GIP- 6 Pay Presentation V1.1 - Final

Guaranteed Income Plan – 6Pay (GIP-6 Pay)

Launch Training Deck for YBL

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Workshop outline

What are the new Why Why Guaranteed
Features and What Income Plan?
Benefits? How
Specifications,
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Handling

2

In the world full of uncertainties, what is it that is
fully guaranteed?

Returns from stock market? - NO An illustrious career? - No

Continuation of Even Gold is not 100% pure
governance? - No

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However, guarantee matters the most when it
comes to fulfilling your family’s dreams

Max Life launches its first ever plan that provides 100% fully guaranteed regular
monthly income

© Max Life Insurance What you are promised is what you get ! 4

GIP helps secure the following for you:

Support Children education

Supplement Retirement Income
Support to parents in times of need

Provides cushion for planned as well as
unplanned needs

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What our top sellers say:

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Workshop outline

What are the new Why Why Guaranteed
Features and Income Plan?
Benefits?
What Specifications,
© Max Life Insurance How Competition, Target
Segment, Objection
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6

What does GIP offer?

1 Tax Free Guaranteed Monthly Income 7
2
3 Monthly Income that doubles after 5 years
4
5 Guaranteed Terminal Benefit

© Max Life Insurance No Waiting Period
Option to receive death benefit in lump sum or

monthly income

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GIP 6 Pay at a glance

1. Entry Age: 25 Years to 60 years

2. Pay for 6 years & get income for 10 years followed by terminal benefit:

I. 48% - 52% of premium as income for first 5 years Guaranteed
II. 96% - 105% of premium as income for next 5 years Tax free
III.125% of premium as terminal benefit benefit

3. Death Benefit:
I. 12.75 times annualized premium as lump sum or
II. 1.65 times annualized premium per year paid monthly for 10 years

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Let us look at the benefits of GIP- 6 Pay

Name: Mr. Gupta Age: 45 years Profession: Salaried employee Wife: 42 yrs
Annualised Premium : Rs 1.00 Lac Policy Term & PPT: 6 yrs
Mr. Gupta want to plan for his retirement

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Planning

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Survival No Waiting Period
Benefit Tax Free Guaranteed Monthly Income
Monthly Income that doubles after 5 years

Guaranteed Terminal Benefit

Terminal Benefit Rs
1,25,000

Guaranteed Income of Rs Guaranteed Income of Rs
52,530 per year for 5 years, 1,05,070 per year for 5 years,
payable monthly (Rs 4,378 payable monthly (Rs 8,756
monthly income) monthly income)

45 50 No waiting period ! 60
Monthly income starts
Annualised Premium* of Rs. 1 Lac paid for 6 years from next month after end
of Policy Term

*Annualised Premium is premium payable in annual mode that excludes extra premium, and service tax or any other taxes, cesses or levies, if any

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Option to receive death benefit in lump sum or monthly
income

Death Nominee may opt to avail death benefit in
Benefit monthly installment for 10 years

Death in Guaranteed Income of Rs 1,65,000 per year for
4th year 10 years payable monthly (Rs 13,750 monthly

income)

OR

Nominee may take death benefit as lump sum
of 12.75 X one annualized premium* = Rs.
12,75,000

Policy Year

Year 1 Year4 Year 15

Annualised premium* paid only
for 4 years

*Annualised Premium is premium payable in annual mode that excludes extra premium, and service tax or any other taxes, cesses or levies, if any

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What we heard from YOU?



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For internal training and circulation purposes only
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Workshop outline

What are the new Why Why Guaranteed
Features and Income Plan?
Benefits?
What Specifications,
© Max Life Insurance How Competition, Target
Segment, Objection
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13

Product Specification

Type of Plan Non participating Non Linked Insurance Plan
Premium Payment 6 years Policy Term
Term (PPT) and Period of 10 year (120 months) after the completion of policy term.
Policy Term 73rd Month (beginning of 7th year) to 192nd month (end of 16th year)
25 years to 60 years
Payout Period
66 years
Available issue ages
(Age Last Birthday on
the effective date)
Expiry Age
(Age Last Birthday)

Minimum Annualized Rs. 75,000
Premiums

Premium Modes Annual Mode only

Guaranteed Death Guaranteed Death Sum Assured (GDSA) is defined as:
Sum Assured (GDSA) 12.75 times one Annualized Premium

Guaranteed Maturity GMSA) is defined as the present value of survival benefits calculated at a discount rate of
Sum Assured (GMSA) 5.7% p.a. and is expressed in terms of one Annualised Premium. GMSA is always higher
than the sum of the total annualised premiums payable over the policy term for all entry
ages

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Product Specification

Survival Benefit = Income Benefit + Terminal Benefit

Income Benefit
Income Benefit shall be payable during the 10 year Payout Period post completion of the
policy term in accordance with the tables below. This Income Benefit is payable monthly
and is expressed as a percentage of Annualized Premium
The Income benefit is dependent on age of the life insured and Policy Term variant

Survival Benefit Terminal Benefit
Terminal Benefit is a onetime payout payable at the end of Payout Period, which is:

125% of Annualized Premium

The Terminal benefit is same across all ages for a given Policy Term variant

Instead of taking the Survival Benefit as a series of monthly payments, the policyholder also
has the option to avail the survival benefit in lump sum at the end of the policy term, before
the commencement of the payout period.

