Presentation on theme: "SBI Life Money Back Plan"— Presentation transcript:
1 SBI Life Money Back Plan Get your Money Backand still stay Insured
2 Competitive premium rates SBI Life Money Back4 options: 10 – 15 – 20 –25 years4 riders: TA, CI, ADTPD, PWB.Large choice of S.A. and Premium mode: Rs. 50,000 to Rs. 5 crore.Attractive rebate for femaleCompetitive premium rates
3 Make the product simple for your customers… Basic product: easy to understand, easy to sellWhat about competition?What about the 4 riders?More details on SBI Life Money Back Plan
4 SBI Life Money Back Plan Basic product, easy to understand, easy to sell.
5 SBI Life Money Back Plan Option 110 yearsOption 215 yearsOption 320 yearsOption 425 yearsMin. Age at entry15 years (father, mother or legal guardian is the proposer)Max. Age at entry60 years55 years50 years45 yearsTermMax. Cover Age70 yearsMin. S.A.Rs. 50,000 (multiple of Rs. 10,000)Max. S.A.Rs. 5 crorePremium modeYearly / Half-Yearly / QuarterlyMonthly for standing Instruction on Credit Card/Bank account or SSS (minimum groupe size 30)Rider optionsTerm assurance - Critical IllnessDeath or TPD due to an Accident – Premium Waiver Benefit
6 SBI Life Money Back Plan Survival Benefits:More than Basic Sum Assured.At regular intervals during the plan.Last Survival Benefits with Vested Bonus calculated on Basic S.A. for entire term of the policyDeath benefits:Sum Assured + Vested BonusIrrespective of Survival Benefit already received.
8 Illustration for Sum Assured Rs. 5 lac + VBRs lac+ VBRs. 6 lac+ VBRs lac+ VB
9 Death Benefits Full Sum Assured + Vested Bonus Irrespective of Survival Benefits already receivedIn case of suicide within the first policy year: Refund of basic premium (-) Commission paid (-) Adm. Expenses.
10 Gross Total Income (GTI) Tax AdvantagesAt the entry: Tax rebate u/s 88 of I.T. ActAvailable for Premium paid on Life Insurance policies with a maximum ceiling p.a. Rs. 70,000 / 20% Basic S.A. whichever is lower.Policy can be in the name of the spouse, children (major or minor and Married daughter)Rs. 21,00030%Not exceeding Rs. 1 lakh(should not be less than 90% of GTI)Gross Salary IncomeNILMore than Rs. 5 lakhsRs. 10,50015%1.5 lakhs – 5 lakhsRs. 14,00020%Upto Rs. 1.5 lakhsMax Admissible AmountTax RebateGross Total Income (GTI)Tax Rebate Slabs
11 Tax-free maturity benefits along with life cover Tax advantagesFor survival benefits and claim amounts u/s 10 (10D) I.T. Act:Maturity benefits are tax-free in the hands of the policyholder if, at any point of time during the policy life, premiums paid within one year does not exceed 20% of the basic Sum Assured.Death benefits are always tax-free.Tax-free maturity benefits along with life cover
12 Premium rebates For mode of payment For gender Yearly: 2% Half-Yearly: 1%Quarterly: no rebateMonthly:Standing Instruction on Credit Card/Bank account): extra charges +2%Salary Savings Scheme (Min 30): no extra chargesFor gender5% discount for femalePremium tables provided are net of rebates for mode of payment & gender
13 Premium rebates For High value policy Do not forget to deduct this High Value policy rebate from the premium tables
14 SBI Life Money Back Plan Option1: 10y term - SA: Rs. 3 lac You pay 10 yearly premiums of:You will get back: Rs. 3.3 lac + Vested BonusEnd of Year 8: Rs. 90,000End of Year 9: Rs. 1,05,000End of Year 10: Rs. 1,35,000 +VB (for 10 years on Rs. 3 lac)
