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8/6/2019 Aviva Young Scholar
1/19
Aviva Young Scholar
8/6/2019 Aviva Young Scholar
2/19
Agenda
- Aviva Young Scholar
- Product Construct
- Process
- Competition Benchmarking
- Feature reckoner v/s competition
- Comparing yields (IRRs)
- Selling made easy
- 4 Steps Sales Process- 30 Seconds sales pitch
8/6/2019 Aviva Young Scholar
3/19
Agenda
- Aviva Young Scholar
- Product Construct
- Process
- Competition Benchmarking
- Feature reckoner v/s competition
- Comparing yields (IRRs)
8/6/2019 Aviva Young Scholar
4/19
Aviva Young Scholar: Product construct
Aviva Young Scholar Comprehensive Child Plan
Entry Age Parent (Life Insured): 18 50 yearsChild (Beneficiary): 0 17 years
Policy Term (PT) 10 25 years, subject to maximum maturity age of 70 of Parent
Premium Payment Term (PPT) 3 years OR 5 years OR equal to Policy Term
Annual Premium (Minimum) Minimum: Rs 15,000 for PPT = PT, No maximum limit
Minimum: Rs 50,000 for PPT = 3 OR 5, No maximum limit
Sum Assured Minimum: 5*APE
Maximum: 1.5*PT*APE
Top up Premium Minimum Rs 1,000; total upto 25% of total regular premium
Riders Built-in: Waiver of PremiumOptional: ADB, IB, and CHB
Fund options Enhancer, Growth, Balanced, Protector, Bond
Other selling points Regular Loyalty Additions, Increase/ decrease in APE, reduce SA (Cover Level), STP, AAA, Settlement Option
8/6/2019 Aviva Young Scholar
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Aviva Young Scholar: Key Features
Comprehensive Death Cover
On the death of the parent:
Sum Assured is paid
Future premiums are waived and credited to units account as lump sum
Pays 10% of Income Benefit rider sum assured (if opted for) upto age 17 of child
Beneficiary becomes the owner of the policy
On the death of the beneficiary
Before the parent:
Parent can nominate another beneficiary (other child)
If the deceased beneficiary was the only child, new beneficiary can be anybody, subject to insurable interest.
After the parent
Policy terminates by paying the fund value
Loyalty Addition
Loyalty addition is paid as a percentage of units pertaining to regular premium
Increased premium is not eligible for loyalty addition
Paid by way of additional units every 5th policy anniversary
All due premiums must have been paid
Maturity Benefit
Fund value of regular premiums along with the fund value of top-up premiums, if any is paid
End of Policy Year Loyalty Addition5th year 0.50%
10th year 1.00%
15th year 1.50%
20th year 2.00%
25th year 2.50%
8/6/2019 Aviva Young Scholar
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Aviva Young Scholar: Key Features
Increase / decrease premium
You can change your premium with your changing needs or preferences
Regular premium can be increased / decreased on any policy anniversary after 5 policy years
A notice at least 7 days prior to policy anniversary is required to exercise this option
Sum Assured (cover level) can also be revised while you change the premium
Any increase in Sum Assured shall be subject to underwriting
Reduce Sum Assured (CoverLevel)
You can reduce the Sum Assured (Cover Level) without reducing premium
The revised Sum Assured should not be less than the minimum SA allowed (5 times)
This option can be exercised on any policy anniversary
A notice at least 7 days prior to policy anniversary is required to exercise this option
Partial Withdrawals
Partial withdrawals can be made first from the top-up account, if eligible, and then from the regular premium account
Allowed after 5 policy years from the regular premium account
Minimum withdrawal allowed is Rs. 5,000/-, Maximum partial withdrawal can be upto 25% of the Fund Value
The upper limit is not applicable in last 2 years
Withdrawal from top-up account is allowed after 3 years from the date of top-up
There is no upper limit for withdrawal from top-up amount, if eligible
8/6/2019 Aviva Young Scholar
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Aviva Young Scholar: Key Features
Riders
Built-in
Waiver of Premium:
Pays future premiums - credited to your unit account as a lump sum
Optional
Accidental Death Benefit (ADB) rider:
Pays additional SA equal to rider SA in the event of accidental death
ADB rider SA = base SA, Max SA = lower (base SA, Rs. 50L)
Comprehensive Health Benefit (CHB) rider:
Pays SA as lump sum in the event of permanent total disability or any of the Critical Illnesses covered.
