You are on page 1of 35

September 2013

This material is strictly meant for circulation within the organization/ solely for training and/or education of the employees of ICICI
Prudential Life Insurance Co. Ltd. or its advisors, corporate agents or brokers and should not be further circulated or used for
presentation to a prospect or general public at large.
Agenda

Retirement planning in India

Ideal retirement plan

ICICI Pru Easy Retirement

ICICI Prudential Cash Rich Retirement Solution

Launch details

This material is strictly meant for circulation within the organization/ solely for training and/or
education of the employees of ICICI Prudential Life Insurance Co. Ltd. or its advisors, corporate
2 agents or brokers and should not be further circulated or used for presentation to a prospect or
general public at large.
Agenda

Retirement planning in India

Is there an opportunity for you?


What would you tell your customer?

Ideal retirement plan

ICICI Pru Easy Retirement

ICICI Prudential Cash Rich Retirement Solution

Launch details
This material is strictly meant for circulation within the organization/ solely for training and/or
education of the employees of ICICI Prudential Life Insurance Co. Ltd. or its advisors, corporate
3 agents or brokers and should not be further circulated or used for presentation to a prospect or
general public at large.
Distributor Customer

Why is this segment an opportunity for the distributor?

This material is strictly meant for circulation within the organization/ solely for training and/or
education of the employees of ICICI Prudential Life Insurance Co. Ltd. or its advisors, corporate
4 agents or brokers and should not be further circulated or used for presentation to a prospect or
general public at large.
India Yesterday

Low Long work- High job Large


income span security families

This material is strictly meant for circulation within the organization/ solely for training and/or
education of the employees of ICICI Prudential Life Insurance Co. Ltd. or its advisors, corporate
5 agents or brokers and should not be further circulated or used for presentation to a prospect or
general public at large.
India Today

Higher Shorter Lower job Smaller


income work-span security families
A greater need for a substitute of income after
retirement
This material is strictly meant for circulation within the organization/ solely for training and/or
education of the employees of ICICI Prudential Life Insurance Co. Ltd. or its advisors, corporate
6 agents or brokers and should not be further circulated or used for presentation to a prospect or
general public at large.
Retirement planning: growing awareness

86% 23% 36 yrs 49 yrs

An
An
Anaverage
average
averagecustomer
customer
customer starts
is thinking
actually commits
willing to about
to
spend aretirement
retirement
23% of his
86% Indians believe planning
that retirement planning is important
plan atat
annual income towards age
age 4936
retirement planning
Source: Accenture Global Retirement Services Survey 2012;
Axa Retirement Scope, 2010
This material is strictly meant for circulation within the organization/ solely for training and/or
education of the employees of ICICI Prudential Life Insurance Co. Ltd. or its advisors, corporate
7 agents or brokers and should not be further circulated or used for presentation to a prospect or
general public at large.
What do these numbers tell you?

Most of your customers

Believe retirement planning is important

Are ready to invest substantial money

Have started thinking about retirement plans

Are yet to commit to any retirement plan

A huge business opportunity is waiting for you!

This material is strictly meant for circulation within the organization/ solely for training and/or
education of the employees of ICICI Prudential Life Insurance Co. Ltd. or its advisors, corporate
8 agents or brokers and should not be further circulated or used for presentation to a prospect or
general public at large.
Agenda

Retirement planning in India

Is there an opportunity for you?


What would you tell your customer?

Ideal retirement plan

ICICI Pru Easy Retirement

ICICI Prudential Cash Rich Retirement Solution

Launch details
This material is strictly meant for circulation within the organization/ solely for training and/or
education of the employees of ICICI Prudential Life Insurance Co. Ltd. or its advisors, corporate
9 agents or brokers and should not be further circulated or used for presentation to a prospect or
general public at large.
Distributor Customer

Why is retirement planning important for the customer?

This material is strictly meant for circulation within the organization/ solely for training and/or
education of the employees of ICICI Prudential Life Insurance Co. Ltd. or its advisors, corporate
10 agents or brokers and should not be further circulated or used for presentation to a prospect or
general public at large.
Right balance between present & future
Organization
Individual
Present Future

Operational Innovation
costs
R&D

Day to day
expenses Retirement
planning
Childs
education

Microsoft spends $ 25 million every day for the future. How much do you?

