Jeevan Shanthi importance.pdf

life insurance

1. Importance of Jeevan Shanti…
P. Sridhar/DO/Chennai

2. Why Retirement Planning?
•Lack of Social SecuritySystem in India
•Children may NOTtake care of their Parents
•Higher Life Expectancy
•Ever-increasing Medical Expenses
•Falling Global Interest Rates (See Next Slide)

3. GDP RANK COUNTRY RATE OF INTEREST
1 Germany -0.13%
2 UK 0.84%
3 France 0.08%
4 Italy 2.28%
5 Spain 0.50%
6 Netherlands -0.09%
7 Switzerland -0.48%
8 Poland 2.35%
9 Swedan -0.09%
10 Belgium 0.15%
11 Austria 0.03%
12 Norway 1.44%
13 Ireland 0.27%
14 Denmark -0.22%
15 Finland 0.05%
- 5 Countries have Negative Interest Rate.
- Among Top 15, highest interest rate is 2.35%
TOP 15 EUROPEAN NATIONS INTEREST RATES

4. 5-Common Retirement Mistakes
•My Children will take care of me after retirement
•I have sufficient savings to manage
•I have enough Property
•I wont live for a Long time
•Not investing in Guaranteed Pension Products

6. What is Jeevan Shanti?
•Non-linked Single premium Annuity Plan
•2-Typesof Annuity available
•Immediate Annuity & Deferred Annuity
•Available to all LIVES including Third Gender
•Annuity rates are Guaranteed by Govt of India

7. Basic Parameters of the Plan
•Minimum Age at Entry is 30 Years
•Maximum Age can go upto100 Years
•Single Life as well as Joint Life (will explain this)
•Lineal Descendant/Ascendant of a Family
•Minimum Purchase Price: Rs.1,50,000
•Min Annuity: 1000/3000/6000/12000 (Modewise)

8. Basic Parameters (Continued)
•Always check ALL-IN-ONE Calculator
•Key in SA, Type of Annuity & Annuity Options
•Quote Premium after the above Process
•Handicapped Dependents (Divyangjan) can be Nominee
•In such cases, Min Purchase Price: Rs.50,000
•No restriction on Minimum Annuity amount for Divyangjan

9. Types of Annuity
•IMMEDIATE ANNUITY
•DEFERRED ANNUITY

10. Options in Immediate Annuity
Annuity Options Annuity Description
Option AImmediate Annuity for Life
Option B5 Years Certain and thereafter for Life
Option C10 Years Certain and thereafter for Life
Option D15 Years Certain and thereafter for Life
Option E20 Years Certain and thereafter for Life
Option FImmediate Annuity for Life with return of Purchase Price
Option GImmediate Annuity for Life with increase @ 3% Simple p.a
Option HJoint Life with 50% annuity to Spouse
Option IJoint Life with 100% annuity to Spouse
Option JJoint Life with 100% to Spouse with return of Purchase Price

11. AGEMONTHLY ANNUITYYEARLY ANNUITYYIELD
30 5225 64900 6.49%
40 5242 65200 6.52%
50 5258 65600 6.56%
60 5283 66200 6.62%
70 5300 67200 6.72%
IMMEDIATE ANNUITY FOR RS. 10,00,000 (OPTION F)

12. AGEMONTHLY ANNUITYYEARLY ANNUITYYIELD
30 13155 163125 6.53%
40 13177 163875 6.56%
50 13219 164875 6.60%
60 13281 166375 6.66%
70 13323 168875 6.76%
IMMEDIATE ANNUITY FOR RS. 25,00,000 (OPTION F)

13. AGEMONTHLY ANNUITYYEARLY ANNUITYYIELD
30 26333 327000 6.54%
40 26417 328500 6.57%
50 26500 330500 6.61%
60 26625 333500 6.67%
70 26708 338500 6.77%
IMMEDIATE ANNUITY FOR RS. 50,00,000 (OPTION F)

14. AGEMONTHLY ANNUITYYEARLY ANNUITYYIELD
30 52750 655000 6.55%
40 52917 658000 6.58%
50 53083 662000 6.62%
60 53333 668000 6.68%
70 53500 678000 6.78%
IMMEDIATE ANNUITY FOR RS. 1,00,000,00 (OPTION F)

15. Options in Deferred Annuity
ANNUITY
OPTIONS
ANNUITY
DESCRIPTION
OPTION-1Deferred Annuity
for Single Life
OPTION-2Deferred Annuity
for Joint Life

16. DEFERMENT
PERIOD
ANNUITY STARTING
AGE
MONTHLY
ANNUITY
YEARLY ANNUITY
5 35 7030 88000
10 40 9558 119600
15 45 13022 162900
20 50 17270 216000
DEFERRED ANNUITY FOR RS.10,00,000 (AGE:30 YEARS)

17. DEFERMENT
PERIOD
ANNUITY STARTING
AGE
MONTHLY
ANNUITY
YEARLY ANNUITY
5 35 17649 220875
10 40 23969 299875
15 45 32629 408125
20 50 43249 540875
DEFERRED ANNUITY FOR RS.25,00,000 (AGE: 30 YEARS)