Pays future premiums - credited to your unit account as a lump sum (subject to a maximum of Rs.25 Lacs)
CHB rider SA = base SA, Max SA = lower (base SA, Rs. 20L)
Income Benefit (IB) rider:
Pays 10% of IB rider SA to the appointee till age 17 of beneficiary.
IB rider SA = base SA, Max SA = lower (base SA, Rs. 10L)
Riders can be taken at inception only
The ADB, CHB and IB rider cover expires at age 60
All riders including built-in Waiver of Premium will cease if policy is under premium discontinuance mode.
8/6/2019 Aviva Young Scholar
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Aviva Young Scholar: Fund Options
Fund Fund Composition and Objective
ProtectorEquities
Debt instrumentsMoney Market
0-20%
60-100%0-40%
To generate steady returns withminimum exposure to equities
BalancedEquities
Debt instrumentsMoney Market
0-45%
50-90%0-40%
To generate a balance of capital growth and steady returns
GrowthEquities
Debt instrumentsMoney Market
30-85%
0-50%0-40%
To generate long term capital appreciation with high equity
exposure
EnhancerEquities
Debt & Money Market
60-100%
0-40%
To generate aggressive, long term capital growth with high equity
exposure
Bond
Equities
Debt & Money Market
0%
100%
To generate a steady income through investment in high quality
fixed incomesecurities
8/6/2019 Aviva Young Scholar
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Aviva Young Scholar: Fund Related Options
STP (Systematic Transfer Plan)
Allowed at any policy anniversary only for annual premium frequency policies
Option of a weekly or a monthly STP
Systematic switches from Protector to Enhancer will be carried out free of charge
No other switches into or from Protector fund are allowed during this period
Option to close and restart STP on policy anniversaries
STP can not be opted along with AAA
AAA (Auto Asset Allocation)
Allowed at inception for the policies with annual premium frequency
Automatic decrease in equity exposure and increase in Debt instruments over time
To leverage the returns from equity market and book the profits by way of AAA
Initial allocation in Enhancer and Bond Funds to be chosen by the policyholder
Auto switching and redirection of future premiums by fixed percentage between Enhancer and Bond Funds
such that at the end of the policy term 100% fund is in Bond fund
All switches under AAA are free of charge
No other switches into or from Bond and Enhancer funds are allowed during this period
There is an option to stopAAA on any policy anniversary
On opting out of AAA, all 5 fund options will be available
AAAcan not be opted along with STP
8/6/2019 Aviva Young Scholar
10/19
Aviva Young Scholar: Key Features
Switching between funds
Switching between the 5 unit linked funds allowed, anytime, any number of time
Minimum switch amount and balance after (part) switch: Rs 5,000
First 4 switches in a policy year are free of charge; 0.5% of amount switched (max Rs 500) for subsequent
switches
Premium re-direction
Change of allocation proportion of future premiums allowed, anytime, free of charge
Premium redirection is allowed upto 2 times a year
Minimum allocation in each selected fund must be 10%
Settlement Option
Allowed if all the due premiums are paid Minimum proportion for opting this option is 25% of maturity value
Paid as structured payouts over 1 to 5 years
Payout frequency can be Yearly / Half-yearly / Quarterly or Monthly
No charges except the Fund Management Charges shall be levied during the payout term.
8/6/2019 Aviva Young Scholar
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Aviva Young Scholar: Charges
Premium Allocation Charge (100 Allocation Rate)
8/6/2019 Aviva Young Scholar
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Aviva Young Scholar: Charges
Fund Management Charge
Bond Fund 1.00% p.a.
Protector Fund 1.00% p.a.
Balanced Fund 1.25% p.a.
Growth Fund 1.50% p.a.
Enhancer Fund 1.75% p.a.
