Remember

A.B.C.
Rule

Retire
&

Enjoy
Package
2

LIFE
Love Income Family Expectation
0 20

21 30

31 65

66
3

LIFE
4

Make Aware

Fear of Death
First Enzyme to Arrest Reasoning

50 : 50
You
Lost Your
Health
Wealth
Confidence
too

50 yrs
Children
Marriage
42 yrs
Children Career

Problems
Are
Plenty

27 yrs
Children
25 yrs
Marriage
2020 yrs
Employmen
t

CASH

LIFEs

Gives
Confidence
Health
too

Half Life Cycle

My Son is in New York

My Daughter is in
London

Where
Is Your
Son &
Daughter
8

My Son got JOB &

Settled
My Daughter Married &
Settled

What
about
YOU
When YOU Will Settle in
LIFE

Joint Family
Vs
Nuclear Family
10

11

PAYRENT
12

PENSION
IS
MUCH BETTER THAN

SON
13

In Most Claim Cases

(Maturity / Death)
The Claim Amount is Utilized for
Current
Commitments
or
Lost due
to Bad Investment
Advice.
14

Insurance is the
Only Product
Which You Have to Buy
When It is Not Required.
You Cant Buy Insurance
When It is Required.
Because..
Life is Always Uncertain
&
Insecurity is The Biggest Threat in Life

15

has
2
Risks
16

Living
too
Short
is
Risky
17

18

The Answer is

19

Living
toooooooooooooooo
Long
is also
Risky
20

O OLD AGE CHALLENGES

New Disease & New Treatment
Lack of Adequate Social Security
Unavoidable Commitments

21

Retirement Needs
Day-To-day Expense
Medical Expense
Social Expense

22

Caution
Non-Productive Years
Are More than
Productive Years
In

LIFE

23

I
HAVE
MONEY
BUT

NO TIME

I
HAVE TIME

BUT
NO
MONEY

24

You
CAN

Borrow
For
Childs
Education & Marriage

25

But
NOBODY
Will
Lend You
For Your
RETIREMENT

26

27

28

29

Annuity
fixed amount payable every year

Pension
a sum payable regularly to a
person who is not working due to
old age or illness

30

PENSION
Received from Any Source
Is

Added to Income From Other

Sources and Subject to
Prevailing Tax Laws

31

Sec 10(10)(d) of Income Tax Act 1961

Benefits Received
From
Life Insurance
100%
Free
32

Direct Tax Code (D.T.C)

From 1st April 2012
Tax Reforms
Rebate for
Yearly Premiums
Not Exceeding 10% of the Sum Insured
Previously it was 20 % (1.4.2003 to 31.03.2012)
Up to 31.03.2003 No Conditions.
33

INCOME TAX
Sec 80c Vs 10 (10) (d)
Variable

Constant
34

PREMIU
M

MATURITY

EEE
BONUS

T=
TAXABLE

Vs
E = EXEMPTED

EET
35

Income Increases with Time

I
N
F
L
A
T
I
O
N

I
N
C
O
M
E
36

Let Us Compare . . .
YOUNGER

OLDER

AGE

More Income
Lesser Commitment
Higher Longevity
Longer Working Years
Lower Health Expenses
No / Nil Savings
Scope for Increased
Income
More Time to Plan

AGE

Lesser Income
More Commitment
Lower Longevity
Shorter Working Years
Higher Health Expenses
Inadequate Savings
No Scope of Increase
No Time to Plan
37

Let Us Compare . . .
Long Term

Short Term

More Frequent
Small Goals
Un Planned
Mostly for Tax Savings
Easy Liquidation
Change of Goal
Higher Risk
Emergency use

Less Frequent
Bigger Goals
Well Planned
Not Much Tax Savings
Only as a Last Resort
Fixed Goal
Lower Risk
Not Always
38

My Theory . . .
With the Passage of Time
Due to Inflation
The Income of an
Individual
In Any Trade or Profession
Increases
39

With the Fixed Premium,

The Percentage of Savings
towards his Income
goes on Reducing

40

Hence
it is suggested
to go for Huge Long Term
Investments
at Younger Age & vice versa

41

Investme
nt
Amount

42

At Younger Age

Investme
nt
Amount

43

At Older Age

Investme
nt
Amount
44

Wrong Formula

Income Expense = Savings

45

Right Formula
Income Savings = Expense

46

Short Term Investments

Fixed Deposits
Share Market
Bonds
Mutual Funds
Company Deposits
Post Office
47

Medium Term Investments

Fixed Deposits
Share Market
Bonds
Mutual Funds
Real Estate / Gold / Silver
Post Office
48