18. DEFERMENT
PERIOD
ANNUITY STARTING
AGE
MONTHLY
ANNUITY
YEARLY ANNITY
5 45 35920 449500
10 50 49480 619000
15 55 67160 840000
20 60 85520 1069500
DEFERRED ANNUITY FOR RS.50,00,000 (AGE: 40 YEARS)

19. DEFERMENT
PERIOD
ANNUITY STARTING
AGE
MONTHLY
ANNUITY
YEARLY ANNUITY
5 45 71923 900000
10 50 99043 1239000
15 55 134463 1681000
20 60 171123 2140000
DEFERRED ANNUITY FOR RS.1,00,00,000 (AGE: 40 YEARS)

20. Guaranteed Addition
•Available in Deferred Annuity Option
•Every month during deferment period
•Rate of GA can be seen in Illustration later

21. Death Benefit
•IMMEDIATE ANNUITY
–Depends on Annuity option
–Return of Purchase Price (F & J)
–Be Very Carefulin choosing

22. Death Benefit in deferred Annuity
•SINGLE LIFE
–(Purchase Price + Accrued GA) –Annuity paid
–110% of Purchase Price
–Whichever is Higher
•JOINT LIFE
–On 1
st
death, nothing is payable
–On death of Survivor, as defined in Single Life

23. Age
Guaranteed
Additon per Year
RISK COVERAge
Guaranteed Additon
per Year
RISK COVER
41 1014240601424051 101424016156640
42 1014240702848052 101424017170880
43 1014240804272053 101424018185120
44 1014240905696054 101424019199360
45 10142401007120055 101424020213600
46 10142401108544056 101424021227840
47 10142401209968057 101424022242080
48 10142401311392058 101424023256320
49 10142401412816059 101424024270560
50 10142401514240060 101424025284800
RISK COVER IN JEEVAN SHANTI (DEFERRED ANNUITY)
Entry Age : 40 Amount Invested : 50 Lacs

24. LOAN & SURRENDER
•Eligible only in Option F/J(Immediate Annuity) & Deferred Annuity
•LOAN available after 1 Year in both types of Annuities
•Annual Loan Interest to be < than 50% of Annual Pension
•Max Loan Amount to be less than 80% of Surrender Value
•Surrender available after 3 Months from DOC
•Depends on Type of Annuity Chosen & Age during Surrender
•We can see Illustrative Surrender Values in Next few Slides

25. AgeSurrender ValueAgeSurrender Value
41 728971 51 744412
42 730116 52 746663
43 731278 53 748911
44 732555 54 751371
45 733933 55 753931
46 735420 56 756702
47 736990 57 759575
48 738751 58 762528
49 740478 59 765661
50 742385 60 768928
SURRENDER VALUE IN JEEVAN SHANTI
[IMMEDIATE ANNUITY]
Entry Age : 40 Amount Invested: 10 Lacs

26. Entry Age : 50 Amt Invested: 50 Lacs
Age Surrender Value% to Invested Amount
51 2897611 57.95%
52 3162543 63.25%
53 3452104 69.04%
54 3767626 75.35%
55 4112437 82.25%
56 4489200 89.78%
57 4899911 98.00%
58 5347899 106.96%
59 5837158 116.74%
60 6371682 127.43%
SURRENDER VALUE IN JEEVAN SHANTI
[DEFERMENT PERIOD: 10 YEARS]

27. Why should I sell Jeevan Shanti?

28. •There is NO other Portfolio except
JEEVAN SHANTI which can
Guarantee a Fixed Rate of Interest
for the entire Life-time of a
Customer with Capital Protection
coupled with return of Purchase
Price.

29. •Retirement cannot be Postponed. It
requires a “Guaranteed method” to
provide for it. Financial Planning will
be of lesser use. Immovable Assets will
make us Wealthy on Paper only.
Jeevan Shanti alone can provide a Safe,
Secure & Regular Income which makes
us Independent.

30. •In this era of UncertainGlobal &
Indian Economy, our Clients
require income which is FIXED
GUARANTEED & without TDS.
Jeevan Shanti provides Huge Risk
cover too in Deferred Annuity
option which we already saw.

31. •LIFE EXPECTANCY in INDIA is increasing.
As per the latest data available with
the Ministry of Health & Family
Welfare, the average longevity is 81.
But, Retirement age is always between
55 to 60. Jeevan Shanti addresses this
Situation effectively

32. •Almost 92% of Indian Working
Population doesn’t have Retirement
Income; Social Security System in our
Country is not adequate enough to
take care of Old-Age. It is our
Individual responsibility to secure our
retirement through Jeevan Shanti.

33. •Last but NOT the least, to enjoy Life
after retirement, to ensure adequate
income after retirement and most
importantly to live with SELF-RESPECT
after retirement, JEEVAN SHANTI is a
MUST, MUST & VERY MUST!!!

39. TARGET MARKET FOR SHANTI
•Retired People having sufficient FDs in Bank
•HNI Clients who would be having Enormous Money
•Parents of NRIs who are living in India
•Young Executives who are earning Huge Money
•Anybody & Everybody whom you think…!

40. YEAR RBI INTERESTLIC'S ANUITY INTEREST
1990 14% 12% Life long
1995 13% 12% Life long
2000 12% 10% Life long
2005 10% 9% Life long
2015 9% 7.5% Life long
2019 6.8% 6.5% Life long
Why LIC's Annuity Plan is the BEST!