15 SBI Life Money Back Plan Option2: 15y term - SA: Rs. 3 lac You pay 15 yearly premiums of:You will get back: Rs lac + Vested BonusEnd of Year 3: Rs. 30,000End of Year 6: Rs. 45,000End of Year 9: Rs. 60,000End of Year 12: Rs. 75,000End of Year 15: Rs. 1,35,000 + VB (for 15 years on Rs. 3 lac)
16 SBI Life Money Back Plan Option3: 20y term - SA: Rs. 3 lac You pay 20 yearly premiums of:You will get back: Rs. 3.6 lac + Vested BonusEnd of Year 4: Rs. 30,000End of Year 8: Rs. 45,000End of Year 12: Rs. 60,000End of Year 16: Rs. 75,000End of Year 20: Rs. 1,50,000 + VB (for 20 years on Rs. 3 lac)
17 SBI Life Money Back Plan Option4: 25y term - SA: Rs. 3 lac You pay 25 yearly premiums of:You will get back: Rs lac + Vested BonusEnd of Year 5: Rs. 30,000End of Year 10: Rs. 45,000End of Year 15: Rs. 60,000End of Year 20: Rs. 75,000End of Year 25: Rs. 1,65,000 + VB (for 25 years on Rs. 3 lac)
18 SBI Life Money Back Plan Medical selection rules
19 Medical selection rules: Basic Sum Assured+Sum Assured for T.A. rider1.5 time Sum Assured for C.I. riderSum Under Consideration for existing individual SBI Life policy=Sum Under ConsiderationAccidental rider and Premium Waiver Benefit ridersare not taken into accountfor calculation of Sum Under Consideration
20 Medical selection Based on Sum under consideration / Age Basic CoverTerm AssuranceCritical IllnessExisting individualSBI Life policiesOnly medical questionnairefor Sum under consideration upto15 to 17SA +Not AvailableNot Available +Sum under Consideration= Max Rs. 10 lakhs18 to 35Rider SA +(Rider SA X 1.5) += Max Rs. 8 lakhs36 to 45= Max Rs. 5 lakhs46 to 60(N.A. after 55yrs)= Max Rs. 1 lakhBasic medical test, subject to requirement
21 SBI Life Money Back Plan 15 days Free Look PeriodIf a client is not satisfied with the features of the policy, he can return it within 15 days of the date of policy receiptSBI Life will give him a complete refund after deducting Administrative Charges(Stamp duty + Medical Expenses + Rs. 200/-)
23 Who are the Money Back customers? Those who wants twin benefits of Life Insurance and cash inflow at regular intervals.Those who are not interested in a lump sum at the end of the term but prefer to receive benefits during the term.Those who want to approach every milestone in life with ease:Marriage, child’s college admission, home, car, renovation of your apartment, holiday…Those who want Guaranteed (no risk) tax-free survival benefits with tax-rebates u/s 88 of IT Act.
24 Plus of SBI Life Money Back Flexibility:Large choice of S.A.From Rs. 50,000 upto Rs. 5 crore4 options10 – 15 – 20 and 25 yearsIncreasing Guaranteed Survival Benefits10Y: 110% SA 15Y: 115% SA20Y: 120% SA 25Y: 125% SA4 Riders availableTo design the policy according to your needs.Affordable Money Back policy:One of the lowest premium rate in the MarketSame premium amount for the entire duration5% discount for female lives..
25 SBI Life Money Back Plan: commissions Option 1:1st year: 30 % P2nd & 3rd year: 7.5% P4th year onwards: 5% POption 2 / 3 / 4:1st year: 40% P2nd & 3rd year: 7.5% P3rd year onwards: 5% P
26 SBI Life Money Back Plan What about competition?One of the lowest premium ratesSurvival benefits 110% to 125% Basic S.A.SBI Life name.
