A PRESENTATION ON A PRESENTATION ON WEALTH PLUS (T-801)WEALTH PLUS (T-801)

5 biggest myths5 biggest mythsabout about

stock markets & ULIPsstock markets & ULIPs

Myth No.1:Myth No.1:How a typical share market works…How a typical share market works…

Fact:Fact:

Well the functioning of a stock market is Well the functioning of a stock market is not as as weird as it appearsnot as as weird as it appears

With the arrival of Institutional Investors in With the arrival of Institutional Investors in the form of Mutual Funds and ULIPs the the form of Mutual Funds and ULIPs the rules of the game are being rewritten, rules of the game are being rewritten, lending more sense into the share price lending more sense into the share price movementsmovements

Myth No.2Myth No.2

Investing in ULIPS , like Investing in ULIPS , like stocks, is just gamblingstocks, is just gambling

Fact:Fact:

While gambling is a zero-sum game i.e you While gambling is a zero-sum game i.e you take money from the loser and pay to the take money from the loser and pay to the winner. Whereas in ULIPs it is a win-win winner. Whereas in ULIPs it is a win-win situation where in both the investors and the situation where in both the investors and the company stand to benefit, provided you choose company stand to benefit, provided you choose a a reputed companyreputed company with a with a proven track proven track recordrecord..

Of 169 companies listed in BSE since 2007 only Of 169 companies listed in BSE since 2007 only 49 are trading in green and the rest 120 in red 49 are trading in green and the rest 120 in red whereas all the ULIPs launched by LIC during whereas all the ULIPs launched by LIC during the period have shown considerable the period have shown considerable appreciationappreciation..

Myth No. 3Myth No. 3

Having just a little knowledge, Having just a little knowledge, because it is better than none, because it is better than none, is enough to invest in the stock is enough to invest in the stock marketmarket

Fact:Fact:

Half knowledge is a dangerous thing. A Half knowledge is a dangerous thing. A partially informed investor is about as partially informed investor is about as effective as a partially informed surgeon; he effective as a partially informed surgeon; he or she will only hurt themselves and those or she will only hurt themselves and those around them. You need technical expertise around them. You need technical expertise to invest in stock market which is available to invest in stock market which is available to you in the form of ULIPsto you in the form of ULIPs

LIC being the largest investor in Indian LIC being the largest investor in Indian Markets and with an investment spectrum Markets and with an investment spectrum spanning all the BSE-30 companies spanning all the BSE-30 companies provides the best expertise to its investorsprovides the best expertise to its investors

Myth No.4Myth No.4

ULIP returns are marginal and if we ULIP returns are marginal and if we negate the spiraling inflation the negate the spiraling inflation the returns are in negative.returns are in negative.

Fact:Fact:

Though many of the ULIPS confirm the Though many of the ULIPS confirm the above fact but there are ULIPs from above fact but there are ULIPs from reputed companies which defy the above reputed companies which defy the above logic. It’s a fact from a layman’s logic. It’s a fact from a layman’s perspective that Gold as an investment perspective that Gold as an investment has given the best returns in the last one has given the best returns in the last one year among all the investment options. But year among all the investment options. But how many of us know that LIC’s Market how many of us know that LIC’s Market Plus has given better returns than GOLD. Plus has given better returns than GOLD. Strange!?! But a fact…Strange!?! But a fact…

An Investment of Rs. 30000/- each inAn Investment of Rs. 30000/- each in Gold and Market Plus on 1-1-2009 would Gold and Market Plus on 1-1-2009 would have yielded a return of Rs.37800/-have yielded a return of Rs.37800/-from Gold from Gold (Return of 26%)(Return of 26%) and Rs.41799/- and Rs.41799/- from Market Plus from Market Plus (Return of 39%) as on (Return of 39%) as on 1-1-20101-1-2010..

DATEDATE GOLD RATE PER GOLD RATE PER GMGM

MARKET PLUS MARKET PLUS NAVNAV

1-1-091-1-09 12501250 9.569.56

1-1-101-1-10 15751575 13.3213.32

Myth No.5Myth No.5

We cannot catch both the head and the We cannot catch both the head and the tail in a stock markettail in a stock market

Fact:Fact:

Unfortunately no one is able to predict the Unfortunately no one is able to predict the peak and the nadir of stock markets.peak and the nadir of stock markets.

