1. PENSION MKT. SCENARIO INDIA’S ELDERLY POPULATION HAS DOUBLED IN LAST 25 YEARS. 1901: 1.2 CR, 1951: 1.9 CR,2001; 7.7 CR, 2021: 13.7 CR(EXP) MOST EUROPEAN COUNTRIES TOOK 100 YRS TO DOUBLE ELDERLY POPULATION. INDIA’S SINGLEMOST STUNNING ACHIEVEMENT DURING LAST CENTURY HAS BEEN THE INCREASE IN LIFE EXPECTANCY AVERAGE LIFE EXPECTANCY TO RISE TO 80 YEARS BY 2020 LONG GAP OF 20 YEARS BETWEEN AVERAGE LIFE EXPECTANCY AND RETIREMENT AGE

2. PENSION MKT. SCENARIO INDIA HAS SECOND LARGEST WORKING POPULATION IN THE WORLD. 90% OF THEM DO NOT ENJOY PENSION. THERE IS NO GOVT. SCHEME FOR OLD AGE SUPPORT. MANDATORY RETIREMENT SAVINGS ARE INADEQUATE IN MOST CASES. INCREASING LONGEVITY, INFLATION, DISMANTLED JOINT FAMILY SYSTEM AND NO DEFINITE PENSION PUTS THE RETIREE POPULATION UNDER THE BIG RISK OF OUTLIVING THEIR SAVINGS AND ASSETS. THE INDIAN RETIREE POPULATION IS MORE VULNERABLE THAN MOST OF HIS OTHER COUNTERPARTS IN THE WORLD.

3. RISK OF OUTLIVING ASSETS INFLATION IS THE REAL KILLER AND THREAT BEFORE THE RETIREE POPULATION. A PERSON NEEDING 15000/- PER MONTH TODAY AT AGE 60 WILL REQUIRE 48107/- PER MONTH AT THE AGE OF 80 (ASSUMED INFLATION @ 6%). IN A RECENT SURVEY 68% OF RETIREES WISHED THEY HAD DONE SOMETHING EARLIER TO PROVIDE ENOUGH FOR THEIR RETIREMENT. ONLY A SUPER PRODUCT LIKE MARKET PLUS-I CAN TAKE CARE OF THE INVESTMENT AND PENSION NEEDS OF THE RETIREE POPULATION AND BEAT THE INFLATION TOO.

4. INFLATION – HOW IT CAN AFFECT YOUR EXPENDITURE AFTER A FEW YEARS DURATIONCURRENT EXPENSES INFLATION @6% INFLATION @8% INFLATION @10% 15 YRS 15000359484758262658 20 YRS 150004810769914100912 25 YRS 1500064378102727162520 15 YRS 250005991379304104431 20 YRS 2500080178116523168187 25 YRS 25000107296171211270867

5. INFLATION : THE KILLER TRADITIONALLY PREFERRED RETIREMENT POOL INSTRUMENTS SUCH AS BANK FDs MAY NOT BE SUFFICIENT IN THE HIGHLY INFLATIONARY SCENARIO AND MAY RESULT IN NEGATIVE RETURN. Rs 100000 IN + INTEREST IN = TOTAL 5 YEAR F.D 1 YR Rs 6500 Rs 106500 TAX ON INT IMPACT OF INFLATION Rs 1300 (@20%) Rs. 6000/- (ASSUMED @6%) VALUE AT END OF 1 YEAR = 106500-1300-6000 = 99200

6. INFLATION : HOW TO COUNTER GETTING EVEN 1% MORE EVERY YEAR CAN MAKE A BIG DIFFERENCE BECAUSE OF MAGIC OF COMPOUNDING. EXAMPLE : INVEST Rs 5000 EVERY MONTH IN 2 SIMILAR INVESTMENTS, i.e ONE @10% P.A AND OTHER @11% P.A. AT THE END OF 30 YEARS THE 2 ND INVESTENT GIVES 24% MORE RETURNS THAN THE FIRST INVESTMENT. THEREFORE TO COUNTER THE INFLATION CHOOSE A PRODUCT WHICH IS REASONABLY SAFE AND CAN GIVE AT LEAST 2-3% MORE RETURN THAN TRADITIONAL INSTRUMENTS.

