START-UP OPPORTUNITY

AS LIC ADVISOR

Under Mentorship of:

HARIKRISHNA MANDALI

Development officer

LIC of India, C.B.21

Barkathpura, Hyderabad

MOBILE NO:9347275063

E-MAIL: harikrishna_m@hotmail.com

Start Up Opportunity

as LIC Advisor

What is LIC’s Start–Up Opportunity ?

• I t i s an Exc lus ive Career opportunity provided by LIC of India to Fresh Graduates, Post Graduates and MBAs to become an Entrepreneur.

• It is a Premier Agency Channel (like Nexa of Maruti Suzuki Ltd).

• You are expected to deal with Upper Middle Class and High Net worth Individuals.

• You will also deal with Corporates for Business Insurance.

What is LIC’s Start–Up Opportunity ?

• I t i s a f u l l t i m e E n t r e p r e n e u r s h i p

Opportunity.

• Your earnings during 1st year itself will be Rs-

25,000 to Rs-2,00,000 per month provided

you perform all the mandatory activities

required .

• Your earnings by the end of 3rd Year will be

Rs-1,00,000 to Rs- 8,00,000 per month or

even above depending on your capabilities.

Introduction

and

Job Profile

Introduction• LIC advisor is the person who provides advice

on Life Insurance Planning to people to protect their family from unexpected events of death and disability and also advice for their own retirement. It is a noble profession indeed.

• LIC advisor also contributes to economic development of the country. As the money collected towards life insurance premium goes towards Nation Building Activities e.g: Roads, Rai lways, Ports, Bridges, Water supply, Electricity, Housing etc.

Job Profile of LIC Advisor

The main job of LIC Advisor involves:• Prospecting:

Identifying the prospective customers and fixing appointment.

• Need Analysis:

Identifying the needs and getting the prospect agree that need exists. (i.e. Fa mi ly In come Prov i s io n, Ch i l dre n Education and Marriage Provision or Retirement Income Provision.)

Job Profile of LIC Advisor

• Plan Presentation:

Suggesting suitable plans that fulfil the needs as agreed by the prospect.

• Closing the Sale:

Convincing the prospect that you have suggested the best possible solution for his needs and ask for the order.

• After Sales Service:

Provide efficient after sales service and claims settlement.

Attributes You Should Possess

To become Successful LIC Advisor:• You should be outgoing and love to meet

people.• You should be ambitious to start your own

Business.• You should have Good Communication Skills.• You should have lot of Perseverance. • You should be willing to work hard with lot

of Dedication and Devotion. • You should be prepared to accept rejections

as stepping stone.

Benefits of LIC Advisor's

Profession as a Start-Up

• LIC advisor’s profession is considered today as the highest paid profession in the world.

• You have freedom to set your own working hours.• You have the opportunity to earn as per your potential.• Less Capital Investment:

LIC Advisor profession provides you the opportunity to go for Start-Up without much Capital Investment.

• Royalty Income / Hereditary Income : Writers & Singers get Royalty income for life time for job done only once. Similarly LIC advisors also gets Royalty Income for life time for Sale made once. This royalty income is payable to your legal heirs in event of your death any time.

Benefits of LIC Advisor's

Profession as a Start-Up

• Job gets Easier & Less Demanding as Business Grows: As this is Business of Relat ionship and Good Customer Service. Once you have trusted customer base, you will get repeat Business and Referrals. Of course you have to work very hard during initial years to create trusted customer base.

• You can Pass this Business to your next Generation as a legacy:

With established customer base, it will be smooth transition of Business for your children to continue your legacy.

Market

Potential

Market Potential

1. Indian Insurance Market:• It is one of the least Insured Market in the world.

• Out of total insurable population only 40% are covered till today.

• These 40% also are also not adequately covered.

• Only 20% of total agency force is working as Professionals, and these 20% brings 80% of total life Insurance business.

We w i l l h e l p b u i l d y o u r c a r e e r a s a professional advisor and make sure that you will be among these top 20% agents.

Market Potential

2. Growth Opportunities:

a. Low Insurance Penetration.

b. Low Insurance Density.

c. Low share of world premium.

d. High per capita Savings.

e. Increase in working population.

f. Growth in personal Income.

g. High Consumer Awareness.

h. Strong LIC brand.

Market Potential

a. Low Insurance Penetration:

• Insurance penetration is measured by

Premium as a percentage of GDP.

