SBI Life Unit Plus III Pension

SBILA/06/01/10/PRP/31, Version 2

Discover The Joy Of Living Long


Protection against loss of income

In case of premature death

For the financial securityof the family

Because the family depends on us!

Absolutely essential to protect the family!

Why Life Insurance ?


Protection against loss of income

post retirement

For the financial security of Self

Can we depend on our family?

Pension Plans are absolutely essential to be independent!

What if we live long?


The need for increasing our Pension Fund is growing rapidly because

We’ll need more money to maintain our Pre-retirement Lifestyle

We’ll have to provide for a longer time due to increasing life expectancy

Increasing cost of Health and Medical care beyond the rate of inflation

Need for Pension


Maximum Growth

Complete Flexibility

Easy Liquidity

Tax Benefits

An Investor’s Wish list…while buying a financial product


Unit Plus III Pension Plan offers pension benefits and does not have a life cover

Base plan pays out on death or CI or TPD , whichever occurs first, to give succour to you and extend support your family in the unfortunate event

Guaranteed Additions, to boost your funds

Lower Charges – Allocation, Admin & FMC

Varied Fund Options : Index Pension Fund & Top 300 Pension Funds (New Funds)

Add On options : SBI Life Criti Care 13: Health Protection for the CustomerSBI Life Income Sustainer Benefit : Customer & Family is Secured

Why Unit Plus III Pension?


Risk Return Options

Optimize your returns with 8 Fund Options !

Index Pension

Fund

Top 300 Pension

Fund

Equity Pension

Fund

Equity Optimizer

Pension Fund

Growth Pension

Fund

Balanced Pension

Fund

Bond Pension

Fund

Money Market Pension

Fund

New Fund


More Value…..

Additional Flexibilities…..

Change your premium amounts, according to your needs, from 4th year onwards

Top-up (s) any time

Increase/Decrease in premium contribution

Flexibility to Prepone or Postpone the vesting age with in the permissible limits

Complete control your investments through the Switch option

Other flexibilities in the form of Premium Redirection

http://images.google.co.in/imgres?imgurl=http://curemypiles.com/images/options.gif&imgrefurl=http://curemypiles.com/treatmentoptions.html&usg=__Fa6S8lw_h4aUguFWe4PPqIs2LC4=&h=319&w=450&sz=27&hl=en&start=3&tbnid=PvEaX2yfQC8JHM:&tbnh=90&tbnw=127&prev=/images?q=options&gbv=2&hl=en


Cost Effective…..

No Hidden Cost…..

Allocation Charges as low as 5% in year 2 and NO Allocation Charges from 6th year onwards

Policy Admin Charge of Rs 60 p.m. for Regular Premium and Rs 50 p.m. for Single Premium

Fund Management Charges in the range of 0.25% p.a. to 1.35% p.a.

….Charges meeting the Cap set by IRDA….

http://images.google.co.in/imgres?imgurl=http://www.accessrx.com/health-articles/files/media/image/discount.gif&imgrefurl=http://www.accessrx.com/health-articles/online-pharmacy/five-reasons-to-order/&usg=__XUaSEDJNRByTOa1zMJrmf3vUMd0=&h=306&w=345&sz=5&hl=en&start=2&tbnid=3ZPB3rhNuL8dvM:&tbnh=106&tbnw=120&prev=/images?q=discount&gbv=2&hl=en


Customization….. Packaging the plan…..

Criti Care 13 Rider - Provides lump sum amount to take care of 13 Critical Illnesses

Income Sustainer Rider - Provides additional benefit in the case of death or in the case of TPD due to Accident or Sickness, whichever is earlier.


Trust…..

The product comes from the stable of SBI Life which is a jointventure between the State Bank of India (largest bank inIndia) and BNP Paribas (One of the leading Global Bank).

