sbi life unit plus iii pension
TRANSCRIPT
SBILA/06/01/10/PRP/31, Version 2
Discover The Joy Of Living Long
SBILA/06/01/10/PRP/31, Version 2
Protection against loss of income
In case of premature death
For the financial securityof the family
Because the family depends on us!
Absolutely essential to protect the family!
Why Life Insurance ?
SBILA/06/01/10/PRP/31, Version 2
Protection against loss of income
post retirement
For the financial security of Self
Can we depend on our family?
Pension Plans are absolutely essential to be independent!
What if we live long?
SBILA/06/01/10/PRP/31, Version 2
The need for increasing our Pension Fund is growing rapidly because
We’ll need more money to maintain our Pre-retirement Lifestyle
We’ll have to provide for a longer time due to increasing life expectancy
Increasing cost of Health and Medical care beyond the rate of inflation
Need for Pension
SBILA/06/01/10/PRP/31, Version 2
Maximum Growth
Complete Flexibility
Easy Liquidity
Tax Benefits
An Investor’s Wish list…while buying a financial product
SBILA/06/01/10/PRP/31, Version 2
Unit Plus III Pension Plan offers pension benefits and does not have a life cover
Base plan pays out on death or CI or TPD , whichever occurs first, to give succour to you and extend support your family in the unfortunate event
Guaranteed Additions, to boost your funds
Lower Charges – Allocation, Admin & FMC
Varied Fund Options : Index Pension Fund & Top 300 Pension Funds (New Funds)
Add On options : SBI Life Criti Care 13: Health Protection for the CustomerSBI Life Income Sustainer Benefit : Customer & Family is Secured
Why Unit Plus III Pension?
SBILA/06/01/10/PRP/31, Version 2
Risk Return Options
Optimize your returns with 8 Fund Options !
Index Pension
Fund
Top 300 Pension
Fund
Equity Pension
Fund
Equity Optimizer
Pension Fund
Growth Pension
Fund
Balanced Pension
Fund
Bond Pension
Fund
Money Market Pension
Fund
New Fund
SBILA/06/01/10/PRP/31, Version 2
More Value…..
Additional Flexibilities…..
Change your premium amounts, according to your needs, from 4th year onwards
Top-up (s) any time
Increase/Decrease in premium contribution
Flexibility to Prepone or Postpone the vesting age with in the permissible limits
Complete control your investments through the Switch option
Other flexibilities in the form of Premium Redirection
SBILA/06/01/10/PRP/31, Version 2
Cost Effective…..
No Hidden Cost…..
Allocation Charges as low as 5% in year 2 and NO Allocation Charges from 6th year onwards
Policy Admin Charge of Rs 60 p.m. for Regular Premium and Rs 50 p.m. for Single Premium
Fund Management Charges in the range of 0.25% p.a. to 1.35% p.a.
….Charges meeting the Cap set by IRDA….
SBILA/06/01/10/PRP/31, Version 2
Customization….. Packaging the plan…..
Criti Care 13 Rider - Provides lump sum amount to take care of 13 Critical Illnesses
Income Sustainer Rider - Provides additional benefit in the case of death or in the case of TPD due to Accident or Sickness, whichever is earlier.
SBILA/06/01/10/PRP/31, Version 2
Trust…..
The product comes from the stable of SBI Life which is a jointventure between the State Bank of India (largest bank inIndia) and BNP Paribas (One of the leading Global Bank).
The Funds are managed by expert Fund Managers with aproven track record.
SBILA/06/01/10/PRP/31, Version 2
By the end of this session you will be able to:
Appreciate the launch of Unit Plus III Pension
Describe the features of SBI Life Unit Plus III Pension
Explain the Rider features
Classify the Target Segments
SBILA/06/01/10/PRP/31, Version 2
Regulator’s directive to Banks & Insurance Companies
For policies of more than 10 years term:Difference between gross and net yield not to be more than 2.25%FMC capped at 1.35%
For policies of less than equal to 10 years term:Difference between gross and net yield not to be more than 3%FMC capped at 1.5%(Ref: 055/IRDA/Actl/ULIP/2009-10)
Need for transparency in the interest of customers investing money, banks should disclose to the customers, details of all commissions / other fees received from financial companies(Ref: RBI/2009-10/224; DBOD.No.FSD.BC.60/24.01.001/2009-10)
