LIC Nivesh Plus (849)

Points for sales talk TARGET GROUP :

INDIVIDUALS WITH A RELATIVELY LONGER TERM INVESTMENT HORIZON

Agent : Good day Sir!

Client : Hello.......How are you? What brings you here?

Agent: Sir, I want to share with you a new Single Premium ,Unit Linked Insurance Plan

that LIC has introduced which offers insurance cum investment.

Client: That’s good. Which Plan are you talking about?

Agent: The Plan is LIC’s Nivesh Plus. It will give you market linked returns along with

insurance coverage with a onetime premium

Client: You know I am nearly 58 years old. Will I be eligible for the policy?

Agent: Yes Sir. Actually the maximum entry Age for the plan is 70 years nearer birthday

if you opt for Option 1. of the plan where the Basic Sum Assured is equal to 1.25

times of Single Premium.

Client : That’s great. But you are mentioning Option 1, it means there is other option

too. Moreover you know I have a 28 year old son and a 2 year old grandson. Tell

me who in my family will be eligible for the policy?

Agent: You are right Sir .There is another option available where the Basic Sum Assured

equals to 10 times of the Single premium. The minimum Age at entry for both the

options are 90 days(completed) and the maximum age at entry for Option 2 is 35

years(nearer birthday). So both your son and grandson will be eligible for the

policy. The minimum maturity age is age is 18 years(completed) with the

maximum maturity age of 85 years (nearer birthday) for Option1 and 50 years

nearer birthday for Option 2.

Client: You have come at the right time. I have got some lump sum amount which I am

thinking to invest . Tell me what is the minimum and maximum amount that I

can invest.

Agent: The minimum Single Premium under the plan is Rs. 1 lac with no upper limit and

is available in the multiples of Rs 10,000/-.

Client: O.K . Tell me what are the unique features of the Plan so that it will be a good

investment option for me which at the same time will give life insurance

protection.

Agent: Sir, the unique features of the plan is Flexibility and Transparency.

Client: Please elaborate.

Agent: Flexibility is the buzzword of the plan. They are

a) As already I have mentioned that there are options to choose Basic Sum

Assured as per your insurance need vis a vis investment need trade off from 1.25

times of S.P or 10 times of S.P

b) There are 4 types of fund options available under the plan with equity

component ranging from 0 to 80 percent. So the plan caters to all types of

investors starting from conservative to individuals with high risk appetite.

c) The policyholder can switch between any fund types during the policy term. 4

switches will be allowed free of charge during a given policy year which

policyholder can utilize according to market or interest rate volatility to maximize

returns

d) Facility to partially withdraw the units at any time after the fifth policy

anniversary subject to certain conditions and charges.

e) Settlement Option – Option available to receive the death proceeds in

installments.

f) Option to opt for Accidental Death benefit Rider

Client: I must admit that there is a lot of flexibility in the plan. But you were talking

about transparency also . What is that?

Agent: Sir, I am coming to that point.

a)All the charges on policy like premium allocation charges. Mortality charges,

Fund Management charges etc. are declared in advance to increase

transparency

b) Issue of Unit Statement-Periodical statement of accounts to be issued to

policyholders each year disclosing the actual charges levied and the fund value

at the beginning and end of the year.

Client : Great. But I have heard that the charges are very high in Linked policy.

Agent: No Sir, the charges are very moderate. The premium allocation charges is only

3.30% for Offline sale . So far as mortality charge is concerned, during the policy

term mortality charge will depend upon the Sum at Risk i.e. the difference

between the B.S.A and Unit Fund Value as on the date of deduction of charge.,

after deduction of all other charges and shall be deducted only if , the BSA is

more than the unit fund value on the date of deduction. Moreover there is no

policy administration charge under the plan. The Fund Management Charge is

1.35% p.a of Unit Fund for all the four funds available under the plan. There is

no bid/offer spread under the plan. I will be giving you a brochure stating all the

charges.

Client: What are the terms of the plan?

Agent : For Option 1 where the Basic Sum Assured is 1.25 times of Single Premium , the

policy term is 10 to 25 years. In option 2 , if the age at entry is up to 25 years,

the term is 10 to 25 years, if the age at entry is 26 to 30 years, it is 10 to 20

years, for age at entry 31 to 35 years , the term is 10 years.

Client : Can I take a loan under the policy or can I assign the policy ?

Agent: Assignment is allowed under the policy but there is no loan available under the

policy. But don’t worry Sir. You can partially withdraw the units at any time after

the fifth policy anniversary subject to certain conditions.

Client: Is there any more benefit?

Agent: Yes Sir, though it is a linked plan, but there are guaranteed additions available

under the plan as a percentage of Single Premium which shall be added to the

Unit Fund on completion of specific duration of policy years.

Client: Very good. What I get on maturity?

Agent: Sir, on surviving the stipulated Date of Maturity , an amount equal to the Unit

Fund Value is payable.

Client : In case of a sudden demise , what will the policyholder get?

Agent: In case of death before the date of commencement of risk , an amount equal to

the Unit Fund Value shall be payable. On death after the commencement of risk,

an amount equal to the higher of Basic Sum Assured reduced by Partial

withdrawals made during the two years’ period immediately preceding the date of

death or Unit Fund Value shall be payable.

Client: You were talking about before the date of commencement of risk. What is that?

Agent: In case the age at entry of the Life Assured is less than 8 years, the risk under

this plan will commence either on the completion of 2 years from the date of

commencement of policy or on the policy anniversary coinciding with or

immediately following the completion of 8 years of age, whichever is earlier. In

case the age at entry of Life Assured is 8 years or more, risk will commence

immediately from the date of acceptance of risk i.e. date of commencement of

policy.

Client: Great, the plan looks attractive. Please come tomorrow to finalise the deal .