Why Ulips ?

Formula 72 If you divide 72 by rate of Interest, you will get the period in years during which the invested amount becomes double Example :– 72/12% = 6 Yrs 72/ 8 %= 9 Yrs 72/16 % = 4.5 Yrs 72/18 % = 4 Yrs

Example – 1 If you invest Rs.1,00,000 at 8% Rate of Interest compounding yearly then it becomes :- After 9 Yrs After 18 Yrs After 27 Yrs Lac 4 Lac 8 Lac Thus in 27 Yrs your 1Lac becomes 8 8% Interest

Example – 2 If you invest Rs.1,00,000/- at interest rate of 16% P.A. for 27 yrs then maturity amount will be :- 4.5 Yrs 9 Yrs 13.5 Yrs 18 Yrs 22.5 Yrs 27 Yrs 2 Lac 4 Lac 8 Lac 16 Lac 32 Lac 64 Lac In other words at 16% rate of Interest, 1 Lac becomes 64 Lac after 27 Yrs.

Question – What do you want, 8 Lac or 64 Lac? Answer will be – If possible I would prefer 64 Lac but 8 Lac is guaranteed, where as what is the guarantee of 64 Lac?

Let us first discuss so called guarantee of 8 Lac A look at Interest rate movement Years PPF Rate Year Bank FD % % % % % % % % % % % % % % % % % % (Source - PPF Intt. Rate History) (Source – RBI Site) Is Rate of Interest stable? No. This is the era of globalization. Things which are happening in developed countries today will happen tomorrow in our country. In developed countries rate of Interest are ranging from 2 to 3%.

You will say in Fixed Deposit(FD) you get what is told at the time of issue of FD. Yes………but for how many years? (5 to 10 Years maximum) None of the financial instrument gives guarantee of rate of Interest for long terms. But there is a sector where possibility of higher returns for longer terms is available. Where (ULIP)

History of BSE Sensex for last 30 Yrs Years BSE Sensex Yrs BSE Sensex Yrs BSE Sensex (Source – BSE Sensex Archives) Generally sensex has doubled or more than doubled after every 5 Yrs.

You choose any two yrs where time gap is minimum 7 Yrs. YearsSensex Return % YearsSensex Return % YearsSensex Return % YearsSensex Return %

Conclusion – If you remain invested in ULIPs for atleast 7 Yrs, you may get return ranging from 10 to 28%.

Let us have a look at our one of the ULIP policy which is more than 7 yr old & observe the progress – Bima Plus (Date of Start ) NAV on Rs NAV on Rs In almost 9 Yrs period NAV has increased from 10 to At 16% Rate of Interest – After 4.5 Yrs NAV should be – After 9 yrs NAV should be (But in Bima Plus after 9 Yrs NAV is five times instead of 4 times.)

You will say – This is all data jugllary But Sir – Data based decision proves right most of the time Example 1. Weighing machine gives your approximate weight. Your weight may be + or – 2Kg. 2. Mile stone tell you distance. Actual distance may be + or – 2 km. 3. Similarly difference between expected return & actual returs in ULIPs may not be wider.

ULIP/ULPP : THE CURRENT SCENARIO IRDA HAS CAPPED THE DIFFERENCE BETWEEN GROSS AND NET YIELD AT 2.25% FOR TERM > 10 YRS AND AT 3% FOR TERM 10 YRS OR LESS. THIS EXCLUDES MORTALITY CHARGES. LET US COMPARE GROSS AND NET YIELD UNDER VARIOUS ULPPs (POST RESTUCTURING) WITH THE FOLLWING ASSUMPTION : AGE : 35 YEARS, ANNUAL PREMIUM : 50000/-, TERM : 15 YEARS. SUM ASSURED : /-. (ALL CHARGES INCLUDING MORT. TAKEN INTO ACCOUNT)

JUST COMPARE Product Fund % LIC Market Plus I Tata AIG Life Invest Assure Future Plus AEGON Religare Pension Plan Future Generali Pension Advantage Plus DLF Pramerica Golden Age Max New York Life Smart Invest Bharti AXA Dream Life Pension Plus ICICI Pru Life Time Pension Maxima SBI Life Unit Plus III Pension SBI Life Horizon III Pension Aviva New Pension Elite ING New Golden Life CHOBC Life Retire Smart Plan

JUST COMPARE Product Fund Yield % Bajaj Allianz Future Secure II Bajaj Allianz Retirement Advantage Met Pension Plus HDFC Pension Supreme ICICI Pru Life Stage Pension Adv Tata AIG Life Invest Swarna Jeevan Birla SunLife Freedom Aviva New Pension Plus HDFC SL Pension Champion IndiaFirst Future Plan Reliance Super Golden Years Basic Plan

CONCLUSION THE COMPARISION PROVES BEYOND DOUBT THAT POST RESTRUCTURING OF CHARGES W.E.F 01/01/2010, MARKET PLUS-I CONTINUES TO BE CHEAPER THAN ANY OTHER EXISTING ULPP AVAILABLE IN THE MARKET. THE RETURNS ARE THEREFORE EXPECTED TO BE FAR BETTER IN THE LONG RUN, WHEN COMPARED TO OTHER ULPPs.