35 Available at entry time only Term Assurance RiderMin. entry age: 18yrsMax. entry age: as per Max. entry age of the option planMax. cover age: 65yrsDuration: Min. 5yrs - Max.: Term Basic Plan / 65yrsMin S.A.: Rs. 50,000 ( in multiple of Rs. 10,000)Max S.A.: Basic SA / Max. Rs. 50 lac overall ceiling per Life Insured under all individual SBI Life policies.Premium: Plan / Amount S.A.Premium Payment Mode: As per Basic PlanAvailable at entry time only
36 Term Assurance benefit Death benefit:Nominee will receive additional S.A. under this rider.Survival benefit:No survival benefitEasy to understand
37 Term Assurance rider: low premium rate Increases Insurance Cover at very nominal extra costAn example:30 years old man:Extra premiumRs. 351 per lac p.a. for Option1: 10 yrs termRs. 372 per lac p.a. for Option2: 15 yrs termRs. 404 per lac p.a. for Option3: 20 yrs termRs. 451 per lac p.a. for Option4: 25 yrs termHLess than Rs a day for Rs. 1 lac extra death benefit
38 SBI Life Money Back plan Death or Total Permanent Disability due to an accident
39 Accidental Death & TPD rider: Min. entry age: 18 yearsMax. entry age: As per Max. entry age on Option PlanMin. cover age: 70 yearsDuration: Min. 5 yrs / Max. Term of Basic PlanMin S.A.: Rs. 50,000 ( multiple of Rs. 10,000)Max S.A.: Upto basic S.A. subject to overall ceiling of Rs. 20 lakhs per Life insured under all individual SBI Life policies.Premium Payment Mode: As per the basic coverDouble Cover:Accidental Death orTotal Permanent Disability due to an accidentAvailable at entry time only - Minor can join policy anniversary following 18th
40 Accidental Death benefits Nominee will receive:Additional Sum Assured for Accidental coverHigh Protection: Negligible cost - Rs. 1/- per ‘000 S.A. p.a.
41 Accidental Total Permanent Disability benefits Policyholder will receive:In InstallmentsSum Assured for accidental benefit in 10 installments till maturity / death whichever is earlier.At Maturity / DeathBalance of TPD claim installments if any will be paid in one lump sum to the policyholder/nominee.Policyholder exits from all riders:No other rider benefit will be paidPolicy continue for the Basic plan:Regular premiums for basic plan have to be paidSurvival benefits will be paid as per the original schedule if policy is on force.
42 Extra premium per Rs. 1 lac of S.A. for Accidental rider Mode of PaymentRegular Extra Premium for Accidental Death & Total Permanent DisabilityYearly ModeRs. 1/- per '000 S.A.Half-Yearly ModeRs per '000 S.A.Quarterly ModeRs per '000 SAMonthly ModeRs per '000 S.A.High protection, negligible cost
43 SBI Life Money Back Plan Premium Waiver Benefit rider
44 Premium Waiver Benefit (PWB) Min. Age: 18 yearsMax. Age: Option1: 55yrs Option2: 50yrs Option3: 45yrs Option4: 40yrsMax. cover age: 65 yearsDuration: same as basic plan – should be co-terminus with basic coverPremium: based on basic premium paid (inclusive of NSAP)Availability:- Basic S.A. with PWB rider under all individual SBI Life policies should not exceed Rs. 50 lac under one Life Insured.- If Basic S.A. is higher, this rider is not available (ex SA Rs. 60 lac: PWB is not available; you should take Rs. 50 lac with PWB and Rs. 10 lac without PWB)
45 Premium Waiver Benefit (PWB) On occurrence of an accidental Total & Permanent Disability:Life Insured informs SBI Life in writing within maximum 120 days.Regular Premium for Basic Cover will be waived.Life Insured exits from all riders:Survival BenefitsNo survival benefitBasic cover continues, Survival Benefits are payableRegular premiums are waived
46 Extra premium for availing PWB rider Extra Premium for Premium Waiver Benefit riderfor Basic premium of Rs. 100Age2025303540455055Option 10.560.610.731.131.883.385.668.87Option 20.870.981.292.063.556.1910.13N.AOption 31.161.411.993.319.58N.A.Option 41.531.982.994.988.37Premium rate is applicable on the amount of Basic Premium with NSAP
