Endowment plus sales_talk
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The agent is pitching LIC's new Endowment Plus plan to a prospect. It is a unit-linked endowment plan that offers minimum risk cover, partial withdrawals after 5 years, loans after 3 years, and settlement options at maturity. Policyholders can choose from 4 funds with different asset allocations. The plan also offers optional riders for critical illness and accidents. Premiums can range from Rs. 20,000 to Rs. 1,00,000 annually or in a single premium of Rs. 30,000 or more.
Endowment plus sales_talk
- 1. LIC’s ENDOWMENT PLUS ( Sales Talk ) Agent : Good Morning, sir. Thank you very much for the appointment. Prospect : Good Morning. I would like to know more about your new plan ‘ENDOWMENT PLUS’. Agent : ENDOWMENT PLUS is a very attractive plan. It is designed as per the recent guidelines of IRDA and aims to give best returns to the policyholders. • It is a Unit Linked Endowment plan. • Minimum Risk Cover is guaranteed. • This plan has facility for Loan after 3 years from commencement. • Partial Withdrawal is possible after 5 years from commencement. • Plan can be availed on the life of a child, above the age of 7 years. • It has 2 optional riders, which means extra protection. Prospect: What are the returns at Maturity under ENDOWMENT PLUS? Agent : The Policyholder’s Fund Value is payable on Maturity. You may receive this amount in lump sum or exercise ‘Settlement Option’. If Settlement Option is exercised you can en-cash the units available on Maturity at regular intervals, spread over a period of not more than five years. Prospect: What about Partial Withdrawals? Agent : Partial Withdrawals are allowed after 5 years from the date of commencement. You may withdraw the entire amount above 2 annualised premiums. In case of Single Premium withdrawal is allowed subject to minimum balance of 25 % of the premium paid. The Sum Assured under the policy shall be reduced to the extent of withdrawal amount for a period of 2 years only. After a period of 2 years from Partial Withdrawal Sum assured shall be treated for the full initial amount. In case there is a loan under the policy, you can exercise partial withdrawal only after the loan is fully paid. Prospect: You said loan is also possible under this plan. Agent : Yes sir, it is possible to avail loan after 3 years from commencement. Loans will be available upto 30% of the Fund Value. Prospect: What shall be payable in event of death of the Life Assured? Agent : In event of unfortunate death of the life assured during the term, higher of Policyholders Fund Value and Sum assured is payable. Prospect: What riders is this plan offering? tsr.iyengar@gmail.com
- 2. Agent : You can opt for Critical Illness rider and/or Accident Benefit Rider. Prospect: What are the benefits under these riders? Agent : Under Critical Illness rider, in case of diagnosis of defined categories of Critical Illness, ‘Critical Illness Sum Assured’ is payable. In case of Accident Benefit Rider, in event of death due to an accident, Accident Benefit Sum Assured is payable. For availing Accident Benefit Rider the charge is as low as 0.50 ‰ AB Sum Assured per year for availing Critical Illness Rider the charge is age specific. Prospect: Since this is a ULIP plan can you tell me more about the charges under this plan. Agent : There are nominal charges for Premium Allocation, Policy Administration and Fund Management and Service Tax charge. The net of premiums paid by you shall be invested through the selected fund. Prospect: Can you brief me about the asset allocation of the various funds. Agent : This plan has 4 types of fund namely Bond Fund, Secured Fund, Balanced Fund and Growth Fund. The Asset allocation for Bond fund shall be not less than 60% in Government/ Government Guaranteed Securities or Corporate Debt and not more than 40% in Money Market instruments. The investment pattern for Secured fund is not less than 45% is invested in Government/Government Guaranteed Securities or Corporate Debt, not more than 40% is invested in Money Market instruments and 15-55% is invested in listed equity shares. In Balanced fund not less than 30% is invested in Government/ Government Guaranteed Securities or Corporate Debt and not more than 40% is invested in Money Market instruments and 30-70% is invested in listed equity shares. In case of Growth Fund the asset allocation is not less than 20% is invested in Government/ Government Guaranteed Securities or Corporate Debt, not more than 40% is invested in Money Market instruments and 40-80% is invested in listed equity shares. You have to choose any one fund type for your policy. Prospect: Can I change my fund type during the course of the policy? Agent : Yes, you can switch between funds. This plan offers 4 free switches a year. You can switch over as many times as you like. There will be a charge of Rs.100 per switch after all the free switches have been used up. Prospect : How much premium can I pay under the plan? tsr.iyengar@gmail.com
