This document provides an overview of financial planning and retirement planning presented in a PowerPoint by Ashok Kumar from ICICI Prudential Life Insurance. It discusses the need for retirement planning given increasing lifespans. It also summarizes term insurance plans, how to calculate human life value, factors to consider for how much and how long to buy term plans. Low cost investment plans called ULIPs are described including benefits like tax exemptions and liquidity. Specific ULIP funds and their benchmarks are named.

1. ICICI Prudential Life Insurance
Personal mail id: amc.ashokkumar@gmail.com /ashok.ku@iprusales.com
PPT By Ashok Kumar

2. Wealth Creation
(contingency fund,
Kids education &
Marriage)
Life & Health
(Term Plan and Mediclaim)
Education
Marriage
House
Kid
Retirements
Pyramid of Financial Planning
Up’s and Down’s in Life
Retirement
Planning
PPT By Ashok Kumar

3. Life Span(then)
Completion of
Education (22-25 Yrs)
Working life(25 to 30 Yrs) 50 to 55 Yrs (Age
of Retirement)
25 to 30 Yrs (Post
Retirement)
Life exp. 82-
85 Yrs
Life Span(NOW)
Completion of
Education (18-20 Yrs)
Working Life( 40 Yrs) 60 Yrs (Age of
Retirement)
10-15 Yrs (Post
Retirement)
Life Exp. 68-
72Yrs
• Less medical cost
• Joint family
• Low life expectancy
• Cost of living low
• Standard of living low
• Longer life expectancy
• Health cost going up
• Cost of living high
• Standard of living high
• Nuclear family
Why retirement planning required?

4. Protection(Term Plan)
Definition:- Term insurance is a type of
life insurance policy that provides coverage for a
certain period of time or a specified "term" of
years. If the Insured dies during the time period
specified in the policy and the policy is active, or in
force, a death benefit will be paid to the nominee.
There are two kinds of term plan.
1. There is no refund/maturity benefit at the end
of tenure.
2. Premium paid during the policy term exclusive
of GST is refunded at the end of tenure.

5. Need For term
plan. Why?
• To protect your financial liabilities
1. Re-payment of any Loan outstanding amount
• To Protect your Financial Responsibilities
1. Spouse-living expenses
2. Kids(Education and Marriage)
3. Dependent Parents
4. Estate planning(Legacy planning)
PPT By Ashok Kumar

6. Def.:- Human Life Value (HLV) —
the monetary value of a human
life, measured by determining the
net present value of benefits that
others (the decedent's spouse,
dependents, partners, employers)
might reasonably expect to receive
from the future efforts of the
individual whose life is being
valued.
e.g Ashok kumar age 30 years and Annual Income is 5 lakhs and he
has no health issue.
Parameter 1. Age
2. Annual Income
3. Health & Habbits
4. Occupational Risk
• Calculation: Rtd. Age =60 years
• Formula=Income(Rtd. age-current age)
• HLV= 5 lakhs(60 yrs-30yrs)=1.5 crore(If annual increment is not
considered)
• HLV will vary in case of business owner or self employed. Since,
their nature of job is not fixed till 60.
PPT By Ashok Kumar

7. How Much and
How Long is
ideal to buy
term plan?
How much?
1. How much do you want to leave as a legacy?
2. Substitute of your salary e.g. 7-10 lakhs per annum income can be
substitute by 1 crore approx.
3. Equal to HLV
4. As per your affordability.
5. Cover the financial responsibilities & liabilities. E.g –Loan Outstanding,
Contingency fund(Living expenses), Child education & Marriage.
How long?
1. Upto 70-75 Yrs
2. Upto 85 Yrs
3. Whole life till 99 years of Yrs age.
4. Upto age of 30 Yrs of younger kids.
5. Till the time you feel you would create Assets which can take care of your
family’s life style and you will have zero financial liability.
PPT By Ashok Kumar

8. Products
Basic PlanLife
• Death Benefit
• Terminal illness + waiver of Premium
Rider AccidentalLife Plus
• Death benefits
• Accidental Death Benefit
• Terminal illness + waiver of Premium
Rider 34 types of CILife & Health
• Death Benefit
• Critical Illness(34 major types)
• Terminal illness+ waiver of Premium
All-in-one(Customized)
PPT By Ashok Kumar

9. Low Cost
investment
plan(ULIP)
• Minimum investment for 5-7 years
• Lock in 5 years(However suggested to stay invested till 10-15 Yrs)
• Switching: Can do unlimited switching between funds(Equity ,
Balance, Debt). It has no charge or tax implications.
• Tax benefits: 80C on premium paid subject to limit up to 1.5 lakhs.
10 10D - Any kind of proceeds from this is tax exempted.
• Liquidity: After completion of 5 year you can do partial withdraw up
to 20 percent of fund value in Yr.
or
One can also surrender the policy, will get 100 percent of
Fund value.However, surrender is not suggested.
PPT By Ashok Kumar

10. ULIP’s
(Signature)
• Average Cost between 1st to 7th year 5-7% of annual
premium(PAC=5% of Annual Premium , Admin charge).
• Return of All Premium Allocation Charges : Get the Premium
Allocation charges added back to the fund value at the end of the
10th policy year and thereafter every 5th policy year till the end of
the policy term. E.g. if your premium is 1 lakhs per year , 5k
deducted as Premium allocation charge every year. In seven year it is
35k in the form of premium allocation charge. At 10th year and every
interval of 5 Yrs. You will be allocated units worth 35k in the form of
Bonus.
• Wealth Boosters Wealth boosters will be added as a percentage of
the fund value every 5 years starting from the 10th year.
• Fund options and portfolio strategies Option to choose from
multiple funds and 4 portfolio strategies to suit your investment
needs. Funds name and details are as follows:-
PPT By Ashok Kumar

11. Name of Funds Benchmark Name
Maximizer fund V S&P BSE 100
Bluechip fund NIFTY 50
Focus 50 fund NIFTY 50
India Growth fund NIFTY 100
Maximise India Fund 67% NIFTY 50 Index and 33% NIFTY NEXT 50 Index
Multi cap growth NIFTY 500
Opportunity fund BSE 200
Value enhancer fund Nifty Next 50 index
Active Asset Allocation fund 50% S&P BSE 100 + 50% CRISIL Composite Bond Fund Index
Multi cap balance fund 55% NIFTY 500 & 45% CRISIL Composite Bond Fund Index
Income fund CRISIL Composite Bond Fund Index
Money market fund CRISIL Liquid Fund Index
Secure Opportunities Fund 80% CRISIL AAA Medium Term Corporate Bond Index and
20% CRISIL AA+ Medium Term Corporate Bond Index
EquityBalanceDebt
PPT By Ashok Kumar

12. ULIP’s
(Signature)
• Value Benefit(When Annual Premium is 5 Lakhs or More) Get 5% of
the annual premium added to the fund value in 2nd and 6th year
depending on your plan option.
• Tax Benefits Get tax benefits on premiums paid and maturity
proceeds received as per the prevailing tax laws, 80C and 10 10D.
• Systematic Withdrawal Plan: Get money at regular intervals from
your fund value as per your financial needs.
• Maturity Benefit Flexibility to receive the maturity amount as a
lump sum or through structured payouts using settlement option.
• Death Benefit On the death of policyholder higher of sum assured
or fund value or minimum death benefit will be payable to the
nominee.
PPT By Ashok Kumar

13. ICICI Prudential Life Insurance
PPT By Ashok Kumar