MARKET PLUS –I : SOME USPs THE PREDECESSOR OF THIS PLAN, ie “MARKET PLUS” GARNERED APPROX CRORES IN LESS THAN TWO YEARS PERIOD. IT’S CURRENT FUND SIZE IS CRORES. THE CURRENT FUND SIZE OF MARKET PLUS-I IS APPROX CRORES. INITIAL AND OTHER CHARGES ARE AMONG THE LOWEST. POST RESTRUCTURING IT CONTINUES TO BE ONE OF THE CHEAPEST ULIPS. ONE OF THE LOWEST FMC CHARGES IN THE MARKET, ie 0.8% P.A., IT LEAVES MORE INVESTIBLE FUND WITH THE FUND MANAGER.DUE TO LOW FMC DISTINCT ADVANTAGE OVER OTHER ULIPS/MFs

MARKET PLUS –I : SOME USPs UNLIMITED TOP UP FACILITY AVAILABLE UPTO 75 YEARS (WITHOUT RISK) ON DEATH, BOTH SUM ASSURED AND FUND VALUE (IN CASE OF WITH RISK PLANS) LOWEST VESTING AGE IN THE INDUSTRY,ie 40 YR. EXCELLENT EQUITY PORTFOLIO, ie INVESTMENT IN SCRIPS LIKE RIL,L&T,ONGC, BHARTI AIRTEL, MARUTI & INFOSYS DUE TO BETTER FUND MANAGEMENT HAS OUTPERFORMED THE SENSEX SEVERAL TIMES. IN CORPORATION COLLECTED CR UNDER MKT.PLUS-I WHICH IS 42% OF TOTAL FP COLLECTION

PERFORMANCE SHOWS EXCELLENCE Fund NameDate of Inception NAV as on 31/03/2009 NAV as on 31/03/2010 %Growth in 1 yr. Yield since Inception MARKET PLUS Bond Fund %40.71% Secured Fund %39.20% Balanced Fund %37.66% Growth Fund %45.98% MARKET PLUS-I Bond Fund %17.44% Secured Fund %22.52% Balanced Fund %24.18% Growth Fund %35.12%

LIC’S FUND MANAGEMENT:AN EXAMPLE Name of the Fund NAV AS ON 10/01/2008 NAV AS ON 27/10/2008 NAV AS ON 13/05/2010 Comparison in % 10/01/08 & 27/10/08 Comparison in % 10/01/08 & 13/05/2010 BSE PEAK BSE 7697 LOWEST BSE LATEST % BAJAJ ALLIANZ NUG Super - Eq. Gr. Fund UG Premier - Prem.Eq. Gain UP Super- Eq. Index Fund UG Plus - Eq. Gr. Fund SBI LIFE Horizon Equity Fund Unit Plus Growth Fund Saral Ulip Unit Plus Child Plan Gr.Fund ICICI PRUDENTIAL Life Time Super Max.Fund Premier Life Max. Fund II Life Time Gold Flexi Growth Golden Years Flexi Growth II

LIC’S FUND MANAGEMENT:AN EXAMPLE Name of the Fund NAV AS ON 10/01/2008 NAV AS ON 27/10/2008 NAV AS ON 13/05/2010 Comparison in % 10/01/08 & 27/10/08 Comparison in % 10/01/08 & 13/05/2010 BSE PEAK BSE 7697 LOWEST BSE LATEST %-19.86% TATA AIG Aggressive Growth Fund Equity Fund Growth Maximiser Fund RELIANCE LIFE GY Eq. Fund AIP - Equity Fund MRP Equity Fund SCP Equity Fund BIRLA SUNLIFE Individual Life Maximiser

LIC’S FUND MANAGEMENT:AN EXAMPLE Name of the Fund NAV AS ON 10/01/2008 NAV AS ON 27/10/2008 NAV AS ON 13/05/2010 Comparison in % 10/01/08 & 27/10/08 Comparison in % 10/01/08 & 13/05/2010 BSE PEAK BSE 7697 LOWEST BSE LATEST %-19.86% Growth Fund - Reliance Div.Power Sector Fund-Rel Infrastructure-Growth-ICICI Magnum Equity-Growth-SBI Magnum Comma Growth-SBI Magnum Multiplier -SBI Infrastructure-Growth-Tata Capex Opportunity-Sundaram BNP India Tiger Fund - DSP Black` Growth Fund - HDFC Infrastructure Fund -Birla Opportunities Fund - Kotak MARKET PLUS GROWTH FUND

HOW MARKET PLUS-I OUTPERFORMED SENSEX DateSensexBond FundSecuredBalancedGrowth 17/06/ /09/ /12/ /03/ /06/ /09/ /05/ GROWTH SINCE INCEPTION 8.27%18.60%20.90%22.00% 34%

HOW MARKET PLUS-I OUTPERFORMED SENSEX PRODUCT PARAMETERS DATE GROWTH 06/08/200813/05/2010 SENSEX % MARKET PLUS-I BOND FUND % SECURED FUND % BALANCED FUND % GROWTH FUND %

But Sir, If you still want a plan with guaranteed return along with Tax benefit, we have such plan – Jeevan Akshaya-VI.

