JAN, 2011
Birla Sun Life Insurance Company Limited
Copyright © Birla Sun Life Insurance Company Limited 2008
Strictly for internal training purpose only
‘VISION’
IN 2012 .. MAY YOU ACHIEVE WHAT OTHERS THINK IS IMPOSSIBLE
Birla Sun Life Insurance Company Limited
Copyright © Birla Sun Life Insurance Company Limited 2008
Strictly for internal training purpose only
Birla Sun Life Insurance Company Limited
Copyright © Birla Sun Life Insurance Company Limited 2008
Strictly for internal training purpose only
3
USP’s-For Customers
• Higher Guaranteed Amount- LIC gives SA , We give higher
•
•
•
•
Guaranteed Survival Benefit for given SA.
Monthly additions are declared at Beginning of the year as
compared LIC end of year
Lower premiums for a given age
Free life cover post Guaranteed Survival Date
Riders
Birla Sun Life Insurance Company Limited
Copyright © Birla Sun Life Insurance Company Limited 2008
Strictly for internal training purpose only
4
USP’s -For Advisors
• Flexibility in entry age 1-65 as compared LIC which offer from
18yr-65yrs.
• 1st
year commission is 2% x pay term subject to max of
35%
• 2nd and 3rd year commission - For pay term less than
10 it is 5%
• For pay term equal to and more than 10 it is 7.5%
• 4th year onwards it is 5%
Birla Sun Life Insurance Company Limited
Copyright © Birla Sun Life Insurance Company Limited 2008
Strictly for internal training purpose only
5
Understanding VISION
Birla Sun Life Insurance Company Limited
Copyright © Birla Sun Life Insurance Company Limited 2008
Strictly for internal training purpose only
6
Birla Sun Life Insurance Company Limited
Copyright © Birla Sun Life Insurance Company Limited 2008
Strictly for internal training purpose only
7
STEP 1:Client chooses SA , GSB term and Mode
• Male age 30 yrs, SA -10 Lakhs ,GSB term 25yrs ,Annual
•
•
•
•
•
•
•
Mode
Pls refer Table chart for 30 yrs Male and 25 yrs GSBTerm
Tabular Premium-43.20
Sum Assured rebate is 1.75 for Band 4.
For 10 Lakhs, It would amount to (43.20-1.75) *
10,00000/1000=41450
Annual Mode Rebate is 3%
Modal Premium= 41450 * 97%=Rs40206.50
Annual Premium-Rs40206.50
Birla Sun Life Insurance Company Limited
Copyright © Birla Sun Life Insurance Company Limited 2008
Strictly for internal training purpose only
8
STEP 2:Calculate GSB.
•
•
For Band 4. GSB Term 25 Years, We have a GSB factor of Rs1513 for 1000 SA
For SA -10LAKHS,GSB=1513 * 1000000/1000=Rs 1513000 which is Guaranteed
on GSB date(25 years)
Birla Sun Life Insurance Company Limited
Copyright © Birla Sun Life Insurance Company Limited 2008
Strictly for internal training purpose only
9
STEP 3:Calculate Monthly Additions.
(Calculation is based on annual Rate)
For GSB 25Years, We have a Yearly addition factor of Rs45 for 1000 SA
Total Yearly additions assuming Rs 45 per 1000 for 25 years amounts to =45 * 25=1125 per
thousand
Enhancement to Monthly Additions:
Since Band is 4= Enhance Monthly Additions is 6.75%
Birla Sun Life Insurance Company Limited
Copyright © Birla Sun Life Insurance Company Limited 2008
Strictly for internal training purpose only
10
STEP 3:Calculate Monthly Additions.
(Calculation is based on annual Rate)
• Total Enhancement is Equal= (25-21) * 6.75%=27%
• Total Additions will get enhanced by 127%
•
i.e:1125 * 127%=1428.75 per thousand
Total Additions=1428.75 * 1000000/1000=Rs 14,28,750
which is accrued on GSB date(25 years).
• So for a Premium of Rs10,05,162
 One gets a SA of 10 Lakhs
 Guaranteed Survival Benefit of 15,13,000
 Total benefit of Rs29,41,750.
PS: All calculation is based on assumption that Rs45 per thousand Additions
would be paid for entire 25 years and all premium are paid till 25 years.