7. INFLATION : HOW TO COUNTER UNDER THE HIGHLY INFLATIONARY REGIME, UNIT LINKED PENSION PLANS CAN BE THE ONLY REALISTIC SOLUTION TO YOUR RETIREMENT WORRIES. THE IDEAL ULPP SHOULD : 1)HAVE LOW CHARGES, SPECIALLY THE RECURRING FMC CHARGES. 2)HAVE GOOD TOP UP FACILITY. 3)HAVE BOTH WITH/WITHOUT LIFE COVER OPTIONS. WITHOUT LIFE COVER OPTION HELPS LEAD TO BETTER APPRECIATION OF FUND. 4)GOOD EQUITY PORTFOLIO & FUND MANAGEMENT. LIC’s MARKET PLUS-I SCORES HIGH ON ALL THE ABOVE COUNTS AND THEREFORE IS THE IDEAL RETIREMENT SOLUTION FOR ALL.

8. ULIP/ULPP : THE CURRENT SCENARIO THE VARIOUS CHARGES UNDER EXISTING ULIP PRODUCTS WERE RESTRUCTURED BY ALL INSURANCE COs W.E.F. 01/01/10. ACCORDING TO NEW DIRECTIVES FROM IRDA RISK COVER IS NOW COMPULSORY UNDER ALL ULIP PLANS W.E.F 01/07/2010.

9. 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 : 500000/-. (ALL CHARGES INCLUDING MORT. TAKEN INTO ACCOUNT)

10. JUST COMPARE Product Fund Value @10%Yield % LIC Market Plus I15223168.43 Tata AIG Life Invest Assure Future Plus15065768.31 AEGON Religare Pension Plan14997368.26 Future Generali Pension Advantage Plus14968968.24 DLF Pramerica Golden Age+14962648.23 Max New York Life Smart Invest14891398.18 Bharti AXA Dream Life Pension Plus14817028.12 ICICI Pru Life Time Pension Maxima14816448.12 SBI Life Unit Plus III Pension14797098.11 SBI Life Horizon III Pension14743248.06 Aviva New Pension Elite14661698.00 ING New Golden Life14589047.94 CHOBC Life Retire Smart Plan14558277.92

11. JUST COMPARE Product Fund Value @10% Yield % Bajaj Allianz Future Secure II14528107.89 Bajaj Allianz Retirement Advantage14499297.87 Met Pension Plus14484087.86 HDFC Pension Supreme14448707.83 ICICI Pru Life Stage Pension Adv.14394827.79 Tata AIG Life Invest Swarna Jeevan14387927.78 Birla SunLife Freedom5814374507.77 Aviva New Pension Plus14369767.77 HDFC SL Pension Champion14340177.74 IndiaFirst Future Plan14288737.70 Reliance Super Golden Years Basic Plan14264707.68

12. 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.

13. MARKET PLUS –I : SOME USPs THE PREDECESSOR OF THIS PLAN, ie “MARKET PLUS” GARNERED APPROX. 40000 CRORES IN LESS THAN TWO YEARS PERIOD. IT’S CURRENT FUND SIZE IS 49000 CRORES. THE CURRENT FUND SIZE OF MARKET PLUS-I IS APPROX. 32000 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

14. 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 2009-10 CORPORATION COLLECTED 18154 CR UNDER MKT.PLUS-I WHICH IS 42% OF TOTAL FP COLLECTION

15. 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 Fund05.07.200613.458814.07124.55%40.71% Secured Fund05.07.200611.538313.920320.64%39.20% Balanced Fund05.07.200610.804713.765827.41%37.66% Growth Fund05.07.20069.841914.597948.32%45.98% MARKET PLUS-I Bond Fund17.06.200811.242111.74364.46%17.44% Secured Fund17.06.20089.994212.251822.59%22.52% Balanced Fund17.06.20089.685812.418228.21%24.18% Growth Fund17.06.20089.563013.512341.30%35.12%

