Description
Life Insurance products with risk coverage, savings benefits & Investment benefits, different types of life insurance term insurance, endowment insurance, ULIPs, life unit linked bond fund, life unit linked protector fund, life unit linked balanced fund, life unit linked growth fund, life unit linked enhancer fund, life unit linked index fund,
LIFE INSURANCE PRODUCTS WITH RISK COVERAGE, SAVINGS BENEFITS & INVESTMENT BENEFITS
DIFFERENT TYPE OF LIFE INSURANCE POLICIES
?
Term Insurance
?
? ? ?
Level Term
Annually Renewable Increasing/Decreasing Term Group Term
Endowment Insurance ? Whole Life Insurance ? Universal Life Insurance ? ULIPS ? Pension Plans
?
ULIPS
ULIP
?
A ULIP is a life insurance policy which provides a combination of risk cover and investment. The dynamics of the capital market have a direct bearing on the performance of the ULIPs.
?
WHAT IS A UNIT FUND?
?
The allocated (invested) portions of the premiums after deducting for all the charges and premium for risk cover under all policies in a particular fund as chosen by the policy holders are pooled together to form a Unit fund.
WHAT TYPES OF FUNDS DO ULIP OFFER?
EXAMPLES OF ULIP FUNDS OFFERED BY AVIVA
Life unit linked bond fund ? Life unit linked secured fund ? Life unit linked protector fund ? Life unit linked balanced fund ? Life unit linked growth fund ? Life unit linked enhancer fund ? Life unit linked index fund
?
LIFE UNIT LINKED BOND FUND
Objective
The investment objective of the Bond fund is to provide progressive capital growth with relatively lower investment risks.
Portfolio Return
Since Inception
Portfolio Return Benchmark 11.7% 4.5%
Last 1 Year(CAGR)
13.1% 6.3%
Asset Mix
Money market 24% Corporat e Bond 15% Gilts 61%
LIFE UNIT LINKED SECURED FUND
Objective
?
The investment objective of the fund is to provide progressive returns on your investment and carry capital guarantee
Portfolio Return
Since Inception
Portfolio Return Benchmark 8.3% 5.3%
Last 5 Year(CAGR)
8.5% 5.3%
Asset Mix
Money Corpo market rate Bond 10% 17% equitie Gilts s 3% 70%
LIFE UNIT LINKED PROTECTOR FUND
Objective
?
Progressive return on your investment by investing Majority portion in debt securities, with a minimum exposure to equities.
Since Inception Last 2 Year(CAGR) 7.9% 5.5%
Portfolio Return
Portfolio Return Benchmark 7.3% 6.6%
Asset Mix
Money market 28%
Corpora te Bond 16%
Equities 2%
Gilts 54%
LIFE UNIT LINKED BALANCED FUND
Objective
The fund is designed to provide long-term cumulative capital growth while controlling risk, by availing opportunities in debt and equity markets. Portfolio Return
?
Since Inception Portfolio Return Benchmark 18.2% 11.1%
Last 5 Year(CAGR) 12.3% 7.5%
Asset Mix
Money market 17% Corporate Gilts Bond 15% 48% Equities 20%
LIFE UNIT LINKED GROWTH FUND
Objective
?
The fund is designed to provide long-term cumulative capital growth while managing the risk of a relatively high exposure to equity markets. The policy holder gets the full benefit of a rise in the market.
Since Inception Last 5 Year(CAGR) 17.8% 11.2%
Portfolio Return
Portfolio Return Benchmark 17.1% 10.1%
Asset Mix
Money Market 25% Corporate Bond 9% Gilts 11% Equities 55%
LIFE UNIT LINKED ENHANCER FUND
Objective
The fund is designed to provide long-term cumulative capital growth while managing the risk of exposure to equity markets. The policy holder gets the full benefit of a rise in the market. Portfolio Return
?
Since Inception Portfolio Return Benchmark -25.8% -31.6%
Last 1 Year(CAGR) -25.1% -29.8%
Asset Mix
Money market 33% Equities 64% Gilts 3%
LIFE UNIT LINKED INDEX FUND
Objective
The fund is designed to provide long-term cumulative capital growth while managing the risk of exposure to equity markets. The policy holder gets the full benefit of a rise in the market. Portfolio Return
?
Since Inception Portfolio Return -42.2%
Last 1 Year(CAGR) -35.3%
Benchmark
-43.1%
-35.7%
Asset Mix
Money market 1% Equities 99%
WHAT ARE THE CHARGES, FEES AND DEDUCTIONS IN A ULIP?
