Reliance Life Insurance New Product Launch - Analysis. Innovation & Market Research

Transcription

1 Life Insurance New Product Launch - Analysis Innovation & Market Research

2 List of Products Guaranteed Money Back Plan Cash Flow Money Multiplier Classic Life Classic Plan II

3 Guaranteed Money Back Plan *N Non Participating i i Money Back kplan * Min/ Max Entry Age: 18 /60 Years (Max Maturity Age: 75 Years) * Policy Term : 15 and 20 Years ; PPT : 5 /7 /10 Years or Policy Term * Min/ Max Sum Assured : Rs 50,000 / No Limit * Death Benefit Sum Assured * Survival Benefit Spread over last 5 policy Ys (15%, 15%, 15%, 15% & 40% ) + Guaranteed Loyalty Additions & Guaranteed Maturity Additions * Guaranteed Loyalty Additions : 2% SA every Year * Guaranteed Maturity Additions : 15 Y Term: 15% SA ; 20 Y Term: 20% SA * Inbuilt Accidental Death Benefit Rider (upto Rs 50 L) * Premium Mode Rebates * 3 Optional Riders * High Sum Assured Rebate NEXT

4 Smart Money Back Vs Guaranteed Money Back SBI Life- Smart Money Back Guaranteed Money Back Plan Participating Money Back Plan Non Participating RP / SP Regular Premium RP / LPPT Option 1(12 Y Term) Ys Min. / Max. Entry Option 2(15 Y Term): Ys 18 / 60 Years Age Option 3(20 Y Term): Ys Option 4(25 Y Term): Ys Max. Age at Maturity 70 Years 75 Years Policy Term 12/15/20/25 Years 15/20 Years Premium Payment Term Policy Term 5 /7 /10 Years or Policy Term Min. / Max. Sum Assured Rs. 75,000/No Limit Rs 50,000 / No Limit Maturity / Survival Benefit Option Total Survival Benefit 1 110% SA+VB 2 115% SA+VB 3 120% SA+VB 4 125% SA+VB 100% SA + Guaranteed Loyalty Additions & Guaranteed Maturity Additions Death Benefit Full SA + Vested Bonuses + Terminal Bonus Sum Assured Additional Units / Guaranteed None Guaranteed Loyalty Additions : 2% SA every Year * Guaranteed Maturity Additions : Additions 15 Y Term: 15% SA ; 20 Y Term: 20% SA Riders 3Riders 4 Riders (1 In-built) Rebates High Sum Assured * Premium Mode Rebates *Hi High hsum Assured drebate Age Illustration Comparison Smart Money Back Guaranteed Money Back 6% 10% Non Participating 30 Years SA Rs 5,00,000 Term & PPT 15 Years Premium Rs 42,935 pa Rs 41,026 pa Additions Rs 1,68,750 Rs 3,18,750 Rs 2,25,000 Total Survival Rs 7,43,750 Rs 8,93,750 Rs 7,25,000 Benefits IRR 2.48% 5.30% 2.32% Smart Money Back Participating Plan giving better additions to Total Survival Benefits More Policy Term Options Better Premium Payment Options

5 Money Back Vs Cash Flow SBI Life Smart Money Back Plan Type Participating Participating Cash Flow Min./Max. Entry Age Option 1(12 Y Term) Ys Option 2(15 Y Term): Ys Option 3(20 Y Term): Ys Option 4(25 Y Term): Ys 16/63 Years Policy Term 12/15/20/25 Years 7/10/13/16/19/22/25/28/31/34 Years Min. / Max. SA Rs. 75,000/No Limit Rs 25,000/No Limit Total Survival Benefit Option Total Survival Benefit 1 110% SA+VB 2 115% SA+VB 3 120% SA+VB 4 125% SA+VB 4th Anniversary & every 3rd Y thereafter (additional bonus with final payout) [each cash flow equals to SA/no of payouts to be made] Death Benefit Full SA + Vested Bonuses + Terminal Bonus Full SA+ Accumulated Bonus Riders 3Riders 2 Riders Rebates High Sum Assured High SA

6 Money Multiplier * Non Participating Regular Premium Endowment Plan * Min/ Max Entry Age: 18 /65 Years * Policy Term : 10/ 15/ 20 Years *Li Limited i dpremium Payment Term : 7/10 /15 Years (For respective term) * Min/ Max Sum Assured : Rs 50,000/ No Limit * Guaranteed Loyalty Additions : End of each policy term (1% * Xth * Basic Sum Assured) * Guaranteed Maturity Additions : 1% * Policy Term * Basic Sum Assured * High Sum Assured Rebates * 4Riders 4 Riders