47 How to calculate the extra premium for Premium Waiver Benefit rider? Use Premium table for Premium Waiver benefit rider.According to Option Plan and Age, find out the rate.Apply this rate to the premium for Basic Cover (inclusive of NSAP, if any).Ex. SBI Life Money Back Plan - Option 2 SA: Rs. 3 lakh Basic Yearly Premium for a 30 yrs old male: Rs. 24,552Rate for WOP: 1.29Extra premium: (1.29 * 24,552) / 100 = Rs. 317/-For less than Rs. 1 a day, Basic premiums are waivedand you will continue to benefits from survival benefits with full protection for your family
48 SBI Life Money Back Plan Critical Illness rider
49 Critical Illness Rider Min. Age: 18 yearsMax. Age: 55 yearsMax. cover age: 60 yearsMinimum duration: 5 yearsMaximum duration: end of basic cover/60 years whichever is earlierMin SA: Rs. 50,000 (x 10,000)Max SA: Upto basic S.A. subject to overall ceiling Rs. 10 lakhs per life insured.Premium: Gender, Age, Duration & amount of cover.Premium rate:valid only till March 2008SBI Life reserves the right to revise the premium thereafter.
50 6 Critical Illnesses covered Available for:Cancer (malignant) including leukaemia Coronary Artery Bypass SurgeryHeart AttackKidney FailureStrokeMajor Organ TransplantationAvailable at entry time only
51 Critical Illness benefits Exclusion period: first 6 months of the policy /revival of the policyWhen a critical illness is diagnosed:Policyholder informs SBI Life within 30 daysS.A. under this rider is payable if the policyholder survives for more than 30 days.No more benefits will be payable from any riders.Policy still continues with periodical premium (-) extra premium for riders.Survival benefit:No survival benefitNo bill to submit: On diagnosis, S.A. for C.I. will be paid
52 Yearly Premium for Critical Illness rider SA: Rs 1 lakh, 30 years old Life to be insuredMEN5 years10 years15 years20 years25 years6 C.I.Rs. 154Rs. 172Rs. 252Rs. 396Rs. 578WOMEN5 years10 years15 years20 years25 years6 C.I.Rs. 133Rs. 164Rs. 206Rs. 266Rs. 339Premium for this rider is eligible to tax exemption u/s 80 D of IT Act
53 SPECIFIC TAX ADVANTAGE u/s 80 D of I.T. Act Premium paid for critical illness rider is deductible in respect of medical insurance premia from the annual income chargeable to tax up to a maximum amount of Rs. 10,000.
54 SBI Life Money Back Plan More details on SBI Life Money Back PlanWhat’s happen in case of unpaid premiums:Grace periodLapsationRevivalPaid-Up ValueSurrender valueGuaranteed Surrender Value / Special Surrender ValueBack dating processIRDA rules for extra premiums for riders
55 Payment of Regular Premiums Premiums can be Q/ HY/ Y:Grace period: 30 daysPremiums can be monthly:Grace period: 15 daysDeduction of premiums then due and all premiums falling due during the policy yearIf premium is not paid within the grace period: Policy lapses
56 Premiums are not paid for full 3 policy year Revival up to 5 yearsafter the first unpaid premium1After the grace period: Policy lapsesNo death benefit, no survival benefit
57 Revival is possible before the end of Year 7 Illustration1Money Back Plan for 30 year old man Option Y, Sum Assured: Rs. 10 lac, Yearly Premium: Rs. 50,120/-3rd yearly premium is not paid within the grace period:Policy ends immediatelyNo survival benefitNo death benefitRevival is possible before the end of Year 7
58 9th Yearly premium stays unpaid after 30 days After the grace period, policy will go in Paid Up ValueDeath benefit: Paid Up Value Amount+ Vested Bonus till first unpaid premium2No further Money Back Payment, at the term of the policy: Paid Up Value Amount + VB till 1st unpaid premiumNo more bonus – No more rider benefits
