The document discusses the need for child insurance plans based on a study by AC Nielsen. It finds that while awareness of securing a child's future is high, actual penetration of child insurance plans is very low at 10% nationally. Various insurance companies are now targeting the child segment with dedicated products. However, conversion of awareness to ownership remains a challenge, being only 5% for child plans.

1. Need of Child Space

3. Page Dependent Get a Job Have Kids Family Life Empty Nest Retired Learning to Save Aspiring Home Owner Home Equity Builder Wealth Consolidator Accessing Property Wealth Wealth Diversifier DEPENDENT TEENAGERS LOWER YOUNG COUPLES LOWER NO KIDS LOWER FAMILIES LOWER NOT RETIRED LOWER RETIRED MIDDLE CLASS FAMILIES INDEPENDENT YOUNG SOLOS YOUNG COUPLES YOUNG AFFLUENT PARENTS AFFLUENT FAMILIES AFFLUENT NO KIDS AFFLUENT NOT RETIRED AFFLUENT RETIRED MATURE SOLOS Socio-Economic Status HIGH LOW    Global Learning's Financial requirements are more aligned to Life-Stage                                   

4. Page Awareness of Financial Product Categories Figures in % Life Insurance lead the pack with universal awareness across different Investment products. Awareness of equity products is the least. 100 99 97 92 89 Life Insurance Debt Investment Other Investment Non Life Insurance Equity Investment Base: All respondents (7367)

5. Page Awareness of Financial Product Categories: Life Insurance Figures in % Traditional plans like ( endowment/money back) are most known Life Insurance policies, however ULIPs are the least known Insurance Policies.

6. Life Stage: 7 Financial Ages Page “ I really don’t want to deal physically with the bank, everything should be electronic.” “ I save almost nothing and spend all I earn, so I need instant access to my money.” Spending Years - Youth Needy Years - Married “ No one tells you how expensive married life is going to be. We need loans for everything – a car, household goods, the list never ends.” “ I am dependent on my parents for all my monitory needs .” Dependent Years - Adolescent Responsible Years – Married w/ at least 1 kid “ We need good-value investment options to save for our children’s education and future. We’d like to have our own house & we need a loan for that.” Settlement Years – Married with adult children We need finance for our children’s education & good investment options to save for our retirement.” Worried Years – Couples w/ married children “ We need finance for our children’s marriage & good investment options for our forthcoming retirement.” Peaceful Years – Retired “ We get what we need from our previous investments & pensions.” X - Not covered in Life 2008 X X

7. Insurance Awareness Levels – Lifestyle Stages Page Figures in % INSURANCE AWARENESS ULIP & retirement plans have the higher level of awareness in people from Spending years, however child plans awareness is higher amongst people from responsible years. All Spending Years Needy Years Responsible Years Settlement Years Worried Years Base 7367 1589 1240 3441 980 95 NETT : TOTAL LIFE INSURANCE 100 99 99 100 99 100 Life Insurance- Traditional/Endowment/Money back 95 95 95 95 94 95 Life Insurance- Child Plans 85 85 82 86 83 81 Life Insurance-Pure/term insurance 82 85 83 81 79 77 Life Insurance- Retirement/Pension 80 85 79 80 76 64 ULIP/Life insurance 59 66 59 58 54 50 Netts Non Life 92 93 90 93 90 84 Health Insurance 88 89 85 89 86 75 Accident Insurance 82 86 81 83 80 63

8. Product Awareness Levels – Adoptiveness & Ownership Page Figures in % INSURANCE AWARENESS Awareness level amongst early adopter is higher as compared to other category of people , however there is no major differentiation in awareness level amongst LIC & Private policy Owner. All Early Adaptors Mid Adopter Late adaptors LIC Other private Players Base 7367 1898 2420 662 3028 512 NETT : TOTAL LIFE INSURANCE 100 100 100 99 100 100 Life Insurance- Traditional/Endowment/Money back 95 98 97 98 98 99 Life Insurance- Child Plans 85 93 82 88 89 87 Life Insurance-Pure/term insurance 82 94 80 75 87 90 Life Insurance- Retirement/Pension 80 92 81 81 88 86 ULIP/Life insurance 59 76 54 48 67 68 Netts Non Life 92 96 93 95 95 98 Health Insurance 88 94 87 90 91 97 Accident Insurance 82 91 83 86 87 85