The Funds are managed by expert Fund Managers with aproven track record.

http://images.google.co.in/imgres?imgurl=http://lifeinthenhs.files.wordpress.com/2009/05/trust2.jpg&imgrefurl=http://lifeinthenhs.wordpress.com/2009/05/17/trust-and-personal-values/&usg=__hqejlSHQGxjYp8rmgJ2WFOJ4Mbc=&h=2400&w=3000&sz=739&hl=en&start=3&tbnid=bay6hXo9t94byM:&tbnh=120&tbnw=150&prev=/images?q=Trust&gbv=2&hl=en&sa=G


By the end of this session you will be able to:

Appreciate the launch of Unit Plus III Pension

Describe the features of SBI Life Unit Plus III Pension

Explain the Rider features

Classify the Target Segments


Regulator’s directive to Banks & Insurance Companies

For policies of more than 10 years term:Difference between gross and net yield not to be more than 2.25%FMC capped at 1.35%

For policies of less than equal to 10 years term:Difference between gross and net yield not to be more than 3%FMC capped at 1.5%(Ref: 055/IRDA/Actl/ULIP/2009-10)

Need for transparency in the interest of customers investing money, banks should disclose to the customers, details of all commissions / other fees received from financial companies(Ref: RBI/2009-10/224; DBOD.No.FSD.BC.60/24.01.001/2009-10)

The Need To Launch Unit Plus III Pension


The Insurers

1. For a term <= 10 yrs, IRR @ 6% & 10% returns should not be less than 3% & 7% respectively

2. For a term > 10 yrs, IRR @ 6% & 10% returns should not be less than 3.75% & 7.75% respectively

3. Reduce fund management charges.

4. Reduce allocation charges

5. Modify plan features to accordingly

The Customers

1. Pay lower charges for his / her insurance investment

2. Accumulate more out of his investments

3. Reach target fund values earlier

4. Save in the most cost effective way

5. Be aware of all aspects of the investments

What It Means For The……


Product Snapshot

Entry Age Minimum: 18 yearsMaximum: 67 years (Regular Premium) 70 years(Single Premium)

Policy Term Minimum: 8 years (Regular Premium) 5 years (Single Premium)Maximum: 50 years (Both Regular & Single)

Premium Paying Term Same as Policy Term

Vesting Age Minimum: 40 yearsMaximum: 75 years

Premium Minimum: Rs 24,000 ( Yearly ) Rs 12,000 (Half Yearly) Rs 6,000 (Quarterly) Rs 2,000 ( Monthly ) Rs 60,000 ( Single Premium)Maximum: No Limit

Top Up Minimum: Rs 5,000Maximum: Cumulative Top Up cannot exceed 100% of Total Basic /Single Regular Premium paid as on top up payment date


Survival Benefit

On Vesting Age, maximum of one-third of the Fund Value can be commuted in lump sum

Balance amount to be used to purchase annuity either from SBI Life or from any other Annuity Provider


Vesting AgePreponement: This option can be exercised after completion of 5th policy year

Intimation should happens 3 months prior to the new vesting date

This option can be availed only once in the entire policy term

Rider Cover, if any, will cease at the new vesting age opted for

However in case of Single Premium rider, if any, the policyholder on preponement will be entitled to a surrender value of the rider.

Postponement: This option can be exercised after completion of 5th policy year

Intimation should happens 3 months prior to the original vesting date

This option can be availed three times in the entire policy term

Rider Cover, if any, will cease at the previous vesting age and will not be extended


Death Benefit

In case of death:

Fund Value is payable

When rider is attached:

Fund Value along with the Rider Sum Assured is payable


Guaranteed Additions

Unique feature that increases maturity value for customer!