On exercising this option, the GMSA is paid to the policyholder. The policy shall terminate
on the payment of the GMSA.

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Product Specification

Income Benefit structure on sample ages:

Entry Age Annual Income Benefits in the first 5 Annual Income Benefit in the last 5
(Age last years of the Payout Period years of the Payout Period
birthday)
(as % of Annualised Premium) (as % of Annualised Premium)
40
45 53.16% 106.31%
50 52.53% 105.07%
55 51.46% 102.92%
60 50.03% 100.06%
48.07% 96.14%

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Product Specification

In case of death of the Life Insured within the Policy Term, the beneficiary shall receive the following death
benefit:

The lump sum Death Benefit payable is equal to the Death Sum Assured, which is defined as the higher of:

I) 10 times the Annualized Premium; ii) 105% of Total Premiums Paid; iii) Guaranteed Maturity Sum Assured
(GMSA) iv) Guaranteed Death Sum Assured (GDSA);

Death Benefit GDSA is always higher than 10 times the Annualized Premium, 105% of Total Premiums Paid and GMSA. Hence
the lump sum Death Benefit is 12.75 times Annualized Premium and 18.50 times Annualized Premium for a 6
(Payable on death of year Policy Term and 12 year Policy Term variant respectively.
the Life Insured)
However, instead of taking the death benefit as lump sum, the beneficiary also has the option to avail the death
benefit in monthly installments for a period of 10 years post the date of death as follows:

Variant Death Benefit Period
6 years Policy Term (as % of Annualised Premium, payable monthly)
10 years following the date of
165%/12 death of the Life Insured

The policyholder on survival during the payout period or beneficiary in case of death of Life Insured has an option
to receive the present value of the outstanding survival and death benefit respectively as lump sum.

On receipt of the Commutation request, all future Death or Survival Benefit payable (as the case may be) will be
Commutation Option stopped and a lump sum amount will be made available to the beneficiary or policyholder respectively. The

policy shall terminate on payment of the commuted value.

The Company shall derive the commuted value by using a discount rate of 5.7% per annum from the date of
receipt of request of commutation. The discount rate can be changed by the Company subject to IRDA’s approval
basis changing investment returns.

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Product Specification

A policy can be surrendered only once it has acquired a surrender value. The policy acquires

Surrender Benefit surrender value as shown below:

(Payable immediately After payment of 2 full years’ premiums (13th month)

on surrender) There will be a Guaranteed Surrender Value (GSV) and a Special Surrender Value (SSV), with

the latter being non-guaranteed. Surrender Value is defined as Higher of GSV or SSV.

Reduced Paid Up Reduced Paid-Up (RPU) Benefit: Once the policy has acquired a surrender value, in case of
(RPU) Policies non-payment of due premiums till the expiry of the grace period, the policy will not lapse
but will become Reduced Paid-Up (RPU). The policy will continue with reduced benefits as
follows.

Death Benefit for RPU Policies

RPU Death Benefit = (total Annualized premiums paid / total Annualized premiums payable
) X Death Benefit

Survival Benefit for RPU Policies

RPU Survival Benefit = (total Annualized premiums paid / total Annualized premiums
payable ) X Survival Benefit

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Target Segment

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Conversation Starter

“How would you feel if I offer you guaranteed income for 10 years to take care of your
loved ones education?”
“Life is uncertain; If I show you a plan that will guarantee to work for your family when
you are there and even if you are not there. Would you be interested?”
“ Would you be interested in a plan that would guarantee income for 10 years? ”

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How NOT to sell?

Customer: Does your plan Advisor: Of course! Our
offers better return than plans are always better than

fixed deposits fixed deposits

Customer: Is the amount Advisor: In fixed deposit you will get
shown in the illustration is returns but no protection and the
the guaranteed amount that maturity amount would be taxable.
However, in GIP you get guaranteed
I will get.
returns along with protection and tax-
free income.

Advisor: No, You will get
minimum this amount and it

could be higher too

Advisor: No, GIP offers you
guaranteed income for first 5 years
and it doubles in next 5 years and at
the end of term it provides terminal

benefits too

Our Treating Customers Fairly (TCF) philosophy – We will provide clear and correct information to the customer

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What you must tell the customer?