59 Illustration 9th yearly premium is not paid within the grace period: 2Money Back Plan for 30 year old man Option Y, Sum Assured: Rs. 10 lac, Yearly Premium: Rs. 50,120/-9th yearly premium is not paid within the grace period:Riders benefits end immediatelyNo more Money Back benefitsYear 25: Survival benefit in a lump sum:Paid Up Value + Vested Bonus for 8 years (250*10,000,00)/1,000 = Rs. 2,50,000 + VBIn case of death before maturity:Death benefit = Rs. 2,50,000 + VB
60 Consequences of lapsation No claim will be admitted for rider benefit.What about basic cover?If lapsation happens during the first 3 policy year:No death benefitNo survival benefitIf lapsation happens after this periodPaid Up value + Vested Bonus till first unpaid premium is payable:In case of death before the term or,At the end of the term to the policyholder
61 Revival policies are eligible to all vested bonus and Money Back Revival processAvailable within 5 years from the first unpaid premium:Payments of arrears premium due with interest.Submission of new medical questionnaireSubject to new underwriting processCost of medical reports, if any,shall be borne by the Life Insured.Exclusions period for basic cover and riders are applicable as on revival date.Revival will be for basic cover along with riders, however, the Company may limit revival to basic cover.Revival policies are eligible to all vested bonus and Money Back
62 Paid-Up Value Exists if at least 3 years’ premium have been paid. Applicable in case, premium is not paid within the grace period.Depend on the option and the policy year when first unpaid premium occurs.Fluctuates according to the Survival Benefit payment.Paid-Up Value + VB till first unpaid premiumis paid in case of death or at the term of the policy
63 Paid-Up Value per ‘000 Sum Assured Illustration for Option 3, Sum assured Rs. 2 lacFirst Unpaid premium Policy year 10:Paid-Up Value:(Rs. 2,00,000 * 210) /1,000 = Rs. 42,000
64 Surrender ValuePolicy where premiums have been paid for at least 3 years can be surrendered:Policyholder will get the greater ofGuaranteed Surrender Value orSpecial Surrender Valuealong with cash value of vested bonus
66 Special Surrender Value (Paid Up Value + VB)* Surrender Value factorSurrender Value factor will be declared by the Company from 4th policy anniversary onwards
67 Money Back and Back Dating Back dating date should be in the same F.Y.Premium calculation is based on age at the back dating date (as on last birth day)Back dating date =Policy anniversaryDate of commencement of the riskExclusion period starts from date of acceptancePremiums have to be paid with interest 1% p.m. (Back dating date (-) Date of acceptancePropose Back dating only if your customer asks for it
68 Back dating: Illustration Money Back Plan Option 2: S.A. Rs. 1 lac Male: DoB: 1st July 1970.Date of Acceptance 1st January 2005 (35 yrs)Yearly Premium at 35 years:(Rs. 1,00,000 * ) / 1,000 = Rs. 8,446/-Back Dating Date: 1st June 2004 (34 yrs)Yearly premium at 34 years (age at back dating date):(Rs. 1,00,000 * 84.30)/1,000 = Rs. 8,430/-Interest: Rs. 8,430 * (7 months *1%) = Rs1st Year Premium = 8, = = Rs. 9021/-2nd years onwards: Rs. 8,430/-
69 I.R.D.A. Guideline for riders: “The allowable rider or riders on the product shall be clearly spelt out with regard to their scope of benefits, and in no case, the premium relatable to all the riders put together shall exceed 30% of the premium of the main product”Premium for Critical illness rider is not taken into account.Applicable on extra premium for Term Assurance & Accidental rider.
70 Simple concept Basic Premium 2 If it is more than 30% 2 issues: 11If it is more than 30%2 issues:Increase the basic coverDecrease the riders amountBasicPremiumMaximum amount: 30% of basic premiumExtra premium forTerm AssuranceAccidental coverWaiver of Premium2