Traditional Product-

Future Perfect
On Flight to Security

Strictly for internal circulation and/or for training/ education of employees/ advisors/ corporate agents/
brokers of ICICI Prudential Life Insurance Co. Ltd. Should not be further circulated/ used for presentation
to a prospect/ general public.
How can Traditional Products help?
Key Benefits of Traditional Plans

Goal
protection Stability and
with Life safety
Cover

Bonus once Tax benefits

declared is u/s 80C &
guaranteed 10(10D)
 Key determinants of choosing traditional product?

• Safety of money invested

Safety

Key
• Consistency in determinants
bonus declaration • Actual returns
• Strength of Brand delivered

Stability Returns

8
Strictly for internal circulation only. Should not be further circulated/ used for presentation to a prospect /general public.
Our philosophy
Cognizant of
Invest with
customers
long term
entrusting their
capital
hard-earned
appreciation
savings
objective

Safeguard capital Declare bonuses

with appropriate to ensure
risk and smooth maturity
bonuses to avoid matches the
volatility in policyholders’
returns share

9
Strictly for internal circulation only. Should not be further circulated/ used for presentation to aprospect /general public.
Our Performance in Traditional Space
 How have we performed on each front?
• Zero NPAs since inception

• > 9 8 % of investments in
government bonds &A A A
• First listed LI rated instruments
company; Strong
parent companies
Safety
• Consistent bonus
declaration since FY- • Historically Superior
07 tax-free returns
delivered.
• > Rs. 15,000 Cr of Par • Superior returns
AUM among debt
instruments
Stability Returns

11
Strictly for internal circulation only. Should not be further circulated/ used for presentation to a prospect /general public.
What are customers looking for?
Customers have various needs

Child’s college fund

Retirement corpus

Child’s marriage

Buying ahouse

One-time Lump sum

Most of these are Non – negotiable and Long Term Needs

Strictly for internal circulation only. Should not be further circulated/ used for presentation to a prospect /general public.
What we need to do
What do we have…

Huge Strong
opportunity C redentials

Match Right Need with Right Product

Strictly for internal circulation only. Should not be further circulated/ used for presentation to aprospect /general public.
What we need to d o …

Huge Strong
opportunity C redentials

C ustomer Right
need Produc t

Match Right Need with Right Product

Strictly for internal circulation only. Should not be further circulated/ used for presentation to aprospect /general public.
 Need for
Savings
with superior returns
 Today’s Customers
Don’t like trade-offs

Do they prefer a car with more leg room or a car which is more
efficient?

Do they prefer just a wrist watch or a health fitness wrist belt?

 Today’s Customers

Want the BEST of EVERYTHING!

A car which gives

Space of a SUV + Efficiency of a Sedan

A wrist band which is a

Watch + Fitness Band + Online Connector
Their buying considerations

• X in 1
• Best in class product
features
• Value for money
Products ruling the market today are

Offering multiple best in class features

rolled into a single product
Till now in the Financial World…
There would always be a trade-off
between

Capital Growth Capital Guarantee

Traditional Products so far…

• With an Equity exposure of 10% - 15%

• Would generate approximately 6% - 7% returns

Imagine if the equity exposure was to rise
to…

40%

30%
20%

What would the returns be like?

A Revolutionary product …

That Combines the power of …

Growth Guarantee

Best of both worlds

Strictly for internal circulation only, should not be further circulated / used for general presentation to a prospect / general public.
 Introducing
“Future Perfect”
First time ever in the Industry,..

A participating product,
that has potential for …up to 40% equity
upside with… participation

Strictly for internal circulation and/or for training/ education of employees/ advisors/ corporate agents/ brokers of ICICI Prudential Life Insurance Co. Ltd. Should not be
further circulated/ used for presentation to a prospect/ general public.
 Future Perfect
Non-linked Insurance Plan

Strictly for internal circulation and/or for training/ education of employees/ advisors/ corporate agents/ brokers of ICICI Prudential Life Insurance Co. Ltd. Should not be
further circulated/ used for presentation to a prospect/ general public.
What does Future Perfect offer?

