New Regulations..

51 New Unit Linked Products….

Smart Performer & Unit Plus Super- Competition Review

Product Strategy & Marketing –Sept 2010

Market Overview
Some Statistics: 15 Companies have launched products
 No of Products launched : 25 (17 Available on website)
 Pension Plan – LIC Pension Plus
 NAV Guarantee Products: 5 Companies have got approval: 4 products launched
New Product Launches
 ICICI Prudential:
 LifeTime Premier : Fixed or Trigger Portfolio Strategy
 SA + FV ; RP & LPPT option available; RP: Min 18K
 Commission : Y1: 5%
 Bajaj Allianz :
 Max Gain: Daily NAV Guarantee (Commission 6.5% in First Year)
 Wealth Gain: Single Premium Whole Life Plan (Commission 2%)
 HDFC:
 Crest: Daily NAV Guarantee with Rs. 15 minimum guarantee (Comm 5% Y1)
 Reliance :
 Highest NAV Advantage Plan : Daily NAV Guarantee (Commission 7% in First Year)
 Classic : Regular Premium ULIP (Commission 7% First Year)
 Other Companies who have launched ULIPs :
 Birla , Canara HSBC, Kotak , Aegon, MNYL, FG, IndiaFirst & Sat Union Dai-chi
Product Strategy & Marketing –Sept 2010
 Product Segments & Competitive Product Launches
Product
SBI Life ICICI Prudential HDFC Birla Sun life Reliance Bajaj Allianz Canara HSBC
Category

Guaranteed Smart Highest NAV Max Gain

Crest
ULIP Performer Advantage Advantage

Unit Linked Max Gain

with Classic
Unit Plus Super Lifetime Premier Classic ULIP
Guaranteed Endowment Wealth Gain Dream Smart
Additions (WL & SP)

WL : Whole Life
SP : Single Premium

Product Strategy & Marketing –Sept 2010

 NAV Guaranteed ULIP
Reliance –Highest NAV BAJAJ –
Product Name Smart Performer HDFC SL Crest
Guarantee Max Gain
Policy Term 10 Y (PPT 5 Y & SP) 10 Y (5Y PPT) 15Y (PPT 15 Yrs or SP) 10 Y (PPT 5 -7 Years)
2 : Secure & 2 Guaranteed Fund Option to invest in other Open to invest in other
Plan Options
Secure n Grow Free Asset Allocation funds funds
RP : 50,000/- RP : Rs. 20,000 Min 25,000/-
Premium Amount Rs 50,000/-
SP : Rs. 60,000/- SP: Rs. 50,000 Max 2 lakhs
NAV Observations Daily -7 Years Daily -7 years Daily -15 years Daily 7 Years
Upto 60% of Total
Guaranteed
Not Available Not Available Not Available Premium Allocation
Additions
Charges
Riders Accidental Death Benefit Not Available Accidental Death Benefit Not Available
Top Up Not Allowed Not Allowed Allowed Allowed (Y1-5)
Y1: 10%,
Premium Allocation Y1: 8.5% Y1& 2 : 4%, Y3: 3%; Y1: 7%; Y2 & 3: 6%;
Y2 -5: 3.75%
Charge Y2 -5: 6% Y 4 & 5 :2% Y4 -10: 5.5%; Y11 + :5%
Y6-7: Nil
0.31% of original premium
Policy Admin RP: Rs.60 p.m RP : Nil ; Year 1: Nil
p.m. inflating at 5% per
Charge SP: Rs. 50 p.m SP : Rs. 40 p.m. Y2-7: 3% of AP
policy year
Max Guaranteed Fund:
Daily Protect Fund 1% Guaranteed Fund: 1.35%
Guaranteed Fund 1.35% 1.25%
FMC Guarantee Cost 0.5% Guarantee Cost 0.25%
Guarantee Cost: 0.5% Equity 1.25%
Index Fund: 1.25%
Debt 0.95%
Y1: 8%; Y2 & 3: 2% Y1: 7% Y1: 6.5%
Commission Y1: 5%
Y4 & 5: 1% Y2 -7: 2% Y2: 2%

Smart Performer gives Additional Value to customer through “Secure n Grow”- plan to lock in gains
through investment in Index Fund, medium term horizon with add on rider option & overall lower
charges. Higher Commission for sales too.…
Product Strategy & Marketing –Sept 2010
 Charge Comparison of Guaranteed ULIP
Policy Admin Charge
23,395