The Need To Launch Unit Plus III Pension
SBILA/06/01/10/PRP/31, Version 2
The Insurers
1. For a term <= 10 yrs, IRR @ 6% & 10% returns should not be less than 3% & 7% respectively
2. For a term > 10 yrs, IRR @ 6% & 10% returns should not be less than 3.75% & 7.75% respectively
3. Reduce fund management charges.
4. Reduce allocation charges
5. Modify plan features to accordingly
The Customers
1. Pay lower charges for his / her insurance investment
2. Accumulate more out of his investments
3. Reach target fund values earlier
4. Save in the most cost effective way
5. Be aware of all aspects of the investments
What It Means For The……
SBILA/06/01/10/PRP/31, Version 2
Product Snapshot
Entry Age Minimum: 18 yearsMaximum: 67 years (Regular Premium) 70 years(Single Premium)
Policy Term Minimum: 8 years (Regular Premium) 5 years (Single Premium)Maximum: 50 years (Both Regular & Single)
Premium Paying Term Same as Policy Term
Vesting Age Minimum: 40 yearsMaximum: 75 years
Premium Minimum: Rs 24,000 ( Yearly ) Rs 12,000 (Half Yearly) Rs 6,000 (Quarterly) Rs 2,000 ( Monthly ) Rs 60,000 ( Single Premium)Maximum: No Limit
Top Up Minimum: Rs 5,000Maximum: Cumulative Top Up cannot exceed 100% of Total Basic /Single Regular Premium paid as on top up payment date
SBILA/06/01/10/PRP/31, Version 2
Survival Benefit
On Vesting Age, maximum of one-third of the Fund Value can be commuted in lump sum
Balance amount to be used to purchase annuity either from SBI Life or from any other Annuity Provider
SBILA/06/01/10/PRP/31, Version 2
Vesting AgePreponement: This option can be exercised after completion of 5th policy year
Intimation should happens 3 months prior to the new vesting date
This option can be availed only once in the entire policy term
Rider Cover, if any, will cease at the new vesting age opted for
However in case of Single Premium rider, if any, the policyholder on preponement will be entitled to a surrender value of the rider.
Postponement: This option can be exercised after completion of 5th policy year
Intimation should happens 3 months prior to the original vesting date
This option can be availed three times in the entire policy term
Rider Cover, if any, will cease at the previous vesting age and will not be extended
SBILA/06/01/10/PRP/31, Version 2
Death Benefit
In case of death:
Fund Value is payable
When rider is attached:
Fund Value along with the Rider Sum Assured is payable
SBILA/06/01/10/PRP/31, Version 2
Guaranteed Additions
Unique feature that increases maturity value for customer!
+ + +
Policy Year Regular Premium (Rs )
Single Premium ( Rs)
6th year onwards 5% 1%
Guaranteed Addition is a percentage of one annualized regular premium
In Single Premium, it is a fixed percentage of Single Premium
SBILA/06/01/10/PRP/31, Version 2
Fund Equity & Equity related Instrument
Debt & Money Market Instrument Risk Profile
Min: 90% Max: 100% Min: 0% Max: 10% High
Min: 60% Max: 100% Min: 0% Max: 40% High
Min: 80% Max: 100% Min: NIL Max: 20% High
Min: 60% Max: 100% Min: 0% Max: 40% High
Min: 40% Max: 90% Min: 10% Max: 60% Medium to High
Min: 40% Max: 60% Min: 40% Max: 60% Medium
NA
Debt: Min: 60% Max: 100%
Money Market: Min: NIL Max: 40%
Low to Medium
NA
Debt: Min: 0% Max: 20%
Money Market: Min: 80% Max: 100%
Low
Different Fund Options
Equity Pension Fund
Growth Pension Fund
Balanced Pension Fund
Equity Optimizer Pension Fund
Index Pension Fund
Top 300 Pension Fund
Bond Pension Fund
Money Market Pension Fund
SBILA/06/01/10/PRP/31, Version 2
FlexibilityFund Switching:
Two free switches in a policy year are allowed