Potential for higher returns with up to 40%

equity participation

Comfort of guarantee for your capital

Life cover for entire policy term

Tax benefits on premium paid and benefits

received as per the prevailing tax laws
 Future Perfect: Asset Allocation
37% as on May 31, 2020

https://www.iciciprulife.com/money-back-endowment-plans/future-perfect-
endowment-plan.html?UID=1203

Strictly for internal circulation and/or for training/ education of employees/ advisors/ corporate agents/ brokers of ICICI Prudential Life Insurance Co. Ltd. Should not be further
circulated/ used for presentation to a prospect/ general public.
Future Perfect : Industry Level Portfolio

* % on total equity portfolio

Strictly for internal circulation and/or for training/ education of employees/ advisors/ corporate agents/ brokers of ICICI Prudential Life Insurance Co. Ltd.
Should not be further circulated/ used for presentation to a prospect/ general public.
Equity performance in last 5 years

Strictly for internal circulation and/or for training/ education of employees/ advisors/
corporate agents/ brokers of ICICI Prudential Life Insurance Co. Ltd. Should not be further
circulated/ used for presentation to a prospect/ general public.
Boundary Conditions
Premium payment
Limited Pay
option
Premium payment
5 7 10 15 20
term (PPT) (years)

Policy term ( years) 10 to 15 12 to 17 15 to 20 20 to 25 25 to 30

Minimum annual
40,000 18,000 12,000 9,600 8,400
premium (Rs.)
Min / Max age at
3 / 45 1 / 58 91 days / 55 91 days / 50 91 days / 45
entry (years)
Min / Max age at
18 / 60 18 / 70
maturity (years)
Min Basic Sum
4,00,000 1,80,000 1,20,000 96,000 84,000
Assured on Death
Premium paying
frequency Annual / Half-yearly / Monthly

Strictly for internal circulation and/or for training/ education of employees/ advisors/ corporate agents/ brokers of ICICI Prudential Life Insurance Co. Ltd. Should not be further
circulated/ used for presentation to a prospect/ general public.
 Meet Mr. Subhash
He is 35 years and a Businessmen
He stays with his family in a rented
apartment
He is planning to save for Buying a
House 15 Years down the line

Solution:
He Invests 10 lakhs for 10 years in ICICI Prudential Life Insurance company’s Future Perfect
Plan and gets 2.58 Crores* on maturity in the 15th Year and accomplishes his Goal of Buying a
House
Goal: Buying a House
Strictly for internal circulation and/or for training/ education of employees/ advisors/ corporate agents/ brokers of ICICI Prudential Life Insurance Co. Ltd. Should not be
further circulated/ used for presentation to a prospect/ general public.
How does the plan work? Total maturity of ++
₹2.58 Crores
Total maturity of +
₹1.64 Crore

GMB Terminal Bonus Reversionary Bonus

₹72.1 L + ₹41.7 L + ₹32.3 L

+
Accrued GA’s Rs 18.5 L
15% of premium
12% of premium 15,0000 p.a.
10% of premium 12,0000 p.a.
10,0000 p.a.

Premium payment of 10 Lakh for 10 years

*for 10 pay 15 stay Future Perfect Age 50

Age 35
+ Maturity as per EBI at 8%
+ + Maturity as per 37% Equity allocation and 63% Debt allocation, with equity component return assumed at 14.73%
IRR Calculation Future Perfect
Future Perfect
Product Name Future Perfect
Premium 1,000,000
Premium Payment Term 10
Policy Term 15
Date Of Birth 1/1/1985
Age 35 Years, 6 Months & 2 Days
Gauranteed Maturity Benefit (GMB) 0
Terminal Bonus (TB) 0
Reversionary Bonus %( EBI) 0.00%
Equity % 37%
Debt % 63%
Equity Return % 15%

Calculation
Partiular As per EBI Bonus % For Debt+ Equity
Total Guaranteed Maturity Benefit (A)=(i)+(ii) 9,045,000 4,532,850
Guaranteed Maturity Benefit (i) 7,195,000 4,532,850
Guaranteed Additions (ii) 1,850,000 0
Estimated Accumulated reversionary bonus 2,850,708 1,795,946
Estimated Terminal Bonus 4,165,030 2,623,969
Estimated Total Maturity Amount for Debt (A) - 8,952,765
Estimated total Maturity Amount for Equity (B) - 16,908,862
Estimated Total Maturity Amount 16,060,738 25,861,627

