birla sun life insurance company limited copyright © birla sun life insurance company limited 2008...

Birla Sun Life Insurance Company Limited

Copyright © Birla Sun Life Insurance Company Limited 2008 Strictly for internal training purpose only

JAN, 2011

Birla Sun Life Insurance Company Limited

Copyright © Birla Sun Life Insurance Company Limited 2008 Strictly for internal training purpose only

‘VISION’

IN 2012 .. MAY YOU ACHIEVE WHAT OTHERS THINK IS IMPOSSIBLE

Copyright © Birla Sun Life Insurance Company Limited 2008

Birla Sun Life Insurance Company Limited 3

Strictly for internal training purpose only

3

Presenting

BSLI VISION




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USP’s-For Customers

• Higher Guaranteed Amount- LIC gives SA , We give higher Guaranteed Survival Benefit for given SA.

• Monthly additions are declared at Beginning of the year as compared LIC end of year

• Lower premiums for a given age

• Free life cover post Guaranteed Survival Date

• Riders




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USP’s -For Advisors

• Flexibility in entry age 1-65 as compared LIC which offer from 18yr-65yrs.

• 1st year commission is 2% x pay term subject to max of 35%

• 2nd and 3rd year commission - For pay term less than 10 it is 5%

• For pay term equal to and more than 10 it is 7.5%

• 4th year onwards it is 5%




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Understanding VISION




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STEP 1:Client chooses SA , GSB term and Mode

• Male age 30 yrs, SA -10 Lakhs ,GSB term 25yrs ,Annual Mode

• Pls refer Table chart for 30 yrs Male and 25 yrs GSBTerm

• Tabular Premium-43.20

• Sum Assured rebate is 1.75 for Band 4.

• For 10 Lakhs, It would amount to (43.20-1.75) * 10,00000/1000=41450

• Annual Mode Rebate is 3%

• Modal Premium= 41450 * 97%=Rs40206.50

• Annual Premium-Rs40206.50




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STEP 2:Calculate GSB.

• For Band 4. GSB Term 25 Years, We have a GSB factor of Rs1513 for 1000 SA

• For SA -10LAKHS,GSB=1513 * 1000000/1000=Rs 1513000 which is Guaranteed on GSB date(25 years)




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STEP 3:Calculate Monthly Additions. (Calculation is based on annual Rate)

For GSB 25Years, We have a Yearly addition factor of Rs45 for 1000 SA

Total Yearly additions assuming Rs 45 per 1000 for 25 years amounts to =45 * 25=1125 per thousand

Enhancement to Monthly Additions:Since Band is 4= Enhance Monthly Additions is 6.75%




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STEP 3:Calculate Monthly Additions. (Calculation is based on annual Rate)

• Total Enhancement is Equal= (25-21) * 6.75%=27%

• Total Additions will get enhanced by 127%

i.e:1125 * 127%=1428.75 per thousand

• Total Additions=1428.75 * 1000000/1000=Rs 14,28,750 which is accrued on GSB date(25 years).

• So for a Premium of Rs10,05,162 One gets a SA of 10 Lakhs Guaranteed Survival Benefit of 15,13,000 Total benefit of Rs29,41,750.

PS: All calculation is based on assumption that Rs45 per thousand Additions would be paid for entire 25 years and all premium are paid till 25 years.




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JEEVAN ANAND VISION

SUM ASSURED: 10,00,000.00 PREMIUM BONUS FAB

MATURITY BENEFIT

SUM ASSURED 10,00,000.00 PREMIUM BONUS

ENHANCEMENT GSB TOTAL

15 78959 5,55,000.00 0 15,55,000 15 74,855.00 5,85,000.00 012,26,000.00 18,11,000.00

20 56408 8,20,000.00 0 18,20,000 20 53,331.00 8,28,000.00 013,53,000.00 21,81,000.00

25 43097 11,25,000.00 200000 23,25,000.00 25 40,207.00 11,25,000.00 3,03,750 15,13,000.00 29,41,750.00

30 34368 13,50,000.00 200000 25,50,000.0 30 31,787.00 13,50,000.00 8,20,125 17,67,000.00 39,37,125.00

35 28353 15,75,000.00 200000 27,75,000.00 35 26,200.00 15,75,000.00 14,88,375 22,14,000.00 52,77,375.00

LIC VS VISION




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BSLI Vision vs LIC’s Jeevan Anand

Premium paid= Rs. 4,535 X 25 yrs= Rs. 1,13,375

SA = Rs. 1,00,000Accidental rider SA = Rs.

