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New Jeevan Anand

J D Chandrapal

CII (Award)London, MBAmarketing , PGDHRM, P HD Scholar Development Officer

- LIC of IndiaAhmedabad - 9825070933

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The Market-Place Today

Growing Investment service Segments

Driven Market = Price=Value=Quantity=Quality

Investment Trends

Marketing Campaigns

Customer Service = 24/7 Service Facilities

Value Expectation = Quality Products, Reliable

Service, On time Delivery,

Fair valueJ

D

Chandrapal-D

evelopm

entOffic

er-LIC

ofIndia

-Ahm

edabad

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The Market Needs

Security

Reduced Liability

Liquidity and Flexibility

Short / Mid Term Financial Planning

Risk Coverage During the Investment

Simplified User Friendly Process

Asset Management

J

D

Chandrapal-D

evelopm

entOffic

er-LIC

ofIndia

-Ahm

edabad

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Features . . . . .

Particulars Minimum Maximum

Entry Age of Life

to be Assured

18 yearsCompleted

50 years (NearerBirth Date)

Age at Maturity - 75 years

Term 15 years 35 years

Sum Assured

Rs. 100,000/and in multiple of

5000

No Limit(Depending upon

Income)

J

D

Chandrapal-D

evelopm

entOffic

er-LIC

ofIndia

-Ahm

edabad

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Features . . . .

Particulars Conditions

Premium Payment

mode

Yearly, Half-yearly, Quarterly,

Monthly (ECS & SSS)

Rider

Accident benefit allowed up

to Total Sum Assured of Rs.

50,00,000/-

Modes Allowed Yearly, Half Yearly, Quarterly,Monthly (ECS & SSS)

Age Proof Standard or NonStandard

Proof allowed.

J

D

Chandrapal-D

evelopm

entOffic

er-LIC

ofIndia

-Ahm

edabad

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Features . . . .

Particulars ConditionsFemale Category I, II & III Allowed.

NonMedical Scheme NMGNMSNM (Professional) Allowed.

Surrender Allowed at any time, till death Provided

premiums for Atleast Three Full Years

have been paid. - The Higher of

Guaranteed Surrender Value and Special

Surrender Value payable.

Policy Loan Allowed at any time before or after PPT.

Provided premiums for Atleast Three Full

Years have been paid. Subject to Certain

ConditionJ

D

Chandrapal-D

evelopm

entOffic

er-LIC

ofIndia

-Ahm

edabad

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Features . . . .

Mode Rebate

Yly 2 of Tabular Premium

Hly 1 of Tabular Premium

High Sum Assured Rebate

Up to 195,000 NIL

200,000 to 495,000 2% of Basic Sum Assured

500,000 & above 3% of Basic Sum Assured

J

D

Chandrapal-D

evelopm

entOffic

er-LIC

ofIndia

-Ahm

edabad

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Features . . . .

Particulars Conditions

Revival Period 2 years from FUP

Foreclosure Not for fully paid

up and in forcepolicies even if there is default of loan

interest.

No change for Dating Back, Grace Period, Paid up

value and Assignment/ Nomination.

Service Tax To Be Borne By Policy Holder (1stYear

3.09 and Subsequent Years 1.54 )

J

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Chandrapal-D

evelopm

entOffic

er-LIC

ofIndia

-Ahm

edabad

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Benefits .

Maturity Benefit

Basic Sum Assured + Bonus + F A B

At the end of selected Premium Paying Term.

Additional Risk Cover equal to Basic Sum Assured willcontinue which is payable only on death.

J

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Chandrapal-D

evelopm

entOffic

er-LIC

ofIndia

-Ahm

edabad

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Benefits . . . .

Natural Death

During Premium Paying Term After Premium Paying Term

S A on Death + Bonus + FAB if any

Sum Assured on Death shall not be lessthan 105% of total premiums.

S A on Death shall be Higher of ~ 125% of

Basic Sum Assured (1.25 x BSA)

OR

10 times Annual Premium.(10 x AP).

Basic Sum Assured

Accidental Death Up to age 70)

Double the Basic Sum Assured +

Bonus+ F.A.B. If any

Double the Basic Sum

Assured

J

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Chandrapal-D

evelopm

entOffic

er-LIC

ofIndia

-Ahm

edabad

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Benefits . . . .

Double Accident Benefit

AB Premium shall be @ Rs.1.00 and for Police Duty @

Rs. 1.50%0

Minimum Accident Benefit Sum Assured (ABSA) Rs.

