In Come Surance

8/22/2019 In Come Surance

1/40

Incomesurance

A versatile plan for any goal

for internal training purpose only


2/40

There are some goals in life

that you cannot leave to chance



3/40

Some of these are

Educating

your child

Planning for

your

daughtersmarriage

A

guaranteed

income postretirement

Financial

security for

your family



4/40

How can you ensure that you

achieve these goals without any

impediments

You need a plan that allows you to save regularly

You need a plan that gives you assured income

You need a plan that can protect you from market

uncertainties

You need a plan that will work even if anything

unfortunate happen to you



5/40

There is an ideal investmentoption that will help you meet

these goals

Incomesurance works for all

kind of goal planning



6/40

You can save regularly and get guaranteed payout to meet the child's

education

You can rest assured that your goal will be achieved even if anything

were to happen to you

You can draw your guaranteed payout when the time comes for

marriage

You can meet wedding expenses or give her a regular income. It is

the best present you can give when she is setting up home

You can ensure that your wife will have independent income so that

her security is well assured

You can ensure that no one including creditors or claimants can

touch that money through MWPA endorsement

Educating

your child

Planning for

your

daughters

marriage

Providing

financial

security for

your loved

ones

The guaranteed annual payouts can add to your pension amount. The

extra income that can make your retired days easier.

The payouts are tax-free

Ensuring a

comfortable

retirement

incomefor internal training purpose only


7/40

Incomesurance gives you guaranteed annual payout

for the Payout Period chosen by you.

It is an ideal plan for those who seek to ensure timely

and regular availability of income.

It is also ideal for anyone who likes guarantees andwould like to have at least one guaranteed income

generating financial plan to create future

income.

Most importantly, it is ideal for all those who would

like to ensure their family's well and

fulfillment of their obligations even in their absencefor internal training purpose only


8/40

How does Incomesurance work?



9/40

Premium Paying Period Payout Period

Policy Term

Premium paid increases

payout for all the years of

the payout period

Flexibility to choose PPT of 5, 10

or 15 years; increase depends

upon the interest rates prevailing

at that time; the increase applies

to each yearly payout

You can choose 5 or 10 years as

payout period in which you will

receive the Guaranteed Annual

Payout

Additional Annual Payout

Is paid over & above

Minimum Annual Payout; it is

declared each time premium

is paid & is paid each year

during the payout period

Flexible Payout OptionPremium Payment Period

Minimum Annual

Payout

Flexibility to opt for annual

payouts or allow it to accumulate

earning interest which can be

withdrawn at maturity or

whenever needed

Flexibility to choose PPT of 5, 10

or 15 years; premium can be

paid monthly, quarterly, half-

yearly or yearly

Is declared at inceptionbased on Premium

Payment Term &

Payout Period choice.

This amount is paid

each year during the

payout period



10/40

Guaranteed Annual

Payout (GAP)

Gives guaranteed annual payout every year for the payout

period chosen

Minimum Annual (MAP)payout is declared atinception and is guaranteed

Is the base minimum amount you will receive each yearduring the Payout Period

The amount depends upon the Sum Insured and thePayout Period chosen by you:

Additional Annual payoutsare linked to rates on Govt.securities(G-Secs)prevailing at the time ofpremium payment

AAP is paid over and above MAP

You will get AAP every time you pay premium, startingright from the first premium

The AAP amount is also paid to you every year during thePayout Period, along with the MAP

The amount of AAP depends upon the prevailing G-Secrate at the time of premium payment

PPT of 5 yrs PPT of 10/15 yrsPayout Period 5 yrs 16% of Sum Insured 20% of Sum Insured

Payout Period 10 yrs 8% of Sum Insured 10% of Sum Insured

Payouts



11/40

Government securities(G-secs) are

sovereign securities issued by RBI on behalf of Government of

India,

in lieu of the Central Government's marketborrowing program

G-Secs have terms ranging from 1 to 10 years; Additional Annual Payout isdetermined using the 10 year G-Sec rates prevailing at the time of premium payment