• We w i l l c o m e t o k n o w a b o u t t h e

p o t e n t i a l w h e n w e c o m p a r e t h e

difference in penetration level in India

with other countries of the world.

Source: Swiss Re, Sigma 03/2018

CountryPenetration

(%)

Taiwan 17.89

Hong Kong 14.58

South Africa 11.02

Finland 8.70

Denmark 7.46

UK 7.22

South Korea 6.56

Japan 6.26

Italy 6.20

India 2.76

China 2.68

The penetration level in

India for the year 2017-

18 is 2.76% i.e. about

1/6th of Taiwan,

1/4th of South Africa and

44% of Japan.

The above figures show

that there is tremendous

potential available in

I n d i a t o m a t c h t h e

f i g u re s o f A s i a n a n d

other countries of the

world.

Market Potential

b. Low Insurance Density:

• I n s u ra n c e D e n s i t y i s t h e rat i o o f

premium to total Population.

• We w i l l co m e to k n o w a b o u t t h e

p o t e n t i a l w h e n w e c o m p a r e t h e

difference in Insurance Density in India

with that of other countries of the world.

Source: Swiss Re, Sigma 03/2018

CountryDensity in

USD

Hong Kong 6756

Denmark 4215

Taiwan 4195

Finland 3870

Singapore 3835

UK 2873

Japan 2411

South Korea 1999

USA 1674

China 225

India 55

World Average 353

Insurance Density for the year 2017-18 in India is just 13% of the world average, 25% of China and only 0.8% of Hong Kong. There is huge potential available just to reach the world average and f igures of As ian and other countries.Potential is phenomenal.

World Market Share of

Premium of India for the

year 2017-18 is just 2.76%

i.e. about 25% of China

and Japan.

Looking at the very low

volume of life insurance

premium of India, we can

a s s e s s t h e a v a i l a b l e

potential of Indian Life

Insurance Market.

Source: Swiss Re, Sigma 03/2018

Market Potentialc. Low Volume of Life Insurance Premium:

Rank CountryMarket Share

1. USA 20.58%

2. China 11.95%

3. Japan 11.56%

4. UK 7.14%

5. France 5.78%

6. Italy 4.29%

7. South Korea 3.87%

8. Taiwan 3.71%

9. Germany 3.65%

10. India 2.76%

Market Potential

d. High per capita Savings:

• Indian People are good savers. For the year 2016-17 Indian Gross household saving in financial sector is 10.90% of GNDI (Gross National Disposable Income – Income available for consumption and saving)

• The share of life Insurance premium was 17% of gross house hold savings.

(Source: RBI Annual Report 2016-17).

Above Saving Habits of Indians Shows that People Believe more in LIC for Savings.

Market Potential

Report on the savings pattern states that:

83% save for emergencies,

81% for Children’s education,

69% for old age,

63% to meet future expenses towards marriages,

birth and social ceremonies.

Savings for Child Education / Marriage / Retirement

etc. requires long term savings which is guaranteed

by savings in life Insurance products.

Market Potential

e. Increase in working-age population:

• India has about 50% of young population at present i.e. age group 20 to 49 years. This is expected to grow to 65% by the year 2020.

• Research by Morgan Stanley shows that India’s working-age population will increase by 136 million by 2020. (China’s working-age population, by comparison, will grow by 23 million.)

T h e ex p e c te d i n c re a s e i n yo u n g w o r k i n g population shows the potential available in India for Life Insurance Business.

Market Potential

f. Growth in personal Income:As per World Economic Forum report 2016:

• India is the world’s fastest growing large economy, having outpaced China.

• The middle class is growing at breakneck speed and will one day overtake the rest of the world. It has already reached 60 Crores. So half the population is middle class.

• Number of households with disposable income of more than Rs - 6 lacs has increased from 2 Crores to 5 Crores from 2006 to 2015.

• Indian household savings rate have also tripled in last 8 years from 2005.

• As per PWC report Average wages of Indian wi l l Quadruple from 2013 to 2030.

Market Potential

g. High Consumer Awareness:• Splitting of joint families, absence of social

security scheme and opening up of Insurance sector has contributed to increased awareness about life Insurance.

• Rigorous advertisement by 24 life Insurance companies has made people real ize about importance of Life Insurance.

• The total First year Premium of life insurance industry has increased from 9,707 Crores in the year 2000-2001 to 1,93,865 Crores in the year 2017-18, showing a compounded annual growth of 19.26% during last 17 years.