100000 and there after in multiples of 5000

Rs.50 Lakh overall limit, taking into account ABSA under

all existing policies, i.e. Individual, Group and New

proposals. The policies may be from LIC or any other

insurance company.

ABSA will be available up to age 70 onlyJ

D

Chandrapal-D

evelopm

entOffic

er-LIC

ofIndia

-Ahm

edabad

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Selling Propositions

Brand Name of the New Plans have not been changed only word

NEW is added

Death Benefit Increased to 125%

Double Accident Benefit as Optional Rider up to Total limit of 50

Lakh

Foreclosure Removed

SA Rebate Increased

Surrender Value Factor Increased

Suicide in 1styear80% of Premium Paid Refunded

Flexibility in determining beneficiaries in event of death

J

D

Chandrapal-D

evelopm

entOffic

er-LIC

ofIndia

-Ahm

edabad

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Old vs. NewPremium Comparison

SA 5 Lac Mode-YLY Term 20 Years

Age 149 815

Difference

W/O ServiceTax

%

ChangePremium

Basic

Premium

DAB

Premium

Service

Tax

Total

Premium

18 25828 26582 500 837 27919 1254 4.86

30 27550 28174 500 886 29560 1124 4.08

40 29975 30551 500 959 32010 1076 3.59

50 33515 34740 500 1089 36329 1725 5.15

J

D

Chandrapal-D

evelopm

entOffic

er-LIC

ofIndia

-Ahm

edabad

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Old vs. NewPremium Comparison

SA 5 Lac Mode-YLY Term 25 Years

Age 149 815

Difference

W/O ServiceTax

%

ChangePremium

Basic

Premium

DAB

Premium

Service

Tax

Total

Premium

18 19523 20285 500 642 21427 1262 6.46

30 20978 21657 500 685 22842 1179 5.62

40 23112 23936 500 755 25191 1324 5.73

50 26410 27978 500 880 29358 2068 7.83

J

D

Chandrapal-D

evelopm

entOfficer-LIC

ofIndia

-Ahm

edabad

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Unique Selling Propositions

Increased Profitability of the Product due to precise

segment of age group between

18to 50years. And

Paying Service Tax separately so it wouldnt have any

cost bearing on the returns

And World Famous Punch Line

,JD

Chandrapal-D

evelopm

entOfficer-LIC

ofIndia

-Ahm

edabad

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Are You Afraid of Premium Hike

Dont be lured by low premium, check Companys

settlement record too. - Economic Times Bureau | 16 Jan, 2014

As a customer, claim settlement ratio is your bottom line while

choosing an insurance company not always a premium rate.

claim settlement ratio in plain words this number tells chances of

your policy paying you if you make a claim.

Claims settlement ratio, along with related data, is the only

objective yardstick for the consumer to determine which

insurance company is preferable and more reliable.- Jehangir Gai - Consumer activist

LIC's claim settlement better than private insurers - IRDA

Determine the cost effectiveness of any insurance product one

has to look at the claim settlement ratio of the company and

economies of scale too.JD

Chandrapal-D

evelopm

entOfficer-LIC

ofIndia

-Ahm

edabad

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Claim Settlement -Fact Sheet

Source IRDA Annual Report2012 - 13

J

D

Chandrapal-D

evelopm

entOfficer-LIC

ofIndia

-Ahm

edabad

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IRDA - Annual Report for 2012-13

IRDA has just published its annual report for 2012-13 and as insurance

buyers, claim ratios have been of particular interest to a lot of people. Here

is a brief summary of claim settlement ratios for companies in 2012-2013: Most of the companies have maintained their claim ratios around previous

year.

Aegon Religare( a major player selling term insurance) remains one of the

lowest with 66.87% claim ratio. Other low claim ratio companies are DLF

Primerica ( 27%), India First, Future Generali( 70.5%), Edelweiss Tokio

(45%) etc.

Max Life has shown big improvement from 89% to 94%

HDFC Life, SBI Life and ICICI Prudential have maintained their claim ratios

around 95%

Bharti Axa has moved up few percentage points to 89% while Aviva has

dropped a few percentage points to 87%

Birla SunLife, Tata AIAs and Reliance Life remain around 83-85% when it

comes to claim ratio.

LIC remains the best in claim ratio with claim ratio of 97.7%!( This is the

gold standard every private insurer should beat!)

This again proves the point that good companies will have a consistent

record when it comes to claim ratios.JD

Chandrapal-D

evelopm

entOfficer-LIC

ofIndia

-Ahm

edabad

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