+ + +

Policy Year Regular Premium (Rs )

Single Premium ( Rs)

6th year onwards 5% 1%

Guaranteed Addition is a percentage of one annualized regular premium

In Single Premium, it is a fixed percentage of Single Premium


Fund Equity & Equity related Instrument

Debt & Money Market Instrument Risk Profile

Min: 90% Max: 100% Min: 0% Max: 10% High


Min: 80% Max: 100% Min: NIL Max: 20% High


Min: 40% Max: 90% Min: 10% Max: 60% Medium to High

Min: 40% Max: 60% Min: 40% Max: 60% Medium

NA

Debt: Min: 60% Max: 100%

Money Market: Min: NIL Max: 40%

Low to Medium

NA

Debt: Min: 0% Max: 20%

Money Market: Min: 80% Max: 100%

Low

Different Fund Options

Equity Pension Fund

Growth Pension Fund

Balanced Pension Fund

Equity Optimizer Pension Fund

Index Pension Fund

Top 300 Pension Fund

Bond Pension Fund

Money Market Pension Fund


FlexibilityFund Switching:

Two free switches in a policy year are allowed

Additional switches are charged at Rs 100

Minimum switch amount is Rs 5000

Switching is allowed subject to switching charges in case of lapsed policy

Premium Redirection:

Available free of cost twice in a policy year

Additional redirection facility is available at Rs 100 per request


Premium ModificationIncrease and decrease in Annual Basic Premium:

Option available at each policy anniversary starting from 4th policy year

Option is exercised maximum of 3 times during the policy term

Rider Premium and benefits are not allowed to change

Premium can be increased without any limit

Premium to be reduced maximum of 50% of the original premium at inception over

the 3 occasions available for reduction

Premium Mode Change in Annual Regular Premium ( Rs )

Yearly Mode Rs 5000 ( x 100 )

Half Yearly Rs 2500 ( x 100 )

Quarterly Rs 1500 ( x 100 )

Monthly Rs 500 ( x 100 )


Unpaid Premium (In first 3 policy years)

Year 1 Year 2 End of Year 4

Customer pays first year premium

Customer does not pay 2nd year premium

If revival not done within 3 years from FUP ,

Surrender Value will be paid and policy will

terminate

Revival Period – 3 years

Rider Cover lapses immediately FMC and Policy Administration Charges continue to get deducted No Top Up is allowed


Year 1 Year 2 Year 3 Year 4

Customer pays first 3 years premium

End of Year 6

If customer doesn’t revive, policy continues till FV reaches one AP or maturity whichever is earlier

Revival Period – 3 years

Policy goes into revival mode for 3 years from FUP

Customer Does not Pay 4th Renewal

Rider Cover lapses immediately All charges continue to get deducted

Unpaid Premium (4th policy year onwards)


Surrender Facility

Fund Value gets disinvested

Fund Value net of surrender charges is paid on the 1st working day of 4th policy anniversary

Within first 3 years

Policy will acquire a surrender value only after payment of full premium in the 1st policy year


Surrender penalty as % of fund valueYear Regular Premium Single Premium

1 15% 5%

2 10% 5%

3 7.5% 5%

4 5% 2%

5 5% 2%

6 onwards NIL NIL

Surrender Charges


Regular & Single Premium

Top Up Allocation Charge is 2% of the top up amount

Year Regular Premium Single Premium1 10% 2.25%

2 5% NA

3 5% NA

4 5% NA

5 5% NA

6 onwards 0% NA

Premium Allocation Charges


Equity Pension Fund 1.35%

Equity Optimizer Pension Fund 1.35%

Growth Pension Fund 1.35%

Balanced Pension Fund 1.25%

Bond Pension Fund 1.00%

Money Market Pension Fund 0.25%

Index Pension Fund 1.25%

Top 300 Pension Fund 1.35%

Fund Management Charges:

Policy Administration Charges

For Regular Premium:- Monthly administrative charges are equal to Rs. 60/- For Single Premium:- Monthly administrative charges are equal to Rs. 50/-

Other Charges


Other Charges

Medical Expense

Medical Underwriting may be required for revival of policies with riders attached

Expenses, if any, will be borne by the policy holder

Maximum expense to be incurred is Rs 3000

Miscellaneous Charges

Additional amount of Rs 100/- is charged for issuance of duplicate/additional copy of yearly fund statement


Rider Benefits


Rider Benefit

s


2 Riders available for Unit Plus III Pension Plan

Rider Benefits can be taken only at the inception of policy

The rider benefit can be terminated by stopping the premium.