Source: Global Innovation 1000, Booz & Co, 2012


This material is strictly meant for circulation within the organization/ solely for training and/or
education of the employees of ICICI Prudential Life Insurance Co. Ltd. or its advisors, corporate
11 agents or brokers and should not be further circulated or used for presentation to a prospect or
general public at large.
What would a person want after
retirement?
India Yesterday

1 Lead a quiet life 2 Go on a pilgrimage

This material is strictly meant for circulation within the organization/ solely for training and/or
education of the employees of ICICI Prudential Life Insurance Co. Ltd. or its advisors, corporate
12 agents or brokers and should not be further circulated or used for presentation to a prospect or
general public at large.
What would a person want after
retirement?
India Today

1 Maintain lifestyle 2 Fulfill dreams

3 Protect health 4 Leave a legacy

This material is strictly meant for circulation within the organization/ solely for training and/or
education of the employees of ICICI Prudential Life Insurance Co. Ltd. or its advisors, corporate
13 agents or brokers and should not be further circulated or used for presentation to a prospect or
general public at large.
Which factors should he keep in mind?

Risk of outliving his savings!

Women have higher


Increase in expenses (at 8% inflation)
life expectancy than
After 5 years 1.5 times
men.
After 10 years 2 times
Expense
Hence, towards
planning health
for
After 15 years 3 times
increases exponentially with age
After 20 years
his own lifetime
5 times
is not
Healthcare enough.
costs might become
After 25 years
10 times in 7the
times
next 20 years*
After 30 years 10 times
A large kitty needs to be accumulated before he retires
*Assumed rate of medical inflation: 12% p.a.
This material is strictly meant for circulation within the organization/ solely for training and/or
education of the employees of ICICI Prudential Life Insurance Co. Ltd. or its advisors, corporate
14 agents or brokers and should not be further circulated or used for presentation to a prospect or
general public at large.
Is there a right time to start planning?

The Target: Rs. 1 Cr. at age 60

Pay Rs. 13,500 Pay Rs. 60,000


p.m. for 25 years p.m. for 10 years

Lower Shorter
Start at installment duration Start at
35 50

Its never too late to start planning!


Rate of investment return: 8%;
Fund option: Easy Retirement Balanced Fund;
This material is strictly meant for circulation within the organization/ solely for training and/or
education of the employees of ICICI Prudential Life Insurance Co. Ltd. or its advisors, corporate
15 agents or brokers and should not be further circulated or used for presentation to a prospect or
general public at large.
Win-win situation!

Distributor Customer

This material is strictly meant for circulation within the organization/ solely for training and/or
education of the employees of ICICI Prudential Life Insurance Co. Ltd. or its advisors, corporate
16 agents or brokers and should not be further circulated or used for presentation to a prospect or
general public at large.
Agenda
Retirement planning in India

Ideal retirement plan

ICICI Pru Easy Retirement

ICICI Prudential Cash Rich Retirement Solution

Launch details

This material is strictly meant for circulation within the organization/ solely for training and/or
education of the employees of ICICI Prudential Life Insurance Co. Ltd. or its advisors, corporate
17 agents or brokers and should not be further circulated or used for presentation to a prospect or
general public at large.
The ideal retirement plan

Will it offer growth Equity linked return


opportunity to
accumulate a large
enough corpus?

Will it offer
protection to my
investments if the
markets go down?
Will it guarantee
lifelong income
for me and my
spouse? Premium Guarantee

Annuity

This material is strictly meant for circulation within the organization/ solely for training and/or
education of the employees of ICICI Prudential Life Insurance Co. Ltd. or its advisors, corporate
18 agents or brokers and should not be further circulated or used for presentation to a prospect or
general public at large.
Introducing.