Market Potential

h. Strong LIC Brand: • You will be associated with one of the leading

Life Insurance Company of the world.

• The brand image of LIC of India is huge,

people in India identifies life Insurance as LIC

only.

• Brand Value of LIC is ` 30,00,000 Crores, and

you will be using that brand on your card.

Thus selling life Insurance policies for

LIC of India is much easier.

Market PotentialMarket Share of LIC of India as on 31/03/2018 is as under:

The above figures shows dominance of LIC of

India even after 18 years of opening of the

Insurance sector to private companies.

First Year

Premium

in Crores

Market

Share

Number of

Policies

Market

Share

LIC of India 1,34,551 69.40% 2,13,38,176 75.67%

All 23 Private Companies 59,314 30.60% 68,60,615 24.33%

Total 1,93,865 2,81,98,791

Market Potential Summary• The least Insured life Insurance Population,

• Small number of Professional Agents,

• Low Insurance Penetration and Density,

• Low Volume of Life Insurance Premium,

• High rate of personal savings,

• Young working population,

• Burgeoning Middle and Higher income class,

• Rising Insurance awareness and

• Strong Brand image of LIC of India

All these positive aspects provide you with tremendous opportunity to build your career as a Professional LIC advisor.

Remuneration

and

Other Benefits

Remuneration

• Remuneration will be paid to you in the form of Commission as percentage of premium collected through the policies sold by you.

• It is not a one time commission on a sale made by you.

• It provides you the royalty income through out the term of policy. As long as policyholder pays the Premium you will get the commission.

• Moreover this commission is hereditary i.e. it will be paid to your nominees even after your death.

Remuneration

The Commission rates on majority of regular premium policies are as under:

• First year Commission : 25% of Premium

• Bonus Commission : 40% of first year commission.

• Renewal Commission:

2nd and 3rd Year of Policy : 7.5% of Premium 4th year onwards : 5% of Premium

Total Commission for 15 years Policy : 110% of Premium

Total Commission for 20 years Policy : 135% of Premium

Total Commission for 25 years Policy : 160% of Premium

Club Memberships

C l u b M e m b e r s h i p i s t h e

recognition bestowed upon the

agents to increase their status in

t h e s o c i e t y a n d i n t h e

Corporation.

It also gives fringe benefits over

and above commissions.

Club Memberships

Following are the levels of club membership

for this premier channel depending up on

the Business performance:

ClubRequirement

First year Commission

Galaxy Club 10 Lacs each for 2 years

Corporate Club 18 Lacs each for 2 years

Club Memberships

Following fringe benefits are given over and above the commissions’ payable:

1. Office Allowance to maintain your own office.

2. Telephone/Mobile bill reimbursement.

3. Reimbursement of Sales Promotional Gift items.

4. Interest free advance for purchase of Car - 10 lacs to 30 lacs.

5. Interest free advance for purchase of office equipments.

6. Interest free advance for Training.

Club Memberships

7. Interest free Festival Advance.

8. Housing loan at concessional rate of interest - from 50lacs to 60lacs .

9. Term Insurance and Mediclaim benefits.

10. Guest house facility throughout India at concessional rates as applicable to employees.

11. Annual Convention

Club Memberships

The total monetary equivalent

of all above benefits will be as

under:

Galaxy Club - Rs- 4,30,000

Corporate Club - Rs- 6,20,000

Gratuity

Advisors are entitled to get the gratuity

at age 60/65 years after serving for

minimum 15 years.

At present the Maximum Gratuity

amount payable is ` 3,00,000.

International

Recognition from MDRT• Founded in 1927, the Million Dollar Round Table

(MDRT), The Premier Association of Financial Professionals, is an international, independent association of nearly 36,000 of the world's leading life insurance and financial services professionals from more than 430 companies in 78 countries.

• M D R T m e m b e r s d e m o n s t r a t e e x c e p t i o n a l professional knowledge, strict ethical conduct and outstanding client service.

• MDRT membership is recognized internationally as the standard of sales excellence in the life insurance and financial services business.

International

Recognition from MDRT

• To qualify for the membership of

MDRT, agents have to earn the

prescribed First Year Commission

excluding the Bonus Commission

OR brings prescribed First Year

Premium during the Calendar year.

There are three levels of Membership with criteria for MDRT 2019:

International

Recognition from MDRT

Sr.