IRR 4.53% 9.14%

 Meet Mr. Vivek
He is 35 years and has his own
Business
He has a 10 year old daughter
He is planning to save for his
daughter’s marriage as well as his
retirement corpus
Solution:
He Invests 5 lakhs for 10 years in ICICI Prudential Life Insurance company’s Future Perfect
Plan and gets 1.29 Crores* on maturity in the 15th Year and allocates 50% of the Maturity
amount for his
Daughter’s Wedding and 50% Maturity amount for his retirement Corpus
Goal: Children’s Marriage and Retirement Corpus
Strictly for internal circulation and/or for training/ education of employees/ advisors/ corporate agents/ brokers of ICICI Prudential Life Insurance Co. Ltd. Should not be
further circulated/ used for presentation to a prospect/ general public.
How does the plan work? Total maturity of ++
₹1.29 Crores
EBI Total maturity +
of ₹82.37 Lakhs

GMB Terminal Bonus Reversionary Bonus

₹36.05 L + ₹20.85 L + ₹16.15 L

+
Accrued GA’s Rs 9.25 L
15% of premium
12% of premium 75,000 p.a.
10% of premium 60,000 p.a.
50,000 p.a.

Premium payment of 5 Lakh for 10 years

*for 10 pay 15 stay Future Perfect Age 50

Age 35
+ Maturity as per EBI at 8%
+ + Maturity as per 37% Equity allocation and 63% Debt allocation, with equity component return assumed at 14.73%
IRR Calculation Future Perfect
Future Perfect
Product Name Future Perfect
Premium 500,000
Premium Payment Term 10
Policy Term 15
Date Of Birth 1/1/1985
Age 35 Years, 6 Months & 3 Days
Gauranteed Maturity Benefit (GMB) 0
Terminal Bonus (TB) 0
Reversionary Bonus %( EBI) 0.00%
Equity % 37%
Debt % 63%
Equity Return % 15%

Calculation
Partiular As per EBI Bonus % For Debt+ Equity
Total Guaranteed Maturity Benefit (A)=(i)+(ii) 4,522,500 2,266,425
Guaranteed Maturity Benefit (i) 3,597,500 2,266,425
Guaranteed Additions (ii) 925,000 0
Estimated Accumulated reversionary bonus 1,425,354 897,973
Estimated Terminal Bonus 2,082,515 1,311,984
Estimated Total Maturity Amount for Debt (A) - 4,476,382
Estimated total Maturity Amount for Equity (B) - 8,454,431
Estimated Total Maturity Amount 8,030,369 12,930,813

IRR 4.53% 9.14%

 Meet Mr. Ketan

He is 35 years salaried & works at a

automobile firm.
He has a 5 year old daughter Shanaya
He is planning to save for her
education

Goal: Child Education

Strictly for internal circulation and/or for training/ education of employees/ advisors/ corporate agents/ brokers of ICICI Prudential Life Insurance Co. Ltd. Should not be
further circulated/ used for presentation to a prospect/ general public.
Cost of Education…
Educational Milestone Current Approx. Cost

Higher Education 10 lakhs

*The minimum annual fees for overseas degree today is ~Rs. 10 Lakhs p.a.

And this is what it costs today!!

 Future Cost of Higher Education…
Today’s Cost = 10 Lakhs

Period Cost

15 years hence 24 lakhs

Are you really prepared??

Note: Assuming 6% rate of annual inflation
 Solution

Ketan is been suggested for investment in Future perfect

How does the plan work? Total maturity of ++
₹25.86 Lakhs
Total maturity of +
₹16.47 Lakhs

GMB Terminal Bonus Reversionary Bonus

₹7.21 L + ₹4.17 L + ₹3.23 L

+
Accrued GA’s Rs 1.85 L
15% of premium
12% of premium 15,000 p.a.
10% of premium 12,000 p.a.
10,000 p.a.

