Aviva Dhan Sanchay – An overview

Aviva Dhan Sanchay The product positioning Positioning – Savings Plan Key Drivers Pay as you go Partial Withdrawals Target Audience Individuals with an irregular income stream Individuals with regular income but seeking flexibility to pay as per convenience Customers seeking no downside to their savings Features to appeal Flexible premium payment Partial withdrawals High Sum Assured No lapsation Page 2

No downside to investment Aviva Dhan Sanchay The overall proposition 1/2 The Sales Pitch Aviva Dhan Sanchay is an insurance plan that works like your personal savings account by providing: The option to deposit any amount of premium and at any point of time into your insurance account Option to withdraw money from your account after 3 policy years High life cover; equal to 10 times your first premium A life cover that doesn’t lapse* even if you are unable to pay your subsequent premiums Pay as you go Continued protection No downside to investment Aviva Dhan Sanchay - What’s New? Pay premiums at your convenience – No date or amount for premiums due All policy benefits continue even if subsequent premiums are not paid* Investment risk borne by Aviva – Value of premium allocated to not decrease barring fee Page 3 * Subject to minimum balance in the Policyholder Deposit Account being Rs. 500

Aviva Dhan Sanchay The overall proposition 2/2 Benefit Illustrations Assumptions: 30 year old male, Initial & subsequent premiums = Rs. 10,000 p.a., Growth rate at 10% Assumptions: 30 year old male, Initial & subsequent premiums = Rs. 10,000 p.a., Growth rate at 6% Scenario 1 Rs. 10,000 p.a. paid every year for 10 years (total Rs. 1 lakh) Policyholder Deposit Account Value at maturity = Rs. 152,393 Scenario 2 Rs. 10,000 p.a. paid every alternate year (total Rs. 50,000) Policyholder Deposit Account Value at maturity = Rs. 74,166 Scenario 3 Rs. 10,000 p.a. paid only for first 3 years (total Rs. 30,000) Policyholder Deposit Account Value at maturity = Rs. 53,790 Scenario 1 Rs. 10,000 p.a. paid every year for 10 years (total Rs. 1 lakh) Policyholder Deposit Account Value at maturity = Rs. 121,717 Scenario 2 Rs. 10,000 p.a. paid every alternate year (total Rs. 50,000) Policyholder Deposit Account Value at maturity = Rs. 58,100 Scenario 3 Rs. 10,000 p.a. paid only for first 3 years (total Rs. 30,000) Policyholder Deposit Account Value at maturity = Rs. 37,650 Page 4 Policyholder Deposit Value at maturity is after Service Tax

Policyholder Deposit Account Aviva Dhan Sanchay How does the product work Initial Premium paid (less premium allocation fee) Policyholder Deposit Account Additions: - Quarterly Interest - Subsequent premiums (less Premium Allocation Fee) Deductions: - Policy Administration Fee Mortality Premium Service Tax Death Benefit: Sum Assured + Policyholder Deposit Account Value Partial Withdrawals : Allowed after 3 years Maturity Benefit: Policyholder Deposit Account Value Page 5

Aviva Dhan Sanchay Best of both worlds ULIPs Traditional plans Transparency All charges are clearly shown No transparency with respect to charges - Flexibility to increase/decrease premium - Flexibility to make top-ups - Flexibility to make partial withdrawals Flexibility No flexibility Volatile – Investment value may increase or become negative Secure – Investment will not be subject to any downside Growth What is Aviva Dhan Sanchay For a ULIP customer For a Traditional customer A ULIP like product with no downside Traditional product with ULIP like transparency & flexibility Page 6

Product Specifications Aviva Dhan Sanchay – Product Specifications

Aviva Dhan Sanchay The Product Specifications Aviva Dhan Sanchay – A variable premium Universal Life Product Entry Age 18 – 50 years Policy Term (PT) 10 years Premium Payment Term (PPT) You can pay any amount >=500, at your convenience as and when and as long as you want (within the 10 year policy term) Premium Payment Frequency There is no fixed premium payment frequency. You can pay any amount >=500, at your convenience as and when you want, after the policy issuance Annual Premium At inception – Minimum: Rs 2,500; Maximum: Rs 30,000 Subsequent premiums – Minimum: Rs 500; Maximum: not exceeding Rs. 1 lakh per year (including initial premium) Sum Assured 10 x First premium (Initial premium paid) Maximum Rs. 3 lakhs (per life) Page 8