16. 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 21206 PEAK BSE 7697 LOWEST BSE 16994 LATEST -63.70%-19.86 BAJAJ ALLIANZ 12345 NUG Super - Eq. Gr. Fund17.517.62914.98-56.4306-14.45 UG Premier - Prem.Eq. Gain19.4938.68818.83-55.4302-3.39 UP Super- Eq. Index Fund36.79315.17630.95-58.753-15.87 UG Plus - Eq. Gr. Fund17.517.62914.98-56.4306-14.45 SBI LIFE Horizon Equity Fund42.5816.9435.78-60.2161-15.97 Unit Plus Growth Fund42.5816.9435.78-60.2161-15.97 Saral Ulip26.4910.6520.06-59.7961-24.27 Unit Plus Child Plan Gr.Fund26.4910.6520.06-59.7961-24.27 ICICI PRUDENTIAL Life Time Super Max.Fund68.2833.5363.98-50.8934-6.30 Premier Life Max. Fund II37.0318.3135.42-50.5536-4.35 Life Time Gold Flexi Growth15.57.4614.39-51.871-7.16 Golden Years Flexi Growth II15.67.5514.39-51.6026-7.76

17. 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 21206 PEAK BSE 7697 LOWEST BSE 16994 LATEST -63.70%-19.86% TATA AIG 12345 Aggressive Growth Fund16.1019.45315.06-41.2894-6.46 Equity Fund42.54816.89630.52-60.2896-28.27 Growth Maximiser Fund10.0686.1989.39-38.4386-6.29 RELIANCE LIFE GY Eq. Fund16.64466.872313.24-58.7115-20.43 AIP - Equity Fund14.08995.855911.39-58.439-19.16 MRP Equity Fund33.25613.872626.85-58.2854-19.27 SCP Equity Fund10.78084.4768.70-58.4817-19.29 BIRLA SUNLIFE Individual Life Maximiser14.68436.61113.96-54.9791-4.90

18. 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 21206 PEAK BSE 7697 LOWEST BSE 16994 LATEST -63.70%-19.86% Growth Fund - Reliance463.56197.773444.02-57.3361-4.21 Div.Power Sector Fund-Rel.83.9636.478.37-56.646-6.66 Infrastructure-Growth-ICICI35.3614.1128.46-60.0962-19.51 Magnum Equity-Growth-SBI46.5227.1439.38-41.6595-15.35 Magnum Comma Growth-SBI28.8410.7823.19-62.6214-19.59 Magnum Multiplier -SBI86.2136.5476.07-57.6151-11.76 Infrastructure-Growth-Tata43.3816.5132.69-61.9341-24.64 Capex Opportunity-Sundaram BNP32.2512.4424.27-61.4264-24.74 India Tiger Fund - DSP Black`59.76421.4544.93-64.1088-24.82 Growth Fund - HDFC79.5338.23975.82-51.988-4.66 Infrastructure Fund -Birla20.87.416.64-64.4231-20.00 Opportunities Fund - Kotak54.07820.13842.63-62.7612-21.17 MARKET PLUS GROWTH FUND 13.918.69814.40-37.47043.52

19. HOW MARKET PLUS-I OUTPERFORMED SENSEX DateSensexBond FundSecuredBalancedGrowth 17/06/20081569610.00 01/09/20081440910.147510.025410.037710.0775 01/12/20081478310.40799.47018.97748.9102 01/03/2009860710.95379.95719.39839.0360 01/06/20091484011.453811.165411.364811.8286 01/09/20091555111.300811.345811.547512.0982 13/05/201016994 11.8612.0912.2013.40 GROWTH SINCE INCEPTION 8.27%18.60%20.90%22.00% 34%

20. HOW MARKET PLUS-I OUTPERFORMED SENSEX PRODUCT PARAMETERS DATE GROWTH 06/08/200813/05/2010 SENSEX150741699412.73% MARKET PLUS-I BOND FUND10.013111.8618.48% SECURED FUND10.012612.0920.78% BALANCED FUND10.022512.2021.76% GROWTH FUND10.080113.4032.94%