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SHIELD

04/08/2004. SHIELD. Shouldn’t your Insurance cover also grow along with you?. A Term Plan with increasing cover. SHIELD. 3 options: Sum Assured increases by 5% p.a. Sum Assured increases by 50% every 5 years. Level cover. 2 riders:

jeremy-boone
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SHIELD

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  1. 04/08/2004 SHIELD Shouldn’t your Insurance cover also grow along with you? A Term Plan with increasing cover

  2. SHIELD • 3 options: • Sum Assured increases by 5% p.a. • Sum Assured increases by 50% every 5 years. • Level cover. • 2 riders: • Accidental Death and Accidental Total Permanent Disability • Premium Waiver Benefits Competitive Premium Rates

  3. Make the product simple for your customers… • Basic product: easy to understand, easy to sell • What about competition? • What about the 2 riders?

  4. SHIELD • Basic product, easy to understand, easy to sell.

  5. SHIELD features • Min. Age: 18 years • Max. Age: 60 years • Max Cover Age: 65 years • Min. Term: 5 years • Max. Term: 25 years • Min. S.A.: Rs. 3,00,000/- • Max. S.A.: (x Rs. 10,000) • S.A. Increases by 5% p.a.: Rs. 10 crores • S.A. Increases by 50% every 5 yrs: Rs. 8 crores • Level Cover: Rs. 25 crores • Premium mode: SP/Y/HY/Q/M. • Not lower than Rs. 500/- for any mode

  6. SHIELD • Pure Risk product: • No maturity benefit • No Vested Bonus • Only Death Benefits: • With the increasing cover, you do not need to take a fresh policy to increase your Life cover

  7. Death Benefits • Depending on the option chosen, Increasing S.A. or Level Sum Assured is payable • In case of suicide within the first policy year: Refund of basic premium (-) Commission paid (-) Adm. Expenses.

  8. Illustration for Sum Assured Rs. 10,00,000 – 30 years old man - Term: 25 years

  9. Tax Rebate Slabs Gross Total Income (GTI) Tax Rebate Max Admissible Amount Upto Rs. 1.5 lakhs 20% Rs. 14,000 1.5 lakhs – 5 lakhs 15% Rs. 10,500 More than Rs. 5 lakhs NIL NIL Gross Salary Income Not exceeding Rs. 1 lakh (should not be less than 90% of GTI) 30% Rs. 21,000 Tax Advantages • At the entry: Tax rebate u/s 88 of I.T. Act • Available for Premium paid on Life Insurance policies with a maximum ceiling p.a. Rs. 70,000 / 20% Basic S.A. whichever is lower. • Policy can be in the name of the spouse, children (major or minor and Married daughter)

  10. Tax advantages • Death Benefits are tax-free u/s 10 (10D) I.T. Act:

  11. Premium rebates • For mode of payment • Yearly: 2% • Half-Yearly: 1% • Quarterly: no rebate • Monthly: • Standing Instruction on Credit Card/Bank account): extra charges: 2% • Salary Savings Scheme (Min 30): no extra charges • For gender • Discount for female: • Regular premium: 5% • Single premium: 1%

  12. High Value Policy rebate per ‘000 S.A.

  13. Multiplicator and Frequency factor for premium calculation

  14. Premium Calculation • For regular premium mode: • Find out the premium rate according to the option • Gross annualised premium = (1) * premium rate divided by 1,000 • Multiply this result (2) by the multiplicator factor to find out Annualised basic premium net of rebate for gender and premium mode • Calculate the High Value Policy rebate (HVP*SA)/1,000, if any • Find the Net Base Premium rate as (3) (–) (4) • Calculate extra premium for riders, if any • Annualised Net basic Premium with riders: (5) + (6) • Divide (7) by frequency factor to find out the regular premium • In case of decimal, rounded off to the next higher Rupee. Illustration on how to calculate premiums in your training handbook

  15. SHIELD: Commissions

  16. SHIELD • What about competition? • A unique feature, the Increasing Sum Assured • No need to take a fresh policy • For medical underwriting, only Basic Sum Assured is taken into account • One of the lowest premium rates