LIC is the major investor and stabilizer in LIC is the major investor and stabilizer in case of a major fall in stock markets but case of a major fall in stock markets but we have not mastered the art of predicting we have not mastered the art of predicting the peak levels of Markets yet.the peak levels of Markets yet.

That’s the reason why we are That’s the reason why we are introducing…introducing…

WEALTH PLUS WEALTH PLUS (T-801)(T-801)

Wealth Plus (Plan No.801)Wealth Plus (Plan No.801)

Salient Features:Salient Features: A close-ended Guaranteed Returns Unit Linked A close-ended Guaranteed Returns Unit Linked

PlanPlan Available for eligible persons of 10 to 65 years Available for eligible persons of 10 to 65 years

age.age. Fixed Policy Term of 8 yearsFixed Policy Term of 8 years Limited Premium Paying Term of 3 yearsLimited Premium Paying Term of 3 years Single Premium Option is also AvailableSingle Premium Option is also Available

Wealth Plus (Plan No.801)Wealth Plus (Plan No.801)

Salient Features:Salient Features:Minimum Premium Rs. 20000/- under Minimum Premium Rs. 20000/- under

Regular Mode & Rs. 40000/- under Single Regular Mode & Rs. 40000/- under Single Premium ModePremium Mode

Yearly, Half-yearly, Quarterly and Monthly Yearly, Half-yearly, Quarterly and Monthly (ECS) Modes available(ECS) Modes available

Maximum Premium- No LimitMaximum Premium- No Limit

Wealth Plus (Plan No.801)Wealth Plus (Plan No.801)

Salient Features:Salient Features: Minimum S.A (Regular Mode):Minimum S.A (Regular Mode): 5 times the annualized Premium5 times the annualized Premium Maximum S.A (Regular Mode):Maximum S.A (Regular Mode): 10 times the Annualized Premium upto Age 50, 5 times for 10 times the Annualized Premium upto Age 50, 5 times for

age above 50age above 50 Minimum Sum Assured (S.P.)Minimum Sum Assured (S.P.) 1.25 times the premium1.25 times the premium Maximum Sum Assured (S.P.)Maximum Sum Assured (S.P.) 5 times the Premium upto 40 years age5 times the Premium upto 40 years age 2.5 times the Premium for 41 to 50 years age2.5 times the Premium for 41 to 50 years age 1.25 times the Premium for 51 and above age1.25 times the Premium for 51 and above age

ExampleExample

Age 40 years, Yly Premium Rs.20000/-Age 40 years, Yly Premium Rs.20000/-

Min. SA is 1 lacs and Max SA IS 2 lacsMin. SA is 1 lacs and Max SA IS 2 lacs

Age 40 yrs. S.P Rs. 40000/- Age 40 yrs. S.P Rs. 40000/-

Min SA is 50000/- and Max SA is 2 lacsMin SA is 50000/- and Max SA is 2 lacs

SA will be in multiples of Rs. 5000/- SA will be in multiples of Rs. 5000/-

Additional Features & RidersAdditional Features & Riders

Accident Benefit Rider for 18 to 62 years Accident Benefit Rider for 18 to 62 years aged persons @ Rs.0.50 per 1000 SAaged persons @ Rs.0.50 per 1000 SA

Surrender Facility and Partial Withdrawal Surrender Facility and Partial Withdrawal option after completion of 3 years policy option after completion of 3 years policy termterm

No exit Loads No exit Loads All premiums received during the period of All premiums received during the period of

sale of the product shall be invested in sale of the product shall be invested in Money Market InstrumentsMoney Market Instruments

BenefitsBenefits

Maturity Benefit with Guaranteed NAVMaturity Benefit with Guaranteed NAV

At the end of the policy term, fund value At the end of the policy term, fund value based on the highest NAV over the first based on the highest NAV over the first seven years or the NAV applicable at the seven years or the NAV applicable at the end of the policy term, whichever is higher end of the policy term, whichever is higher is payable is payable