Policy Administration Charge
Rs. 55 per month
Admin charge will increase by 5% p.a. from 1st January each year
Surrender Charge for regular payment policies (as a %age of regular premium units)
If less than one policy years premium has been paid 100%If exactly one policy years premium has been paid 90%
If more than one but up to two policy years premium has been paid 60%
If more than two but up to three policy years premium has been paid 30%
If more than three but up to four policy years premium has been paid 20%
If more than four but up to five policy years premium has been paid 5%
If more than five but up to eight policy years premium has been paid 1%
If more than eight policy years premium has been paid Nil
8/6/2019 Aviva Young Scholar
13/19
Aviva Young Scholar: Charges
Surrender Charge for PPT = 3 years (as a %age of regular premium units)
If less than one policy years premium has been paid 100%
If exactly one policy years premium has been paid 90%
If more than one but up to two policy years premium has been paid 20%
If more than two but up to three policy years premium has been paid 10%
If full three years premium are been paid Nil
Surrender Charge for PPT = 5 years (as a %age of regular premium units)
If less than one policy years premium has been paid 100%
If exactly one policy years premium has been paid 90%
If more than one but up to two policy years premium has been paid 20%
If more than two but up to three policy years premium has been paid 10%
If more than three but up to five policy years premium has been paid 5%If full five years premium has been paid Nil
8/6/2019 Aviva Young Scholar
14/19
Aviva Young Scholar: Illustration
Following are the projected maturity values for a male aged 30 years, who pays premiums yearly and invests
100% into Protector Fund
The values illustrated above are excluding the Service Tax
8/6/2019 Aviva Young Scholar
15/19
8/6/2019 Aviva Young Scholar
16/19
Agenda
- Aviva Young Scholar
- Product Construct
- Process
- Competition Benchmarking
- Feature reckoner v/s competition
- Comparing yields (IRRs)
-
8/6/2019 Aviva Young Scholar
17/19
Aviva Young Scholar Feature reckoner v/s competition
Na
e Of P
an
v
va
Young Scho
ar
-Pru
S
art K
dNew
n
t
Linked
Kotak
eadstart Future
Protect
ir
a Sun Life
hildren's
rea
Plan
F
nit Linked Young
Star Plus
Max New ork Life
S
artSteps Plus
over on parent Y Y Y Y Y Y
over on hild Y
oP
Y
100
paid into
und as lump
sum
Y
Paid as and
hen due
Y
100
paid into
und as lump sum
O
spread over 5
years paid semi-
annually
Y
Paid as and
hen due
Y
nits added as &
hen due
50
pa id into Fun d
and 50
as
B bene
it
Y
Paid as and
hen
due
nco
e
enefit!
ider Y Y
Part o
"
oP
Y
otan optional rider
this is built-in
!
ider Y
Y
Y#
hoice o
$
eath cover -
1 $ eath only
2 $
eath+#
Y
Built-in
rider Y Y Y Y
ncreasePre
iu
Y
YY Limited to
s 5
000
only
ecrease Pre
iu
Y
Y
ncreaseS
Y
Y
ecrease S
Y
Partial Withdrawal A
ter 5 yrs A
ter 5 yrs A
ter 3 yrs A
ter 3 yrs A
ter 3 yrs A
ter 5 yrs
Lo alt additionY
Every 5 years
Y (
) End o
10/15
& 20 yrs
Y (
) Every year
LimitedPP%