10 Year G-Sec Yield Trend (%)

Source: Bloomberg

Government Securities

G-Secs include

Central Government Securities

State Government Securities

Treasury bills



12/40

Additional Annual Payments each full annual premium paid

as a % of the MAPPPT 5 10 15 5 10 15

Term 10 15 20 15 20 2510-year G-Sec rate Rate of Guaranteed Additions

less than 3.50% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%3.50% to 3.99% 0.0% 0.4% 0.5% 0.8% 1.0% 0.9%4.00% to 4.49% 0.5% 0.8% 0.8% 1.7% 1.6% 1.4%4.50% to 4.99% 1.1% 1.2% 1.2% 2.6% 2.1% 1.9%5.00% to 5.49% 1.7% 1.7% 1.6% 3.5% 2.8% 2.5%5.50% to 5.99% 2.4% 2.1% 2.1% 4.4% 3.4% 3.0%6.00% to 6.49% 3.0% 2.6% 2.6% 5.4% 4.1% 3.7%6.50% to 6.99% 3.7% 3.1% 3.1% 6.5% 4.8% 4.4%7.00% to 7.49% 4.4% 3.7% 3.7% 7.6% 5.6% 5.1%7.50% to 7.99% 5.1% 4.3% 4.2% 8.7% 6.5% 5.9%8.00% to 8.49% 5.9% 4.9% 4.8% 9.8% 7.3% 6.7%8.50% to 8.99% 6.7% 5.5% 5.5% 11.1% 8.2% 7.6%9.00% to 9.99% 7.6% 6.2% 6.1% 12.4% 9.1% 8.3%

10.00% to 10.99% 9.0% 7.2% 7.1% 14.5% 10.5% 9.7%11.00% to 11.99% 10.3% 8.2% 8.1% 16.5% 11.9% 11.0%12.00% to 12.99% 11.7% 9.3% 9.1% 18.5% 13.4% 12.3%13.00% to 13.99% 13.0% 10.3% 10.1% 20.5% 14.8% 13.6%14.00% to 14.99% 14.4% 11.3% 11.1% 22.6% 16.2% 15.0%15.00% to 15.99% 15.7% 12.3% 12.1% 24.6% 17.6% 16.3%

Every time as you pay your premium, the amount of AAP payable for each year during the

survival benefit term, will be calculated according to the following formula:Minimum

Annual

Payout

Applicable rate

of additions of

AAP

Additional Annual Payout Rates



13/40

Premium MAP (Rs) G-Sec Rate AAP Rate AAP (Rs) Cumulative AAP

(Rs)

GAP after

payment of

Premium (Rs)

A B C D=A C E F= A+E

1st Premium 16,000 6% 3% 480 480 16,480

2nd Premium 16,000 7% 4.4% 704 1,184 17,184

3rd Premium 16,000 8% 5.9% 944 2,128 18,128

4th Premium 16,000 9% 7.6% 1216 3,344 19,344

5th Premium 16,000 10% 9.0% 1440 4,784 20,784

Mr. Sen opts for a MAP of Rs.16,000 every

year for 5 years with a PPT of 5 years G-Sec rate whilst paying the 1st premium

is 6%; the AAP is 3% of Rs.16,000 = Rs.480

The GAP after the 1st premium payment is

Rs.16,480

G-Sec rate whilst paying the 1st

premium is 7%; the AAP is 4.4% ofRs.16,000 = Rs.704

The GAP after the 2st premium

payment is Rs.16,480 + Rs.704 =

Rs.17,184

* For AAP rates corresponding to G-Sec rates please refer to the AAP rate table previous slide

Determining Additional Annual

Payout Illustration



14/40

Payout Options



15/40

Customers need to choose one of two options:

