May 2005 InvestGain 11

INVEST GAIN

ENDOWMENT FOR YOU

May 2005 InvestGain 22

ObjectivesObjectivesBy 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 33

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 44

Changing needs in lifeChanging needs in life

Starting a jobSingle individual

Just Married

Birth of a child

Kids going to schoolcollege

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 independentReaching golden years

Needs:

Preserving wealth

May 2005 InvestGain 55

Financial GoalsFinancial GoalsMoney 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.

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What is an Endowment planWhat is an Endowment planEndowment 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.

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How Endowment Plan WorksHow 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 maturitybased on your anticipated

expenditures

Benefits of Protection can be used for sustaining family income, and providing for other unforeseen incidents

May 2005 InvestGain 88

Endowment vs other savings Endowment vs other savings instrumentsinstruments

INSTRUMENT

Safety of Capital Preservation Liquidity

Post tax returns Tax Efficiency

Risk Cover*

Provident Fund High Low Good Good NoneShares Uncertain Good Uncertain Low NoneBonds Average Average Low Low NoneFixed Deposits High Average Low Low NoneMutual Funds Average High Uncertain Average NonePostal Savings Schemes High Low Average Average None

Endowment HIGH AVERAGE GOOD HIGH YES

May 2005 InvestGain 99

PresentingPresenting

InvestGainThe endowment plan with a

difference….

May 2005 InvestGain 1010

Plans availablePlans available InvestGain Economy InvestGain Gold

InvestGain Diamond

InvestGain Platinum

May 2005 InvestGain 1111

USP – Highest Death BenefitUSP – 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

Highest Death benefit

available with

endowment in the

market..

Our USPOur USP

May 2005 InvestGain 1212

USP – High Risk Cover at Lowest CostUSP – High Risk Cover at Lowest Cost

PACKAGE RISK COVER

ANNUAL PREMIUM

DIFFERENCE IN PREMIUM W.R.T ECONOMY

ECONOMY 10,00,000 24120 Not Applicable

GOLD 20,00,000 27,120 3,000 for ADDITIONAL RISK COVER OF 10,00,000

DIAMOND 30,00,000 30,020 5,900 for ADDITIONAL RISK COVER OF 20,00,000

PLATINUM

40,00,000 33,020 8,900 for ADDITIONAL RISK COVER OF 30,00,000

Rates for Male Age 30, Term 30, RP

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Power of Limited PayPower of Limited Pay

FOR 5-9 YRS TERM YOU CAN PAY 2 OR 3 YRS

FOR 10-14 YRS TERM YOU CAN PAY 2,3, OR 5 YRS

FOR 15-19 YRS TERM YOU CAN PAY 2,3, 5,7 OR 10 YRS

FOR 20-24 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 1414

Power of Limited PayPower of Limited Pay

REGULAR PREMIUM

TOTAL PREMIUM OUTGO

LIMITED PREMIUM5 YRS

TOTAL PREMIUM OUTGO

YOU SAVE

24120 723600 73000 365000 358600

Male Aged 30, Term 30, Sum Assured Rs10,00,000 IG Economy

Savings of 51%

May 2005 InvestGain 1515

Financial Security Before MaturityFinancial Security Before MaturityShould 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 BenefitHospital Cash Benefit

May 2005 InvestGain 1616

Family Income Benefit (FIB)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 1717

Family Income Benefit (FIB)Family Income Benefit (FIB)

18

50

can be bought between Age 18 and Age 50

Intimate within

60 days

70

FIB NA in case of TPD after age 65

65

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 1818

Family Income BenefitFamily Income Benefit

Annual Premium

Benefit payable in case of death in Year 1

Benefit payable in case of death in Year 29

InvestGain Economy 24120 1000000 1920845InvestGain Economy + FIB 27978 4480000 3120845Additional for FIB 3858 3480000 1200000

Avail of a great benefit at a nominal extra premium.

Regular Premium Option - Age 30, Term 30, Sum Assured 10 lakhs

May 2005 InvestGain 1919

CAPCAP 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 2020

Accidental Death Benefit (ADB)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

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Accidental Permanent T/P DisabilityAccidental Permanent T/P DisabilityYour safety net against disability too…

In case of Total Disability – 100% of SA

In case of Partial Disability – 50% of SA

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Waiver Of Premium (WOP)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 2323

Illustration 1Illustration 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)

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Illustration 1: Case aIllustration 1: Case a

Age/Events Benefits 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

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Illustration 1: Case bIllustration 1: Case b

Age/Events Benefits Payable

At age 45 accidental death due to accident

1. Basic policy SA = Rs 500,000

2. Reversionary Bonuses = RB

3. Terminal Bonus = TB4. Rider SA = Rs 500,000

Total Benefit payable: 10,00,000 + RB + TB

May 2005 InvestGain 2626

Illustration 2Illustration 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)

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Illustration 2: Case aIllustration 2: Case a

Age/Events Benefits 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 500,000Reversionary Bonuses = RBTerminal Bonus = TB(Provided all premiums due till date are paid)

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Illustration 2: Case bIllustration 2: Case bAge/Events Benefits 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 2929

Critical Illness (CI)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.

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Illustration 3aIllustration 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 3131

Hospital CashHospital 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 is @ 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 3232

Difference in PremiumDifference in Premium

Package (Age 30, SA 500,000, PPT= 25) InvestGain

Economy

FIB CAP Health Total

Premium 15970 17598 16710 19172 21478

Difference in premium

10.2% 4.6% 20.0% 34.5%

May 2005 InvestGain 3333

Flexibility in Rider CoverageFlexibility 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 3434

Thank You