1. Life is a journey

2. There are Milestones …..
100km
200km
300km
400km
….and a Destination

3. Your Destination is more enjoyable if….

4. Each milestone you cross leaves you with a nice feeling

5. Each milestone you cross
100 km
brings you closer to your destination…

6. And gives you instant gratification

7. Presenting ICICI Pru Cash Advantage

8. Because customers love liquidity
Customers want to access their money
ULIPs
More than 80% of the sales done through ULIPS
After returns, Liquidity was the key selling point
Top objection in traditional endowment policies like GSIP is liquidity

9. What does the customer want
In the last five years customers have asked for
Safety or Guarantee
Liquidity

10. What does Cash Advantage offer?
Guaranteed Cash Benefit for 10 years.
Choice of Monthly or Annual payouts
Lump sum at maturity in addition to the cash benefits
Limited premium payment term of 5/7/10 years
Life cover to secure your family

11. Milestones in life In life, small milestones are
Child’s tuition fee, child’s cricket coaching or guitar class, car servicing, electricity bill, monthly grocery, own gym membership, Fuel cost etc.
The list goes on & on…
For now we pay most of this from our salary
How about an insurance product that pays every month for your small milestones and later a big lump sum for your bigger milestones?
100km

12. + How does the plan work? Vested reversionary bonuses + Terminal bonus
Guaranteed Maturity Benefit
Premiums
Guaranteed Cash Benefit
Premium payment term
Payout term
Life cover for the entire policy term

13. Guaranteed Cash Benefit
How does the plan work?
Step 1: Choose Premium payment term, premium, Sum Assured, premium payment mode and cash benefit mode
Step 2: Guaranteed Maturity Benefit and Guaranteed Cash Benefit calculated basis above factors as well as age at entry
Benefits
Guaranteed Cash Benefit
Maturity Benefit
Death benefit
Bonuses

14. Premium payment option
Surrender
Policy acquires a surrender value as per the table below
Premium payment option
Surrender Value
5 or 7 pay
After 2 full year’s premium
10 pay
After 3 full year’s premium

15. Annual / Half-yearly / Monthly
Boundary conditions
Premium payment option
5 pay
7 pay
10 pay
Premium payment term (PPT)
5 years
7 years
10 years
Payout term
Policy term (PPT + Payout term)
15 years
17 years
20 years
Minimum annual premium
Rs. 30,000
Rs. 18,000
Rs. 12,000
Maximum annual premium
Unlimited
Sum Assured on death
Min/Max age at entry
0 / 60
Min/Max age at maturity
18 / 80
Premium payment mode
Annual / Half-yearly / Monthly
Cash benefit mode
Annual / Monthly
Age at entry
Sum Assured multiple
<45 10
45 to 54
7 or 10
>54 7

16. Cash advantage- A Five Star product
Five star benefits
Guaranteed
maturity
benefit
Guaranteed
Cash
benefit
Guaranteed
Death
benefit
Reversionary
bonus
declared
every year
Tax benefits

17. How to pitch ICICI Pru Cash Advantage

18. ICICI Pru Cash Advantage – Child story
From school fees to university admission!
Customer pen portrait: 30 year old, recently became a father
Needs: Comprehensive education solution for the child
What he saves: Rs. 1 lakh for 7 years
What he gets
School fee support: From child’s age 7 to 17 (till class 12)
Rs. 3,600 per month for 120 months, i.e. total Rs. 4.3 lakh
Higher education corpus: For university admission at 17
Rs. 8.5 lakh
Education protection: Life cover of Rs. 10 lakh + bonuses
For 5 pay: Rs p.m, 7.26 lakh; For 10 pay: Rs p.m., 20.4 lakh

19. How does the solution work?
Higher education corpus of Rs lakh
Pay Rs. 1 lakh for 7 yrs
Get Rs. 3,600 p.m. for 10 yrs
Premium payment term
Payout term
Life cover for the entire policy term

20. Gift your Grand child, Cash every year
Every Kid loves to visit his grand parents, specially during festivals in anticipation of gifts.
Grand parents also love to shower their grand children with gifts when they visit.
Through Cash Advantage make your presence felt every year in your grand child’s life.
Also Get Gift tax benefit!!

21. ICICI Pru Cash Advantage – Gifting Story
Mr. Zubin is a 65 year old ex-serviceman.
He wants to gift Rahul something which will benefit him throughout his schooling.
Mr. Zubin gifts a policy of ICICI Pru Cash Advantage to Rahul with a PPT of 5 years and annual premium of Rs
Maturity benefit of 5.5 lakhs for graduation
Premium Rs. 1 lakh per annum
5 yrs
Guaranteed cash benefit
28 k p.a for 10 yrs for Rahul’s schooling
Premium payment term
Payout term
Life cover for the entire policy term

22. Commission rates

23. Thank You

24. Death Benefit
Death Benefit = Higher of SA, Minimum Death Benefit, Guaranteed Maturity benefit vested reversionary bonuses, if any
+ interim bonus, if any
+ terminal bonus, if any
Minimum Death Benefit is equal to 105% of sum of premiums paid till date*
*excluding extra mortality premiums, service tax and cesses, if any

25. Guaranteed Cash Benefit
For each small milestones in life Guaranteed Cash Benefit is payable in advance during the pay out term
Guaranteed Cash Benefit can be received in monthly or annual instalments
Guaranteed
pay outs
for
120 months
Cash benefit mode
Guaranteed Cash Benefit
Monthly
1% of GMB
Annual
11.5% of GMB
100km

26. *excluding any extra mortality premium, service tax and cesses
Maturity Benefit
Maturity Benefit = Guaranteed maturity benefit
+ vested reversionary bonuses, if any
+ terminal bonus, if any
Maturity Benefit shall be at least 100.1% of the sum of premiums paid* less the sum of Guaranteed cash benefits received during the policy term.
*excluding any extra mortality premium, service tax and cesses

27. Bonuses
Yearly Compound reversionary bonus to be declared for in force policies
Illustration: cumulative accumulated bonus amount over a 15 year term for a guaranteed maturity benefit of Rs 1 lakh and a reversionary bonus of 4%.
Year
GMB(Rs)
Cumulative GMB incl. bonus accumulation (Rs)
Compounded Bonus Computation per year (Rs)
Simple Bonus Computation per year (Rs)
Year 1
100,000
4,000
Year 2
104,000
4,160
Year 3
108,160
4,326
Year 4
112,486
4,499
Year 5
116,986
4,679
Year 10
142,331
5,693
Year 15
173,168
6,927
Total
180,095
160000
In rupee terms, for the same rate of 4%
Compound reversionary bonus> Simple reversionary bonus

28. Historical Compounded Reversionary Bonus
Financial Year
Forever Life (SP)
Smart Kid
Save 'n' Protect(RP)
Cash Bak
Forever Life(RP)
3.25%
3.00%
2.50%
2.25%
4.00%
2.75%
Note: 2010 numbers have a reversionary bonus component and a special bonus component
* Past performance may or may not be sustained in future

29. * Past performance may or may not be sustained in future
Terminal bonus
It’s like a loyalty bonus added as a percentage of GMB to the policy held for more than 10 years
It is paid in lump sum at the maturity in addition to the Vested bonus
Terminal Bonus for FY 2012
Financial Year
Terminal Bonus
Save n Protect Series I
20.00%
Save n Protect Series II
15.00%
Smartkid Series I
Smartkid Series II
Forever Life Regular Premium Series-I
Forever Life Regular Premium Series-II
Forever Life Single Premium
25.00%
* Past performance may or may not be sustained in future