Incomesurance A versatile plan for any goal

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There are some goals in life that you cannot leave to chance

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Some of these are

Educating your child

Planning for your daughters marriage

A guaranteed income post retirement

Financial security for your family

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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
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There is an ideal investment option that will help you meet these goals

Incomesurance works for all kind of goal planning

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Educating your child

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

Planning for your daughters marriage Providing financial security for your loved ones
Ensuring a comfortable retirement income

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

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
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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 and would 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 absence
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How does Incomesurance work?

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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

Premium Paying Period

Payout Period

Policy Term

Minimum Annual Payout

Is declared at inception based on Premium Payment Term & Payout Period choice. This amount is paid each year during the payout period

Premium Payment Period

Flexibility to choose PPT of 5, 10 or 15 years; premium can be paid monthly, quarterly, halfyearly or yearly

Flexible Payout Option

Flexibility to opt for annual payouts or allow it to accumulate earning interest which can be withdrawn at maturity or whenever needed

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Payouts
Guaranteed Annual Payout (GAP)

Gives guaranteed annual payout every year for the payout period chosen
Is the base minimum amount you will receive each year during the Payout Period The amount depends upon the Sum Insured and the Payout Period chosen by you:
PPT of 5 yrs Payout Period 5 yrs 16% of Sum Insured PPT of 10/15 yrs 20% of Sum Insured

Minimum Annual (MAP) payout is declared at inception and is guaranteed

Payout Period 10 yrs

8% of Sum Insured

10% of Sum Insured

Additional Annual payouts are linked to rates on Govt. securities(G-Secs) prevailing at the time of premium payment

AAP is paid over and above MAP You will get AAP every time you pay premium, starting right from the first premium The AAP amount is also paid to you every year during the Payout Period, along with the MAP The amount of AAP depends upon the prevailing G-Sec rate at the time of premium payment
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Government Securities
Government securities(G-secs) are sovereign securities
issued by RBI on behalf of Government of India, in lieu of the Central Government's market borrowing program

G-Secs include Central Government Securities State Government Securities Treasury bills

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

10 Year G-Sec Yield Trend (%)

Source: Bloomberg

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Additional Annual Payout Rates

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

PPT Term 10-year G-Sec rate less than 3.50% 3.50% to 3.99% 4.00% to 4.49% 4.50% to 4.99% 5.00% to 5.49% 5.50% to 5.99% 6.00% to 6.49% 6.50% to 6.99% 7.00% to 7.49% 7.50% to 7.99% 8.00% to 8.49% 8.50% to 8.99% 9.00% to 9.99% 10.00% to 10.99% 11.00% to 11.99% 12.00% to 12.99% 13.00% to 13.99% 14.00% to 14.99% 15.00% to 15.99%

5 10 0.0% 0.0% 0.5% 1.1% 1.7% 2.4% 3.0% 3.7% 4.4% 5.1% 5.9% 6.7% 7.6% 9.0% 10.3% 11.7% 13.0% 14.4% 15.7%

Additional Annual Payments each full annual premium paid as a % of the MAP 10 15 5 10 15 20 15 20 Rate of Guaranteed Additions 0.0% 0.0% 0.0% 0.0% 0.4% 0.5% 0.8% 1.0% 0.8% 0.8% 1.7% 1.6% 1.2% 1.2% 2.6% 2.1% 1.7% 1.6% 3.5% 2.8% 2.1% 2.1% 4.4% 3.4% 2.6% 2.6% 5.4% 4.1% 3.1% 3.1% 6.5% 4.8% 3.7% 3.7% 7.6% 5.6% 4.3% 4.2% 8.7% 6.5% 4.9% 4.8% 9.8% 7.3% 5.5% 5.5% 11.1% 8.2% 6.2% 6.1% 12.4% 9.1% 7.2% 7.1% 14.5% 10.5% 8.2% 8.1% 16.5% 11.9% 9.3% 9.1% 18.5% 13.4% 10.3% 10.1% 20.5% 14.8% 11.3% 11.1% 22.6% 16.2% 12.3% 12.1% 24.6% 17.6%

15 25 0.0% 0.9% 1.4% 1.9% 2.5% 3.0% 3.7% 4.4% 5.1% 5.9% 6.7% 7.6% 8.3% 9.7% 11.0% 12.3% 13.6% 15.0% 16.3%

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Determining Additional Annual Payout Illustration

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
Premium MAP (Rs) G-Sec Rate AAP Rate