Once terminated, rider cannot be attached with the base policy

Riders available in Unit Plus III Pension are:

SBI Life - Criti Care 13 Rider SBI Life - Income Sustainer Benefit

Rider Benefits


Criti Care 13 Rider Income Sustainer Benefit

Age at Entry 18 - 55 18 - 59

Maximum Cover Age 64 64

Minimum Term 5 5

Maximum Term

Term of the base cover or 64 years minus age at entry, whichever is

less

Lower of term of the base product or 30 years or 64 years

minus age at entry

Minimum Sum Assured Rs 25,000 Rs 25,000

Maximum Sum Assured Rs 20,00,000 * Rs 20,00,000 *

Rider Boundaries

* Condition for base product Sum Assured will not be applicable for Pension Plan


Criti Care 13 Rider

13 critical illnesses are covered under this rider

90 days of waiting period applicable from DOC or date of revival

30 days of survival period is applicable from the date of diagnosis of critical illness for claim payment

Diseases Covered:

Cancer Coronary Artery Bypass Surgery Heart Attack Heart Valve Surgery Kidney Failure Major Burns Major Organ Transplant Paralysis Stroke Surgery of Aorta Coma Motor Neuron Disease Multiple Sclerosis

Criti Care 13 Rider


Income Sustainer Benefit Rider

Benefit is payable if policyholder dies or is met with Total Permanent disability due to accident or sickness

Rider Benefit payable either at Total Permanent Disability or death, whichever is earlier

25% of benefit is paid on death or disability and 1% of rider benefit is paid in arrears monthly to the nominee/life assured

1% of rider benefit continues till the end of the Income Sustainer Rider Term or 10 years, whichever is higher

Income Sustainer Benefit Rider - Features


Features Unit Plus II Pension Unit Plus III Pension Changes

Plan Option

Option I : Pure Pension (no Life Cover)

Option II : Pension cum Life cover

Not AvailableBase product offer pension benefits

No risk cover available

Age at Entry

Min: 18 yrs

Max: 65 years- For Option I; 60 Years- For Option II

Min: 18 yrs

Max: 67 years (for Regular Premium); 70 years (for Single Premium)

Enhanced Entry Age

Policy Term 5-52 yrs 8-50 yrs(for Regular Premium) ;

5-50 yrs(for Single Premium)Max term reduced

by 2 yearsVesting

Age 50 – 70 years 40 – 75 years Min vesting age reduced to 40

Minimum Premium

Regular Premium (X100) : Rs. 24,000

Single Premium (x1000) : Rs. 25,000

Regular Premium (X100) : Rs. 24,000Single Premium(x100) : Rs. 60,000

Min SP increased

Riders Available

Accidental Death & Permanent Disability Rider

Critical Illness Rider

Income Sustainer Benefit Rider Criti Care 13Rider

New riders added

Benefit payment Scenarios for base product

DeathOption 1: Fund Value

Option 2: Higher of Fund Value or Sum Assured for

DeathFund Value; If riders have been opted

for, the relevant benefit shall be payable over and above the Fund Value

SA not allowed

Surrender Surrender without penalty from 4th year onwards

Surrender without penalty from 6th year onwards

Liquidity pushed by 2 years

Analysis – Previous vs. Present



Investment Funds

4 Funds (Equity Pension Fund, Bond Pension Fund, Growth Pension fund, Balanced Pension Fund)

8 Funds (Existing fund options plus Top 300 Pension Fund, Index Pension fund, Money Market Pension Fund &Equity Optimizer Pension Fund

4 new funds are added

Flexibility to change regular

premiums

Only Increase in regular premium is allowed. Minimum Increase : Rs.12,000/- on annualized basis

Both Increase and Decrease in regular premium allowed.*Minimum change in annualized premium : Rs. 5,000