Long Term Investments

Life Insurance
Gold / Silver
Real Estate
Equity (Blue Chips)
49

Gold as an Investment
Advantages

Easy Liquidity
Appreciation
Jewellery
Marriage etc

Disadvantages

Purity
Robbery
Loss on Resale
Attract Wealth Tax
Storage Cost
50

History Of Gold

51

Mutual Fund
as an Investment

Advantages
Good Returns
S.I.Ps
Tax Savings
Lesser Risk
Indexation Benefit

Disadvantages
Complex Schemes
Lock-In Period
Entry / Exit Load
Market Risk

52

53

54

55

56

Have these popular funds disappointed investors?

AUM data as per portfolios disclosed on July 31, 2013
Scheme Name

1 Month

3 Months

YTD#

AUM

HDFC Top 200 Fund (G)

-8.9

-16.3

-14.4

10,874.80

HDFC Equity Fund (G)

-9.1

-17.1

-16.2

10,328.47

Reliance Equity
Opportunities Fund (G)

-6.4

-14.8

-15.8

4,914.62

Reliance Growth Fund

(G)

-7.9

-14.6

-19.5

4,268.71

UTI Dividend Yield Fund

(G)

-8.4

-12.3

-12.7

3,120.03

S&P BSE 200

-9.0

-12.2

-9.7

57

Real Estate
as an Investment
Advantages
Appreciation
Collateral Security
Indexation Benefit

Disadvantages
Litigation
Retention
Selling Problems
Tax Problems
Govt Acquisition

58

59

Fixed Deposit
as an Investment
Advantages
Good Returns
Short Term
Liquidity

Disadvantages
Company Background
Insolvency
Penalty for Pre-Closure
Tax Problem

60

Post Office
as an Investment

Advantages
Fixed Income
Short Term
Govt Guarantee
Tax Rebate
Good Return

Disadvantages
Short Term
Tax on Interest
Penalty for
Pre-Closure

61

Share Market
as an Investment

Advantages
High Returns
Liquidity
Capital Gains Tax
Bonus Share
Dividend
Rights Issue

Disadvantages
High Risk
Expertise
Delisting
Tax Free

62

63

64

65

66

67

68

69

70

71

ALL
FOR
JUST 3 %

72

73

No Guaranteed Pension
for
Government Employees

from 1.1.2004
74

Planning
for

75

7
GOLDEN
RU L E S
OF
RETIREME
NT1. Save 10% of Income
2. Increase Investment when Income grows
3. Do Not Withdraw till Retirement
4. Withdraw 5%p.a initially after Retirement
5. Save 20 times of Annual Expense
6. Borrow for Kids Education
7. 100 Age is Equity

76

77

78

79

Investment Portfolio
Any
Time
You
Can
Invest
ONLY
IN

YOUNGER

AGE

&
ANY
TIME
SPEND

&
ONLY
FOR
YOUR
USE

80

81

Let
Us
See the Options Available
In
INDIA
82

Options - 1
Post Office
Monthly Income Scheme
Interest 8.40 %
Guaranteed up to 5 yrs Only

Income Taxable
83

84

Options - 2
Govt of India
New Pension Scheme
Pension Not Guaranteed
Pension Taxable
85

86

Options - 3
L.I.Cs
Jeevan Akshay Plan-189
with Service Tax @ 3.09 %

Pension 6.9-7.4 %
Guaranteed for LIFE
Pension Taxable

87

Options - 3
L.I.Cs
New Jeevan Nidhi
Plan-818
Pension Not Guaranteed
Pension Taxable
88

Which
is
The
Best!

89

No
One !
90

Yard-Sticks
to
Choose
91

Yard-Stick.1
Safety

92

Yard-Stick.2
Guarantee

93

Yard-Stick.3
Interest

94

Yard-Stick.4
Tax-Free

95

Yard-Stick.5
Extras

96

When Should

Start
Retirement Planning?
97

Earlier
The
Better
98

Monthly Savings: 2500/Pension Age: 55 yrs

Assumed Rate of Interest 6% p.a

99

Monthly Savings: 2500/Pension Age: 55 yrs

Assumed Rate of Interest 6% p.a

100

Pension Age: 55 yrs Capital Required = 16,87,764

Assumed Rate of Interest 6% p.a

101

102

103

104

What is Retire & Enjoy Package ?

