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LICs ENDOWMENT PLUS( Sales Talk )

Agent : Good Morning, sir. Thank you very much for the appointment .Prospect : Good Morning. I would like to know more about your new planENDOWMENT PLUS .

Agent : ENDOWMENT PLUS is a very attractive plan. It is designed as per therecent guidelines of IRDA and aims to give best returns to the policyholders.

It is a Unit Linked Endowment plan. Minimum Risk Cover is guaranteed. This plan has facility for Loan after 3 years from commencement. Partial Withdrawal is possible after 5 years from commencement. Plan can be availed on the life of a child, above the age of 7 years. It has 2 optional riders, which means extra protection.

Prospect: What are the returns at Maturity under ENDOWMENT PLUS?

Agent : The Policyholders Fund Value is payable on Maturity. You may receivethis amount in lump sum or exercise Settlement Option. If Settlement Optionis exercised you can en-cash the units available on Maturity at regularintervals, spread over a period of not more than five years.

Prospect: What about Partial Withdrawals?

Agent : Partial Withdrawals are allowed after 5 years from the date of commencement. You may withdraw the entire amount above 2 annualisedpremiums. In case of Single Premium withdrawal is allowed subject to

minimum balance of 25 % of the premium paid. The Sum Assured under thepolicy shall be reduced to the extent of withdrawal amount for a period of 2

years only. After a period of 2 years from Partial Withdrawal Sum assured shallbe treated for the full initial amount. In case there is a loan under the policy,

you can exercise partial withdrawal only after the loan is fully paid.

Prospect: You said loan is also possible under this plan.

Agent : Yes sir, it is possible to avail loan after 3 years from commencement.Loans will be available upto 30% of the Fund Value.

Prospect: What shall be payable in event of death of the Life Assured?

Agent : In event of unfortunate death of the life assured during the term,higher of Policyholders Fund Value and Sum assured is payable.

Prospect: What riders is this plan offering?


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Agent : You can opt for Critical Illness rider and/or Accident Benefit Rider.

Prospect: What are the benefits under these riders?

Agent : Under Critical Illness rider, in case of diagnosis of defined categoriesof Critical Illness, Critical Illness Sum Assured is payable. In case of AccidentBenefit Rider, in event of death due to an accident, Accident Benefit SumAssured is payable. For availing Accident Benefit Rider the charge is as low as0.50 AB Sum Assured per year for availing Critical Illness Rider the chargeis age specific.

Prospect: Since this is a ULIP plan can you tell me more about the chargesunder this plan.Agent : There are nominal charges for Premium Allocation, Policy Administration and Fund Management and Service Tax charge. The net of premiums paid by you shall be invested through the selected fund.

Prospect: Can you brief me about the asset allocation of the various funds.

Agent : This plan has 4 types of fund namely Bond Fund, Secured Fund,Balanced Fund and Growth Fund. The Asset allocation for Bond fund shall benot less than 60% in Government/ Government Guaranteed Securities orCorporate Debt and not more than 40% in Money Market instruments. Theinvestment pattern for Secured fund is not less than 45% is invested in

Government/Government Guaranteed Securities or Corporate Debt, not morethan 40% is invested in Money Market instruments and 15-55% is invested inlisted equity shares. In Balanced fund not less than 30% is invested inGovernment/ Government Guaranteed Securities or Corporate Debt and notmore than 40% is invested in Money Market instruments and 30-70% isinvested in listed equity shares. In case of Growth Fund the asset allocation isnot less than 20% is invested in Government/ Government GuaranteedSecurities or Corporate Debt, not more than 40% is invested in Money Marketinstruments and 40-80% is invested in listed equity shares. You have to chooseany one fund type for your policy.

Prospect: Can I change my fund type during the course of the policy?

Agent : Yes, you can switch between funds. This plan offers 4 free switches a year. You can switch over as many times as you like. There will be a charge of Rs.100 per switch after all the free switches have been used up.

Prospect : How much premium can I pay under the plan?


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Agent : You can pay premium from Rs. 20,000 to Rs. 1,00,000 p.a. underregular premium plan. For Single Premium Plans, minimum premium is Rs.30,000 .

Prospect: What if I am unable to pay the premiums within days of grace.

