JAN 2011 Birla Sun Life Insurance Company Limited

‘VISION’ IN 2012. . MAY YOU ACHIEVE WHAT OTHERS THINK IS IMPOSSIBLE Birla Sun Life Insurance Company Limited Copyright © Birla Sun Life Insurance Company Limited 2008 Strictly for internal training purpose only

Presenting BSLI VISION Birla Sun Life Insurance Company Limited Copyright © Birla Sun Life

USP’s-For Customers • Higher Guaranteed Amount- LIC gives SA , We give higher • • Guaranteed Survival Benefit for given SA. Monthly additions are declared at Beginning of the year as compared LIC end of year Lower premiums for a given age Free life cover post Guaranteed Survival Date Riders Birla Sun Life Insurance Company Limited Copyright © Birla Sun Life Insurance Company Limited 2008 Strictly for internal training purpose only 4

USP’s -For Advisors • Flexibility in entry age 1 -65 as compared LIC which offer from 18 yr-65 yrs. • 1 st year commission is 2% x pay term subject to max of 35% • 2 nd and 3 rd year commission - For pay term less than 10 it is 5% • For pay term equal to and more than 10 it is 7. 5% • 4 th year onwards it is 5% Birla Sun Life Insurance Company Limited Copyright © Birla Sun Life Insurance Company Limited 2008 Strictly for internal training purpose only 5

Understanding VISION Birla Sun Life Insurance Company Limited Copyright © Birla Sun Life Insurance

Birla Sun Life Insurance Company Limited Copyright © Birla Sun Life Insurance Company Limited

STEP 1: Client chooses SA , GSB term and Mode • Male age 30 yrs, SA -10 Lakhs , GSB term 25 yrs , Annual • • Mode Pls refer Table chart for 30 yrs Male and 25 yrs GSBTerm Tabular Premium-43. 20 Sum Assured rebate is 1. 75 for Band 4. For 10 Lakhs, It would amount to (43. 20 -1. 75) * 10, 00000/1000=41450 Annual Mode Rebate is 3% Modal Premium= 41450 * 97%=Rs 40206. 50 Annual Premium-Rs 40206. 50 Birla Sun Life Insurance Company Limited Copyright © Birla Sun Life Insurance Company Limited 2008 Strictly for internal training purpose only 8

STEP 2: Calculate GSB. • • For Band 4. GSB Term 25 Years, We have a GSB factor of Rs 1513 for 1000 SA For SA -10 LAKHS, GSB=1513 * 1000000/1000=Rs 1513000 which is Guaranteed on GSB date(25 years) Birla Sun Life Insurance Company Limited Copyright © Birla Sun Life Insurance Company Limited 2008 Strictly for internal training purpose only 9

STEP 3: Calculate Monthly Additions. (Calculation is based on annual Rate) For GSB 25 Years, We have a Yearly addition factor of Rs 45 for 1000 SA Total Yearly additions assuming Rs 45 per 1000 for 25 years amounts to =45 * 25=1125 per thousand Enhancement to Monthly Additions: Since Band is 4= Enhance Monthly Additions is 6. 75% Birla Sun Life Insurance Company Limited Copyright © Birla Sun Life Insurance Company Limited 2008 Strictly for internal training purpose only 10

STEP 3: Calculate Monthly Additions. (Calculation is based on annual Rate) • Total Enhancement is Equal= (25 -21) * 6. 75%=27% • Total Additions will get enhanced by 127% i. e: 1125 * 127%=1428. 75 per thousand • Total Additions=1428. 75 * 1000000/1000=Rs 14, 28, 750 which is accrued on GSB date(25 years). • So for a Premium of Rs 10, 05, 162 ü One gets a SA of 10 Lakhs ü Guaranteed Survival Benefit of 15, 13, 000 ü Total benefit of Rs 29, 41, 750. PS: All calculation is based on assumption that Rs 45 per thousand Additions would be paid for entire 25 years and all premium are paid till 25 years. Birla Sun Life Insurance Company Limited Copyright © Birla Sun Life Insurance Company Limited 2008 Strictly for internal training purpose only 11

LIC VS VISION JEEVAN ANAND SUM ASSURED: 10, 000. 00 PREMIUM BONUS VISION FAB MATURITY BENEFIT SUM ASSURED 10, 000. 00 PREMIUM BONUS ENHANCE MENT GSB TOTAL 15 78959 5, 55, 000. 00 0 15, 55, 000 15 74, 855. 00 5, 85, 000. 00 0 12, 26, 000. 00 18, 11, 000. 00 20 56408 8, 20, 000. 00 0 18, 20, 000 20 53, 331. 00 8, 28, 000. 00 0 13, 53, 000. 00 21, 81, 000. 00 25 43097 11, 25, 000. 00 200000 23, 25, 000. 00 25 40, 207. 00 11, 25, 000. 00 3, 03, 750 15, 13, 000. 00 29, 41, 750. 00 30 34368 13, 50, 000. 00 200000 25, 50, 000. 0 30 31, 787. 00 13, 50, 000. 00 8, 20, 125 17, 67, 000. 00 39, 37, 125. 00 35 28353 15, 75, 000. 00 200000 27, 75, 000. 00 35 26, 200. 00 15, 75, 000. 00 14, 88, 375 22, 14, 000. 00 52, 77, 375. 00 Birla Sun Life Insurance Company Limited Copyright © Birla Sun Life Insurance Company Limited 2008 Strictly for internal training purpose only 12

