Life Insurance New Product Launch - Analysis Innovation & Market Research
List of Products Guaranteed Money Back Plan Cash Flow Money Multiplier Classic Life Classic Plan II
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
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) 14-58 Ys Min. / Max. Entry Option 2(15 Y Term): 14-55 Ys 18 / 60 Years Age Option 3(20 Y Term): 14-50 Ys Option 4(25 Y Term): 14-45 45 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
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) 14-58 Ys Option 2(15 Y Term): 14-55 Ys Option 3(20 Y Term): 14-50 Ys Option 4(25 Y Term): 14-45 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
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
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% 412,682 3.33% 393,657 7.80% 576,403 7.32% 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 Value @ 6% Fund Value @ 10% 7
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.
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 507,376 3.05% 481,097 7.63% 710,157 7.08% 676,791 Fund Value @ 6% Fund Value @ 10%