9. Awareness Levels – Centre wise Awareness levels for all types of policies higher in South, However ULIP is low on awareness across all centers, particularly in east. North has comparatively lower awareness of policies. Figures in % All Top 8 Metros Other metros North East West South Base: 3382 1975 1407 746 541 1090 1005 Money back Insurance 97 98 95 97 97 97 97 Endowment Insurance 85 92 75 83 88 80 89 Child Plans 85 95 71 78 84 85 91 Retirement /Pension Plans 80 90 65 77 79 79 82 Term Insurance 78 85 68 66 80 80 84 Unit linked Insurance Plan (ULIP) 57 68 41 52 41 58 68

10. Policy Awareness: Spont &Total Figures in % Base: All Respondents (3382) Money Back and Endowment are most aware life insurance products, whereas ULIP is the least aware in pecking order.

12. Page Figures in % Penetration of Financial Product Categories: Life Insurance Traditional Plans is the most penetrated product among insurance products followed by Pure/Term Plans Traditional plan has highest penetration in Kolkata(69%). However ULIP has highest penetration in Ahmadabad (21%)& Bangalore(17%)

13. Page National urban penetration of Child Plan (10%) Within Age groups 22-30 yrs: 7% 31-40 yrs: 14% 41-50 yrs: 11% Note: Above figures do not add to 100% since these are a reflection of that measure “ within the particular SEC/ Age group” Category Profile: Life Insurance ( Child Plan) Within Zone North: 9% South: 8% East: 13% West: 12% Within Town class Top 8 metros: 10% Mini Metros: 9% Within Life stages Spending years: 2% Needy years: 5% Responsible years: 16% Settlement years: 12% Worried years: 2% Within Adopters Early Adopters: 13% Mid Adopters: 11% Late Adopters: 7% Fig in %

14. Conversion ratio from awareness to penetration Life Insurance Figures in % Conversion Ratio Traditional Plans( Endowment/Money back) has the highest conversion ratio, which is quite low in pension plans & Child plans 46 12 26 5 19

15. Page Future Intent: Child Plan Total % planning to invest in Child Plans in next 12 months = 6 % Base: All respondents (7367) Fig in %

16. Future Intent (Life Insurance)–– Lifestyle Stages Figures in % Future Intention to purchase LI is higher amongst respondent from Spending years & worried years. FUTURE INTENTION IN LIFE INSURANCE All Spending Years Needy Years Responsible Years Settlement Years Worried Years Base 7367 1679 1138 3394 942 179 NETT : TOTAL LIFE INSURANCE 30 33 29 30 22 36 Life Insurance- Traditional/Endowment/Money back 17 20 16 17 9 26 Life Insurance- Child Plans 6 1 3 10 6 2 Life Insurance-Pure/term insurance 5 8 6 4 4 9 ULIP/Life insurance 4 6 5 3 4 2 Life Insurance- Retirement/Pension 2 2 1 1 2 3 Netts Non Life 5 6 3 5 4 11 Health Insurance 4 4 2 4 4 11 Accident Insurance 2 3 2 1 1 0

17. Preference - type of Policy Fig in % Base: All Respondents (3382) Money Back Insurance Policy enjoys highest preference among types of policies, on the other hand ULIP has very little preference Money Back Insurance Term Insurance Endowment Insurance ULIP Child Plans Retirement/Pension Plans

20. Major Products available : Young Care Plus Young Care Bajaj Bright Star Bharti Axa Young Scholar Little Master Aviva Head Start Future Protect Head Start Assure Wealth Star Child Kotak

21. Major products available …(2) SMART Kid New Regular Premium Plan SMART Kid Single Premium Plan ICICI Young Star Champion Unit Linked Young Star II Unit Linked Young Star Plus II HDFC Childrens Dream Plan Birla Sun Life

22. Major products available…. (3) Children Future Plan LIC Secure Child Plan Reliance Sahara Ankur Sahara Unit Plus Child Plan SBI Ujjwal Bhawisya TATA

23. Major products available…. (4) Prabhat Tara Star Union Daichi Met Little Star MetLife Child Plan HSBC SMART Steps & SMART Steps Plus Max New York Life

24. What Max New York Life is doing ?

26. Thanks!