  17. Accidental Death and Accidental Total Permanent Disability Premium Waiver Benefit 2 Riders available

  18. SHIELD Accidental Death and Accidental Total Permanent Disability

  19. Accidental Death & Accidental TPD: • Min. entry age: 18 years • Max. entry age: 60 years • Min. cover age: 65 years • Duration: Min. 5 yrs / Max. Term of Basic Plan • Min S.A.: Rs. 50,000( multiple of Rs. 10,000) • Max S.A.: Upto basic S.A. subject to overall ceiling of Rs. 20 lakhs per Life insured under all individual SBI Life policies. • Premium Payment Mode: As per the basic cover • Double Cover: • Accidental Death or • Accidental Total Permanent Disability

  20. Accidental Death benefits • Nominee will receive: • Additional Sum Assured for Accidental cover EASY TO EXPLAIN

  21. Accidental Total Permanent Disability benefits • Policyholder will receive: • In Installments • Sum Assured for accidental benefit in 10 installments till maturity / death whichever is earlier. • At Maturity / Death • Balance of TPD claim installments if any will be paid in one lump sum to the policyholder/nominee. • Policyholder exits from all riders: • No other rider benefit will be paid

  22. Extra premium per Rs. 1,000 S.A. for Accidental rider High protection, negligible cost

  23. SHIELD Premium Waiver Benefit rider

  24. Premium Waiver Benefit (PWB) Min. Age: 18 years Max. Age: 60 years Max. cover age: 65 years Duration: same as basic plan Premium: based on basic premium paid (inclusive of NSAP and EMR) Availability: - Basic S.A. with PWB rider under all individual SBI Life policies should not exceed Rs. 50 lac under one Life Insured.

  25. Premium Waiver Benefit (PWB) • On occurrence of an accidental Total & Permanent Disability: • Life Insured informs SBI Life in writing within maximum 120 days. • Regular Premium for Basic Cover will be waived. • Survival Benefits • No survival benefit Basic cover continues Regular premiums are waived

  26. Premium calculation is based onNet basic premium + (NSAP and EMR, if any)

  27. How to calculate the extra premium for Premium Waiver Benefit rider? • Use Premium table for Premium Waiver benefit rider. • According to Option Plan, Term and Age, find out the rate. • Apply this rate to the premium for Basic Cover (inclusive of NSAP & EMR loading, if any). Ex. SHIELD Plan – 25 years term- Increases SA by 5% p.a.: Rs. 10 lakhs - Basic YP for a 30 yrs old male: Rs. 4,770 Rate for WOP: 2.99 Extra premium: (2.99 * 4,770) / 100 =142.62= Rs. 143 For 39 paise a day, Basic premiums are waived

  28. Illustration for PWB rider In case of Total Permanent Disability due to an accident, Basic premium are waived

  29. SHIELD Plan Medical selection rules

  30. Medical selection rules: Basic Sum Assured - Basic Single Premium (if any) + Sum Under Consideration for existing individual SBI Life policy = Sum Under Consideration Accidental rider and Premium Waiver Benefit riders are not taken into account for calculation of Sum Under Consideration

  31. Medical selection Based on Sum under consideration / Age Basic medical test, subject to requirement

  32. SHIELD Plan 15 days Free Look Period If a client is not satisfied with the features of the policy, he can return it within 15 days of the date of policy receipt SBI Life will give him a complete refund after deducting Administrative Charges (Stamp duty + Medical Expenses + Rs. 200/-)

  33. Plus points of SHIELD • A unique feature, the increasing cover: • @ 5% per annum • @ 50% after every 5 years • No need to take a fresh policy to get an increasing cover • A useful tool: • To protect the family • To be used as a Collateral for types of loans • Level cover • One of the lowest premium in the market

  34. Illustration for S.A. Rs. 10 lakhsfor male. Term 5 years

  35. Illustration for S.A. Rs. 10 lakhsfor male. Term 10 years

  36. Illustration for S.A. Rs. 10 lakhsfor male. Term 15 years

  37. Illustration for S.A. Rs. 10 lakhsfor male. Term 20 years

  38. Illustration for S.A. Rs. 10 lakhsfor male. Term 25 years

  39. Thank you

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