Lump Sum Cover

Person to be insured or proposer

can be same or differentindividuals

Guaranteed annual payout ispayable to the proposer

Death benefit is payable tobeneficiary

Waiver of Premium Benefit

Person to be insured or proposer

are two different individuals Ideal where the person to beinsured is a minor

Guaranteed annual payout ispayable to the proposer

In the event of death of the

proposer, future premiums arewaived and paid; policy continuesand future benefits are payable

Plan Options



16/40

Sum Insured

Premium Payment Term Survival Benefit Term

(Payout Period)

Death benefit during the

PPT increases by the

Additional Annual Payout

(AAP) every time a premium

is paid

Death benefit during the

survival benefit term

decreases by the

Guaranteed Annual Payout

(GAP) which is paid out

Death Benefit in Incomesurance



17/40

Death during the premium payment term In the event of death of the

Premium Payment Term Payout Period

Whose death? What benefit? What happens to

the policy?

Insured person Sum insured* + AAP accrued to date x (policy

term premium payment term), if any is paid to

the nominee

Policy terminates

Policy owner No benefits are payable Policy continues

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Death of the

Life Insured

Death BenefitLump Sum Cover during the PPT



18/40

Death during the survival benefit term (payout period) In the event of death of the


Whose death? What benefit? What happens

to the policy?

Insured person Sum insured + AAP accrued to date x (policy term premium

payment term), if any, less any GAP paid to date or reinvested+ balance if any in the interest bearing account if flexible

payout option has been selected, is paid to the nominee

Policy terminates



Death of the

Life Insured

Death Benefit

Lump Sum Cover during the Payout

Period PT



19/40

Death during the premium payment term

In the event of death of the

* The maximum age of the policy owner for waiver of premium benefits at expiry of the premium payment term is 65 years



to the policy?

Insured person Sum insured + AAP accrued to date x (policy term

premium payment term), if any, less any GAP paid to dateor reinvested + balance if any, is paid to the nominee

Policy

terminates

Policy owner Future premiums up to a maximum of Rs. 1 lakh p.a. is

waived (paid by the company on behalf of the proposer)

Policy continues


Death of the

Life Insured

Death of the

ProposerOR

Death BenefitWaiver of Premium Benefit



20/40

Death during the survival benefit term In the event of death of the



to the policy?

Insured person Sum insured + AAP accrued to date x (policy term premium

payment term), if any, less any GAP paid to date or reinvested+ balance if any in the interest bearing account if flexible

payout option has been selected, is paid to the nominee

Policy terminates



Death of the

Life Insured

Death BenefitWaiver of Premium Benefit



21/40

Premium MAP (Rs) G-Sec

Rate

AAP

Rate

AAP (Rs) Accrued

AAP (Rs)

Death benefit

during PPT

A B C D=A C E=D 5 F

1st Premium 16,000 6% 3% 480 2400 102400

2nd Premium 16,000 7% 4.4% 704 3520 105920

3rd Premium 16,000 8% 5.9% 944 4720 110640

4th Premium 16,000 9% 7.6% 1216 6080 116720

5th Premium 16,000 10% 9.0% 1440 7200 123920

Death during Premium Payment Term

After the 1st premium, the AAP declared is Rs 480 each year for 5 yearsi.e. a total of Rs 2,400.

If death occurs the payout will be SI = Rs 100,000 + Rs 2400 = Rs1,02,400

After the 2nd premium, the AAP declared is Rs 704 each year for 5 yearsi.e. a total of Rs 5,920

If death occurs the payout will be SI = Rs 1,02,400 + Rs 3520 = Rs1,05,920

Determining Death BenefitIllustration



22/40

Year Premium MAP

AAP

eachyear

Cum AAP

each yearAAP GAP

Death

benefit

boy eoy boy boy eoy eoy

1 15,937 480 480 102,400

2 15,937 704 1,184 105,920

3 15,937 944 2,128 110,640

4 15,937 1,216 3,344 116,720

5 15,937 1,440 4,784 123,920

6 16,000 4,784 20,784 123,920

7 16,000 4,784 20,784 103,136

8 16,000 4,784 20,784 82,352

9 16,000 4,784 20,784 61,568

10 16,000 4,784 20,784 40,784

* boy

beginning of year; eoy = end ofyear

** Illustration assumes customers age as

35 where PPT is 5 years; policy term is 10

years; Sum Insured is Rs.1 lakh & MGAP

is Rs.16,000

Death during PayoutPeriod

On death in the 7th year,the death benefit payablewill be SI plus accruedAAP less GAP received i.e.(Rs 1,23,920 Rs 20,784)