Birla Sun Life Insurance Company Limited
Copyright © Birla Sun Life Insurance Company Limited 2008
Strictly for internal training purpose only
11
LIC VS VISION
JEEVAN ANAND
SUM ASSURED:
10,00,000.00 PREMIUM
BONUS
VISION
FAB
MATURITY
BENEFIT
SUM ASSURED
10,00,000.00 PREMIUM
BONUS
ENHANCE
MENT
GSB
TOTAL
15
78959
5,55,000.00
0
15,55,000
15
74,855.00 5,85,000.00
0 12,26,000.00 18,11,000.00
20
56408
8,20,000.00
0
18,20,000
20
53,331.00 8,28,000.00
0 13,53,000.00 21,81,000.00
25
43097
11,25,000.00
200000 23,25,000.00
25
40,207.00 11,25,000.00 3,03,750
15,13,000.00 29,41,750.00
30
34368
13,50,000.00
200000 25,50,000.0
30
31,787.00 13,50,000.00 8,20,125
17,67,000.00 39,37,125.00
35
28353
15,75,000.00
200000 27,75,000.00
35
26,200.00 15,75,000.00 14,88,375 22,14,000.00 52,77,375.00
Birla Sun Life Insurance Company Limited
Copyright © Birla Sun Life Insurance Company Limited 2008
Strictly for internal training purpose only
12
BSLI Vision vs LIC’s Jeevan Anand
Jeevan Anand
Survival Benefit
= Rs. 2,41,000
Premium paid
= Rs. 4,535 X 25 yrs
= Rs. 1,13,375
Client
age 35
Term = 25 years
SA = Rs. 1,00,000
Accidental rider SA = Rs. 1,00,000
BSLI Vision
Age 100
SA of Rs. 1 lac paid in case of death
Survival Benefit
= Rs. 2,98,000
Premium paid
= Rs. 4,513 X 25 yrs
= Rs. 1,12,825
Client
age 35
•
•
Age 60
Term = 25 years
Policy
terminates
•
•
Age 100
Age 60
SA = Rs. 1,00,000
Accidental rider SA = Rs. 1,00,000
SA of Rs. 1 lac paid in
case of death/maturity
Figures of Jeevan Anand taken from LIC website and Survival Benefit taken at 10% for comparison purpose only
Birla Sun Life Insurance Company Limited
Copyright © Birla Sun Life Insurance Company Limited 2008
Strictly for internal training purpose only
Blue boxes indicate the
advantage of BSLI Vision
13
Vision works as ………
A Child Plan
• Education and Marriage planning
&
A
Retirement
Planning
• Whole Life Cover
• Build Corpus
• Manage your old age effectively
&
Legacy
Planning
• Legacy Planning
Birla Sun Life Insurance Company Limited
Copyright © Birla Sun Life Insurance Company Limited 2008
Strictly for internal training purpose only
14
Profile of prospective customers for Vision
Families like us in different age groups
looking for
• Guaranteed returns
• Customer who have set objectives to
meet without volatility in returns
• Looking for cover beyond an insurable
age in any other insurance plan
• Legacy for family
• Invest in Debt funds too
Birla Sun Life Insurance Company Limited
Copyright © Birla Sun Life Insurance Company Limited 2008
Strictly for internal training purpose only
15
Retirement Planning
Ashwin is 35 years of age and is planning to pay around 50K for
30 years and wants a lump sum corpus at age 65
S.A. =
Rs.15,00,000/-
Premium paid
= Rs. 50,000X 30 yrs
= Rs. 1500000
Client
age 35
•
•
Age 65
Death at
age 75
GSB Term = 30 years
Policy
terminates
Survival benefit at
end of GSB term
= Rs. 78,58,800*
S.A = Rs. 15,00,000
for ENTIRE LIFE
•
Age 100
NO NEED TO PAY PREMIUMS
AFTER AGE 65.
* As per AMS ver 1.22 @ 10% p.a
Birla Sun Life Insurance Company Limited
Copyright © Birla Sun Life Insurance Company Limited 2008
Strictly for internal training purpose only
16
Children Future Planning:
Client age 30 with premiums pay term and GSB term of 22 yrs
Vision Plan with WOP rider & Protector +
Parents
age 30
Premium paid for Protector+ for SA of 50,00,000
Term 22years
= Rs. 7,997 X 22 yrs
= Rs. 1,75,934
Premium paid for Vision
= Rs. 33,111 X 22 yrs
= Rs. 7,28,442
GSB Term 22 years
Child
age 1
year
Amount received = Rs 8,00,000 (S.A)
on Death OR Maturity
•
•
Parent Age 52
Child Age 23
If parents death occur
all further premiums will be waived plan continues &
family gets SA of 50,00,000
Age
100
Policy
terminates
Survival benefit at
end of GSB term
= Rs.19,76,660 *
Life Cover of 8,00,000
Annual
premium
Sum Assured
Term
Total you Pay
Maturity
Vision
33111
8,00,000
22
728442
1976660
Protector+
7997
50,00,000
22
175934
0
904376
1976660
Birla Sun Life Insurance Company Limited
Copyright © Birla Sun Life Insurance Company Limited 2008
Strictly for internal training purpose only
17
* As per AMS ver 1.23 @ current rate
Legacy Planning
Ashwin is 45 years of age & plans to leave a Legacy of 1cr for his family
BSLI Vision
Survival Benefit
= Rs. 13,620,000
Premium paid
= Rs. 1,891,076 X 7 yrs
= Rs. 13,237,529
Client
age 45
Term = 7 years
•
•
Age 100
Age52
SA = Rs. 1,00,00000
SA of Rs. 1 crore paid
in case of
death/maturity
Birla Sun Life Insurance Company Limited
Copyright © Birla Sun Life Insurance Company Limited 2008
Policy
terminates
Strictly for internal training purpose only
18
Legacy Planning – For a retail customer
Ankur is 35 years of age & plans to leave a Legacy of 2.5 lacs for his family
BSLI Vision
Survival Benefit
= Rs. 3,31,000/Premium paid
= Rs. 44,587 X 7 yrs
= Rs. 3.12.109/-
Client
age 35
Term = 7 years
•
•
Age 100
Age42
SA = Rs. 250000
SA of Rs. 250000
paid in case of
death/maturity
Birla Sun Life Insurance Company Limited
Copyright © Birla Sun Life Insurance Company Limited 2008
Policy
terminates
Strictly for internal training purpose only
19
Birla Sun Life Insurance Company Limited
Copyright © Birla Sun Life Insurance Company Limited 2008
Strictly for internal training purpose only
20