1,00,000

•Term = 25 years

Policy terminates

Jeevan Anand

BSLI Vision

Blue boxes indicate the advantage of BSLI Vision

Client age 35

Client age 35

Survival Benefit = Rs. 2,41,000

SA of Rs. 1 lac paid in case of death

Premium paid= Rs. 4,513 X 25 yrs= Rs. 1,12,825

SA = Rs. 1,00,000Accidental rider SA = Rs.

1,00,000

Term = 25 years


SA of Rs. 1 lac paid in case of death/maturity

•

Age 60

Age 60 Age 100•

Figures of Jeevan Anand taken from LIC website and Survival Benefit taken at 10% for comparison purpose only

Age 100•




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A Child Plan

A Retirement Planning

Legacy Planning

•Education and Marriage planning

•Whole Life Cover •Build Corpus •Manage your old age effectively

•Legacy Planning

&

&

Vision works as ………




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Profile of prospective customers for Vision

Families like us in different age groups looking for

• Guaranteed returns

• Customer who have set objectives to

meet without volatility in returns

• Looking for cover beyond an insurable

age in any other insurance plan

• Legacy for family

• Invest in Debt funds too




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Retirement Planning Ashwin is 35 years of age and is planning to pay around 50K for 30 years and wants a lump sum corpus at age 65

Premium paid = Rs. 50,000X 30 yrs= Rs. 1500000

GSB Term = 30 years

•Client age 35

Survival benefit at end of GSB term= Rs. 78,58,800*

Age 65 Age 100•

Policy terminates

* As per AMS ver 1.22 @ 10% p.a

S.A = Rs. 15,00,000 for ENTIRE LIFE

•Death at age 75

S.A. = Rs.15,00,000/-

NO NEED TO PAY PREMIUMS AFTER AGE 65.




Children Future Planning: Client age 30 with premiums pay term and GSB term of 22 yrs

Premium paid for Vision= Rs. 33,111 X 22 yrs= Rs. 7,28,442

GSB Term 22 years

•Parents age 30

Survival benefit at end of GSB term= Rs.19,76,660 *

Parent Age 52Child Age 23

Age 100•

Policy terminates

* As per AMS ver 1.23 @ current rate

Amount received = Rs 8,00,000 (S.A) on Death OR Maturity

Vision Plan with WOP rider & Protector +

Child age 1 year

Premium paid for Protector+ for SA of 50,00,000 Term 22years= Rs. 7,997 X 22 yrs= Rs. 1,75,934

Life Cover of 8,00,000

Annual

premium Sum Assured Term Total you Pay Maturity

Vision 33111 8,00,000 22 728442 1976660

Protector+ 7997 50,00,000 22 175934 0

904376 1976660

If parents death occur all further premiums will be waived plan continues &

family gets SA of 50,00,000




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Policy terminates

BSLI Vision

Client age 45

Premium paid= Rs. 1,891,076 X 7 yrs= Rs. 13,237,529

SA = Rs. 1,00,00000

Term = 7 years


SA of Rs. 1 crore paid in case of

death/maturity

•Age52 Age 100•

Legacy Planning

Ashwin is 45 years of age & plans to leave a Legacy of 1cr for his family




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Policy terminates

BSLI Vision

Client age 35

Premium paid= Rs. 44,587 X 7 yrs= Rs. 3.12.109/-

SA = Rs. 250000

Term = 7 years

Survival Benefit = Rs. 3,31,000/-

SA of Rs. 250000 paid in case of death/maturity

•Age42 Age 100•

Legacy Planning – For a retail customer

Ankur is 35 years of age & plans to leave a Legacy of 2.5 lacs for his family




Thank You

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Documents

gsb term

given age free life

monthly additions

gsb date25 years

gsb factor of rs1513

safor sa

yrs male

sa total yearly additions