= Rs 1,03,136

Determining Death BenefitIllustration



23/40

Other Benefits



24/40

High sum insured discounts in rupees per Rs 1,000 sum insuredSum insured Premium payment term

5 10 15up to Rs 3,99,999 0.00 0.00 0.00

Rs 4,00,000 to Rs 9,99,999 5.00 2.50 2.00Rs 10,00,000 and above 6.00 3.50 2.50

Premium = (Sum Insured/1,000) x (Premium rate per 1,000 Sum Insuredapplicable rebate)

Customers whoopt for sum

insured beyondRs.3,99,999 youwill get discount

on their premium

Illustration

Mr. Jain aged 30 opts forsum insured of Rs.5 lakh;PPT of 5 years & Policy Term

of 10 years

Premium payable without discount:

Rs.79,340

Premium payable after discount: Rs.76,840

Mr. Jain gets a discount of3.15% on his premium

High Sum Insured Discount



25/40

Paid-up Value

Paid up values are available after one, two or three full years premiumshave been paid for policies with premium payment terms of 5, 10 and 15

years

Once the policy has acquired a paid up value, then if the customer

discontinues paying premium, we will make the policy paid up with reducedbenefits

The reduced guaranteed annual payouts will be paid up value factor

multiplied by MAP plus AAP accrued till date

The paid up value will be Paid up value factor sum insured plus AAP

multiplied by (policy term premium payment term) less GAPs paid till

date plus the balance, if any, of the interest bearing account if the Flexible

Payment Option has been selected



26/40

Surrender ValueSpecial Surrender Value

Is available once a policy acquires a paid up value,which is after one, two or three full yearspremiums have been paid for policies with

premium terms of 5, 10 and 15 years respectively

The special surrender values are not guaranteedand are subject to change



27/40

GSV

Factor

Paid up

value factorMAP

No. Of

Outstanding

Payouts

Policy year

PPT

the balance, if any, of the interest bearing account if

the Flexible Payout Option has been selected

Guaranteed Surrender Value (GSV) FactorsPPT 5 10 15 5 10 15

Policy Term 10 15 20 15 20 25Age at entry

18 to 29 90% 90% 80% 90% 90% 80%

30 to 39 90% 90% 80% 90% 90% 80%

40 to 49 90% 90% 80% 90% 90% 80%

50 to 59 90% 80% 60% 80% 80% 50%

60 to 65 90% 70% 40% 80% 70% 30%

Surrender Value

Guaranteed Surrender Value



28/40

Plan specifications



29/40

Age at Entry of life

insured

Min 30 days

Max 65 years

Age at Entry of

policy owner

Min 18 years

Max 60 years

Age at Maturity Max

75 years

(in case of minor insured person the minimum age at maturity is

18 years last birthday)

Age of expiry of

Waiver of PremiumMax

65 years

Sum Insured Min Rs 1,00,000/-

Max No limit, subject to underwriting

Premium Payment Term Limited 5, 10 and 15 years

Policy Term Limited 10, 15, 20 and 25 years

Premium payment term-

Survival Benefit term - Policy

term matrix

Premium Paying Term

(in yrs)

[A]

Survival Benefit

Term (in yrs)

[B]

Policy Term (in

yrs)

[C = A+B]