This material is strictly meant for circulation within the organization/ solely for training and/or
education of the employees of ICICI Prudential Life Insurance Co. Ltd. or its advisors, corporate
19 agents or brokers and should not be further circulated or used for presentation to a prospect or
general public at large.
Agenda
Retirement planning in India
Ideal retirement plan
ICICI Pru Easy Retirement
Product objective
Product details
Best in class customer proposition
Payout for the distributor
ICICI Prudential Cash Rich Retirement Solution
Launch details

This material is strictly meant for circulation within the organization/ solely for training and/or
education of the employees of ICICI Prudential Life Insurance Co. Ltd. or its advisors, corporate
20 agents or brokers and should not be further circulated or used for presentation to a prospect or
general public at large.
Product Objective

+
Address the feedback on Offer a Best-in-Class
Shubh Retirement Pension Plan

This material is strictly meant for circulation within the organization/ solely for training and/or
education of the employees of ICICI Prudential Life Insurance Co. Ltd. or its advisors, corporate
21 agents or brokers and should not be further circulated or used for presentation to a prospect or
general public at large.
Agenda
Retirement planning in India
Ideal retirement plan
ICICI Pru Easy Retirement
Product objective
Product details
Best in class customer proposition
Payout for the distributor
ICICI Prudential Cash Rich Retirement Solution
Launch details

This material is strictly meant for circulation within the organization/ solely for training and/or
education of the employees of ICICI Prudential Life Insurance Co. Ltd. or its advisors, corporate
23 agents or brokers and should not be further circulated or used for presentation to a prospect or
general public at large.
What does Easy Retirement offer?

50% 101% 105%


Up to 50% equity Assured benefit on Guaranteed
exposure vesting benefit on death

5% 5, 10, RP
Pension Boosters Flexible Premium
every 5th year Payment Term

This material is strictly meant for circulation within the organization/ solely for training and/or
education of the employees of ICICI Prudential Life Insurance Co. Ltd. or its advisors, corporate
24 agents or brokers and should not be further circulated or used for presentation to a prospect or
general public at large.
How does the plan work?
Lump-sum paid to nominee
You pay: Rs. 15 lakh AccumulatedYou
Value
get: Rs. 67 lakh
Rs. 25 lakh Rs. 25 lakh

Premiums Lifelong income for self & spouse

Rs. 1 lakh p.a. for 15 years ..... Assured Rs. 1.7 lakh p.a.
Benefit
Rs. 15.15 lakh
Rs. 25 lakh

.......
40 55 75 80
Death of husband Death of wife

Accumulation Phase Income Phase


Assumptions: Age at entry is 40 years; Policyholder lives till age 75 and spouse lives for 5 more years after that;
Rate of investment return: 8%; Fund option: Easy Retirement Balanced Fund;
Annuity option: Joint Life, Last Survivor with ROP
This material is strictly meant for circulation within the organization/ solely for training and/or
education of the employees of ICICI Prudential Life Insurance Co. Ltd. or its advisors, corporate
25 agents or brokers and should not be further circulated or used for presentation to a prospect or
general public at large.
How does the plan work?
Step 1: Choose PPT, policy term, premium & premium payment
mode
Step 2: Choose allocation ratio across two funds

Vesting benefit Death benefit

Pension Investment flexibility


Benefits
Boosters

Surrender benefit Postponement of vesting

This material is strictly meant for circulation within the organization/ solely for training and/or
education of the employees of ICICI Prudential Life Insurance Co. Ltd. or its advisors, corporate
26 agents or brokers and should not be further circulated or used for presentation to a prospect or
general public at large.
Charges
For yearly mode:
Premium Allocation Pol Admin Charge*
Annual Premium
Charge Year 1-5 Year 6-10
< Rs. 5 lakh 3% 3.0% 0.6%
Rs. 5 9.99 lakh 2% 1.2% 0.6%
>= Rs. 10 lakh 0% 0.6% 0.6%

For other modes:


Premium Allocation Charge Pol Admin
Annual Premium Charge*
Year 1 & 2 Year 3 to PPT (Year 1 to10)
< Rs. 5 lakh 3% 2% 3.0%
Rs. 5 9.99 lakh 3% 3% 1.2%
>= Rs. 10 lakh 2% 1.5% 0.6%
*Pol admin Charge is capped at Rs. 6,000 p.a.
This material is strictly meant for circulation within the organization/ solely for training and/or
education of the employees of ICICI Prudential Life Insurance Co. Ltd. or its advisors, corporate
27 agents or brokers and should not be further circulated or used for presentation to a prospect or
general public at large.
Fund related charges

FMC and Guarantee Charge (p.a.):

Fund Fund Management Charge Guarantee Charge

Easy Retirement Balanced


1.35% 0.50%
Fund
Easy Retirement Secure Fund 1.35% 0.10%

This material is strictly meant for circulation within the organization/ solely for training and/or
education of the employees of ICICI Prudential Life Insurance Co. Ltd. or its advisors, corporate
28 agents or brokers and should not be further circulated or used for presentation to a prospect or
general public at large.
Why ?