? Premium
Allocation Charge ? Mortality Charges ? Fund Management Fees ? Policy/ Administration Charges ? Surrender Charges ? Fund Switching Charge ? Service Tax Deductions
WHAT SHOULD ONE VERIFY BEFORE SIGNING THE PROPOSAL?
?
One has to verify the approved sales brochure for
all the charges deductible under the policy ? payment on premature surrender ? features and benefits ? limitations and exclusions ? lapsation and its consequences ? other disclosures ? Illustration projecting benefits payable in two scenarios of 6% and 10% returns as prescribed by the life insurance council.
?
PREMIUM USED TO PURCHASE UNITS
?
Full amount is not allocated
?
Units are allotted on the portion of premium left after providing for various charges, fees
Varies from product to product
?
KEY TERMS
Free Look Period ? Option to seek refund of premium, if the investor disagrees with the terms & conditions of the policy within 15 days of receipt of policy document.
?
TOP UP ? Additional contribution over & above the regular premiums as per the investor’s document
?
KEY TERMS (CONTD..)
SWITCH ? Option providing for shifting the investments from one fund to another
?
Partial Withdrawal ? Option facilitating withdrawal of portion of investment in the policy
?
EFFECT OF DISCONTINUED PREMIUMS
? Discontinuance
within three years of commencement
? Discontinuance
after three years of commencement
PENSION PLAN OR ANNUITY
?
An annuity
?
?
Lump sum Through installments paid over a certain number of years
?
Returns in the form of specific sum received every year, every half-year or every month, either for life or for a fixed number of years.
Offers guaranteed income either for life or a certain period
?
PENSION PLANS – WITH AND WITHOUT COVER
?
With cover – assured life cover in case of eventuality Without cover – corpus built till date is given out. No sum assured for life.
?
WHO SHOULD INVEST IN PENSION FUNDS?
?
People, who after retiring from service has received a large sum as superannuation benefit. As an employee-regular monthly payments
?
TYPES OF ANNUITIES / PENSION PLANS
?
Life Annuity Guaranteed Period Annuity Annuity Certain Deferred Annuities
?
?
?
THANK YOU
doc_345206556.pptx
Life Insurance products with risk coverage, savings benefits & Investment benefits, different types of life insurance term insurance, endowment insurance, ULIPs, life unit linked bond fund, life unit linked protector fund, life unit linked balanced fund, life unit linked growth fund, life unit linked enhancer fund, life unit linked index fund,
LIFE INSURANCE PRODUCTS WITH RISK COVERAGE, SAVINGS BENEFITS & INVESTMENT BENEFITS
DIFFERENT TYPE OF LIFE INSURANCE POLICIES
?
Term Insurance
?
? ? ?
Level Term
Annually Renewable Increasing/Decreasing Term Group Term
Endowment Insurance ? Whole Life Insurance ? Universal Life Insurance ? ULIPS ? Pension Plans
?
ULIPS
ULIP
?
A ULIP is a life insurance policy which provides a combination of risk cover and investment. The dynamics of the capital market have a direct bearing on the performance of the ULIPs.
?
WHAT IS A UNIT FUND?
?
The allocated (invested) portions of the premiums after deducting for all the charges and premium for risk cover under all policies in a particular fund as chosen by the policy holders are pooled together to form a Unit fund.
WHAT TYPES OF FUNDS DO ULIP OFFER?
EXAMPLES OF ULIP FUNDS OFFERED BY AVIVA
Life unit linked bond fund ? Life unit linked secured fund ? Life unit linked protector fund ? Life unit linked balanced fund ? Life unit linked growth fund ? Life unit linked enhancer fund ? Life unit linked index fund
?
LIFE UNIT LINKED BOND FUND
Objective
The investment objective of the Bond fund is to provide progressive capital growth with relatively lower investment risks.
Portfolio Return
Since Inception
Portfolio Return Benchmark 11.7% 4.5%
Last 1 Year(CAGR)
13.1% 6.3%
Asset Mix
Money market 24% Corporat e Bond 15% Gilts 61%
LIFE UNIT LINKED SECURED FUND
Objective
?
The investment objective of the fund is to provide progressive returns on your investment and carry capital guarantee
Portfolio Return
Since Inception
Portfolio Return Benchmark 8.3% 5.3%
Last 5 Year(CAGR)
8.5% 5.3%
Asset Mix
Money Corpo market rate Bond 10% 17% equitie Gilts s 3% 70%
LIFE UNIT LINKED PROTECTOR FUND
Objective
?
