Life is a journey

Life is a journey

There are Milestones . 100km 200km .and a Destination 300km 400km

Your Destination is more enjoyable if .

Each milestone you cross leaves you with a nice feeling

Each milestone you cross 100 km brings you closer to your destination

And gives you instant gratification

Presenting ICICI Pru Cash Advantage

Because customers love liquidity Customers want to access their money ULIPs More than 80% of the sales done through ULIPS After returns, Liquidity was the key selling point Top objection in traditional endowment policies like GSIP is liquidity

What does the customer want In the last five years customers have asked for Safety or Guarantee Liquidity

What does Cash Advantage offer?

Milestones in life In life, small milestones are Child’s tuition fee, child’s cricket coaching or guitar class, car servicing, electricity bill, 100km monthly grocery, own gym membership, Fuel cost etc. The list goes on & on For now we pay most of this from our salary How about an insurance product that pays every month for your small milestones and later a big lump sum for your bigger milestones?

How does the plan work? Vested reversionary bonuses Terminal bonus Premiums Guaranteed Maturity Benefit Guaranteed Cash Benefit Premium payment Payout term term Life cover for the entire policy term

How does the plan work? Step 1: Choose Premium payment term, premium, Sum Assured, premium payment mode and cash benefit mode Step 2: Guaranteed Maturity Benefit and Guaranteed Cash Benefit calculated basis above factors as well as age Cash at entry Maturity Benefit Guaranteed Benefit Benefits Death benefit Bonuses

Surrender Policy acquires a surrender value as per the table below Premium payment option Surrender Value 5 or 7 pay After 2 full year’s premium 10 pay After 3 full year’s premium

Boundary conditions Premium payment option Premium (PPT) payment term 5 pay 7 pay 10 pay 5 years 7 years 10 years 10 years Payout term Policy term (PPT Payout term) Minimum annual premium Maximum annual premium Sum Assured on death Min/Max age at entry 15 years 17 years 20 years Rs. Rs. 18,000 Rs. 12,000 Age at Sum Assured 30,000 entry multiple Unlimited 45 10 45 to 54 7 or 10 54 7 0 / 60 Min/Max age at maturity 18 / 80 Premium payment mode Annual / Half-yearly / Monthly Cash benefit mode Annual / Monthly

Cash advantage- A Five Star product Five star benefits Guaranteed maturity benefit Reversionary bonus declared every year Guaranteed Cash benefit Guaranteed Death benefit Tax benefits

How to pitch ICICI Pru Cash Advantage

ICICI Pru Cash Advantage – Child story From school fees to university admission! Customer pen portrait: 30 year old, recently became a father Needs: Comprehensive education solution for the child What he saves: Rs. 1 lakh for 7 years What he gets School fee support: From child’s age 7 to 17 (till class 12) Higher education corpus: For university admission at 17 Rs. 3,600 per month for 120 months, i.e. total Rs. 4.3 lakh Rs. 8.5 lakh (@8%) Education protection: Life cover of Rs. 10 lakh bonuses

How does the solution work? Higher education corpus of Rs. 8.5 lakh Pay Rs. 1 lakh for 7 yrs Get Rs. 3,600 p.m. for 10 yrs Premium payment Payout term term Life cover for the entire policy term

Gift your Grand child, Cash every year Every Kid loves to visit his grand parents, specially during festivals in anticipation of gifts. Grand parents also love to shower their grand children with gifts when they visit. Through Cash Advantage make your presence felt every year in your grand child’s life. Also Get Gift tax benefit!!

ICICI Pru Cash Advantage – Gifting Story Mr. Zubin is a 65 year old ex-serviceman. He wants to gift Rahul something which will benefit him throughout his schooling. Mr. Zubin gifts a policy of ICICI Pru Cash Advantage to Rahul with a PPT of 5 years and annual premium of Rs. 100000. Premium Rs. 1 lakh per annum 5 yrs Maturity benefit of 5.5 lakhs for graduation Guaranteed cash benefit 28 k p.a for 10 yrs for Rahul’s schooling Premium payment Payout term term Life cover for the entire policy term

Commission rates

Thank You

Death Benefit Death Benefit Higher of SA, Minimum Death Benefit, Guaranteed Maturity benefit vested reversionary bonuses, if any interim bonus, if any terminal bonus, if any Minimum Death Benefit is equal to 105% of sum of premiums paid till date* *excluding extra mortality premiums, service tax and cesses, if any

Guaranteed Cash Benefit For each small milestones in life Guaranteed Cash Benefit is payable in advance during the pay out term Guaranteed Cash Benefit can be received in monthly or annual instalments Cash 100km mode Monthly Annual benefit Guaranteed Benefit 1% of GMB 11.5% of GMB eed t n ra Gua outs pay r fo Cash t hs n o m 1 20

Maturity Benefit Maturity Benefit Guaranteed maturity benefit vested reversionary bonuses, if any terminal bonus, if any Maturity Benefit shall be at least 100.1% of the sum of premiums paid* less the sum of Guaranteed cash benefits received during the policy term. *excluding any extra mortality premium, service tax and cesses

Bonuses Yearly Compound reversionary bonus to be declared for in force policies Illustration: cumulative accumulated bonus amount over a 15 year term for a guaranteed maturity benefit of Rs 1 lakh and a reversionary bonus of 4%. Year GMB(Rs) Year 1 Year 2 Year 3 Year 4 Year 5 Year 10 Year 15 100,000 100,000 100,000 100,000 100,000 100,000 100,000 Total Cumulative GMB Compounded Simple incl. bonus Bonus Bonus accumulation (Rs) Computation Computatio per year (Rs) n per year (Rs) 100,000 4,000 4,000 104,000 4,160 4,000 108,160 4,326 4,000 112,486 4,499 4,000 116,986 4,679 4,000 142,331 5,693 4,000 173,168 6,927 4,000 180,095 160000 In rupee terms, for the same rate of 4% Compound reversionary bonus Simple reversionary bonus

Historical Compounded Reversionary Bonus Financial Year Forever Life (SP) Smart Kid Save 'n' Cash Bak Forever Protect(RP Life(RP) ) 2006-07 3.25% 3.25% 3.25% 3.25% 3.25% 2007-08 3.00% 3.00% 3.00% 3.00% 3.00% 2008-09 2.50% 2.25% 2.25% 2.25% 2.50% 2009-10 4.00% 4.00% 4.00% 4.00% 4.00% 2010-11 3.00% 2.50% 2.50% 2.50% 3.00% 2011-12 2.75% 2.25% 2.25% 2.25% 2.75% Note: 2010 numbers have a reversionary bonus component and a special bonus component * Past performance may or may not be sustained in future

Terminal bonus It’s like a loyalty bonus added as a percentage of GMB to the policy held for more than 10 years It is paid in lump sum at the maturity in addition Terminal Bonus for FY 2012 to the Vested Financial bonus Year Terminal Bonus Save n Protect Series I Save n Protect Series II Smartkid Series I Smartkid Series II Forever Life Regular Premium Series-I Forever Life Regular Premium Series-II Forever Life Single Premium * Past performance may or may not be sustained in future 20.00% 15.00% 20.00% 15.00% 20.00% 15.00% 25.00%