BSLI Vision vs LIC’s Jeevan Anand Survival Benefit = Rs. 2, 41, 000 Premium paid = Rs. 4, 535 X 25 yrs = Rs. 1, 13, 375 Client age 35 Term = 25 years SA = Rs. 1, 000 Accidental rider SA = Rs. 1, 000 BSLI Vision Age 100 SA of Rs. 1 lac paid in case of death Survival Benefit = Rs. 2, 98, 000 Premium paid = Rs. 4, 513 X 25 yrs = Rs. 1, 12, 825 Client age 35 • • Age 60 Term = 25 years Policy terminates • • Age 100 Age 60 SA = Rs. 1, 000 Accidental rider SA = Rs. 1, 000 SA of Rs. 1 lac paid in case of death/maturity Figures of Jeevan Anand taken from LIC website and Survival Benefit taken at 10% for comparison purpose only Birla Sun Life Insurance Company Limited Copyright © Birla Sun Life Insurance Company Limited 2008 Strictly for internal training purpose only Blue boxes indicate the advantage of BSLI Vision 13

Vision works as ……… A Child Plan • Education and Marriage planning & A Retirement Planning • Whole Life Cover • Build Corpus • Manage your old age effectively & Legacy Planning • Legacy Planning Birla Sun Life Insurance Company Limited Copyright © Birla Sun Life Insurance Company Limited 2008 Strictly for internal training purpose only 14

Profile of prospective customers for Vision Families like us in different age groups looking for • Guaranteed returns • Customer who have set objectives to meet without volatility in returns • Looking for cover beyond an insurable age in any other insurance plan • Legacy for family • Invest in Debt funds too Birla Sun Life Insurance Company Limited Copyright © Birla Sun Life Insurance Company Limited 2008 Strictly for internal training purpose only 15

Retirement Planning Ashwin is 35 years of age and is planning to pay around 50 K for 30 years and wants a lump sum corpus at age 65 S. A. = Rs. 15, 000/- Premium paid = Rs. 50, 000 X 30 yrs = Rs. 1500000 Client age 35 • • Age 65 Death at age 75 GSB Term = 30 years Policy terminates Survival benefit at end of GSB term = Rs. 78, 58, 800* S. A = Rs. 15, 000 for ENTIRE LIFE • Age 100 NO NEED TO PAY PREMIUMS AFTER AGE 65. * As per AMS ver 1. 22 @ 10% p. a Birla Sun Life Insurance Company Limited Copyright © Birla Sun Life Insurance Company Limited 2008 Strictly for internal training purpose only 16

Children Future Planning: Client age 30 with premiums pay term and GSB term of 22 yrs Vision Plan with WOP rider & Protector + Premium paid for Protector+ for SA of 50, 000 Term 22 years = Rs. 7, 997 X 22 yrs = Rs. 1, 75, 934 Premium paid for Vision = Rs. 33, 111 X 22 yrs Parents = Rs. 7, 28, 442 age 30 Child age 1 year GSB Term 22 years Amount received = Rs 8, 000 (S. A) on Death OR Maturity • • Parent Age 52 Child Age 23 If parents death occur all further premiums will be waived plan continues & family gets SA of 50, 000 Age 100 Policy terminates Survival benefit at end of GSB term = Rs. 19, 76, 660 * Life Cover of 8, 000 Annual premium Sum Assured Term Total you Pay Maturity Vision 33111 8, 000 22 728442 1976660 Protector+ 7997 50, 000 22 175934 0 904376 1976660 Birla Sun Life Insurance Company Limited Copyright © Birla Sun Life Insurance Company Limited 2008 Strictly for internal training purpose only 17 * As per AMS ver 1. 23 @ current rate

Legacy Planning Ashwin is 45 years of age & plans to leave a Legacy of 1 cr for his family BSLI Vision Survival Benefit = Rs. 13, 620, 000 Premium paid = Rs. 1, 891, 076 X 7 yrs = Rs. 13, 237, 529 Client age 45 Term = 7 years • • Age 100 Age 52 SA = Rs. 1, 00000 SA of Rs. 1 crore paid in case of death/maturity Birla Sun Life Insurance Company Limited Copyright © Birla Sun Life Insurance Company Limited 2008 Policy terminates Strictly for internal training purpose only 18

Legacy Planning – For a retail customer Ankur is 35 years of age & plans to leave a Legacy of 2. 5 lacs for his family BSLI Vision Survival Benefit = Rs. 3, 31, 000/Premium paid = Rs. 44, 587 X 7 yrs = Rs. 3. 12. 109/- Client age 35 Term = 7 years • • Age 100 Age 42 SA = Rs. 250000 SA of Rs. 250000 paid in case of death/maturity Birla Sun Life Insurance Company Limited Copyright © Birla Sun Life Insurance Company Limited 2008 Policy terminates Strictly for internal training purpose only 19