Sales talk pension_plus_1_


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Sales talk pension_plus_1_

  1. 1. PENSION PLUS (Table No. 803) ( Sample Sales Talk ) Agent : Festival Greetings. Prospect: Greetings! I received your e-mail on the new plan launched by LIC. Agent : Please permit me to give a brief introduction about this plan. Prospect: Well, go ahead. Agent :This is a Unit Linked Pension plan. Prospect: How is this plan different from other pension plans? Agent : • This is a unique pension plan where the minimum rate of interest is guaranteed. • Secondly the rate of interest is applied to the Gross Premiums. Which means if the premium paid for the year is ` 50,000, then interest is paid on full amount of ` 50,000. That is, interest is applied prior to deduction of charges. • Since this is a unit linked plan it has immense possibility of growth. • The maturity proceeds under this plan are used for purchasing Annuity, so this plan ensures good financial planning for the future. Prospect: Well, what are the Maturity Benefits under this plan? Agent :The date on which the policy term ends is called the ‘Date of Vesting’. On this date, annuity is purchased from the maturity proceeds. The amount available for purchase of annuity will be the higher of actual Policyholders Fund Value and Guaranteed Maturity Proceeds. Prospect :What are Guaranteed Maturity Proceeds? Agent :The minimum returns are guaranteed under this plan. If all due premiums are paid till the date of Maturity, then for the total premium paid during each financial year, interest is accrued on the premium amount. The Rate of interest is 50 bps more than the average reverse repo rate at the end of the quarter of the preceding year. This rate may vary from 3% to 6%. The amount so arrived shall be the Guaranteed Maturity Proceeds. The Guaranteed rate of return for premiums paid upto 31.03.2011 is 4.5% pa. Prospect: What could be the maximum returns under this plan. Agent : Our endeavour shall be to get maximum possible returns on this plan. The net of premiums shall be invested in the stock market through Debt Fund or Mixed Fund, as chosen by you. Prospect: What is the investment pattern for the two funds? Agent : Debt fund shall have not less than 60% of the amount is invested in Government/Government Guaranteed Securities or Corporate Debt and not more than 40% is invested in Money Market Instruments. In respect of Mixed Fund not less than 45% of the investment is in Government/Government Guaranteed 1
  2. 2. Securities or Corporate Debt, not more than 40% in Money Market instruments and 15-35% in Equity Shares. The fund value shall be calculated from the NAV of these funds. Prospect :What if I wish to switch over my fund type? Agent :Yes, you can do so. Two switches are free during the year, thereafter, there is a charge of `100/- per switch, you can switch over funds as many times as you like. Prospect :What if I wish to pay additional premiums ? Agent :You can do so by paying top-up premiums during the term except during last 5 years of maturity. Prospect: What if I want my maturity proceeds in lump sum. Agent : You have an option to commute upto 1/3rd of the maturity proceeds. The balance amount shall be used for purchasing annuity plan from LIC or any other insurance company as you desire. Prospect:What happens to my policy if I die during the term? Agent :In event of your unfortunate death during the term, the person nominated under the policy has the option to receive the fund value in lump sum or purchase an annuity plan for himself/herself. Sir, I would like to show you the Benefit Illustration for your age. For age 30, annual premium ` 25000 and a term of 20 years and provided that all premiums are paid regularly till the end of the term; assuming gross interest of 10% pa and investment in debt fund the Fund Value at the end of the term is likely to be `13,33,836/-. Prospect: So, this amount is paid to me if all my premiums are paid within days of grace. What if I am unable to pay the premiums within the days of grace? Agent :If you are unable to pay the premiums upto the days of Grace, a notice shall be sent to you within 15 days of the expiry of the days of grace to exercise one of the following options within 30 days of receipt of notice: (i) Revival of the policy (ii) Complete withdrawal from the policy. Prospect: What if I do not exercise any option? Agent :If you do not exercise any option within 30 days from receipt of notice, then it is assumed that you have exercised the option of complete withdrawal. Prospect: What if I convey the option to revive my policy? Agent :For revival of the policy, you are required to pay the arrears of premiums without interest. Prospect: What will be the status of my policy during the notice period? Agent :The policy shall be treated in-force during the notice period. It is important to note that all charges will be deducted during this period. 2
  3. 3. Prospect: What if I decide to withdraw the policy? Agent : It is always advisable to continue an insurance policy for its full term. However, if you are unable to pay the premium due to some unfavourable circumstances and need to terminate the policy before 5 years from commencement, the monetary value(fund value less discontinuance charge) of the policy shall be calculated. In case of Single premium plans there are no Discontinuance charges, so in this case the Monetary Value is equal to the fund Value. The amount so calculated will earn interest of at least 3.5% p.a. from the date of withdrawal to the end of 5 years from commencement. The amount along with the interest will be due to you only at the end of five years which will be used by you to purchase annuity. At the end of 5 years you have the option to commute one-third of the pension. Prospect: What if I withdraw my policy after 5 years? Agent : There are no discontinuance charges on surrender of Regular premium policies after 5 years from commencement. Policy holders Fund Value of such policies shall be due to the life assured immediately for purchase of annuity. Prospect: Can my father who is 70 years old also take the plan, Will the charges be more for him? Agent :This plan is available for any one between 18 to 75 years of age. The vesting age is from 40 to 85 years and the minimum term is 10 years. The charges will not be more for your father because of age, as there is no risk cover and the other charges are not age specific. Prospect :What are the various charges under this plan? Agent :Besides Premium Allocation charge other charges like Policy Administration charge, Fund Management Charge shall be deducted. Prospect :Can I also withdraw partial amount during the term? Agent :There is no option for partial withdrawal or loan under this plan. However this plan will help you ensure that the money you save today will provide a steady income to supplement your income during the retirement years. This plan will be excellent investment towards essential long term financial planning. Prospect: I would like to take this plan, as the money that I have in hand today will help me supplement my future income. How do I go about taking the policy. Agent : I will assist you with the procedure. This is the Proposal form, I shall help you with the process of submitting the proposal form and the consideration amount. Thank you for your patient listening. *********** 3
  4. 4. PENSION PLUS : ELIGIBILITY CONDITIONS Age at entry 18 to 75 years Age at vesting 40 to 85 years Minimum 10 years Deferment Term Mode -» RP MLY (ECS) SP Premium Minimum ` 15000 pa ` 1500 pm ` 30000 Maximum 1 lac 1 lac No limit Sum Assured NA PENSION PLUS : CHARGES Regular Premium Single Premium Year Charge Premium 1 st 6.75% Allocation nd th 3.3% 2 to 5 4.50% Charge Thereafter 2.50% Top-up premium: 1.25% Policy Administration ` 30/-pm during the first policy year and Charge ` 30/- pm escalating at the rate of 3% pa. thereafter. Fund Management Debt Fund 0.70% p.a. Charge Mixed Fund 0.80% p.a. Switching Charge 2 switches free . ` 100 thereafter. Miscellaneous charge ` 50/- for alteration. PENSION PLUS: DICONTINUANCE CHARGES Discontin Annualized premium up to ` uance Annualized premium above ` 25,000/- 25,000/- Year Discontinuance charges shall be lower of Discontinuance charges shall be lower of Annualised Maximum Annualised Maximum Premium or Fund Premium or FV Value 1 10% 2500/- 6% 6000/- 2 7% 1750/- 4% 5000/- 3 5% 1250/- 3% 4000/- 4 3% 750/- 2% 2000/- 5 and NIL NIL NIL NIL onwards 4