1. Why Ulips ?

2. 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

3. 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 ---------- ---------- ---------- 2 Lac 4 Lac 8 Lac Thus in 27 Yrs your 1Lac becomes 8 Lac @ 8% Interest

4. 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.

5. 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?

6. Let us first discuss so called guarantee of 8 Lac A look at Interest rate movement Years PPF Rate Year Bank FD 1986-87 12 % 1991 12 % 2000-01 11 % 199711 % 2001-029.5 % 1998 9 % 2002-039.0 % 1999 8 % 2003-048.0 % 2000 7 % 2005-068.0 % 2001 6.5 % 2007-08 8.0 % 2002 6.25 % 2008-09 8.0 % 2003 5.5 % 2009-10 8.0 % 2010 6.5 % (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%.

7. 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)

8. History of BSE Sensex for last 30 Yrs Years BSE Sensex Yrs BSE Sensex Yrs BSE Sensex 1979100198972919995005 19801381990104920003972 19812071991190620013262 19822211992261520023377 19832381993334620035838 19842661994392620046602 19854921995311020059397 198656719963085200613786 198745419973658200720286 19886131998305520089647 2009 17464 (Source – BSE Sensex Archives) Generally sensex has doubled or more than doubled after every 5 Yrs.

9. You choose any two yrs where time gap is minimum 7 Yrs. YearsSensex 1986 1993 Return 567 3346 28.25 % YearsSensex 1996 2003 Return 3085 5838 9.5 % YearsSensex 2002 2009 Return 3377 17464 26.40 % YearsSensex 1998 2005 Return 3055 9397 17.25 %

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

11. 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 01.02.2001) NAV on 02.02.2001 - Rs 10.0000 NAV on 16.01.2010 - Rs 52.3267 In almost 9 Yrs period NAV has increased from 10 to 52.3267 At 16% Rate of Interest – After 4.5 Yrs NAV should be – 20.000 - After 9 yrs NAV should be - - 40.000 (But in Bima Plus after 9 Yrs NAV is five times instead of 4 times.)

12. 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.

13. 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)

14. 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

15. 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

16. 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.

17. 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

18. 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

19. 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%

20. 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

21. 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

22. 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

23. 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%

24. 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%

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

26. 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.

27. 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.

28. 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.

29. 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

30. 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 Yearly3.003.75 4.00 Half Yearly2.503.50 3.75 Quarterly2.503.50 3.75 Monthly2.003.25 3.50

31. 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 increasing @ 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

32. PENSION PAYABLE FOR RS. 5,00,000/- INVESTED AT AGE 60 YEARS PENSION AMOUNT PAYABLE IN RS. TYPE OF ANNUITYYLYHALF YLYQLYMTHLY Pension for Life4875024375121884063 Guaranteed 5 years & Life thereafter4830024150120754025 Guaranteed 10 years & Life thereafter4730023650118253942 Guaranteed 15 years & Life thereafter4595022975114883829 Guaranteed 20 years & Life thereafter4440022200111003700 Pension for Life with RETURN OF CAPITAL375501877593883129 Pension for Life increasing @ 3% pa (Simple)396501982599133304 Pension for Life & on Death - 50% Pension to Spouse4520022600113003767 Pension for Life & on Death - 100% Pension to Spouse4215021075105383513

33. 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.

34. 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)

35. 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.

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