Y
Y
(
)
egular
(M) @ Maturity vivaYoung Scholarstandsoutas mostcomprehensivechildplan.
8/6/2019 Aviva Young Scholar
18/19
Comparing yields
Policy Term 10 years Policy Term 15 years
Policy Term 20 years
Assumptions:
Age: as indicated
FMC: 1% (HDFC is 1.25%)
SA: 5*APE
APE: 100,000
Pl Note:
* HDFC Std. doesnot show the illustration
# BSLI CDP figs for 18 years term
A ge IR R @ a g eAviva Young
S cholar
IC IC I
s ma rtK id
K otak
He ads tart
Fu ture
protect
Birla
C hildren's
Dream P lan
H D F C U L
Young S tar
P lus II
1237 635 1 1 97 76 3 1 23 55 48 1 19 38 95 1 ,1 17 ,1 75
IR R -6% 3 .8 4% 3 .26% 3 .8 1% 3 .20% 2 .0 0%
1 54 14 23 1 49 10 06 1 53 60 69 1 49 23 47 1 ,3 74 ,4 61
IR R -10% 7 .7 4% 7 .15% 7 .6 8% 7 .17% 5 .7 1%
1 22 95 42 1 19 02 60 1 22 99 01 1 19 18 23 1 ,1 13 ,2 32
IR R -6% 3 .7 2% 3 .14% 3 .7 3% 3 .12% 1 .9 4%
1 53 15 71 1 48 18 43 1 52 92 07 1 48 98 75 1 ,3 69 ,6 96
IR R -10% 7 .6 2% 7 .04% 7 .6 0% 7 .09% 5 .6 5%
1 21 41 66 1 17 59 40 1 21 94 89 1 18 52 96 1 ,1 05 ,1 85
IR R -6% 3 .5 0% 2 .93% 3 .5 8% 2 .97% 1 .8 1%
1 51 26 69 1 46 43 16 1 51 63 72 1 48 19 44 1 ,3 59 ,9 35
IR R -10% 7 .4 1% 6 .83% 7 .4 5% 6 .95% 5 .5 2%
30 yrs
35 yrs
40 yrs
A ge IR R @ a g eAviva Young
S cholar
IC IC I
s ma rtK id
K otak
He ads tart
Fu ture
protect
Birla
C hildren's
D ream P lan
H D F C U L
Young S tar
P lus II
2 14 9 00 4 2 ,0 59 ,2 8 1 2 ,1 54 ,2 57 2 ,0 3 1,0 5 5 1 ,9 32 ,2 62
IR R -6% 4 .3 7% 3 .87% 4 .4 0% 3 .62% 3 .1 0%
3 01 0 14 3 2 ,8 78 ,4 1 3 3 ,0 07 ,7 39 2 ,8 4 7,9 7 4 2 ,6 66 ,3 63
IR R -10% 8 .3 0% 7 .79% 8 .2 9% 7 .59% 6 .9 0%
2 12 5 75 5 2 ,0 39 ,1 0 4 2 ,1 38 ,3 62 2 ,0 0 5,9 8 4 1 ,9 21 ,1 45
IR R -6% 4 .2 4% 3 .75% 4 .3 2% 3 .50% 3 .0 3%
2 97 8 81 7 2 ,8 51 ,2 9 2 2 ,9 86 ,2 74 2 ,8 1 3,2 8 1 2 ,6 51 ,7 54
IR R -10% 8 .1 8% 7 .68% 8 .2 1% 7 .50% 6 .8 4%
2 08 2 31 1 2 ,0 01 ,4 5 6 2 ,1 08 ,5 20 1 ,9 7 3,6 7 1 1 ,8 98 ,6 73
IR R -6% 4 .0 0% 3 .53% 4 .1 5% 3 .33% 2 .8 9%
2 91 9 71 9 2 ,8 00 ,4 4 7 2 ,9 45 ,7 47 2 ,7 6 8,8 2 3 2 ,6 22 ,0 81
IR R -10% 7 .9 5% 7 .47% 8 .0 5% 7 .31% 6 .7 1%
30 yrs
35 yrs
40 yrs
Ag e IR R @ a g eAviva Young
S cholar
IC IC I
s ma rtK id
K otak
He ads tart
Future
protect
BirlaC hildren's
Dream P lan #
H D F C U LYoung S tar
P lus II
3 3 19 3 05 3 ,1 34 ,1 31 3 ,3 4 7,5 7 8 2 ,5 97 ,5 27 2 ,9 4 1,6 4 5
IR R -6% 4 .61% 4 .1 1% 4 .68% 3 .7 3% 3 .54%
5 2 84 8 46 4 ,9 68 ,4 87 5 ,3 0 7,8 8 0 3 ,9 19 ,2 44 4 ,5 9 6,5 4 0
IR R -1 0% 8 .56% 8 .0 4% 8 .59% 7 .6 9% 7 .39%
3 2 62 3 30 3 ,0 87 ,7 69 3 ,3 0 8,3 2 3 2 ,5 69 ,2 38 2 ,9 1 4,7 0 2
IR R -6% 4 .46% 3 .9 7% 4 .58% 3 .6 1% 3 .46%
5 2 00 2 11 4 ,8 99 ,3 56 5 ,2 4 9,6 2 3 3 ,8 77 ,4 22 4 ,5 5 8,3 5 9
IR R -1 0% 8 .42% 7 .9 3% 8 .50% 7 .5 9% 7 .32%
3 1 61 8 24 3 ,0 06 ,9 57 3 ,2 3 7,8 6 5 2 ,5 21 ,8 90 2 ,8 6 3,2 7 0
IR R -6% 4 .18% 3 .7 4% 4 .39% 3 .4 1% 3 .30%5 0 47 6 16 4 ,7 77 ,1 30 5 ,1 4 3,3 8 2 3 ,8 07 ,5 37 4 ,4 8 4,3 1 1
IR R -1 0% 8 .18% 7 .7 2% 8 .33% 7 .3 9% 7 .19%
30 yrs
35 yrs
40 yrs
Aviva Young Scholar is clearly superior than ICICI,Birla and HDFC child plan.
8/6/2019 Aviva Young Scholar
19/19
Thank You