G-Sec rate whilst paying the 1st premium is 7%; the AAP is 4.4% of Rs.16,000 = Rs.704 The GAP after the 2st premium payment is Rs.16,480 + Rs.704 = Rs.17,184
AAP (Rs) Cumulative AAP (Rs) GAP after payment of Premium (Rs) F= A+E 16,480 17,184 18,128 19,344 20,784

A 1st Premium 2nd Premium 3rd Premium 4th Premium 5th Premium 16,000 16,000 16,000 16,000 16,000

B 6% 7% 8% 9% 10%

C 3% 4.4% 5.9% 7.6% 9.0%

D=A C 480 704 944 1216 1440

E 480 1,184 2,128 3,344 4,784

* For AAP rates corresponding to G-Sec rates please refer to the AAP rate table previous slide for internal training purpose only

Payout Options

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Plan Options
Customers need to choose one of two options:
Lump Sum Cover
Person to be insured or proposer can be same or different individuals Guaranteed annual payout is payable to the proposer Death benefit is payable to beneficiary

Waiver of Premium Benefit

Person to be insured or proposer are two different individuals Ideal where the person to be insured is a minor Guaranteed annual payout is payable to the proposer In the event of death of the proposer, future premiums are waived and paid; policy continues and future benefits are payable

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Death Benefit in Incomesurance

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

Sum Insured

Premium Payment Term

Survival Benefit Term (Payout Period)

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Death Benefit
Lump Sum Cover during the PPT
Death during the premium payment term
In the event of death of the
Whose death? Insured person What benefit? What happens to the policy?

Sum insured* + AAP accrued to date x (policy Policy terminates term premium payment term), if any is paid to the nominee No benefits are payable Policy continues

Policy owner

Death of the Life Insured

Premium Payment Term

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

Payout Period
Year 8 Year 9 Year 10

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Death Benefit Lump Sum Cover during the Payout Period PT

Death during the survival benefit term (payout period)
In the event of death of the
Whose death?
Insured person

What benefit?

What happens to the policy?

Sum insured + AAP accrued to date x (policy term premium Policy terminates 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 owner

No benefits are payable

Policy continues

Death of the Life Insured

Premium Payment Term

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

Payout Period
Year 7 Year 8 Year 9 Year 10

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Death Benefit
Waiver of Premium Benefit
Death during the premium payment term
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, is paid to the nominee
Future premiums up to a maximum of Rs. 1 lakh p.a. is waived (paid by the company on behalf of the proposer)
OR Death of the Proposer

Policy terminates
Policy continues

Policy owner

Death of the Life Insured

Premium Payment Term

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

Payout Period
Year 7 Year 8 Year 9 Year 10

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

Death Benefit
Waiver of Premium Benefit
Death during the survival benefit term
In the event of death of the
Whose death?
Insured person

What benefit?

What happens to the policy?

Sum insured + AAP accrued to date x (policy term premium Policy terminates 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 No benefits are payable
Death of the Life Insured

Policy owner

Policy continues

Premium Payment Term

Year 1 Year 2 Year 3
Year 4

Payout Period
Year 5
Year 6 Year 7 Year 8 Year 9 Year 10

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Determining Death Benefit

Illustration
Premium MAP (Rs) A 1st Premium 2nd Premium 3rd Premium 4th Premium 5th Premium 16,000 16,000 16,000 16,000 16,000 G-Sec Rate B 6% 7% 8% 9% 10% AAP Rate C 3% 4.4% 5.9% 7.6% 9.0% AAP (Rs) D=A C 480 704 944 1216 1440 Accrued AAP (Rs) E=D 5 2400 3520 4720 6080 7200 Death benefit during PPT F 102400 105920 110640 116720 123920

Death during Premium Payment Term

After the 1st premium, the AAP declared is Rs 480 each year for 5 years i.e. a total of Rs 2,400. If death occurs the payout will be SI = Rs 100,000 + Rs 2400 = Rs 1,02,400 After the 2nd premium, the AAP declared is Rs 704 each year for 5 years i.e. a total of Rs 5,920 If death occurs the payout will be SI = Rs 1,02,400 + Rs 3520 = Rs 1,05,920
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Determining Death Benefit

Illustration
Death during Payout Period
On death in the year, the death benefit payable will be SI plus accrued AAP less GAP received i.e. (Rs 1,23,920 Rs 20,784) = Rs 1,03,136 7th
Year Premium boy 15,937 15,937 15,937 15,937 15,937 16,000 16,000 16,000 16,000 16,000 MAP eoy AAP each year boy 480 704 944 1,216 1,440 Cum AAP each year boy 480 1,184 2,128 3,344 4,784 4,784 20,784 4,784 20,784 4,784 20,784 4,784 20,784 4,784 20,784 AAP eoy GAP eoy 102,400 105,920 110,640 116,720 123,920 123,920 103,136 82,352 61,568 40,784 Death benefit

