May 2005 InvestGain 1 INVEST GAIN ENDOWMENT FOR YOU

May 2005 InvestGain 2 Objectives By the end of this session you will be able to understand:  the changing needs in an individual’s life  the basics of an endowment plan  the features & benefits of InvestGain  Importance of rider cover

May 2005 InvestGain 3 Savings to meet anticipated expenses in future What are your anticipated expenses in future? Money for your child’s higher education Money for your child’s Marriage Money for buying a new house/car Money to spend for your retirement years

May 2005 InvestGain 4 Changing needs in life Starting a job Single individual Just Married Birth of a child Kids going to school college Needs: Low Protection Savings & Wealth creation Needs: Savings & wealth creation Needs: Planning for children’s education, marriage Needs: Money for retirement Money for buying assets Children independent Reaching golden years Needs: Preserving wealth

May 2005 InvestGain 5 Financial Goals  Money for child’s higher education  Money for child’s marriage  Money for buying a new house/car  Money for post-retirement life to supplement company pension.

May 2005 InvestGain 6 What is an Endowment plan  Endowment policies cover the risk for a specified period at the end of which the sum assured is paid back to the policyholder along with all the bonus accumulated during the term of the policy.  The payment of the endowment to the policyholder at the completion is the main reason for the popularity of endowment policies.

May 2005 InvestGain 7 How Endowment Plan Works The maturity proceeds can be used to finance child’s education The maturity proceeds can be used to finance child’s Marriage The maturity proceeds can be used to buy a new house/car The maturity proceeds can be spend on a leisure tour or for retirement. You pay premium during the Term & you enjoy Protection You start when are are young You plan your maturity based on your anticipated expenditures Benefits of Protection can be used for sustaining family income, and providing for other unforeseen incidents

May 2005 InvestGain 8 Endowment vs other savings instruments Endowment vs other savings instruments

May 2005 InvestGain 9 Presenting The endowment plan with a difference….

May 2005 InvestGain 10 Plans available  InvestGain Economy  InvestGain Gold  InvestGain Diamond  InvestGain Platinum

May 2005 InvestGain 11 USP – Highest Death Benefit Economy – On Death, SA + Bonuses payable Gold – On Death, Double SA + Bonuses payable Diamond – On Death, Triple SA + Bonuses payable Platinum – On Death, Quadruple SA + Bonuses payable Maturity Benefit is same for all 4 plans Our USP Highest Death benefit available with endowmen t in the market.. Our USP

May 2005 InvestGain 12 USP – High Risk Cover at Lowest Cost PACKAGERISK COVER ANNUAL PREMIUM DIFFERENCE IN PREMIUM W.R.T ECONOMY ECONOMY10,00, Not Applicable GOLD20,00,00027,1203,000 for ADDITIONAL RISK COVER OF 10,00,000 DIAMOND30,00,00030,0205,900 for ADDITIONAL RISK COVER OF 20,00,000 PLATINUM40,00,00033,0208,900 for ADDITIONAL RISK COVER OF 30,00,000 Rates for Male Age 30, Term 30, RP

May 2005 InvestGain 13 Power of Limited Pay FOR 5-9 YRS TERM YOU CAN PAY 2 OR 3 YRS FOR YRS TERM YOU CAN PAY 2,3, OR 5 YRS FOR YRS TERM YOU CAN PAY 2,3, 5,7 OR 10 YRS FOR YRS TERM YOU CAN PAY 2,3, 5,7 10 OR 12 YRS FOR 25 YRS &ABOVE YOU CAN PAY 2,3,5,7,10,12 OR 15 YRS

May 2005 InvestGain 14 Power of Limited Pay REGULAR PREMIUM TOTAL PREMIUM OUTGO LIMITED PREMIUM 5 YRS TOTAL PREMIUM OUTGO YOU SAVE Male Aged 30, Term 30, Sum Assured Rs10,00,000 IG Economy Savings of 51%

May 2005 InvestGain 15 Financial Security Before Maturity  Should one die before the chosen maturity date, full sum assured along with accrued bonuses is payable.  Also, one can build additional cover into one’s plan at a small additional cost:  Family Income Benefit (Unique feature of Bajaj Allianz - No other plan in the market offers this!!)  Comprehensive Accident Protection (CAP)  Critical Illness Benefit  Hospital Cash Benefit

May 2005 InvestGain 16 Family Income Benefit (FIB)  Bajaj Allianz USP – No other Endowment plan offers FIB.  What is the FIB?  It is a sustained regular income for the family – 1% of the Sum Assured payable per month (12% of the Sum Assured per annum)  It is payable on Death/Accidental Permanent Total Disability of the Life Assured. All future premiums are waived in case of disability  It is payable till the end of the policy term, or for a minimum of 10 years, whichever is higher  Benefit available under regular as well as limited payment terms.