Progressive return on your investment by investing Majority portion in debt securities, with a minimum exposure to equities.
Since Inception Last 2 Year(CAGR) 7.9% 5.5%
Portfolio Return
Portfolio Return Benchmark 7.3% 6.6%
Asset Mix
Money market 28%
Corpora te Bond 16%
Equities 2%
Gilts 54%
LIFE UNIT LINKED BALANCED FUND
Objective
The fund is designed to provide long-term cumulative capital growth while controlling risk, by availing opportunities in debt and equity markets. Portfolio Return
?
Since Inception Portfolio Return Benchmark 18.2% 11.1%
Last 5 Year(CAGR) 12.3% 7.5%
Asset Mix
Money market 17% Corporate Gilts Bond 15% 48% Equities 20%
LIFE UNIT LINKED GROWTH FUND
Objective
?
The fund is designed to provide long-term cumulative capital growth while managing the risk of a relatively high exposure to equity markets. The policy holder gets the full benefit of a rise in the market.
Since Inception Last 5 Year(CAGR) 17.8% 11.2%
Portfolio Return
Portfolio Return Benchmark 17.1% 10.1%
Asset Mix
Money Market 25% Corporate Bond 9% Gilts 11% Equities 55%
LIFE UNIT LINKED ENHANCER FUND
Objective
The fund is designed to provide long-term cumulative capital growth while managing the risk of exposure to equity markets. The policy holder gets the full benefit of a rise in the market. Portfolio Return
?
Since Inception Portfolio Return Benchmark -25.8% -31.6%
Last 1 Year(CAGR) -25.1% -29.8%
Asset Mix
Money market 33% Equities 64% Gilts 3%
LIFE UNIT LINKED INDEX FUND
Objective
The fund is designed to provide long-term cumulative capital growth while managing the risk of exposure to equity markets. The policy holder gets the full benefit of a rise in the market. Portfolio Return
?
Since Inception Portfolio Return -42.2%
Last 1 Year(CAGR) -35.3%
Benchmark
-43.1%
-35.7%
Asset Mix
Money market 1% Equities 99%
WHAT ARE THE CHARGES, FEES AND DEDUCTIONS IN A ULIP?
? Premium
Allocation Charge ? Mortality Charges ? Fund Management Fees ? Policy/ Administration Charges ? Surrender Charges ? Fund Switching Charge ? Service Tax Deductions
WHAT SHOULD ONE VERIFY BEFORE SIGNING THE PROPOSAL?
?
One has to verify the approved sales brochure for
all the charges deductible under the policy ? payment on premature surrender ? features and benefits ? limitations and exclusions ? lapsation and its consequences ? other disclosures ? Illustration projecting benefits payable in two scenarios of 6% and 10% returns as prescribed by the life insurance council.
?
PREMIUM USED TO PURCHASE UNITS
?
Full amount is not allocated
?
Units are allotted on the portion of premium left after providing for various charges, fees
Varies from product to product
?
KEY TERMS
Free Look Period ? Option to seek refund of premium, if the investor disagrees with the terms & conditions of the policy within 15 days of receipt of policy document.
?
TOP UP ? Additional contribution over & above the regular premiums as per the investor’s document
?
KEY TERMS (CONTD..)
SWITCH ? Option providing for shifting the investments from one fund to another
?
Partial Withdrawal ? Option facilitating withdrawal of portion of investment in the policy
?
EFFECT OF DISCONTINUED PREMIUMS
? Discontinuance
within three years of commencement
? Discontinuance
after three years of commencement
PENSION PLAN OR ANNUITY
?
An annuity
?
?
Lump sum Through installments paid over a certain number of years
?
Returns in the form of specific sum received every year, every half-year or every month, either for life or for a fixed number of years.
Offers guaranteed income either for life or a certain period
?
PENSION PLANS – WITH AND WITHOUT COVER
?
With cover – assured life cover in case of eventuality Without cover – corpus built till date is given out. No sum assured for life.
?
WHO SHOULD INVEST IN PENSION FUNDS?
?
People, who after retiring from service has received a large sum as superannuation benefit. As an employee-regular monthly payments
?
TYPES OF ANNUITIES / PENSION PLANS
?
Life Annuity Guaranteed Period Annuity Annuity Certain Deferred Annuities
?
?
?
THANK YOU
doc_345206556.pptx