Agent : To get full benefits under the policy at all times, it is very essential tokeep the policy in force by paying the premiums on the due date. This habit of paying premiums regularly also helps you to maintain a discipline in savings. If however, you fail to pay the premiums within Days of Grace(30 days from duedate), you shall receive a notice to exercise one of the following options -

(i) Revive the policy or(ii) Withdraw completely from the policy.

The option should be exercised within 30 days of receipt of the notice.During the notice period the policy shall be treated in force and all charges willbe continued to be deducted.

Prospect: How can I revive the policy?

Agent : On exercising the option for revival, you can revive the policy by paying the arrears of premiums without interest.

Prospect: What happens in case of withdrawal?

Agent : Sir, I will advise you to continue the policy under any circumstances.However due to some compelling reasons beyond your control, you are forced to

exercise the option for withdrawal; The Fund Value shall be payable to you. Incase, the option for withdrawal is exercised after five years fromcommencement, there shall be no discontinuance charge because of suchwithdrawal. However, if the withdrawal option is exercised before completion of 5 years from commencement, the Monetary Value (Fund Value lessdiscontinuance charges) will be kept in Discontinued Policy Fund. This amountshall earn a minimum interest of 3.5% pa and will be payable only oncompletion of 5 years from date of commencement.

Prospect: What if I wish to take this plan on the life of my child.

Agent : This plan is available from the age of 7 years. The risk on the life of thechild will commence immediately. Since the child is a minor, AB and CI ridersmay be availed from the policy anniversary after completion of 18 years of age.Partial withdrawals and loan are also possible from policy anniversary afterattainment of 18 years of age by the Life Assured.

Prospect: I think, this plan will be good for my child.


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Agent : Sir, this is the Benefit Illustration for your child & this is the proposalform. I shall help you with all the necessary procedures for submission of theproposal papers. Thank You.

Eligibility conditions for RidersAccident Benefit RiderSumAssured

Minimum Rs. 25,000Maximum Shall not exceed SA under basic plan and limited to

Rs. 50,00,000 for all existing and proposal stagepolicies of Life Insurance and Group insurance.

Critical Illness RiderSumAssured

Minimum Rs. 50,000Maximum Shall not exceed SA under basic plan and limited to

Rs. 10,00,000 for all existing and proposal stage

policies of Life Insurance.Age at entry 18 to 50 yearsAge at Maturity 60 years

ELIGIBILITY CONDITIONS : ENDOWMENT PLUSAge at entry 7 to 60 yearsAge at Maturity 18 to 70 yearsPolicy term 10 to 20 years

Premium

Mode Regular Monthly (ECS) Single PremiumMinimum 20,000

pa1,750 pm 30,000

Maximum 1 lacp.a.

1lac p.a. No limit

Top-up Top-up premium not allowed.

Sum Assured

Minimum

Regular Premium Single Premium(Policy Term + 1) xAnnual Premium

Age at entry < 45 yrs >= 45 yrs1.25 xSP

1.10 x SP

Maximum

Age at entry Age at Maturity Upto 45 46 to 60

yrsUpto 65

yrs66 to 70

yrsNote: SA shallbe in multiplesof 5000/-

30 x AP 25 x AP Upto 55 yrs(+CIR)

56 to 60 yrs (+CIR)

5 x SP 3 x SP


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ENDOWMENT PLUS: DICONTINUANCE CHARGESDiscontinuanceYear

Annualized premium up to Rs.25,000/-

Annualized premium above Rs.25,000/-

Lower of

AnnualisedPremium or FundValue

Maximum Lower of Annualised

Premium or FundValue

Maximum

1 10% 2500/- 6% 6000/-2 7% 1750/- 4% 5000/-3 5% 1250/- 3% 4000/-4 3% 750/- 2% 2000/->=5 NIL NIL NIL NIL

ENDOWMENT PLUS : CHARGES

Premium AllocationCharge

Regular Premium SinglePremium

Year Charge 3.3%1 st 7.50%2 nd to 5 th 5.00%

Thereafter 3.00%Policy AdministrationCharge

Rs.30/-pm during the first policy year and Rs.30/- pm escalating at the rate of 3% pa.

Fund Management Charge

0.50% Bond Fund0.60% Secured Fund0.70% Balanced Fund0.80% Growth Fund

Switching Charge 4 switches free . Rs. 100 thereafterMiscellaneous charge In event of alteration Rs.50/-Mortality Charge Will be recovered every month at specified ratesCritical illness Charge Age specificAccident Benefit Charge 0.50 Per thousand AB Sum Assured

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