Life is a journey

There are Milestones …..

100km 200km 300km

400km

….and a Destination
Your Destination is more enjoyable
if….
Each milestone you cross leaves you with
a nice feeling
 Each milestone you cross

100 km

brings you closer to your destination…

And gives you instant gratification
 Presenting
ICICI Pru Cash Advantage
Because customers love liquidity
 Customers want to access their money

 ULIPs
 More than 80% of the sales
done through ULIPS
 After returns, Liquidity was
the key selling point

 Top objection in traditional

endowment policies like GSIP is
liquidity
What does the customer want
 In the last five years customers have asked for

Safety or Guarantee
Liquidity
What does Cash Advantage offer?
 Milestones in life
 In life, small milestones are
 Child’s tuition fee, child’s cricket coaching or guitar class,
car servicing, electricity bill, monthly grocery, own gym
100km membership, Fuel cost etc.
 The list goes on & on…
 For now we pay most of this from our salary

 How about an insurance product that pays every month

for your small milestones and later a big lump sum for
your bigger milestones?
How does the plan work?

Vested
reversionary
bonuses +
Terminal bonus

+
Guaranteed
Maturity
Benefit
Premiums
Guaranteed Cash Benefit

Premium payment term Payout term

Life cover for the entire policy term

 How does the plan work?
 Step 1: Choose Premium payment term, premium, Sum Assured,
premium payment mode and cash benefit mode
 Step 2: Guaranteed Maturity Benefit and Guaranteed Cash Benefit
calculated basis above factors as well as age at entry

Guaranteed Cash Benefit Maturity Benefit

Benefits

Death benefit
Bonuses
Surrender
 Policy acquires a surrender value as per the table
below

Premium payment option Surrender Value

5 or 7 pay After 2 full year’s premium
10 pay After 3 full year’s premium
 Boundary conditions
Premium payment option 5 pay 7 pay 10 pay

Premium payment term (PPT) 5 years 7 years 10 years

Payout term 10 years

Policy term (PPT + Payout term) 15 years 17 years 20 years

Minimum annual premium Rs. 30,000 Rs. 18,000 Rs. 12,000

Maximum annual premium Unlimited

Age at entry Sum Assured multiple

<45 10
Sum Assured on death
45 to 54 7 or 10
>54 7

Min/Max age at entry 0 / 60

Min/Max age at maturity 18 / 80
Premium payment mode Annual / Half-yearly / Monthly
Cash benefit mode Annual / Monthly
Cash advantage- A Five Star product
 Five star benefits

Guaranteed Guaranteed Guaranteed

maturity Cash Death
benefit benefit benefit

Reversionary
bonus
declared
Tax benefits
every year
How to pitch ICICI Pru Cash Advantage
ICICI Pru Cash Advantage – Child story

From school fees to university admission!

 Customer pen portrait: 30 year old, recently became a father

 Needs: Comprehensive education solution for the child

 What he saves: Rs. 1 lakh for 7 years

 What he gets
 School fee support: From child’s age 7 to 17 (till class 12)
 Rs. 3,600 per month for 120 months, i.e. total Rs. 4.3 lakh
 Higher education corpus: For university admission at 17
 Rs. 8.5 lakh (@8%)
 Education protection: Life cover of Rs. 10 lakh + bonuses
How does the solution work?

Higher
education
corpus of Rs.
8.5 lakh

Pay Rs. 1 lakh for 7 yrs

Get Rs. 3,600 p.m. for 10 yrs

Premium payment term Payout term

Life cover for the entire policy term

 Gift your Grand child, Cash every year

 Every Kid loves to visit his grand

parents, specially during festivals in
anticipation of gifts.

 Grand parents also love to shower

their grand children with gifts when
they visit.

Through Cash Advantage make your presence felt every year in your grand
child’s life.

Also Get Gift tax benefit!!