Premium payment of 1 Lakh for 10 years

Ketan, Age 35 *for 10 pay 15 stay Future Perfect Age 50

+ Maturity as per EBI at 8%
+ + Maturity as per 37% Equity allocation and 63% Debt allocation, with equity component return assumed at 14.73%
IRR Calculation Future Perfect
Future Perfect
Product Name Future Perfect
Premium 100,000
Premium Payment Term 10
Policy Term 15
Date Of Birth 1/1/1985
Age 35 Years, 6 Months & 5 Days
Gauranteed Maturity Benefit (GMB) 0
Terminal Bonus (TB) 0
Reversionary Bonus %( EBI) 0.00%
Equity % 37%
Debt % 63%
Equity Return % 15%

Calculation
Partiular As per EBI Bonus % For Debt+ Equity
Total Guaranteed Maturity Benefit (A)=(i)+(ii) 904,500 453,285
Guaranteed Maturity Benefit (i) 719,500 453,285
Guaranteed Additions (ii) 185,000 0
Estimated Accumulated reversionary bonus 285,071 179,595
Estimated Terminal Bonus 416,503 262,397
Estimated Total Maturity Amount for Debt (A) - 895,276
Estimated total Maturity Amount for Equity (B) - 1,690,886
Estimated Total Maturity Amount 1,606,074 2,586,163

IRR 4.53% 9.14%

 Bonus: Future Perfect
Future Perfect – Actual Bonus
A par plan with up to 40% equity participation

Guaranteed Actual Bonus

Year Total Additions
Additions Added already Added
Year 1 (2016-17) 8,000 9,590 17,590
Year 2 (2017-18) 8,000 11,005 19,005
Year 3 (2018-19) 8,000 11,252 19,252
Year 4 (2019-20) 8,000 11,505 19,505
32,000 43,352 75,352

Rs. 75,352 already added

For a 35 year old male with premium of 1,00,000 with 7 Pay 12 Stay option.

Strictly for internal circulation and/or for training/ education of employees/ advisors/ corporate agents/ brokers of ICICI Prudential Life Insurance Co. Ltd. Should not be further
circulated/ used for presentation to a prospect/ general public.
Thank You
 Save n Protect – Regular Pay 10
Terminal Bonus @
Year Premiums Paid Reversionary Bonus Declared
20%
Year 1 (2009-10) -1,05,235 3.50% 35,000
Year 2 (2010-11) -1,05,235 3.50% 36,225
Year 3 (2011-12) -1,05,235 3.50% 37,493
Year 4 (2012-13) -1,05,235 3.50% 38,805
Year 5 (2013-14) -1,05,235 2.25% 25,819
Year 6 (2014-15) -1,05,235 2.50% 29,334
Year 7 (2015-16) -1,05,235 2.25% 27,060 Tax-free
Tax-free
Year 8 (2016-17) -1,05,235 2.00% 24,595 IRR
IRR
Year 9 (2017-18) -1,05,235 6.41%
6.41%
2.00% 25,087
Year 10 (2018-19) -1,05,235 2.00% 25,588
Sum Assured 3,05,00
10,00,000 Total Reversionary Bonus 6 2,00,000

Next>
For 35 year old male with sum assured of Rs. 10,00,000 with Regular Pay 10 option
Strictly for internal circulation only. Should not be further circulated/ used for presentation to a prospect /general public.
 Save n Protect – Regular Pay 15
Terminal Bonus @
Year Premiums Paid Reversionary Bonus Declared
30%
Year 1 (2004-05) -66,183 3.50% 35,000
Year 2 (2005-06) -66,183 3.50% 36,225 < For35 year old
Year 3 (2006-07) 37,493
male with sum
-66,183 3.50%
assured of Rs.
Year 4 (2007-08) -66,183 3.50% 38,805
10,00,000 with
Year 5 (2008-09) -66,183 2.25% 25,819 Regular Pay 15
Year 6 (2009-10) -66,183 4.00% 46,934 option
Year 7 (2010-11) -66,183 2.50% 30,507
Year 8 (2011-12) -66,183 2.25% 28,143
Year 9 (2012-13) -66,183 2.25% 28,776
Year 10 (2013-14) -66,183 2.25% 29,423
Year 11 (2014-15) -66,183 2.50% 33,428 Tax-free
Year 12 (2015-16) -66,183 2.25% 30,837 IRR
Year 13 (2016-17) -66,183 2.00% 28,028 7.05%
Year 14 (2017-18) -66,183 2.00% 28,588
Year 15 (2018-19) -66,183 2.00% 29,160
Sum Assured 4,87,16 Next>
10,00,000 Total Reversionary Bonus 6 3,00,000
Strictly for internal circulation only. Should not be further circulated/ used for presentation to a prospect /general public.
 Forever Life– Regular Pay 10
Premiums Terminal
Year Reversionary Bonus Declared
Paid Bonus @ 2 5 %
Year 1 (2009-10) -9,949 3.50% 3,500
Year 2 (2010-11) -9,949 3.50% 3,623
Year 3 (2011-12) -9,949 3.50% 3,749
Year 4 (2012-13) -9,949 2.75% 3,049
Year 5 (2013-14) -9,949 2.75% 3,133
Year 6 (2014-15) -9,949 3.00% 3,512
Year 7 (2015-16) -9,949 2.75% 3,316
Year 8 (2016-17) -9,949 2.75% 3,407
Year 9 (2017-18) -9,949 2.75% 3,500 Tax-free
Year 10 (2018-19) -9,949 3.00% 3,597 IRR
S u m Assured Total Reversionary 8.45%
1,00,000 Bonus 34,711 25,000