- 3. Agent : You can pay premium from Rs. 20,000 to Rs. 1,00,000 p.a. under regular premium plan. For Single Premium Plans, minimum premium is Rs. 30,000 . Prospect: What if I am unable to pay the premiums within days of grace. Agent : To get full benefits under the policy at all times, it is very essential to keep the policy in force by paying the premiums on the due date. This habit of paying premiums regularly also helps you to maintain a discipline in savings. If however, you fail to pay the premiums within Days of Grace(30 days from due date), you shall receive a notice to exercise one of the following options - (i) Revive the policy or (ii) Withdraw completely from the policy. The option should be exercised within 30 days of receipt of the notice. During the notice period the policy shall be treated in force and all charges will be continued to be deducted. Prospect: How can I revive the policy? Agent : On exercising the option for revival, you can revive the policy by paying the arrears of premiums without interest. Prospect: What happens in case of withdrawal? Agent : Sir, I will advise you to continue the policy under any circumstances. However due to some compelling reasons beyond your control, you are forced to exercise the option for withdrawal; The Fund Value shall be payable to you. In case, the option for withdrawal is exercised after five years from commencement, there shall be no discontinuance charge because of such withdrawal. However, if the withdrawal option is exercised before completion of 5 years from commencement, the Monetary Value (Fund Value less discontinuance charges) will be kept in Discontinued Policy Fund. This amount shall earn a minimum interest of 3.5% pa and will be payable only on completion of 5 years from date of commencement. Prospect: What if I wish to take this plan on the life of my child. Agent : This plan is available from the age of 7 years. The risk on the life of the child will commence immediately. Since the child is a minor, AB and CI riders may be availed from the policy anniversary after completion of 18 years of age. Partial withdrawals and loan are also possible from policy anniversary after attainment of 18 years of age by the Life Assured. Prospect: I think, this plan will be good for my child. tsr.iyengar@gmail.com
- 4. Agent : Sir, this is the Benefit Illustration for your child & this is the proposal form. I shall help you with all the necessary procedures for submission of the proposal papers. Thank You. Eligibility conditions for Riders Accident Benefit Rider Sum Minimum Rs. 25,000 Assured Maximum Shall not exceed SA under basic plan and limited to Rs. 50,00,000 for all existing and proposal stage policies of Life Insurance and Group insurance. Critical Illness Rider Sum Minimum Rs. 50,000 Assured Maximum Shall not exceed SA under basic plan and limited to Rs. 10,00,000 for all existing and proposal stage policies of Life Insurance. Age at entry 18 to 50 years Age at Maturity 60 years ELIGIBILITY CONDITIONS : ENDOWMENT PLUS Age at entry 7 to 60 years Age at Maturity 18 to 70 years Policy term 10 to 20 years Mode Regular Monthly (ECS) Single Premium Minimum 20,000 1,750 pm 30,000 Premium pa Maximum 1 lac 1lac p.a. No limit p.a. Top-up Top-up premium not allowed. Regular Premium Single Premium (Policy Term + 1) x Age at entry Minimum Annual Premium < 45 yrs >= 45 yrs 1.25 x 1.10 x SP Sum Assured SP Age at entry Age at Maturity Upto 45 46 to 60 Upto 65 66 to 70 yrs yrs yrs Note: SA shall Maximum 30 x AP 25 x AP Upto 55 56 to 60 be in multiples yrs( yrs (+CIR) of 5000/- +CIR) 5 x SP 3 x SP tsr.iyengar@gmail.com
- 5. ENDOWMENT PLUS : CHARGES Regular Premium Single Premium Premium Allocation Year Charge 3.3% Charge 1st 7.50% 2nd to 5th 5.00% Thereafter 3.00% Policy Administration Rs.30/-pm during the first policy year and Rs. Charge 30/- pm escalating at the rate of 3% pa. 0.50% Bond Fund 0.60% Secured Fund Fund Management Charge 0.70% Balanced Fund 0.80% Growth Fund Switching Charge 4 switches free . Rs. 100 thereafter Miscellaneous charge In event of alteration Rs.50/- Mortality Charge Will be recovered every month at specified rates Critical illness Charge Age specific Accident Benefit Charge 0.50 Per thousand AB Sum Assured ENDOWMENT PLUS: DICONTINUANCE CHARGES Disc onti Annualized premium up to Rs. Annualized premium above Rs. nua 25,000/- 25,000/- nce Year Lower of Maximum Lower of Annualised Maximum Annualised Premium or FundValue Premium or FundValue 1 10% 2500/- 6% 6000/- 2 7% 1750/- 4% 5000/- 3 5% 1250/- 3% 4000/- 4 3% 750/- 2% 2000/- >=5 NIL NIL NIL NIL tsr.iyengar@gmail.com