Additional switches are charged at Rs 100
Minimum switch amount is Rs 5000
Switching is allowed subject to switching charges in case of lapsed policy
Premium Redirection:
Available free of cost twice in a policy year
Additional redirection facility is available at Rs 100 per request
SBILA/06/01/10/PRP/31, Version 2
Premium ModificationIncrease and decrease in Annual Basic Premium:
Option available at each policy anniversary starting from 4th policy year
Option is exercised maximum of 3 times during the policy term
Rider Premium and benefits are not allowed to change
Premium can be increased without any limit
Premium to be reduced maximum of 50% of the original premium at inception over
the 3 occasions available for reduction
Premium Mode Change in Annual Regular Premium ( Rs )
Yearly Mode Rs 5000 ( x 100 )
Half Yearly Rs 2500 ( x 100 )
Quarterly Rs 1500 ( x 100 )
Monthly Rs 500 ( x 100 )
SBILA/06/01/10/PRP/31, Version 2
Unpaid Premium (In first 3 policy years)
Year 1 Year 2 End of Year 4
Customer pays first year premium
Customer does not pay 2nd year premium
If revival not done within 3 years from FUP ,
Surrender Value will be paid and policy will
terminate
Revival Period – 3 years
Rider Cover lapses immediately FMC and Policy Administration Charges continue to get deducted No Top Up is allowed
SBILA/06/01/10/PRP/31, Version 2
Year 1 Year 2 Year 3 Year 4
Customer pays first 3 years premium
End of Year 6
If customer doesn’t revive, policy continues till FV reaches one AP or maturity whichever is earlier
Revival Period – 3 years
Policy goes into revival mode for 3 years from FUP
Customer Does not Pay 4th Renewal
Rider Cover lapses immediately All charges continue to get deducted
Unpaid Premium (4th policy year onwards)
SBILA/06/01/10/PRP/31, Version 2
Surrender Facility
Fund Value gets disinvested
Fund Value net of surrender charges is paid on the 1st working day of 4th policy anniversary
Within first 3 years
Policy will acquire a surrender value only after payment of full premium in the 1st policy year
SBILA/06/01/10/PRP/31, Version 2
Surrender penalty as % of fund valueYear Regular Premium Single Premium
1 15% 5%
2 10% 5%
3 7.5% 5%
4 5% 2%
5 5% 2%
6 onwards NIL NIL
Surrender Charges
SBILA/06/01/10/PRP/31, Version 2
Regular & Single Premium
Top Up Allocation Charge is 2% of the top up amount
Year Regular Premium Single Premium1 10% 2.25%
2 5% NA
3 5% NA
4 5% NA
5 5% NA
6 onwards 0% NA
Premium Allocation Charges
SBILA/06/01/10/PRP/31, Version 2
Equity Pension Fund 1.35%
Equity Optimizer Pension Fund 1.35%
Growth Pension Fund 1.35%
Balanced Pension Fund 1.25%
Bond Pension Fund 1.00%
Money Market Pension Fund 0.25%
Index Pension Fund 1.25%
Top 300 Pension Fund 1.35%
Fund Management Charges:
Policy Administration Charges
For Regular Premium:- Monthly administrative charges are equal to Rs. 60/- For Single Premium:- Monthly administrative charges are equal to Rs. 50/-
Other Charges
SBILA/06/01/10/PRP/31, Version 2
Other Charges
Medical Expense
Medical Underwriting may be required for revival of policies with riders attached
Expenses, if any, will be borne by the policy holder
Maximum expense to be incurred is Rs 3000
Miscellaneous Charges
Additional amount of Rs 100/- is charged for issuance of duplicate/additional copy of yearly fund statement
SBILA/06/01/10/PRP/31, Version 2
Rider Benefits
SBILA/06/01/10/PRP/31, Version 2
Rider Benefit
s
SBILA/06/01/10/PRP/31, Version 2
2 Riders available for Unit Plus III Pension Plan
Rider Benefits can be taken only at the inception of policy
The rider benefit can be terminated by stopping the premium.