7 Saral Maha Anand Vs Classic Life Unit Linked Rli Charge Comparison Saral Maha Anand Classic Life Portfolio Strategy 1 1 Policy Term 10/15/20 Years 15 to 30 Years Min Premium Y: Rs 15,000/- (Y/HF/Q/M ) Max Premium Y: Rs 29,000/- No Limit Rider Options Guaranteed Additions Premium Allocation Charge Accidental Death Benefit Linked Y End % of AP 10 5% 15 10% 20 15% Y 1 : 6.25% ; Y 2-5 : 3.75% ; Y 6-10 : 3.00% Y 11 + : Nil RP : Rs 20,000/- SP : Rs 50,000/- (Y/HY/Q/M/SP) 3 Riders None Y 1: 7% ; Y 2-4: 6% Y 5-10: 5.5% ; Y 6+ : 5% ;SP : 2% Policy Admin Charge Rs 33.33/- pm SP : Rs 40/- pm 13,250 6,000 7,250 16,600 16,600 Policy Administration Charge Premium Allocation Charge Assuming : Annualized Premium as Rs 20,000/ ; Sum Assured as Rs 2,00,000/ Term : 15 Years Fund Value & IRR Comparison 3.89% 412, % 393, % 576, % 552,739 Commission Y 1 : 6% Y 2 5: 2.75% Y 6-10 : 2% Y 11 onwards : 1% Y 1: 6% Y 2 + : 2% SP : 1% Fund 6% Fund 10% 7

8 Classic Plan II * Unit linked Plan with dual benefit of market linked return and insurance protection * Min/ Max Entry Age: 7 /60 Years (Max age at maturity:75y), * Premium(Min/Max): Rs 15,000/No limit; Policy Term : 15 to 30 Years ; PPT : Policy Term/SP * Min Sum Assured: Higher of 10/7 times AP (depending on age) * Max Sum Assured : 20 to 30 times AP depending on age * Death Benefit higher of SA or FV. (if death is due to accident or before age 65: additional SA paid) * Survival Benefit FV * Policy Admin Charges: RP: Rs 40/-pm from 6 th Y ; SP: Rs 40/- pm throughout * Premium Allocation Charges: RP: 1 Y: 8%, 2-5 Y: 5.5%, 6-9 Y: 5%; 10 Y onwards: 3% ; SP & Top Up : 2% * Riders: Inbuilt Accidental Death Benefit Rider, Term Rider, Family Income Benefit rider, CI rider, Surgical benefit rider * Exchange Option: After completing five years, policy benefits can be transferred to another plan, or vice versa.

9 Saral Maha Anand v/s Classic Plan II SBI Life- Saral Maha Anand Classic Plan II Plan Non Participating Non Participating RP / SP Regular Premium RP/SP Min. / Max. Entry Age 18 /55 Y 7/60 Y Max. Age at Maturity 65 Years 75 Years Policy Term 10/15/20 Years 15 to 30 Years Premium Payment Term Policy Term Policy Term/SP Min. Sum Assured Min: 10/7 * AP or 0.5/0.25 * Higher of 10/7 times AP or ½ / Term * AP ¼ policy term (depending on age) Min/Max Premium Rs 15,000/Rs 29,000 Rs 15,000/ No Limit Maturity / Survival Benefit FV Death Benefit Higher of SA or FV Higher of SA or FV Premium Allocation Charge Policy Admin. Charge Additional Units / Guaranteed Additions Y 1 : 6.25% ; Y 2-5 : 3.75% ; Y 6-10 : 3.00% Y 11 + : Nil Rs 33.33/ 33/- pm At end of Y 10: 5% At end of Y 15: 10% At end of Y 20: 15% FV RP: 1 Y: 8%, 2-5 Y: 5.5%, 6-9 Y: 5%; 10 Y onwards: 3% ; SP & Top Up : 2% RP: Rs 40/-pm from 6 th Y ; SP: Rs 40/- pm throughout Riders ADB rider 4 Riders (1 In-built) -- 15,065 Charge Comparison 6,000 9,065 Policy Admin charge 3.69% 21,800 4,800 17,000 premium allocation charge Assuming : 15 Y Term ; AP of Rs 25,000/- & SA of RS 5,00,000/- Fund Growth & IRR Comparison 507, % 481, % 710, % 676,791 Fund 6% Fund 10%