Combination of LIC Plans
Maturity in Successive Years
Any Plan & Any Number of Plans
With or Without Whole Life Cover
814,815,
105

One Policy for 12,00,000 S.A

Sum Assured
Bonus 1200 x 48 x 21
Final Adl Bonus 1200 x 100

1200000
1209600
120000

Total Maturity Amount

2529600

106

12 Policies for 100000 S.A

814/21
814/22
814/23
814/24
814/25
814/26
814/27
814/28
814/29
814/30
814/31
814/32

100000
100000
100000
100000
100000
100000
100000
100000
100000
100000
100000
100000

100800
105600
110400
115200
120000
124800
129600
134400
139200
144000
148800
153600

5000
8000
15000
23000
33000
43000
54000
65000
76000
90000
110000
130000

TOTAL

12,00,000 15,26,400 6,52,000

205800
213600
225400
238200
253000
267800
283600
299400
315200
334000
358800
383600
33,78,400
107

What Big Difference

ONE POLICY MATURITY -

25,29,600

12 POLICIES MATURITY -

33,78,400

DIFFERENCE

8,48,800
108

Loss Due to
Splitting for a Cause
Compensated by the
Higher Final Additional Bonus
On Increased Term
109

Let Us Compare
SINGLE Term POLICY

High Premium
Lower Risk Cover
Large S.A Rebate
Higher Bonus
Lower Final Adl. Bonus
Full Lapsation
Shorter Term
Single Maturity
Tax Problem

MULTIPLE Term POLICIES

Low Premium
Higher Risk Cover
No S.A Rebate
Lower Bonus
Higher Final Adl. Bonus
Partial Lapsation
Longer Term
Multiple Maturity
Tax Free
110

111

Medical Emergency Fund

Liquidity of R & E Package !

Loan
1 day
Interest 10% p.a. Payable Half Yearly
Repayment at Any Time or Pay Only Interest
112

L.I.C Bonus Rules

Declared Every Year
Based on Term
Less than 11yrs,
11 to 15 yrs,
16 to 20 yrs
21yrs & above
113

114

115

116

L.I.C Final Additional (FAB)Bonus Rules

Payable One Time on Maturity & Death.
Based on Term
15,16,17,18,1940 & Above yrs
Based on Sum Assured
Up to 25000, 25001 to 50000,

50001 to 199999, 200000 & Above.

117

118

119

120

Why So Long Term Plan ?

Lower Premium
Higher & Longer Risk Cover
Higher Bonus
Higher FAB
Longer Pension
Tax Benefits
No Other Investment Option Available
121

USP of Retire & Enjoy Package

1.Limited Premium Commitment
2.Lower Premium & Longer Risk Cover
3.Flexibility & Liquidity in case of Crisis
4.Reasonable & Guaranteed Returns
5.Tax Benefits @ All Times (Sr.Citizen)
6.No Market Risk
7.Estate Creation

122

How L.I.C differ from Private Cos ?

Past Performance Good Bonus Record
Lower Expenses Lowest Expense Ratio
Claim Settlement Highest Claim
Settlement Ratio
Service Networks 8-Z.O, 113-D.O, 2048+
B.O, 2300+ S.S.O, . . .
123

124

What is Sovereign Guarantee ?

L.I.C OF INDIA Formed & Regulated by
Under LIC OF INDIA ACT 1956
Sum Assured
&
Declared Bonuses
Guaranteed by Govt of India.
Even if LIC in Financial Crisis, Govt will Settle Policy Holders Claim.

125

126

For
EASY Premium Payment

GO FOR

E.C.S

Selected Cases Only

L.I.C Utility Code: 4009056

127

128

129

130

131

132

133

EVEN

IF

Tax on Maturity implemented

Due to Splitting of S.A

Maturity Amount are Small
Payable In Different Financial Years
Hence Tax Avoidance /
Reduction is Possible
134

Cost of Insurance

Tax
Free Maturity
135

Tell Me Only
One

Govt Guaranteed Investment

For 25 / 30 / 35 yrs
Reasonable Returns
Capital Safety
Cover for Death
Liquidity @ Low Cost
Tax Benefit
Protection from Creditors (M.W.P Act)
136

Answer is
The One and the Only

L.I.C POLICY
137

138

We Dont Say
Dont Invest in Other Investments
But
Investing in L.I.C too
Is a Wiser Decision.
139

POPULAR CONCEPT
PRIVATE INSURERs COPYING...

