Understanding ULIPs and Mutual Funds

Investment for a longer horizon

Money invested as per IRDA Regulations.

Regulatory requirement to maintain a solvency margin.

Multiple fund options under one single plan.

No redemption pressure – premium lock for 3 years.

Make gains by switching funds (Book profits) without any short term capital gains

Provides Life Cover

Investment is fund specific

Is subject to high redemption Pressure

Depend on Daily fluctuation of the market

Over haul portfolio very often

During a bear market – a 100% Equity Fund cannot mitigate risk

Short term capital gains are taxable.

ULIP PLANS MUTUAL FUNDS

Investment plans

Life Insurance plans

Health Insurance plans

Pension plans

Child Education/Marriage plans

What you can sell?

• It is all about HEART

• It is all about RELATIONSHIPS

• It is all about BUILDING AWARENESS

• It is all about PATIENCE & PERSISTENCE

• It is all about THINKING LONG-TERM

• It is all about GETTING OFF-TO-FLIER

Investment business is all about…

• It is not about LOGIC

• It is not about HARD-SELLING

• It is not about SEASONAL CYCLES

• It is not about TANGIBLE

• It is not about SALES

Investment business is not all about…

Why Unit Linked Insurance Plan?

The average LIFE EXPECTANCY of

• Indian Men = 63.9 years (from 59.7 in 1991)

• Indian Women = 66.9 years (from 60.9 in 1991)

Most of the insurance companies are pricing their premium based on decade old mortality tables of LIC (since it has longer history of claims) and their own claim ratios. The mortality calculations were last revised in 1995-96.

Life Expectancy in India

Asset Allocation & Economic Cycle

Life Insurance Companies = Rs. 55,000 crore

Foreign Institutional Investors = Rs. 53,403 crore

Mutual Funds = Rs. 16,305 crore

Investments in Equity Market in FY 07-08

There are 2 types of health Insurance products now available in India

- Reimbursement Products

- Lump sum Benefit Products

Health Investor / Protector / First are Lump sum Benefit Product.

Example - Mediclaim

Can be used to pay additional expenses eg hospital related travel expenses, hospital stay for caretaker

You get what you have spent for the treatment.

The claim amount is likely to be more than the actual expenses incurred.

The claim amount is equal to or less than the actual expenses

Pays the full sum assured, regardless of the actual expense incurred.

You need to incur the expense, which will be reimbursed.

Lump sum Benefit Products Reimbursement Products

Health Insurance in India

Savings Rate of over 30% of GDP.

Nearly 40% of Household Savings in the form of Physical Assets (residential houses and white goods)

Gold and Jewellery is not included in the physical assets

Average household savings has gone up from 6.6% in the 50’s to 23.2% in 00’s.

Investments in financial products rose from 1.9% of GDP to 10.8%

The Premium foregone by Policyholders due to lapses was around Rs. 20,500 crore during 02-03 to 06-07.

The industry paid Rs. 20,000 crore in Insurance Commissions on new policies last year.

Income Tax Rates

What it takes to succeed

=

FHB (Features, How it works and Benefits)

Selling is based on the concept of FHB.

FF HH BB

What?What? It does.It does. For meFor me

If need is a problem statement, Benefit is the solution provided by the product

If need is a problem statement, Benefit is the solution provided by the product

Life Stage and needs at each stage

18-2518-25 25-3525-35 35-4535-45 45-5545-55 55…..55…..

• Money for purchase of small assets

• Money for purchase of small assets

• Money for purchase of house, assets, furniture, vehicle.

• Money for purchase of house, assets, furniture, vehicle.

• Money for providing children with a good primary education

• Money for providing children with a good primary education

• Money for child’s higher education

• Money for child’s higher education

• Money for child’s marriage.

• Money for comfortable retired life

• Money for child’s marriage.

• Money for comfortable retired life

Tata AIG Life has the right solutions to help customers achieve their goals.Tata AIG Life has the right solutions to help customers achieve their goals.

Protection and Savings.

Protection and Savings.

Protection and Savings.

Protection and Savings.

Protection and Investments.

Protection and Investments.

Protection and Investments.

Protection and Investments.

Protection and Pension.

Protection and Pension.

Living Benefits (protection from health and disabilities)

Living Benefits (protection from health and disabilities)

Objection vs. Query

A query is just a question about the

product. It is merely a request for more

information.

A query is just a question about the

product. It is merely a request for more

information.

An objection is anything the prospect says which causes a roadblock in closing

the sale.

An objection is anything the prospect says which causes a roadblock in closing

the sale.

ObjectionObjection Query Query

Understanding the difference is a key to Understanding the difference is a key to successful closingsuccessful closing

Understanding the difference is a key to Understanding the difference is a key to successful closingsuccessful closing