insurance why ulip
Post on 03-Dec-2014
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Understanding ULIPs and Mutual Funds
Investment for a longer horizon
Money invested as per IRDA Regulations.
Regulatory requirement to maintain a solvency margin.
Multiple fund options under one single plan.
No redemption pressure – premium lock for 3 years.
Make gains by switching funds (Book profits) without any short term capital gains
Provides Life Cover
Investment is fund specific
Is subject to high redemption Pressure
Depend on Daily fluctuation of the market
Over haul portfolio very often
During a bear market – a 100% Equity Fund cannot mitigate risk
Short term capital gains are taxable.
ULIP PLANS MUTUAL FUNDS
Investment plans
Life Insurance plans
Health Insurance plans
Pension plans
Child Education/Marriage plans
What you can sell?
• It is all about HEART
• It is all about RELATIONSHIPS
• It is all about BUILDING AWARENESS
• It is all about PATIENCE & PERSISTENCE
• It is all about THINKING LONG-TERM
• It is all about GETTING OFF-TO-FLIER
Investment business is all about…
• It is not about LOGIC
• It is not about HARD-SELLING
• It is not about SEASONAL CYCLES
• It is not about TANGIBLE
• It is not about SALES
Investment business is not all about…
Why Unit Linked Insurance Plan?
The average LIFE EXPECTANCY of
• Indian Men = 63.9 years (from 59.7 in 1991)
• Indian Women = 66.9 years (from 60.9 in 1991)
Most of the insurance companies are pricing their premium based on decade old mortality tables of LIC (since it has longer history of claims) and their own claim ratios. The mortality calculations were last revised in 1995-96.
Life Expectancy in India
Asset Allocation & Economic Cycle
Life Insurance Companies = Rs. 55,000 crore
Foreign Institutional Investors = Rs. 53,403 crore
Mutual Funds = Rs. 16,305 crore
Investments in Equity Market in FY 07-08
There are 2 types of health Insurance products now available in India
- Reimbursement Products
- Lump sum Benefit Products
Health Investor / Protector / First are Lump sum Benefit Product.
Example - Mediclaim
Can be used to pay additional expenses eg hospital related travel expenses, hospital stay for caretaker
You get what you have spent for the treatment.
The claim amount is likely to be more than the actual expenses incurred.
The claim amount is equal to or less than the actual expenses
Pays the full sum assured, regardless of the actual expense incurred.
You need to incur the expense, which will be reimbursed.
Lump sum Benefit Products Reimbursement Products
Health Insurance in India
Savings Rate of over 30% of GDP.
Nearly 40% of Household Savings in the form of Physical Assets (residential houses and white goods)
Gold and Jewellery is not included in the physical assets
Average household savings has gone up from 6.6% in the 50’s to 23.2% in 00’s.
Investments in financial products rose from 1.9% of GDP to 10.8%
The Premium foregone by Policyholders due to lapses was around Rs. 20,500 crore during 02-03 to 06-07.
The industry paid Rs. 20,000 crore in Insurance Commissions on new policies last year.
Income Tax Rates
What it takes to succeed
=
FHB (Features, How it works and Benefits)
Selling is based on the concept of FHB.
FF HH BB
What?What? It does.It does. For meFor me
If need is a problem statement, Benefit is the solution provided by the product
If need is a problem statement, Benefit is the solution provided by the product
Life Stage and needs at each stage
18-2518-25 25-3525-35 35-4535-45 45-5545-55 55…..55…..
• Money for purchase of small assets
• Money for purchase of small assets
• Money for purchase of house, assets, furniture, vehicle.
• Money for purchase of house, assets, furniture, vehicle.
• Money for providing children with a good primary education
• Money for providing children with a good primary education
• Money for child’s higher education
• Money for child’s higher education
• Money for child’s marriage.
• Money for comfortable retired life
• Money for child’s marriage.
• Money for comfortable retired life
Tata AIG Life has the right solutions to help customers achieve their goals.Tata AIG Life has the right solutions to help customers achieve their goals.
Protection and Savings.
Protection and Savings.
Protection and Savings.
Protection and Savings.
Protection and Investments.
Protection and Investments.
Protection and Investments.
Protection and Investments.
Protection and Pension.
Protection and Pension.
Living Benefits (protection from health and disabilities)
Living Benefits (protection from health and disabilities)
Objection vs. Query
A query is just a question about the
product. It is merely a request for more
information.
A query is just a question about the
product. It is merely a request for more
information.
An objection is anything the prospect says which causes a roadblock in closing
the sale.
An objection is anything the prospect says which causes a roadblock in closing
the sale.
ObjectionObjection Query Query
Understanding the difference is a key to Understanding the difference is a key to successful closingsuccessful closing
Understanding the difference is a key to Understanding the difference is a key to successful closingsuccessful closing
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