1 2 3 4 5 6 7

* boy beginning of year; eoy = end of year ** 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

8 9 10

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Other Benefits

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High Sum Insured Discount

Customers who opt for sum insured beyond Rs.3,99,999 you will get discount on their premium
High sum insured discounts in rupees per Rs 1,000 sum insured Sum insured up to Rs 3,99,999 Rs 4,00,000 to Rs 9,99,999 Rs 10,00,000 and above Premium payment term 5 10 15 0.00 0.00 0.00 5.00 6.00 2.50 3.50 2.00 2.50

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

Premium payable without discount:

Rs.79,340
Premium payable after discount:

Rs.76,840 Mr. Jain gets a discount of 3.15% on his premium

Illustration Mr. Jain aged 30 opts for sum insured of Rs.5 lakh; PPT of 5 years & Policy Term of 10 years

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Paid-up Value
Paid up values are available after one, two or three full years premiums have 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 reduced benefits
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
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Surrender Value
Special Surrender Value
Is available once a policy acquires a paid up value, which is after one, two or three full years premiums have been paid for policies with premium terms of 5, 10 and 15 years respectively The special surrender values are not guaranteed and are subject to change

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Surrender Value Guaranteed Surrender Value

GSV Factor Paid up value factor MAP 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) Factors
PPT Policy Term Age at entry 18 to 29 30 to 39 40 to 49 50 to 59 60 to 65 90% 90% 90% 90% 90% 90% 90% 90% 80% 70% 80% 80% 80% 60% 40% 90% 90% 90% 80% 80% 90% 90% 90% 80% 70% 80% 80% 80% 50% 30% 5 10 10 15 15 20 5 15 10 20 15 25

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Plan specifications

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Age at Entry of life insured

Min

30 days

Max

65 years

Age at Entry of policy owner

Min
Max Max Max Min Max

18 years
60 years 75 years (in case of minor insured person the minimum age at maturity is 18 years last birthday) 65 years Rs 1,00,000/No limit, subject to underwriting Limited 5, 10 and 15 years Limited 10, 15, 20 and 25 years Premium Paying Term (in yrs) [A] 5 10 15
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Age at Maturity Age of expiry of Waiver of Premium Sum Insured

Premium Payment Term Policy Term Premium payment termSurvival Benefit term - Policy term matrix

Survival Benefit Term (in yrs) [B] 5 or 10 years

Policy Term (in yrs) [C = A+B] 10, 15 15, 20 20, 25

Medical Grid

Category 1: Category 2: Category 3: Category 4: Category 5: Category 6: Category 7: Category 8:

MER, Blood Profile MER, Blood Profile, CBC MER, Blood Profile, ECG-R MER, Blood Profile, CBC, ECG-R MER, Blood Profile, CBC, ECG-Ex MER, Blood Profile, CBC, ECG-R, HbA1C MER, Blood Profile, CBC, ECG-Ex, HbA1C MER, Blood Profile, CBC, ECG-EX, CXR, HbA1C

NM: MER: CBC: Blood Profile: ECG-R: ECG-EX: CXR:

Non-Medical Medical Examination Report Complete Blood Count FBS, Serum Cholestrol, HDL, Serum Triglyceride, Serum Creatinine, BUN, Total Bilirubin, Alkaline Phospatase, SGOT, SGPT, HBsAg and HIV 1&2 Electrocardiogram Resting Electrocardiogram Exercise Chest X-ray

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Once again Incomesurance A versatile plan for any goal

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Summary of plan benefits

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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

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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

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Enjoy IDBI Fortis Guarantee

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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

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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 per year for a period of 15 years

She receives Rs 3,63,800 from (16th policy year) each year for the next 10 years

Sum Assured 17, 00,000 Plan Option Lumpsum Cover

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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. Kindly suggest an appropriate plan.

He pays Rs 41,000 per year for a period of 10 years

He receives Rs 91,000 from age 61 (11th policy year) each year for the next 10 years

Sum Assured 5, 00,000 Plan Option Lumpsum Cover

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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 is willing to invest 1 lakh per annum

He pays Rs 1,19,882 per year for a period of 15 years

He receives Rs 4,28,000 from age 18 of Amits age (16th policy year) each year for the next 10 years

Sum Assured 20,00,000 Plan Option Waiver of Premium

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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 period of 15 years

He receives Rs 10,96,984 lump sum when his daughter is 25 years old

Sum Assured 4,00,000 Plan Option Lumpsum Cover

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