5

5 or 10 years

10, 15

10 15, 20

15 20, 25



30/40

Medical Grid

Category 1: MER, Blood Profile

Category 2: MER, Blood Profile, CBCCategory 3: MER, Blood Profile, ECG-R

Category 4: MER, Blood Profile, CBC, ECG-R

Category 5: MER, Blood Profile, CBC, ECG-Ex

Category 6:

MER, Blood Profile, CBC, ECG-R,

HbA1C

Category 7:

MER, Blood Profile, CBC, ECG-Ex,

HbA1C

Category 8:

MER, Blood Profile, CBC, ECG-EX,

CXR, HbA1C

NM: Non-Medical

MER: Medical Examination Report

CBC: Complete Blood Count

Blood

Profile:

FBS, Serum Cholestrol, HDL, Serum Triglyceride, Serum

Creatinine, BUN, Total Bilirubin, Alkaline Phospatase,

SGOT, SGPT, HBsAg and HIV 1&2

ECG-R: Electrocardiogram Resting

ECG-EX: Electrocardiogram Exercise

CXR: Chest X-ray



31/40

Once again IncomesuranceA versatile plan for any goal



32/40

Summary of plan benefits



33/40

A flexible plan that allows you

liquidity the way you would like it

As a money back when you need the money,

withdraw as per your convenience or;

As a money back at regular defined intervals or;

As an endowment, accumulate till the end of the

policy term to fulfill a financial goal



34/40

Guaranteed annual income during

the payout period

Guaranteed Annual Income is equal to Minimum Annual income

+ Bonus

Minimum Annual income is declared at inception and is

guaranteed

The bonus is declared with every premium paid and is linked to

rates on Govt. securities prevailing at the time of premium

payment and hence transparent



35/40

Enjoy IDBI Fortis

Guarantee



36/40

Mr. Sunit Verma is an IT professional, working for NIIT Limited.

He is 35 yrs old and wants to save for his daughter Soumyas (5

yrs of age) higher education and wants to receive some money

on a yearly basis to pay for her fees.

He pays Rs 59,941

per year for a period

of 15 years

He receives Rs 2,14,000

from Soumyas age 20(16th policy year) each

year for the next 10 years

Sum Assured 1 0, 00,000

Plan Option Waiver of Premium



37/40

Gagandeep Kaur is a senior manager in a multinational in

Delhi. She is a reserved kind of person She is age 40 years of

age, unmarried. She wants to save for her retirement

She pays Rs 1,02,896


of 15 years

She receives Rs 3,63,800

from (16th policy year) each


Sum Assured 17, 00,000

Plan Option Lumpsum Cover



38/40

Mr. Raj Negi is a businessman; he has shown interest towards

saving for old age He is 50 yrs old and his children have

completed their education and are pursuing their careers. He

now plans to secure expenses for his wife and himself. Kindlysuggest an appropriate plan.

He pays Rs 41,000


of 10 years

He receives Rs 91,000

from age 61(11th policy year) each


Sum Assured 5, 00,000




39/40

Mr. Ram Bilas Paswan, Age38 yrs, A central Govt. Employee, earning around

12 Lacs/Year. He has most of his investment in NSC, KVP and also invested

in real estate. He is interested in some safe investments. He has a son Amit

who is 3 yrs of age. Mr Paswan wants to save for his higher education and iswilling to invest 1 lakh per annum

He pays Rs 1,19,882

per year for a periodof 15 years


from age 18 ofAmits age(16th policy year) each


Sum Assured 20,00,000

Plan Option Waiver of Premium



40/40

Mr. Rajeev Agarwal is a shop keeper (readymade garments) age 38 yrs,with

an average monthly income of approximately 25,000/- rupees,wife is a

school teacher & earns a salary of about 6500 per month. They have their

parental house where he lives with his wife,daugher (6 months) and his

mother. He mostly invest in banks FDs till date or banks recurring deposits

a/c. He wants to save 10Lacs for his daughters marriage

He pays Rs 23,908

per year for a periodof 15 years


lump sum when his

daughter is 25 years old

Sum Assured 4,00,000


f i l i i l

Documents

In Come Surance