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Presentation on theme: "A PRESENTATION ON WEALTH PLUS (T-801)"— Presentation transcript:


2 5 biggest myths about stock markets & ULIPs

3 Myth No.1: How a typical share market works…

4 Fact: Well the functioning of a stock market is not as as weird as it appears With the arrival of Institutional Investors in the form of Mutual Funds and ULIPs the rules of the game are being rewritten, lending more sense into the share price movements

5 Investing in ULIPS , like stocks, is just gambling
Myth No.2 Investing in ULIPS , like stocks, is just gambling

6 Fact: While gambling is a zero-sum game i.e you take money from the loser and pay to the winner. Whereas in ULIPs it is a win-win situation where in both the investors and the company stand to benefit, provided you choose a reputed company with a proven track record. Of 169 companies listed in BSE since 2007 only 49 are trading in green and the rest 120 in red whereas all the ULIPs launched by LIC during the period have shown considerable appreciation.

7 Myth No. 3 Having just a little knowledge, because it is better than none, is enough to invest in the stock market

8 Fact: Half knowledge is a dangerous thing. A partially informed investor is about as effective as a partially informed surgeon; he or she will only hurt themselves and those around them. You need technical expertise to invest in stock market which is available to you in the form of ULIPs LIC being the largest investor in Indian Markets and with an investment spectrum spanning all the BSE-30 companies provides the best expertise to its investors

9 Myth No.4 ULIP returns are marginal and if we negate the spiraling inflation the returns are in negative.

10 Fact: Though many of the ULIPS confirm the above fact but there are ULIPs from reputed companies which defy the above logic. It’s a fact from a layman’s perspective that Gold as an investment has given the best returns in the last one year among all the investment options. But how many of us know that LIC’s Market Plus has given better returns than GOLD. Strange!?! But a fact…

11 An Investment of Rs /- each in Gold and Market Plus on would have yielded a return of Rs.37800/- from Gold (Return of 26%) and Rs.41799/- from Market Plus (Return of 39%) as on DATE GOLD RATE PER GM MARKET PLUS NAV 1-1-09 1250 9.56 1-1-10 1575 13.32

12 Myth No.5 We cannot catch both the head and the tail in a stock market

13 Fact: Unfortunately no one is able to predict the peak and the nadir of stock markets. LIC is the major investor and stabilizer in case of a major fall in stock markets but we have not mastered the art of predicting the peak levels of Markets yet. That’s the reason why we are introducing…

14 WEALTH PLUS (T-801)

15 Wealth Plus (Plan No.801) Salient Features:
A close-ended Guaranteed Returns Unit Linked Plan Available for eligible persons of 10 to 65 years age. Fixed Policy Term of 8 years Limited Premium Paying Term of 3 years Single Premium Option is also Available

16 Wealth Plus (Plan No.801) Salient Features:
Minimum Premium Rs /- under Regular Mode & Rs /- under Single Premium Mode Yearly, Half-yearly, Quarterly and Monthly (ECS) Modes available Maximum Premium- No Limit

17 Wealth Plus (Plan No.801) Salient Features:
Minimum S.A (Regular Mode): 5 times the annualized Premium Maximum S.A (Regular Mode): 10 times the Annualized Premium upto Age 50, 5 times for age above 50 Minimum Sum Assured (S.P.) 1.25 times the premium Maximum Sum Assured (S.P.) 5 times the Premium upto 40 years age 2.5 times the Premium for 41 to 50 years age 1.25 times the Premium for 51 and above age

18 Example Age 40 years, Yly Premium Rs.20000/-
Min. SA is 1 lacs and Max SA IS 2 lacs Age 40 yrs. S.P Rs /- Min SA is 50000/- and Max SA is 2 lacs SA will be in multiples of Rs. 5000/-

19 Additional Features & Riders
Accident Benefit Rider for 18 to 62 years aged Rs.0.50 per 1000 SA Surrender Facility and Partial Withdrawal option after completion of 3 years policy term No exit Loads All premiums received during the period of sale of the product shall be invested in Money Market Instruments

20 Benefits Maturity Benefit with Guaranteed NAV
At the end of the policy term, fund value based on the highest NAV over the first seven years or the NAV applicable at the end of the policy term, whichever is higher is payable

21 Illustration with Bima Plus Experience
If a 40 year old person has invested Rs under Risk Fund in Bima Plus at an NAV of Rs.10 at the time of launch of Bima Plus i.e on His Fund Value after 8 years i.e on at an NAV of Rs is Rs.1,42,737/- His Fund Value at the highest NAV (Rs.50.35) recorded during the first Seven Years of the Policy i.e on is Rs.2,24,261/-

22 Illustration with Bima Plus Experience
Under the provisions of Guaranteed NAV as under Wealth Plus the policyholder stands to gain Rs.81,524/- (i.e 57% more than that of Bima Plus Plan Provisions) WEALTH PLUS INDEED!!!

23 Death Benefit Death of the policy holder during the Policy Term when the cover is in full force: Both Sum Assured and the fund value shall be paid to the nominee

24 Extended Risk Cover Even after the completion of Policy Term and the payment of Maturity value to the policyholders, Insurance coverage for the Basic Sum Assured is continued for another 2 years on the life of Policyholder i.e Basic SA is paid again on the happening of risk during the 2 years

25 Charges Allocation Charges: Upto 4 lacs (S.P) - 5%
Above 4 Lacs (S.P.) % Rs.20,000 to Rs. 2lac( NSP) - 1ST Year- 12% and 2.5% thereafter and as the premium increases the charges reduce

26 Other Charges Mortality Charges as per the age
Fund Management Charges - 1% p.a of Fund Value Guarantee Charges – 0.35% of Fund Value Misc. Charges, Admn. Charges, Service Tax Charges, etc.

27 For Investments Pls Contact:
ROBERT RONALD FERNANDES(RONY) Chief Advisor(CLIA) LIC OF INDIA Reon Consultancy Services Hotel Pancharathna International Moodbidri Mobile:

28 Thank You


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