For 35 year old male with sum assured of Rs. 1,00,000 with Regular Pay 10 option
Strictly for internal circulation only. Should not be further circulated/ used for presentation to a prospect /general public.
 Comparison with FD over 10 year and 15 year period
SBI - 10 year FD rates post t a x
Average
Rate (pre Save n Forever Life
Period tax) @ 20% @ 30% Protect RP 10 RP 10
2009-18 7.93% 6.28% 5.45% 6.41% 8.45%

SBI - 15 year FD rates post t a x

Average Rate Save n Protect
Period (pre tax) @ 20% @ 30% RP 15

2004-18 7.57% 5.99% 5.21% 7.05%

Higher returns + Life c o v e r + Tax benefits on premiums paid under 80C with our plans

* rates as on 1st Jan every year and taxes include cess Forever Life does not provide life cover
Strictly for internal circulation only. Should not be further circulated/ used for presentation to a prospect /general public.
 Consistent Bonus declaration

Actual bonus
declared (FY-14 to
Product Name Bonus illustrated
FY-19)

Cash Advantage 3.40% 4.75% - 5.25%

Savings Suraksha
2.00% 3.00% - 3.50%
(LP)
Future Perfect 2.25% 2.00% - 2.25%

Higher than illustrated bonus declared year on year

NEXT

Strictly for internal circulation only. Should not be further circulated/ used for presentation to a prospect /general public.
Savings Suraksha – Consistent Bonus

FY Limited Pay Regular Pay

2017 3.00% 1.75%

2018 3.00% 1.75%

2019 3.00% 1.75%

2020 3.00% 1.75%

Bonus declared is higher than the illustrated at 8% ARR

NEXT
Strictly for internal circulation only, should not be further circulated / used for general presentation to a prospect / general public.
 Savings Suraksha (V01) – actual bonus added

Actual Bonus amount

Year RB as per BI (8%)
added
Year 1 (2013-14) 12,055 21,096 65%
Year 2 (2014-15) 12,296 21,834
Year 3 (2015-16) 12,542 20,984
Year 4 (2016-17) 12,793 20,000
Year 5 (2017-18) 13,048 20,599
Year 6 (2018-19) 13,309 21,217
Year 7 (2019-20) 13,576 21,854
Total Accrued Bonuses 89,618 1,47,585

Consistent Higher Actual Bonus than that illustrated in EBI over 7 years
NEXT
For a 35 year old male with premium of ` 1,00,000 with 7 Pay 12 Stay option.
Strictly for internal circulation only, should not be further circulated / used for general presentation to a prospect / general public.
Cash Advantage (V01) – actual bonus added

Reversionary bonus as Actual Bonus amount

Year
per BI (8%) added
Year 1 (2013-14) 12,148 18,757
Year 2 (2014-15) 12,561 19,742
Year 3 (2015-16) 12,988 19,789
Year 4 (2016-17) 13,429 19,740
Year 5 (2017-18) 13,886 20,677
Year 6 (2018-19) 14,358 21,659
Year 7 (2019-20) 14,846 21,494
Total Accrued Bonuses 94,215 1,41,859

51% Consistent Higher Actual Bonus than that illustrated in EBI over 7 years

NEXT
For a 35 year old male with premium of ` 1,00,000 with 7 Pay 17 Stay option.
Strictly for internal circulation only, should not be further circulated / used for general presentation to a prospect / general public.
ICICI Pru: Bonus Story
A winner all the way
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