WHY NOT

YOU
140

Write ALL Details From

Agents Copy

141

142

143

One Life Vs 20 Policies

One RE Lapse leads to 20 Policies Lapse
Lapse Ratio Increases
One RE Revival leads to 20 Policies In-force
Lapse Ratio Decreases
Keep Few Policies in force
144

RE Problems:
1.NB Completion
2.Policy Servicing
3.Claims Handling

145

RE PROBLEMS
1.LICENSE RENEWAL
2. CLUB MEMBERSHIP
3. DIFFERENCIAL UNDERWRITING
146

147

Solution
Select Lives
Select Premium
Service Policies
Solve Problems

148

Points to policy holders

1. you have taken 21 policies
2. you will receive 21 policy bonds
3. premium for other policies will be
149

SELL

RE

LIKE
A

GOLD
150

Stop Complaining
Start Living.
Bcos
You Require World for living
World Does Not Require
You .!
151

Cause
Vs
Compromise
152

THE ONLY SOLUTION

NEW BUSINESS
LAW OF AVERAGE
153

ODC
One Day Century
One Day Confidence
154

Tips for One Day Centurion

1. List 25 Prospects
2. Age Below 35 years
3. Premium Paying Capacity Rs4500 5500.
4. Standard Age Proof
5. NMS or NMG Professionals Or NRI on Visit
6. Sum Assured Rs.20/16/15/12/10/9.95/8 Lakhs
7. Avoid Operation/Sub Std Cases No Spl. Reports
8. Add Child Education Combo Package
9. ECS Monthly
10.Use RE Print Outs
155

ODC is Like Daughters Marriage

1. Decide Groom, Place, Date & Time
2. Delegate Work
3. Invitation Schedule
4. Keep Off Problems
5. Monitoring Work Schedule
6. Alternate Plan
7. Prioritising Work
8. Keeping the Dead Line
9. Must Do Attitude
10.Done with 99 % Accuracy
156

Factors Affecting Confidence Level

Knowledge
Experience
Personality
Position
Power
Influence
Character
Dressing
Ego

Support
Gender
Environment
Performance
Skill
Language
Stress
Spirituality
Insurance
157

Cash
G
I
V
E
S

Confidence
158

159

TIME IS MONEY
160

Rule

72
161

Aim

100
REs
Before
31st March 2015
162

LETTER
HANDED OVER TO
THE ZONAL MANAGER

163

164

165

166

167

168

169

170

171

172

173

174

175

176

177

to
Retire & Enjoy
178

Objection No.1
Term

Too Long ?
Life is also too Long
After 60 Years !
179

Objection No.2
Too
Many Policies ?
Too Many
Government Guaranteed
Payments !

180

Objection No.3
Pension
Too Small ?
Premiums
Too Small !
181

Objection No.4
Loss Due to
Split in Sum Assured ?
LOSS Not Too Much
With So Much of CAUSE !
182

Objection No.5
Inflation
affects Pension ?
Inflation
affects Premium too !

183

Objection No.6
Yield Lower ?
But Guaranteed !
184

Objection No.7
Why Not Pension
Plans ?
Why Not Tax-Free !
185

Objection No.8
Follow Up
Difficult ?
Solution
Expected Soon !
186

Objection No.9
Only
Yearly Pension ?
Settlement
Option !
187

Objection No.10

?
188

We
Sell
Retire & Enjoy

Reason No.1

35 %
7.5 %
5%...

Reason No.2
CHANGE IN TAX LAWs
INCOME TAX

Reason No.3
NO MARKET RISK
NO NAV
NO SURRENDER

Reason No.4
LONG TERM
COMMISSION
&
RELATIONSHIP

Reason No.5
MUTIPLE
LIVES

Reason No.6
LESSER
LAPSATION

Reason No.7
MORE
CONFIDENCE

Reason No.8
NO
OPTIONS
AVAILABLE

Reason No.9
N.B COMPETITIONS
BASED
ON
NO. POLICIES

Reason No.10
ENCASH
THE
POPULAR
CONCEPT

200

201

202

203

Prepared By
N.V.Murali
M.Com., B.L., A.I.I.I.
Development Officer
City Branch VIII
Chennai 600 018.
nvmuralic@yahoo.co.in
Voice: 098401 90360
205