Illustration with Bima Plus ExperienceIllustration with Bima Plus Experience

If a 40 year old person has invested Rs. 50000 If a 40 year old person has invested Rs. 50000 under Risk Fund in Bima Plus at an NAV of Rs.10 under Risk Fund in Bima Plus at an NAV of Rs.10 at the time of launch of Bima Plus i.e on 1-2-2001at the time of launch of Bima Plus i.e on 1-2-2001

His Fund Value after 8 years i.e on 1-2-His Fund Value after 8 years i.e on 1-2-2009 at an NAV of Rs.32.05 is 2009 at an NAV of Rs.32.05 is Rs.1,42,737/-Rs.1,42,737/-

His Fund Value at the highest NAV His Fund Value at the highest NAV (Rs.50.35) recorded during the first Seven (Rs.50.35) recorded during the first Seven Years of the Policy i.e on 4-1-2008 is Years of the Policy i.e on 4-1-2008 is Rs.2,24,261/-Rs.2,24,261/-

Illustration with Bima Plus ExperienceIllustration with Bima Plus Experience

Under the provisions of Guaranteed NAV as Under the provisions of Guaranteed NAV as under Wealth Plus the policyholder stands to under Wealth Plus the policyholder stands to gain gain Rs.81,524/-Rs.81,524/- (i.e 57% more than that of (i.e 57% more than that of Bima Plus Plan Provisions)Bima Plus Plan Provisions)

WEALTH PLUS INDEED!!!WEALTH PLUS INDEED!!!

Death BenefitDeath Benefit

Death of the policy holder during the Death of the policy holder during the Policy Term when the cover is in full force:Policy Term when the cover is in full force:

Both Sum Assured and the fund value Both Sum Assured and the fund value shall be paid to the nomineeshall be paid to the nominee

Extended Risk CoverExtended Risk Cover

Even after the completion of Policy Term Even after the completion of Policy Term and the payment of Maturity value to the and the payment of Maturity value to the policyholders, Insurance coverage for the policyholders, Insurance coverage for the Basic Sum Assured is continued for Basic Sum Assured is continued for another 2 years on the life of Policyholder another 2 years on the life of Policyholder i.e Basic SA is paid again on the i.e Basic SA is paid again on the happening of risk during the 2 yearshappening of risk during the 2 years

ChargesCharges

Allocation Charges:Allocation Charges:

Upto 4 lacs (S.P) - 5%Upto 4 lacs (S.P) - 5%

Above 4 Lacs (S.P.) - 4.5%Above 4 Lacs (S.P.) - 4.5%

Rs.20,000 to Rs. 2lac( NSP) -Rs.20,000 to Rs. 2lac( NSP) -

11STST Year- 12% and 2.5% thereafter Year- 12% and 2.5% thereafter

and as the premium increasesand as the premium increases

the charges reducethe charges reduce

Other ChargesOther Charges

Mortality Charges as per the ageMortality Charges as per the ageFund Management Charges - 1% p.a of Fund Management Charges - 1% p.a of

Fund ValueFund ValueGuarantee Charges – 0.35% of Fund Guarantee Charges – 0.35% of Fund

ValueValueMisc. Charges, Admn. Charges, Service Misc. Charges, Admn. Charges, Service

Tax Charges, etc.Tax Charges, etc.

For Investments Pls Contact:For Investments Pls Contact:ROBERT RONALD FERNANDES(RONY)ROBERT RONALD FERNANDES(RONY)

Chief Advisor(CLIA)Chief Advisor(CLIA)

LIC OF INDIALIC OF INDIA

Reon Consultancy ServicesReon Consultancy Services

Hotel Pancharathna InternationalHotel Pancharathna International

Moodbidri-574227Moodbidri-574227

Mobile: +91 9448216661Mobile: +91 9448216661

E-mail : ronylic@rediffmail.comE-mail : ronylic@rediffmail.com

www.ronyindia.comwww.ronyindia.com

Thank YouThank You