 This is a Non Participating Non Unit Linked Insurance Plan and the value
illustrated in GIP offers you guaranteed income for first 5 years and it doubles
in next 5 years and at the end of term it provides terminal benefits too

 In this plan, the Guaranteed Maturity Sum Assured is different from
Guaranteed Death Benefit. Both are clearly mention in the illustration

 The Terminal Benefit is payable only after the end of payout period

 Policy acquires a Surrender Value (GSV) after 2 full years' premiums are
received

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Competition Benchmark

Parameters Kotak Birla Sun Life Exide Life Star Union Max Life

Choice of death benefit ~4.7% ~4.9% ~4.5% ~3.5% ~4.6%
~75-83% ~55-60% ~60-68% ~45-50% 80%-90%
Income benefit that
doubles
Customer Return (IRR)

Proportion of regular
income over total
benefits

Constant death benefit
(irrespective of when
death happens)

Benefit expressed as % of
premium (ease of sale)

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MEDICAL UNDERWRITING EVIDENCE- GIP 6 Pay

Med UW Amount = Sum 18 to 35 Age 46 to 55
Assured X 1.5 Non medical Non medical
Non medical 36 to 45 Non medical
Years Non medical Non medical Non medical
Upto 500,000 Non medical Non medical
500,001 to 10,00,000 Non medical Cat 4
10,00,001 to 15,00,000 Non medical Non medical
15,00,001 to 20,00,000 Cat 4
Non medical Non medical
20,00,001 to 35,00,000 Cat 6
Non medical Cat 4
35,00,001 to 40,00,000 Cat 6
Cat 4 Cat 4
40,00,001 to 50,00,000 Cat 4 Cat 6
Cat 4 Cat 6
50,00,001 to 1,00,00,000 Cat 6
Above 1,00,00,001

Yes Bank-Select customer class

Enhanced Non Medical grid will be launched for specific Yes Bank customer base. The
eligibility criteria as mentioned below.

New enhanced grid

Med UW Amount = Sum 18 to 35 Age 46 to 55
Assured X 1.5 Non medical Non medical
Non medical 36 to 45 Non medical
Years Non medical
Upto 500,000 Non medical Non medical Non medical
10,00,001 to 15,00,000
Non medical Non medical
15,00,001 to 20,00,000 Non medical
Non medical Non medical
20,00,001 to 25,00,000 Cat 6
Non medical Non medical Cat 6
25,00,001 to 35,00,000 Non medical Non medical Cat 6
35,00,001 to 50,00,000 Non medical Non medical
50,00,001 to 75,00,000 Non medical Cat 6
75,00,001 to 1,00,00,000 Cat 6 Cat 6
Cat 4
1,00,00,001 to 1,50,00,000 Cat 4 Cat 6
Above 1,50,00,000 Cat 6

Category ref Medical test

Cat 1 Medical examination report (MER)
Cat 2 Medical examination report (MER), Complete blood count (CBC)
Cat 3
Cat 4 Medical examination report (MER), Blood Profile

Cat 5 Medical examination report (MER), Blood Profile, Electrocardiography (ECG), Microscopic
Urinalysis (MSU)
Cat 6
Medical examination report (MER), Blood Profile, Electrocardiography (ECG), Microscopic
Cat 7 Urinalysis (MSU),Complete blood count (CBC),

Blood Profile Medical examination report (MER), Blood Profile, Microscopic Urinalysis (MSU),Complete
blood count (CBC),Treadmill Test ((TMT)
CBC
Medical examination report (MER), Blood Profile, Microscopic Urinalysis (MSU),Complete
blood count (CBC),Treadmill Test ( TMT ) , CXR

Serum cholesterol, HDL, Triglycerides, Fasting blood sugar, Creatinine, Blood urea
nitrogen, Bilirubin, Albumin, SGOT, SGPT, Gamma GT, ALP, HBsAg, HIV -I & II

Hemoglobin, RBC Count, PCV, MCV, MCHC, MCH, TLC, DLC, Platelet Count, Morphology of
Cells, ESR

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Objection 1:

“I would prefer to invest in FD compare to your plan?”
OR
“Fixed Deposit offers better return than your GIP?”

“Sir, bank fixed deposits are good financial instruments with guaranteed
returns but they do not provide Tax Free Guaranteed Income & Protection
to your family. However,
• FD rates changes very frequently
• There is no surety of same interest rates at next renewal
• There is a drastic fall in FD interest rates in the last 20 years
However, GIP provides regular & guaranteed flow of income over a longer
period (10 years) along with protection to your family for the entire policy
term”

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Objection 2:

“I would prefer to invest in property where I can get
better returns than your plan?”

“Life Insurance cannot be compared with real estate. Since you mentioned
property, let me tell you a few important facts:
•When you buy property, you need to invest lump sum money
•There is no guarantee of appreciation
•70-80% buyers prefer to purchase new houses
•Most sellers end up with distress sale
However, GIP offers you Tax Free Guaranteed Regular Income to achieve
your financial goals along with protection of your family which property
may not be able to do so”

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Objection 3:

“I understand that GIP gives me life insurance, but I can get this
cover from a term insurance at a much cheaper cost?”

“Term plan is a solution for an unforeseen & unplanned event in
life (death during earning years) whereas GIP aims to fulfill a
planned financial goal such as supporting child education or
retirement. Term plan will provide only protection, whereas GIP
offers regular Tax Free Guaranteed Income to your family, with or
without you, so that your financial goal is met in all
circumstances.”

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