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JEEVAN NISCHAY

A close ended plan


Plan no. 199
29th October, 2009 till 31st March 2010
UNIQUE IDENTIFICATION NUMBER
(UIN) 212N258V01

NORTH ZONE
• Min Entry Age : 18 yrs (completed)
• Max Entry Age : 50 yrs (nearest birthday)
• Policy Term : 5, 7 and 10 yrs
• Min. Single Prem. : Rs. 10,000
• Max. Single Prem. : Rs. 10,00,000
• The Premium shall be in multiples of
Rs. 1,000/-
• Sum Assured shall be the lower of 50 Lac OR 50% of total Sum
Assured (total death benefit) under all existing in force policies
excluding the annuity plans and policies without any risk cover.
– Maturity Sum Assured
+
– Loyalty Addition, shall be payable.

– Loyalty Addition, is likely to be higher,


as the claim experience is likely to be very good in view of
selection of good lives only.

– Maturity Sum Assured would depend upon age at entry for a fixed
– amount of premium.
MATURITY SUM ASSURED
PER Rs. 100,000/-
PREMIUM

POLICY TERM
AGE AT ENTRY 5 YRS. 7 YRS. 10 YRS.
30 YRS. 132194+L.A. 150411+L.A. 186078+L.A.
40 YRS. 131457+L.A. 149450+L.A. 184342+L.A.
50 YRS. 129037+L.A. 146141+L.A. 178483+L.A.
On death during the first policy year:
– 5 times the single premium excluding extra
premium, if any.

On death during the policy term after first


policy year, excluding last policy year:
– Maturity Sum Assured

On death during last policy year:


– Maturity Sum Assured + loyalty addition.
Who are our Prospects?
Existing Customers New Prospects
• Data Mining. • Provide Life Risk
• Prospecting. Policy – ULIP,
• List of existing Conventional, Term
policy holders at Assurance etc.
age 40 yrs. Having • Offer Jeevan
minimum 1Lac S.A. Nischay.
policy.
• Offer Jeevan
Nischay.
TARGET GROUPS
• There is a need to look at ‘Jeevan
Nischay’ in two different perspectives:
1.Small Investor with Premium 10000 to 1 Lac
would target Income Tax Exemption U/S 80C &
Tax Free Returns. The returns on net premium
to be highlighted after LA projections.
2.Large Investors with Premium 1-10 Lac would
find the ‘Tax Free Returns’ more attractive.
Returns on full premium with LA projections to
be highlighted vis-à-vis Bank FD, Postal Savings
and RBI Bonds.
How it scores over other savings

S Item PPF NSC Bank FDs Jeevan Nischay


No
1 Rate of Interest 8%* 8% 5-7% MSA+L.A.
2 Scope of higher No No No Yes, because
returns of L.A.
3 Term in Years 15 (6) 6 Flexi 5, 7 & 10
4 IT Benefit 80C Yes Yes No* Yes
5 Lock in Period 6 Years 6 Years Variable 1 Year
6 Limit of Amount 70000 No Limit No Limit 10 Lacs
7 Loan @ Rate 12% NA 11-12% + 9%*
8 Life Cover No No No Yes
*Conditions Apply
Illustration
Age 20, Term 5 Years, Standard Life
BSA Single MSA LA @ Maturity Yield W/O 80C
Premium 10% of Value
MSA
*1 Lac 20000 25140 2514 27654 6.70%
2 Lac 40000 51788 5179 56967 7.33%
3.75 Lac 75000 98046 9805 107851 7.54%
5 Lac 100000 132299 13230 145529 7.79%
10 Lac 200000 264599 26460 291059 7.79%
50 Lac 10 Lacs 1322990 132299 1455289 7.79%
•Explaination: A person having existing policy of 2 Lac S.A. can take
Jeevan Nischay for 1 Lac basic S.A. and the single premium will be
Rs.20000/- and his risk cover (BSA) will be 1 Lac in the first year.
•Risk cover in the subsequent year will be equal to MSA + L.A.as
applicable.
Illustration
• For a person aged 30 years who invests Rs.100,000/- as single
premium for 10 years
• Maturity value : 186077/-+ 18608/ (L.A.)- = Rs. 204685/-assuming
loyalty addition of 10% of maturity sum assured.
• IRR w/o Income Tax rebate : 8.0% approximately.
• Risk coverage :First year : 5 Lacs
• 2nd -3rd year : 1.86 lacs
• Last year : 2.04 lacs

• Yield increases with increase in premium & term.


• Convenient option to chose term of 5,7 or 10 years.
• Maturity Sum Assured increases from 5.25% to 8.5% for a 5 yr. term
and 10 yr. term respectively if the single premium is One Lac & above.
• Lock in period : one year(provides quick liquidity)
• Unique bonanza for existing policyholders
just like a rights issue.
• Close ended plan.
• Single premium investment of Rs. 10,000/- to
Rs. 10,00,000/-
• Liberal Incentive for large premiums.
• Non medical scheme.
• Back dating within the financial year
• Guaranteed maturity benefit.
• Attractive loyalty addition at higher rates.
• Loan available after one policy year.
• Easy liquidity-surrender allowed after first
year
HAVE AASTHA
IN
JEEVAN NISCHAY