Why Jeevan Akshay-VI It is the only immediate Annuity plan available with a variety of features. No other Insurer offers immediate Annuity Plan with such attractive features. Pension starts immediately on the purchase of the Policy. No Medical Examination required. GUARANTEED PENSION AS PER OPTION EXERCISED EVEN IN FALLING INTEREST RATE REGIME.

Pension Options Available Annuity for life Annuity certain for 5, 10, 15 and 20 years and for life thereafter Annuity with return of purchase price Annuity for life increasing at a simple rate of 3% p.a. Annuity for life with a provision for 50% of the annuity to the spouse of the annuitant for life on death of the annuitant Annuity for life with a provision for 100% of the annuity to the spouse of the annuitant for life on death of the annuitant.

How is Annuity Payable Annuity is payable in Yearly, Half-yearly, Quarterly or Monthly installments subject to a minimum annuity of Rs.3000/- per annum. The minimum amount of annuity for monthly, quarterly, half-yearly and yearly mode will be Rs.250/-, Rs.750/-, Rs.1500/- and Rs.3000/- respectively.

Who can Buy Jeevan Akshay VI Minimum Age at entry : 40 Last Birthday Maximum Age at entry : 79 Last Birthday Minimum Purchase Price : Rs.50,000/- or such amount which may secure a minimum annuity of Rs.3,000/- per annum

Incentives for Higher Purchase Price Under the policies where purchase price is high, incentive by way of increase in the tabular annuity rate will be given to the annuitant. Scale of absolute amount of incentive under high purchase price policies as an addition to the annuity rates per annum per thousand Rs. Is as below MODE OF ANNUITYPURCHASE PRICE (RS.) 1,50,000 to 2,99,999 3,00,000 to 4,99,999 5,00,000 & above Yearly Half Yearly Quarterly Monthly

PENSION PAYABLE ANNUALY AS %AGE RETURN UNDER DIFFERENT ANNUITY OPTIONS Type of AnnuityAGE 40 yrs45 yrs50 yrs55 yrs60 yrs65 yrs70 yrs Pension for Life7.51%7.77%8.14%8.65%9.35%10.41%12.08% Guaranteed 5 years & Life thereafter7.50%7.76%8.11%8.60%9.26%10.24%11.66% Guaranteed 10 years & Life thereafter7.48%7.72%8.04%8.48%9.06%9.85%10.80% Guaranteed 15 years & Life thereafter7.44%7.66%7.95%8.33%8.79%9.33%9.83% Guaranteed 20 years & Life thereafter7.41%7.60%7.85%8.15%8.48%8.78%8.99% Pension for Life with RETURN OF CAPITAL to legal heirs6.93%6.96%7.00%7.05%7.11%7.18%7.26% Pension for Life 3% pa (Simple)5.61%5.89%6.28%6.81%7.53%8.59%10.22% Pension for Life & on Death - 50% Pension to Spouse during lifetime7.31%7.50%7.76%8.13%8.64%9.40%10.56% Pension for Life & on Death - 100% Pension to Spouse during lifetime7.12%7.24%7.42%7.67%8.03%8.57%9.37% JEEVAN AKSHAYA VI (A LOOK ON GUARANTEED RETURNS) & GUARANTEED 95% OF YOUR PRINCIPAL ANY TIME IN YOUR LIFETIME

PENSION PAYABLE FOR RS. 5,00,000/- INVESTED AT AGE 60 YEARS PENSION AMOUNT PAYABLE IN RS. TYPE OF ANNUITYYLYHALF YLYQLYMTHLY Pension for Life Guaranteed 5 years & Life thereafter Guaranteed 10 years & Life thereafter Guaranteed 15 years & Life thereafter Guaranteed 20 years & Life thereafter Pension for Life with RETURN OF CAPITAL Pension for Life 3% pa (Simple) Pension for Life & on Death - 50% Pension to Spouse Pension for Life & on Death - 100% Pension to Spouse

Surrender SURRENDER of the policy can be allowed on merits even after date of vesting! Surrender value will be as per rules of the Corporation.

ATTRACTIVE GUARANTEED RETURN FOR LIFE TIME AGE 60 YRS OPTIONPENSION FOR LIFE WITH RETURN OF CAPITAL RETURN7.11% LIFE TIME & ON DEATH, RETURN OF CAPITAL TO THE HEIR (9.35% WITHOUT RETURN OF CAPITAL)

If you want higher returns on your investment – Invest in our Market Plus-I Plan which is a ULIP Plan. If you want guaranteed return then invest in our Jeevan Akshaya Plan. Choice is your – Decision is yours.

THANKS for hearing me attentively. Now, Tell me sir, in which plan you would like to invest ?