ULIP PENSION PLAN COMPARISON

Company ICICI Pru LIC HDFC Std Life Aviva TALIC

Product Name ICICI Pru LifeLink Super Pension (Single Premium) Market Plus (SP Option) SP UL Pension

Plan SP ULIP Pension Plus IA Future

Minimum Age at Entry 18 18 18 18 18

Maximum Age at Entry 70

65 in case of Life cover / 70 in case of No Life

Cover70 65

70 years

Minimum Investment 25,000/- 10000/- 25,000/- 100,000/- 25,000

Sum Assured Amount Zero Min - 25,000 / Max - Equal to SP Zero life cover Zero Life cover Zero life cover

Minimum Pension Start Date 45 40 50 40 45

Maximum Pension Start Date 75 75 75 70 75

Switches

4 free switch every year. Switch can be made during deferment period with a min amount per switch to rs 2000, after 4 swithes Rs 100 per switch deducted from accumulated units

4 free switch is available for every policy year.Rs. 100/- for addl. Switch

Switching charges of Rs. 100/- per switch after 24 free switch in the year

2 switches are free of charge, for every additional 0.5% of the amount switched , subject ot a max of Rs 500 per switch

4 free switches per year ,on every additional switch rs 250 as switching charges

Fund Options

There are Four Funds to choose from - 1)Pension Maximiser 2) Pension Balancer 3)Pension Protector 4) Pension Preserver

4 Funds - 1). Growth Fund 2). Balanced Fund 3). Secured Fund 4). Bond Fund.

6 Funds - Liquid Fund / Secure Managed Fund / Defensive Managed Fund / Balanced Managed Fund / Equity Managed Fund / Growth Fund

Pension with Profits Fund 3 ULIP Funds : Pension Secure / Pension Growth / Pension Balanced 100% of funds can be invested in Pension with Profit Fund or Money can be allocated with min 10% in each of the 3 funds

5 Funds: Future Equity Pension / Future Growth pension / Future Balanced Pension / Future Income Pension/ Future Capital Guarantee Pension fund

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Around InvestAssure FutureREGULAR PREMIUM ULIP PENSION PLAN COMPARISON

PartPart I-PruI-Pru LIC LIC HDFC SLHDFC SL Aviva Aviva TALIC TALIC Plan Name

Life time Super pension(RP) Market Plus (RP) ULIP Pension(RP) Pension Plus (RP) InvestAssure Future

Issue Age Min - 18 years Max - 65 years

Min Age - 18 Max Age - 70(with life cover 65)

Min Age - 18 Max Age - 65

Min Age 18 year-Max Age:65

RP Min Age-18 Max age - 65

Term Min 10 years Min 5 years Min - 10 yrs Max - 40 yrs

Min5 ; max upto vesting age chosen

Term: RP - 10yrs -35 or term/2

Min Prem Rs. 10,000/- annually; 5000 half yearly; 834 monthly/-

Annual - 5,000/- Min Annual Prem - 10,000/-

Annual- 6,000/- for RP; 1Lakh for Single premium

RP - 10,000

Vesting Period Min - 45 years Max – 75 years

Min Vesting Age - 40 Max Vest Age – 75

Min Vesting Age - 50 Max Vesting Age – 75

Min 40years; max 70 years Min - 45 years Max - 75 years

Life Cover Option- With / Without Life Cover

Both options avl (With / Without Life Cover)

Both options (with /without life cover)available Without life cover Without life cover Without life cover

Min & Max SA

Max of annual premium multiplies by policy term or 100,000 /-

Min SA - Rs. 50,000 Max SA - 20 times Annual Prem N/A N/A N/A

Rider Option Rider’s avl. – ADB / WOP.

ADB rider, equal to Life Cover, sub to min 25,000 and max 50 lakhs.

No Rider options available.

No options No rider options available

Fund options 4 funds - Pension Maximiser II/ Pension Balancer II / Pension Protector II/ Pension Preserver.

4 , Bond Fund / Secured Fund / Balanced Fund / Growth Fund

6 Funds - Liquid Fund / Secure Managed Fund/ Defensive Managed Fund / Balanced Managed Fund / Equity Managed Fund/ Growth Fund

Pension with Profits Fund \ Pension Growth Fund / Pension Secure Fund /Pension Balance Fund

5 Funds: Future Equity Pension / Future Growth pension / Future Balanced Pension / Future Income Pension/ Future Capital Guarantee Pension fund

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InvestAssure Future at a glancePlan Type Unit Linked Pension PlanMinimum Issue Age 18 yearsMax Issue Age Option I: 70 years

Option II: 65 yearsOption I is Single Premium and Option II is Regular Premium

Minimum Vesting Age 45 yearsMax Age at Maturity 75 yearsPolicy Term Option I: 5 - 35 Years

Option II: 10-35 Years Premium Multiple This Unit linked Pension plan has unique feature of

No life cover No life cover Premium Payment Period

Option I: Single PremiumOption II: Regular PremiumPolicy term or multiple of 5 from 10 years onwards.

Minimum Premium Option I: Rs.25,000/- p.a.Option II: Rs.10,000/-p.a.Premium should be chosen to be a multiple of Rs.100/-.

Premium Mode Option I: Single PremiumOption II: Regular Premium Annual/Semi-annual/Quarterly/Monthly

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ReviewReview

And then the test!And then the test!

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And Now The Test!

Economy & Finance

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