Once terminated, rider cannot be attached with the base policy
Riders available in Unit Plus III Pension are:
SBI Life - Criti Care 13 Rider SBI Life - Income Sustainer Benefit
Rider Benefits
SBILA/06/01/10/PRP/31, Version 2
Criti Care 13 Rider Income Sustainer Benefit
Age at Entry 18 - 55 18 - 59
Maximum Cover Age 64 64
Minimum Term 5 5
Maximum Term
Term of the base cover or 64 years minus age at entry, whichever is
less
Lower of term of the base product or 30 years or 64 years
minus age at entry
Minimum Sum Assured Rs 25,000 Rs 25,000
Maximum Sum Assured Rs 20,00,000 * Rs 20,00,000 *
Rider Boundaries
* Condition for base product Sum Assured will not be applicable for Pension Plan
SBILA/06/01/10/PRP/31, Version 2
Criti Care 13 Rider
13 critical illnesses are covered under this rider
90 days of waiting period applicable from DOC or date of revival
30 days of survival period is applicable from the date of diagnosis of critical illness for claim payment
Diseases Covered:
Cancer Coronary Artery Bypass Surgery Heart Attack Heart Valve Surgery Kidney Failure Major Burns Major Organ Transplant Paralysis Stroke Surgery of Aorta Coma Motor Neuron Disease Multiple Sclerosis
Criti Care 13 Rider
SBILA/06/01/10/PRP/31, Version 2
Income Sustainer Benefit Rider
Benefit is payable if policyholder dies or is met with Total Permanent disability due to accident or sickness
Rider Benefit payable either at Total Permanent Disability or death, whichever is earlier
25% of benefit is paid on death or disability and 1% of rider benefit is paid in arrears monthly to the nominee/life assured
1% of rider benefit continues till the end of the Income Sustainer Rider Term or 10 years, whichever is higher
Income Sustainer Benefit Rider - Features
SBILA/06/01/10/PRP/31, Version 2
Features Unit Plus II Pension Unit Plus III Pension Changes
Plan Option
Option I : Pure Pension (no Life Cover)
Option II : Pension cum Life cover
Not AvailableBase product offer pension benefits
No risk cover available
Age at Entry
Min: 18 yrs
Max: 65 years- For Option I; 60 Years- For Option II
Min: 18 yrs
Max: 67 years (for Regular Premium); 70 years (for Single Premium)
Enhanced Entry Age
Policy Term 5-52 yrs 8-50 yrs(for Regular Premium) ;
5-50 yrs(for Single Premium)Max term reduced
by 2 yearsVesting
Age 50 – 70 years 40 – 75 years Min vesting age reduced to 40
Minimum Premium
Regular Premium (X100) : Rs. 24,000
Single Premium (x1000) : Rs. 25,000
Regular Premium (X100) : Rs. 24,000Single Premium(x100) : Rs. 60,000
Min SP increased
Riders Available
Accidental Death & Permanent Disability Rider
Critical Illness Rider
Income Sustainer Benefit Rider Criti Care 13Rider
New riders added
Benefit payment Scenarios for base product
DeathOption 1: Fund Value
Option 2: Higher of Fund Value or Sum Assured for
DeathFund Value; If riders have been opted
for, the relevant benefit shall be payable over and above the Fund Value
SA not allowed
Surrender Surrender without penalty from 4th year onwards
Surrender without penalty from 6th year onwards
Liquidity pushed by 2 years
Analysis – Previous vs. Present
SBILA/06/01/10/PRP/31, Version 2
Features Unit Plus II Pension Unit Plus III Pension Changes
Investment Funds
4 Funds (Equity Pension Fund, Bond Pension Fund, Growth Pension fund, Balanced Pension Fund)
8 Funds (Existing fund options plus Top 300 Pension Fund, Index Pension fund, Money Market Pension Fund &Equity Optimizer Pension Fund
4 new funds are added
Flexibility to change regular
premiums
Only Increase in regular premium is allowed. Minimum Increase : Rs.12,000/- on annualized basis
Both Increase and Decrease in regular premium allowed.*Minimum change in annualized premium : Rs. 5,000
Decrease in premium allowed
Switching
4 Free Switches per year, additional charged Rs. 100 Switching not allowed when policy is in lapsed state
2 Free Switches Per Year, additional charged Rs. 100 per switch. No restriction on switch while policy is in lapsed state
switching is possible at all
times
Redirection Possible from 2nd policy year onwards, Once in a year
Possible from 1st year, First 2 redirections requests are free per year
2 free redirection possible from 1st
year
Rebates On mortality charge 5% rebate for women,
No mortality charges as no SA offered under this product No Risk Cover
Guaranteed Additions
For RP(% age of first 10 policy year’s annualized premium): Year 10: 10%; Year 15: 20%; Year 20: 30% For Single Premium (% age of SP): Year 10: 1%; Year 15: 2%; Year 20: 5%
Given every year starting from the 6th policy year: For Regular Premium policies : 5% of one annualized premiumFor Single Premium policies : 1% of SP
Guaranteed Additions given
for a longer period
Analysis – Previous vs. Present
SBILA/06/01/10/PRP/31, Version 2
Features Unit Plus II Pension Unit Plus III Pension Changes
Revival /Premium
Discontinuance
5 yrs from the due date of FUP / Surrender value paid at the end of revival period if premium is discontinued
3 yrs from the due date of FUP / Policy forfeited at the end of revival period if full 1st year premium is not paid.