ICICI Pru Cash Advantage – Gifting Story
 Mr. Zubin is a 65 year old ex-serviceman.
 He wants to gift Rahul something which will benefit him
throughout his schooling.
 Mr. Zubin gifts a policy of ICICI Pru Cash Advantage to Rahul
with a PPT of 5 years and annual premium of Rs. 100000.

Maturity benefit
of 5.5 lakhs for
graduation
Premium Rs. 1 lakh per annum
5 yrs Guaranteed cash benefit
28 k p.a for 10 yrs for Rahul’s schooling

Premium payment term Payout term

Life cover for the entire policy term

Commission rates
Thank You
Death Benefit
 Death Benefit = Higher of SA, Minimum Death Benefit,
Guaranteed Maturity benefit +
vested reversionary bonuses, if any
+ interim bonus, if any
+ terminal bonus, if any

 Minimum Death Benefit is equal to 105% of sum of

premiums paid till date*

*excluding extra mortality premiums, service tax and cesses, if any

 Guaranteed Cash Benefit
 For each small milestones in life Guaranteed Cash
Benefit is payable in advance during the pay out term
 Guaranteed Cash Benefit can be received in monthly or
annual instalments

a r a nteed
Gu outs
pay
Cash benefit mode Guaranteed Cash Benefit for
m o nths
100km 1 20
Monthly 1% of GMB
Annual 11.5% of GMB
Maturity Benefit
 Maturity Benefit = Guaranteed maturity benefit
+ vested reversionary bonuses, if any
+ terminal bonus, if any

 Maturity Benefit shall be at least 100.1% of the sum of

premiums paid* less the sum of Guaranteed cash benefits
received during the policy term.

*excluding any extra mortality premium, service tax and cesses

Bonuses
 Yearly Compound reversionary bonus to be declared
for in force policies
Illustration: cumulative accumulated bonus amount over a 15 year term for a
guaranteed maturity benefit of Rs 1 lakh and a reversionary bonus of 4%.
Year GMB(Rs) Cumulative GMB incl. Compounded Simple Bonus
bonus accumulation Bonus Computation Computation
(Rs) per year (Rs) per year (Rs)

Year 1 100,000 100,000 4,000 4,000

Year 2 100,000 104,000 4,160 4,000
Year 3 100,000 108,160 4,326 4,000
Year 4 100,000 112,486 4,499 4,000
Year 5 100,000 116,986 4,679 4,000
Year 10 100,000 142,331 5,693 4,000
Year 15 100,000 173,168 6,927 4,000
Total 180,095 160000
In rupee terms, for the same rate of 4%
Compound reversionary bonus> Simple reversionary bonus
Historical Compounded Reversionary Bonus

Financial Year Forever Life Smart Kid Save 'n' Cash Bak Forever
(SP) Protect(RP) Life(RP)

2006-07 3.25% 3.25% 3.25% 3.25% 3.25%

2007-08 3.00% 3.00% 3.00% 3.00% 3.00%
2008-09 2.50% 2.25% 2.25% 2.25% 2.50%
2009-10 4.00% 4.00% 4.00% 4.00% 4.00%
2010-11 3.00% 2.50% 2.50% 2.50% 3.00%
2011-12 2.75% 2.25% 2.25% 2.25% 2.75%

Note: 2010 numbers have a reversionary bonus component and a special bonus
component

* Past performance may or may not be sustained in future

Terminal bonus
 It’s like a loyalty bonus added as a percentage of
GMB to the policy held for more than 10 years
 It is paid in lump sum at the maturity in addition
to the Vested bonus
Terminal Bonus for FY 2012
Financial Year Terminal Bonus
Save n Protect Series I 20.00%
Save n Protect Series II 15.00%
Smartkid Series I 20.00%
Smartkid Series II 15.00%
Forever Life Regular Premium
20.00%
Series-I
Forever Life Regular Premium
15.00%
Series-II
Forever Life Single Premium 25.00%

* Past performance may or may not be sustained in future