7,200 6,000
-

Smart Performer SL Crest Highest NAV Guranteed Max Gain Advantage

Assuming : Annualized Premium as 50,000/- , Term : 10Years; Except For Reliance Highest NAV Product PPT is 15 years

Premium Allocation Charge

41,250

16,250 12,500
7,500

Smart Performer SL Crest Highest NAV Guranteed Max Gain Advantage

Total Charges PPT 15

years

41,250
30,895
23,450
18,500

Smart Performer SL Crest Highest NAV Guranteed Max Gain Advantage

Product Strategy & Marketing –Sept 2010

Total Charges for Smart Performer are slightly higher than Bajaj Max Gain Advantage Product when compared for a 5 year PPT
 Unit Linked with Guaranteed Additions
ICICI Pru – Life Time Birla –Classic Reliance Life Canara HSBC
Unit Linked Unit Plus Super
Premier Endowment Classic Dream Smart
Portfolio Strategy 1 2 1 2 1
Policy Term 10 Y & 15- 30 Yrs 10/15/20/25/30 Years 10/15/20/25/30 Years 10-30 years 20 Years
RP: Rs. 30,000/-p.a. RP Rs. 20,000 p.a.
Min Premium Rs. 24,000/-p.a. * Rs. 25,000/- Rs. 25,000/-p.a.
SP: Rs. 65,000 SP : Rs. 50,000
Change in SA Available Available Not Available Not Available Available
Y10 : End of every 5
10 Year Onwards : End of
policy years: 2.5% * RP
Every 5 policy years: 2% of
paid in last 60 months
Guaranteed Upto 75% of Annualized Avg Fund Value on the last Y 15 : 1% of the FV
Not Available
Additions RP at regular intervals day of 8 policy quarters Y 11: Every year 0.25% of
preceding the said average FV of last 12
allocation months
Premium Y1 : 9%; Y2 & 3 : 6.5% Y1: 7%; Y2&3: 6%; Y1 : 8.4%; Y2 & 3:
Y1 : 9%;Y2 & 3 : 7% ; Y 1: 7.5%;Y 2: 6.5%.;
Allocation Y4-5: 6%; Y6-7: 3.5%; Y4 -10: 5.5%; 6.4% ;Y4-10: 5.4%
Y4-5: 6%;Y6+: 3%; Y3+ : 5%
Charge Y8- 10: 3%;Y11+: Nil Y11 + :5% Y11+: Nil

Y1 -5: Rs. 20 per month Y1 -5 : 0.05% p.m. of

Policy Admin Year 1-5 : Nil RP : Nil ;
Not Available Y6: Rs. 25 per month AP ; Y6+increasing by
Charge Year 6 ++ 60/- p.m. SP : Rs. 40 p.m.
inflating @ 5% p.a. 20% every 5 Yrs.
RP
Y1:14%; Y2-6: 2%
Y1: 10%; Y2-5: 2%
Y7-10:1% Y11:0%
Y6&7: 1.5% Y8-10: 1%
Year 1 : 4.75%
Commission Y11++:1% Y1: 5% Year 1 : 7%
Year 2: 2% For HSBC: Y1: 20%
LPPT:
Y2: Nil
5year term: Y1: 10%

* Confirmed from Customer Care Helpline

Unit Plus Super is better than the competitors in terms of benefits, Flexibility , lower charges….
 Charge Comparison of Unit Linked with Guaranteed Additions
For a 20 year Term & AP : Rs. 50,000
10,800 Policy Administration Charge
7,674 8,052

SBI Life - BSLI - Reliance -- Classic Canara - - -

ICICI
Unit Plus Super Classic Endowment Dream Smart Lifetime Premier

Premium Allocation Charge

52,000 54,000
Bajaj Max Gain, 40,000
Rel Highest NAV 29,500
25,000
& HDFC Crest all
have an option
to invest in other
SBI Life - BSLI - Reliance - Classic Canara - ICICI -
funds other than
Unit Plus Super Classic Endowment Dream Smart Lifetime Premier
guaranteed…
Possible Total Charge
competitors to 59,674 54,000
Unit Plus Super 35,800
37,552 40,000

SBI Life - BSLI - Reliance - Classic Canara - ICICI -

Unit Plus Super Classic Endowment Dream Smart Lifetime Premier

Unit Plus Super has the lowest Total Charges across the segment……
Detailed analysis to counter competition will follow shortly…..

Feel free to send in your queries………………