Reduced revival period
Admin ChargeRs 60 per month, increased at 2% per annum subject to a ceiling of Rs 300 per month
RP: Rs 60 p.m. SP: Rs 50 p.m. Lower admin
charges
FMC
Equity Pension Fund - 1.50% p.a.
Equity Pension Fund - 1.35% p.a.Top 300 Pension Fund: 1.35%Index Pension Fund: 1.25%Money Market Pension Fund: 0.25%
Lower FMC
Allocation Charges
Lower Allocation
charges
RP 24k – 1lac
1-5(L) 5 lac +
Yr 1 15% 12% 9%
Yr 2-3 7.5% 5% 3%
Yr 4-5 5% 5% 3%
Yr 6-10
2% 2% 2%
Yr 11 + NIL
SP 25k-1 lace
1-5(L) 5 Lac +
2% 1.5% 1%
Analysis – Previous vs. Present
Year Regular Premium
Single Premium
1 10% 2.25%
2-5 5% NA
6th year onwards
NIL NA
SBILA/06/01/10/PRP/31, Version 2
Features Unit Plus II Pension Unit Plus III Pension Changes
Surrender Charge
No surrender charge from 6th
Policy year
Commissions
Commission rates is
consistent for Premium sizes
RP 24K-1 L
Yr 1 – 3 Not Allowed
Yr 4 – 5 2% of Fund Value
Yr 6 -10 1% of Fund Value
Yr 11+ NIL
SP 25K – 1L
Yr 1 – 3 Not Allowed
Yr 4+ NIL
RP All Premiums
SP All Premiums
Yr 1 15% of FV Yr 1-3
5% of FV
Yr 2 10% of FV Yr 4-5
2% of FV
Yr 3 7.5% Yr 6+ NIL
Yr 4-5 5% of FV
Yr 6+ NIL
RP 24k-1 L 1 L – 5L 5 L+
Yr 1 7.5% 6% 4.5%
Yr 2-10
2% 2% 2%
Yr 11 + NIL NIL NIL
SP 25k-1 L 1 lac-5 L 5 L +
2% 1.5% 1%
Analysis – Previous vs. Present
Year Regular Premium
Single Premium
1 7.5% 2%
2-10 2% NA
11 1% NA
SBILA/06/01/10/PRP/31, Version 2
Hassle Free Pure Pension Plan
Base plan pays out on death or CI or TPD , whichever occurs first, to give succor to you and extend support your family in the unfortunate event
Guaranteed Additions to boost your funds
Lower Charges – Allocation, Admin & FMC
Varied Fund Options : Index Pension Fund & Top 300 Pension Funds (New Funds)
Add On options : Criti Care 13: Health Protection for the Customer Income Sustainer Benefit : Customer & Family is
Secured
Recap – Unit Plus III Pension
SBILA/06/01/10/PRP/31, Version 2
Clients who wants to plan for their retired life
Clients looking for high growth & control to boost their pensions
Charges savvy customers
Clients looking for cost effective investment option
Target Segments
SBILA/06/01/10/PRP/31, Version 2
Thank You
For More Details :
K.PrakashInsurance AdvisorSai Services9160003221
N.Hari KrishnaAgency Manager9989389716