May 2005 InvestGain 17 Family Income Benefit (FIB) 1850 can be bought between Age 18 and Age FIB NA in case of TPD after age FIB payment cannot exceed calculated Age 70 FIB payable till the end of TERM Or for 10 years, whichever is higher In case of Death and TPD WoP kicks in for TPD

May 2005 InvestGain 18 Family Income Benefit Avail of a great benefit at a nominal extra premium. Regular Premium Option - Age 30, Term 30, Sum Assured 10 lakhs

May 2005 InvestGain 19 CAP  Comprehensive Accident Protection (CAP) – This benefit provides comprehensive cover in case of an accident. It comprises of:  Accidental Death Benefit (ADB)  Accidental Permanent Total/Partial Disability Benefit (APT/PD)  Waiver of Premium Benefit (WOP)

May 2005 InvestGain 20 Accidental Death Benefit (ADB)  In case of accidental death, the benefits payable are:  Basic SA + Accrued Bonuses + ADB SA Increase your risk protection at a very minimal cost Maximum SA: Rs 50,00,000

May 2005 InvestGain 21 Accidental Permanent T/P Disability  Your safety net against disability too… In case of Total Disability – 100% of SA In case of Partial Disability – 50% of SA

May 2005 InvestGain 22 Waiver Of Premium (WOP)  We cover disability…An accident may lead to permanent total disability, limiting ones ability to earn.  All future premiums will be waived off while keeping the valuable life insurance cover alive if the client becomes totally and permanently disabled due to accident  We provide full insurance coverage for all benefits, except Hospital Cash Benefit (if selected).

May 2005 InvestGain 23 Illustration 1 Male, age 30. Plan selected InvestGain Economy, SA = Rs 5 lakh. Term 25; Accidental Death at age 45. Illustrate the benefits payable.  Case a: No rider attached  Case b: Comprehensive Accident Protection (CAP) attached. SA 5 lakh. (Protect Option selected)

May 2005 InvestGain 24 Illustration 1: Case a Age/EventsBenefits Payable At age 45 accidental death due to accident 1.Basic policy SA = Rs 500,000 2.Reversionary Bonuses = RB 3.Terminal Bonus = TB Total Benefit payable: 500,000 + RB + TB

May 2005 InvestGain 25 Illustration 1: Case b Age/EventsBenefits Payable At age 45 accidental death due to accident 1.Basic policy SA = Rs 500,000 2.Reversionary Bonuses = RB 3.Terminal Bonus = TB 4.Rider SA = Rs 500,000 Total Benefit payable: 10,00,000 + RB + TB

May 2005 InvestGain 26 Illustration 2 Male, age 30. Plan selected InvestGain Economy, SA = Rs 5 lakh. Permanent Disability due to accident at age 40. Death at age 54. Illustrate the benefits payable.  Case a: No rider attached  Case b: CAP attached. SA 5 lakh. (Protect Option selected)

May 2005 InvestGain 27 Illustration 2: Case a Age/EventsBenefits Payable At age 40 permanent disability due to accident At age 54 died No rider benefit payable, policyholder has to continue to pay premium; In the event of not paying the premium the policy might lapse.  Basic policy SA = Rs 500,000  Reversionary Bonuses = RB  Terminal Bonus = TB (Provided all premiums due till date are paid)

May 2005 InvestGain 28 Illustration 2: Case b Age/EventsBenefits Payable At age 40 permanent disability due to accident At age 54 died 1.Rider benefit = Rs 500,000; 2.Future Premiums waived; Basic policy continues; ADB rider also continues; 1.Basic policy SA = Rs 500,000 2.Reversionary Bonuses = RB 3.Terminal Bonus = TB Total Benefit payable: 10,00,000 + RB + TB + Waiver of future premiums

May 2005 InvestGain 29 Critical Illness (CI)  When a dreaded illness strikes…  SA payable under 11 critical Illnesses covered.  Basic policy remains in force even after such a claim payment.

May 2005 InvestGain 30 Illustration 3a  Age of Policyholder = 30 years  Initial Sum Assured = 500,000  Health option selected= SA :500,000  Premium Paying Term= 25 years  Assume the Policy has run for 10 years.  The policyholder has suffered a critical illness  Hence the Critical Illness Benefit payable is 5,00,000.  The basic policy continues.

May 2005 InvestGain 31 Hospital Cash  This is a unique offering, first offered in the market by Bajaj Allianz.  In case of hospitalisation the amount of reimbursement is the lower of 75 % of the room charge in hospital or the eligible daily hospital cash amount where the daily hospital cash amount calculated Rs. 4 per Rs.1000 Sum Assured  subject to a minimum coverage of Rs. 200 per day selected  and a maximum coverage of Rs. 1,000 per day  The Hospital Cash Benefit ceases once the Waiver of Premium is affected. No more worries of settling Hospital bills (room charges).

May 2005 InvestGain 32 Difference in Premium Package (Age 30, SA 500,000, PPT= 25) InvestGain EconomyFIBCAPHealthTotal Premium Difference in premium 10.2%4.6%20.0%34.5%

May 2005 InvestGain 33 Flexibility in Rider Coverage  Accidental death benefit, Accidental permanent total & partial disability benefit and Waiver of premium (CAP) benefit have to be taken together.  This combination can be included and excluded at each policy anniversary.  Critical illness benefit and Hospital cash benefit (Health) will also have to be taken together, and have to be selected at issue only.  This combination (Health) can be removed at a later policy anniversary. Once the policyholder opts out of this combination, he cannot select it again in future.  FIB cover has to be selected at inception only. FIB can’t be removed at any subsequent policy anniversary.

May 2005 InvestGain 34 Thank You