No.Membership Criteria

First Year Commission

without

Bonus

First Year Premium

1. MDRT Basic ` 9,34,400 ` 37,37,600

2. Court of the Table- COT 3 Times MDRT

` 28,03,200 ` 1,12,12,800

3. Top of the Table -TOT6 Times MDRT

` 56,06,400 ` 2,24,25,600

Through our training process we

wil l make sure that you wil l

qualify for MDRT / TOT by the

end of 3rd year of your agency.

International

Recognition from MDRT

Activities and Business

Requirements as per

your income target

Premium Requirement for Your Expected

Income of 1,00,000 per month within 3 years time.

Year

Expected New

Premiumper Month

Expected New

Premium per annum

Expected Income

1st year 2nd year 3rd year 4th year 5th year

1st 1,00,000 12,00,000 4,20,000 90,000 90,000 60,000 60,000

2nd 2,00,000 24,00,000 8,40,000 1,80,000 1,80,000 1,20,000

3rd 3,00,000 36,00,000 12,60,000 2,70,000 2,70,000

4th 4,00,000 48,00,000 16,80,000 3,60,000

5th 5,00,000 60,00,000 21,00,000

TOTAL 4,20,000 9,30,000 15,30,000 21,90,000 29,10,000

Monthly 35,000 77,500 1,27,500 1,82,500 2,42,500

MDRT

MDRT &

Galaxy

Club

MDRT &

Galaxy

Club

Basic Requirements for

1,00,000 Income

• Laptop with Printer

• Software

• Smart Phone

• Two wheeler/Car

Premium Requirement for Your Expected

Income of 8,00,000 per month within 3 years time.

Year

Expected New

Premiumper Month

Expected New

Premium per annum

Expected Income

1st year 2nd year 3rd year 4th year 5th year

1st 5,00,000 60,00,000 21,00,000 4,50,000 4,50,000 3,00,000 3,00,000

2nd 10,00,000 1,20,00,000 42,00,000 9,00,000 9,00,000 6,00,000

3rd 20,00,000 2,40,00,000 84,00,000 18,00,000 18,00,000

4th 30,00,000 3,60,00,000 1,26,00,000 27,00,000

5th 40,00,000 4,80,00,000 1,68,00,000

TOTAL 21,00,000 46,50,000 97,50,000 1,56,00,000 2,22,00,000

Monthly 1,75,000 3,87,500 8,12,500 13,00,000 18,50,000

MDRT

COT and

Galaxy

Club

TOT and

Corporate

Club

Double TOT

& Corporate

Club

3 times TOT

&

Corporate

Club

Basic Requirements for

8,00,000 Income

• Own Office

• Office Assistants

• Four wheeler with Driver

• Laptop with Printer

• Software

• Smart Phone

Activities Required

Following Activities are Mandatory for any

income level:

• Attend Training Sessions Regularly.

• Preparing Prospect list of at least 100 People.

• Meeting at least 4 Prospects Daily.

• Writing Daily Activity Report and Preparing

weekly summary.

• Attend Weekly Review Meetings.

About Us

About Us

• You will be trained by HARIKRISHNA MANDALI, Deve lopment of f icer, L IC of Ind ia , C .B .21 , BARKATHPURA, HYDERABAD

• Training of agents is his main forte for LIC agents.

1. Induction Training

2. Underwriting Rules

3. Jeevan Umang

4. Bima Shree & Jeevan Shiromani

About Us

He is committed to create a team of Young Entrepreneurs and make a difference in their lives.

Our Mission

Support from our side

• You wi l l be t ra ined on Need Based Se l l ing

techniques.

• Your activities will be monitored regularly to insure

that you achieve your desired target on time.

We will make sure that your income will be

around Rs-1,00,000 to Rs-8,00,000 per month

within 3 years time.

Selection

Process

Selection Process

• Fill up the application form.

• Appear for Personal Interview.

• After selection you have to undergo Induction Training once in a week spread over one month and complete assignments given.

• Passing of IRDA Examination.

• Issue of Appointment Letter By LIC of India.

• You wi l l be attached to L IC of India C .B.21, Barkathpura, Hyderabad - 500027.

Fees Payable

Fees: • ` 150 Registration Fees.

• ` 500 IRDA Examination Fee.

• ` 200 for Study material

Total: ` 850

This Opportunity is for Only Selected People.

THANK

YOU