Sales talk

1. LIC’s ENDOWMENT PLUS
( Sales Talk )
Agent : Good Morning, sir. Thank you very much for the appointment.
Prospect : Good Morning. I would like to know more about your new plan
‘ENDOWMENT PLUS’.
Agent : ENDOWMENT PLUS is a very attractive plan. It is designed as per the
recent guidelines of IRDA and aims to give best returns to the policyholders.
• It is a Unit Linked Endowment plan.
• Minimum Risk Cover is guaranteed.
• This plan has facility for Loan after 3 years from commencement.
• Partial Withdrawal is possible after 5 years from commencement.
• Plan can be availed on the life of a child, above the age of 7 years.
• It has 2 optional riders, which means extra protection.
Prospect: What are the returns at Maturity under ENDOWMENT PLUS?
Agent : The Policyholder’s Fund Value is payable on Maturity. You may receive
this amount in lump sum or exercise ‘Settlement Option’. If Settlement Option
is exercised you can en-cash the units available on Maturity at regular
intervals, spread over a period of not more than five years.
Prospect: What about Partial Withdrawals?
Agent : Partial Withdrawals are allowed after 5 years from the date of
commencement. You may withdraw the entire amount above 2 annualised
premiums. In case of Single Premium withdrawal is allowed subject to
minimum balance of 25 % of the premium paid. The Sum Assured under the
policy shall be reduced to the extent of withdrawal amount for a period of 2
years only. After a period of 2 years from Partial Withdrawal Sum assured shall
be treated for the full initial amount. In case there is a loan under the policy,
you can exercise partial withdrawal only after the loan is fully paid.
Prospect: You said loan is also possible under this plan.
Agent : Yes sir, it is possible to avail loan after 3 years from commencement.
Loans will be available upto 30% of the Fund Value.
Prospect: What shall be payable in event of death of the Life Assured?
Agent : In event of unfortunate death of the life assured during the term,
higher of Policyholders Fund Value and Sum assured is payable.
Prospect: What riders is this plan offering?
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2. Agent : You can opt for Critical Illness rider and/or Accident Benefit Rider.
Prospect: What are the benefits under these riders?
Agent : Under Critical Illness rider, in case of diagnosis of defined categories
of Critical Illness, ‘Critical Illness Sum Assured’ is payable. In case of Accident
Benefit Rider, in event of death due to an accident, Accident Benefit Sum
Assured is payable. For availing Accident Benefit Rider the charge is as low as
0.50 ‰ AB Sum Assured per year for availing Critical Illness Rider the charge
is age specific.
Prospect: Since this is a ULIP plan can you tell me more about the charges
under this plan.
Agent : There are nominal charges for Premium Allocation, Policy
Administration and Fund Management and Service Tax charge. The net of
premiums paid by you shall be invested through the selected fund.
Prospect: Can you brief me about the asset allocation of the various funds.
Agent : This plan has 4 types of fund namely Bond Fund, Secured Fund,
Balanced Fund and Growth Fund. The Asset allocation for Bond fund shall be
not less than 60% in Government/ Government Guaranteed Securities or
Corporate Debt and not more than 40% in Money Market instruments. The
investment pattern for Secured fund is not less than 45% is invested in
Government/Government Guaranteed Securities or Corporate Debt, not more
than 40% is invested in Money Market instruments and 15-55% is invested in
listed equity shares. In Balanced fund not less than 30% is invested in
Government/ Government Guaranteed Securities or Corporate Debt and not
more than 40% is invested in Money Market instruments and 30-70% is
invested in listed equity shares. In case of Growth Fund the asset allocation is
not less than 20% is invested in Government/ Government Guaranteed
Securities or Corporate Debt, not more than 40% is invested in Money Market
instruments and 40-80% is invested in listed equity shares. You have to choose
any one fund type for your policy.
Prospect: Can I change my fund type during the course of the policy?
Agent : Yes, you can switch between funds. This plan offers 4 free switches a
year. You can switch over as many times as you like. There will be a charge of
Rs.100 per switch after all the free switches have been used up.
Prospect : How much premium can I pay under the plan?
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3. Agent : You can pay premium from Rs. 20,000 to Rs. 1,00,000 p.a. under
regular premium plan. For Single Premium Plans, minimum premium is Rs.
30,000 .
Prospect: What if I am unable to pay the premiums within days of grace.