Decrease in premium allowed

Switching

4 Free Switches per year, additional charged Rs. 100 Switching not allowed when policy is in lapsed state

2 Free Switches Per Year, additional charged Rs. 100 per switch. No restriction on switch while policy is in lapsed state

switching is possible at all

times

Redirection Possible from 2nd policy year onwards, Once in a year

Possible from 1st year, First 2 redirections requests are free per year

2 free redirection possible from 1st

year

Rebates On mortality charge 5% rebate for women,

No mortality charges as no SA offered under this product No Risk Cover

Guaranteed Additions

For RP(% age of first 10 policy year’s annualized premium): Year 10: 10%; Year 15: 20%; Year 20: 30% For Single Premium (% age of SP): Year 10: 1%; Year 15: 2%; Year 20: 5%

Given every year starting from the 6th policy year: For Regular Premium policies : 5% of one annualized premiumFor Single Premium policies : 1% of SP

Guaranteed Additions given

for a longer period




Revival /Premium

Discontinuance

5 yrs from the due date of FUP / Surrender value paid at the end of revival period if premium is discontinued

3 yrs from the due date of FUP / Policy forfeited at the end of revival period if full 1st year premium is not paid.

Reduced revival period

Admin ChargeRs 60 per month, increased at 2% per annum subject to a ceiling of Rs 300 per month

RP: Rs 60 p.m. SP: Rs 50 p.m. Lower admin

charges

FMC

Equity Pension Fund - 1.50% p.a.

Equity Pension Fund - 1.35% p.a.Top 300 Pension Fund: 1.35%Index Pension Fund: 1.25%Money Market Pension Fund: 0.25%

Lower FMC

Allocation Charges

Lower Allocation

charges

RP 24k – 1lac

1-5(L) 5 lac +

Yr 1 15% 12% 9%

Yr 2-3 7.5% 5% 3%

Yr 4-5 5% 5% 3%

Yr 6-10

2% 2% 2%

Yr 11 + NIL

SP 25k-1 lace

1-5(L) 5 Lac +

2% 1.5% 1%


Year Regular Premium

Single Premium

1 10% 2.25%

2-5 5% NA

6th year onwards

NIL NA



Surrender Charge

No surrender charge from 6th

Policy year

Commissions

Commission rates is

consistent for Premium sizes

RP 24K-1 L

Yr 1 – 3 Not Allowed

Yr 4 – 5 2% of Fund Value

Yr 6 -10 1% of Fund Value

Yr 11+ NIL

SP 25K – 1L

Yr 1 – 3 Not Allowed

Yr 4+ NIL

RP All Premiums

SP All Premiums

Yr 1 15% of FV Yr 1-3

5% of FV

Yr 2 10% of FV Yr 4-5

2% of FV

Yr 3 7.5% Yr 6+ NIL

Yr 4-5 5% of FV

Yr 6+ NIL

RP 24k-1 L 1 L – 5L 5 L+

Yr 1 7.5% 6% 4.5%

Yr 2-10

2% 2% 2%

Yr 11 + NIL NIL NIL

SP 25k-1 L 1 lac-5 L 5 L +

2% 1.5% 1%


Year Regular Premium

Single Premium

1 7.5% 2%

2-10 2% NA

11 1% NA


Hassle Free Pure Pension Plan

Base plan pays out on death or CI or TPD , whichever occurs first, to give succor to you and extend support your family in the unfortunate event

Guaranteed Additions to boost your funds

Lower Charges – Allocation, Admin & FMC

Varied Fund Options : Index Pension Fund & Top 300 Pension Funds (New Funds)

Add On options : Criti Care 13: Health Protection for the Customer Income Sustainer Benefit : Customer & Family is

Secured

Recap – Unit Plus III Pension


Clients who wants to plan for their retired life

Clients looking for high growth & control to boost their pensions

Charges savvy customers

Clients looking for cost effective investment option

Target Segments


Thank You

For More Details :

K.PrakashInsurance AdvisorSai Services9160003221

N.Hari KrishnaAgency Manager9989389716

Documents

SBI Life Unit Plus III Pension