This material is strictly meant for circulation within the organization/ solely for training and/or
education of the employees of ICICI Prudential Life Insurance Co. Ltd. or its advisors, corporate
29 agents or brokers and should not be further circulated or used for presentation to a prospect or
general public at large.
Agenda
Retirement planning in India
Ideal retirement plan
ICICI Pru Easy Retirement
Product objective
Product details
Best in class customer proposition
Payout for the distributor
ICICI Prudential Cash Rich Retirement Solution
Launch details

This material is strictly meant for circulation within the organization/ solely for training and/or
education of the employees of ICICI Prudential Life Insurance Co. Ltd. or its advisors, corporate
30 agents or brokers and should not be further circulated or used for presentation to a prospect or
general public at large.
Easy Retirement RIY

Reduction in Yield (RIY) at the end of the 10th year

3.0%
1.5%

Allowed by Easy Retirement


IRDA

PPT = 10 years;
Rate of investment return: 8%; Annual Premium= Rs. 50,000
This material is strictly meant for circulation within the organization/ solely for training and/or
education of the employees of ICICI Prudential Life Insurance Co. Ltd. or its advisors, corporate
31 agents or brokers and should not be further circulated or used for presentation to a prospect or
general public at large.
Easy Retirement: RIY with ticket size

RIY at the end of the 10th year (for various ticket


sizes)

1.5% 1.1% 0.7%

AP= Rs. 50,000 AP= Rs. 5 lakh AP= Rs. 10 lakh

Customer proposition gets better with ticket size

Easy Retirement
PPT = Regular Pay; Policy term = 10 years;
Rate of investment return: 8%;
This material is strictly meant for circulation within the organization/ solely for training and/or
education of the employees of ICICI Prudential Life Insurance Co. Ltd. or its advisors, corporate
32 agents or brokers and should not be further circulated or used for presentation to a prospect or
general public at large.
Easy Retirement: RIY with policy term

RIY for various investment durations

1.1% 0.8% 0.7%

Term = 10 yrs Term = 15 yrs Term = 20 yrs

Customer proposition
A compelling gets better
customer with duration
proposition!

Easy Retirement
PPT = Regular Pay;
Rate of investment return: 8%; Annual Premium= Rs. 500,000
This material is strictly meant for circulation within the organization/ solely for training and/or
education of the employees of ICICI Prudential Life Insurance Co. Ltd. or its advisors, corporate
33 agents or brokers and should not be further circulated or used for presentation to a prospect or
general public at large.
Easy Retirement vs. Linked wealth plans

Mr. Amit, a 50 years old executive in an MNC, wants to invest Rs. 1


lakh p.a. for 10 years so that he receives pension from age 60

Options Linked wealth plan

Corpus generated Rs. 13.7 lakh Rs. 12.5 lakh

Mortality Charges ZERO Rs. 99 k


(including tax)
What is the source of this difference?

Mr. Amit saves one premium over the policy term!


Rate of investment return: 8%; Death benefit in linked wealth plan is Sum Assured PLUS Fund Value
Sum Assured is Rs. 10 lakh. Charge structure is same as that in Easy Retirement
This material is strictly meant for circulation within the organization/ solely for training and/or
education of the employees of ICICI Prudential Life Insurance Co. Ltd. or its advisors, corporate
34 agents or brokers and should not be further circulated or used for presentation to a prospect or
general public at large.
Agenda
Retirement planning in India
Ideal retirement plan
ICICI Pru Easy Retirement
Product objective
Product details
Best in class customer proposition
Payout for the distributor
ICICI Prudential Cash Rich Retirement Solution
Launch details

This material is strictly meant for circulation within the organization/ solely for training and/or
education of the employees of ICICI Prudential Life Insurance Co. Ltd. or its advisors, corporate
35 agents or brokers and should not be further circulated or used for presentation to a prospect or
general public at large.
Happy selling!

This material is strictly meant for circulation within the organization/ solely for training and/or
education of the employees of ICICI Prudential Life Insurance Co. Ltd. or its advisors, corporate
36 agents or brokers and should not be further circulated or used for presentation to a prospect or
general public at large.