Agent : To get full benefits under the policy at all times, it is very essential to
keep the policy in force by paying the premiums on the due date. This habit of
paying premiums regularly also helps you to maintain a discipline in savings. If
however, you fail to pay the premiums within Days of Grace(30 days from due
date), you shall receive a notice to exercise one of the following options -
(i) Revive the policy or
(ii) Withdraw completely from the policy.
The option should be exercised within 30 days of receipt of the notice.
During the notice period the policy shall be treated in force and all charges will
be continued to be deducted.
Prospect: How can I revive the policy?
Agent : On exercising the option for revival, you can revive the policy by
paying the arrears of premiums without interest.
Prospect: What happens in case of withdrawal?
Agent : Sir, I will advise you to continue the policy under any circumstances.
However due to some compelling reasons beyond your control, you are forced to
exercise the option for withdrawal; The Fund Value shall be payable to you. In
case, the option for withdrawal is exercised after five years from
commencement, there shall be no discontinuance charge because of such
withdrawal. However, if the withdrawal option is exercised before completion of
5 years from commencement, the Monetary Value (Fund Value less
discontinuance charges) will be kept in Discontinued Policy Fund. This amount
shall earn a minimum interest of 3.5% pa and will be payable only on
completion of 5 years from date of commencement.
Prospect: What if I wish to take this plan on the life of my child.
Agent : This plan is available from the age of 7 years. The risk on the life of the
child will commence immediately. Since the child is a minor, AB and CI riders
may be availed from the policy anniversary after completion of 18 years of age.
Partial withdrawals and loan are also possible from policy anniversary after
attainment of 18 years of age by the Life Assured.
Prospect: I think, this plan will be good for my child.
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4. Agent : Sir, this is the Benefit Illustration for your child & this is the proposal
form. I shall help you with all the necessary procedures for submission of the
proposal papers. Thank You.
Eligibility conditions for Riders
Accident Benefit Rider
Sum Minimum Rs. 25,000
Assured Maximum Shall not exceed SA under basic plan and limited to
Rs. 50,00,000 for all existing and proposal stage
policies of Life Insurance and Group insurance.
Critical Illness Rider
Sum Minimum Rs. 50,000
Assured Maximum Shall not exceed SA under basic plan and limited to
Rs. 10,00,000 for all existing and proposal stage
policies of Life Insurance.
Age at entry 18 to 50 years
Age at Maturity 60 years
ELIGIBILITY CONDITIONS : ENDOWMENT PLUS
Age at entry 7 to 60 years
Age at Maturity 18 to 70 years
Policy term 10 to 20 years
Mode Regular Monthly (ECS) Single Premium
Minimum 20,000 1,750 pm 30,000
Premium pa
Maximum 1 lac 1lac p.a. No limit
p.a.
Top-up Top-up premium not allowed.
Regular Premium Single Premium
(Policy Term + 1) x
Age at entry
Minimum Annual Premium < 45 yrs >= 45 yrs
1.25 x 1.10 x SP
Sum Assured
SP
Age at entry Age at Maturity
Upto 45 46 to 60 Upto 65 66 to 70
yrs yrs yrs
Note: SA shall Maximum 30 x AP 25 x AP Upto 55 56 to 60
be in multiples yrs( yrs (+CIR)
of 5000/- +CIR)
5 x SP 3 x SP
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5. ENDOWMENT PLUS : CHARGES
Regular Premium Single
Premium
Premium Allocation Year Charge 3.3%
Charge 1st 7.50%
2nd to 5th 5.00%
Thereafter 3.00%
Policy Administration Rs.30/-pm during the first policy year and Rs.
Charge 30/- pm escalating at the rate of 3% pa.
0.50% Bond Fund
0.60% Secured Fund
Fund Management Charge
0.70% Balanced Fund
0.80% Growth Fund
Switching Charge 4 switches free . Rs. 100 thereafter
Miscellaneous charge In event of alteration Rs.50/-
Mortality Charge Will be recovered every month at specified rates
Critical illness Charge Age specific
Accident Benefit Charge 0.50 Per thousand AB Sum Assured
ENDOWMENT PLUS: DICONTINUANCE CHARGES
Disc
onti
Annualized premium up to Rs. Annualized premium above Rs.
nua
25,000/- 25,000/-
nce
Year
Lower of Maximum Lower of Annualised Maximum
Annualised Premium or FundValue
Premium or
FundValue
1 10% 2500/- 6% 6000/-
2 7% 1750/- 4% 5000/-
3 5% 1250/- 3% 4000/-
4 3% 750/- 2% 2000/-
>=5 NIL NIL NIL NIL
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