Aviva Dhan Sanchay – Features

Aviva Dhan Sanchay What makes it unique A policy that allows flexibility in premium payment: You need to pay an initial premium of Rs. 2,500 to 30,000 Premiums can be paid on any date after the policy is inforced subject to a minimum of Rs. 500 Maximum premium that can be paid in any of the policy years can be Rs. 1 lakh (including the initial premium) Maximum premium in each of the last 2 years is restricted to 150% of the average premium paid in first 8 years A policy that does not lapse: The policy does not lapse even if subsequent premiums are not paid If the Policyholder Deposit Account Value goes below Rs. 1,000, an intimation will go to the customer to pay premium towards the policy to enjoy the benefits If the Policyholder Deposit Account Value goes below Rs. 500, the Policyholder Deposit Account value, if any, will be paid to the customer and the policy will be terminated A policy that provides an additional flexibility of Partial Withdrawals: Allowed two times in a policy year after completion of three policy years Minimum amount of withdrawal is Rs.1,000 subject to a minimum balance of Rs. 1,000 after withdrawal Maximum withdrawal allowed is 50% of Policyholder Deposit Account Value, as on date of withdrawal Page 10

Benefits for the customer Aviva Dhan Sanchay – Benefits for the customer

Aviva Dhan Sanchay The Benefits The interest payouts: Interest will be declared in the beginning of every quarter and will be credited to the Policyholder Deposit Account (PDA) at the end of the quarter Interest will be credited basis the average monthly balance in the PDA Interest once credited becomes guaranteed There is no guarantee on future interest payouts The Maturity Benefit: The Policyholder’s Deposit Account Value is payable on maturity The Surrender Benefit: Policyholder can surrender the policy after 2 policy years The Policyholder Deposit Account Value less the surrender fee shall be paid to the policyholder, subject to Market Value Adjustment if any No surrender fee is charged if the policy is surrendered after completion of 5 policy years Market Value Adjustment: Market Value Adjustment (MVA) may be applied by the company on the date of surrender payment, based on the need for the company to realize the investments and the market value of the assets as on that date. The MVA shall not be applicable in case of death or maturity The Death Benefit: On the death of the insured Sum Assured along with the Policyholder Deposit Account Value shall be paid to the nominee Tax Benefits Tax benefits will be as per prevailing tax laws Page 12

Aviva Dhan Sanchay – Product Fees

Aviva Dhan Sanchay The Fee structure Premium Allocation Fee Premium paid At inception Subsequent premiums upto 3 policy years 4th policy year onwards Rs. 500 – 2,499 NA 7.5% 5% Rs. 2,500 – Rs. 9,999 20% Rs. 10,000 – Rs. 30,000 15% Rs. 30,001 and above Mortality Premium There will be a level mortality premium applicable based on the age of insured at inception of the policy. This will be deducted every month from the Policyholder Deposit Account basis the Sum Assured. Policy Administration Fee There is a fixed administration fees of Rs. 20 per month. This will be deducted from the Policyholder Deposit Account Surrender Fee This will be applicable if the policy is surrendered within first 5 policy years. Surrender value is subject to Market Value Adjustment Service Tax and Education Cess – Applicable separately as per the prevailing rates (current rate is 10.3%) Year of Surrender Surrender Fee (as a percentage of PDA Value) Upto Year 5 20% Year 6 onwards Nil Page 14

Aviva Dhan Sanchay – The opportunity

The Revenue Opportunity Access to new market segments Aviva Dhan Sanchay A whole new opportunity 1/2 The Revenue Opportunity Access to new market segments This product provides a new opportunity for enhancing your commission earnings The total commissions that can be earned over a 10 year term (with premiums being paid every year for 10 years) from Aviva Dhan Sanchay vis-à-vis a ULIP product like Aviva Sachin Century are shown below: - This comparison clearly indicates that Dhan Sanchay offers a higher potential for earning commissions Customers with irregular / seasonal income Compulsion to pay premiums on due date is a barrier Low income segment Paying high premiums is a barrier Who are these customers: Professional e.g. lawyers, doctors Traders, Shop-keepers Farmers Small-businessmen etc. Page 16

Targeting the lost opportunity Aviva Dhan Sanchay A whole new opportunity 2/2 Targeting the lost opportunity Ease of Sale Post cap on charges, min. ticket size has gone up to Rs. 10,000 In 2009, products like Pension Plus, Sachin Century Plan & Easy Life Plus had a significant number of policies coming from low ticket: Aviva Dhan Sanchay can serve as the replacement product for this segment DGH limit upto Rs. 1,00,000 Sum Assured & Non-Medical thereafter A policy that never lapses (provided min. account balance is Rs. 500) Quarterly compounding of interest Interest, once credited, is guaranteed Page 17

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