gmip for leaders

8/13/2019 GMIP for Leaders

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Traditional, non participating ,Money Back Insurance

Plan


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Importance of monthly income

The Guaranteed Monthly Income Plan

Living benefits Death benefit

Calculation of Monthly Income Boosters Calculation of premium Product Specifications

Process for selling GMIP

Things to be careful about while sourcing

Operational requirements

Objectives


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The Virtues of Monthly Income

Expenses are easier to plan when one knows the monthlyincome coming in

Childrens school fee &overhead activity expenses

Monthly householdexpenses, including EMIsfor the house, car,others

Festival season:Gifts and otherexpenses

Medical expenses


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India is a country of 120 Cr people

Over 112 Cr people do not have anyform of Insurance

Out of those insured, 3 out of 4are under protected

Source: IMRB Consumer U&A Research 2010

Guarantee your family a Monthly Income , and provide themthe financial security they deserve

Among all your responsibilities, securing your familys future tops the chart


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wholesome development meansproviding for coaching Classes,co-curricular activities and ahigher education.

Cost of education has increasedby 45%-60% in the last 10 years

56% of the children said thattheir parents have time but they

cant afford activities like music,swimming etc.

Be a proud parent plan now to increase your Monthly Incomeand gear up to meet these demands

Providing for all-round development forchildren is every parents dream


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96% of Indian working populationdoes not have a formal, mandatedprovision for pension

Source:http://www.rediff.com/news/2008/jan/09survey.htm

Receive a regular, guaranteed Monthly Income duringRetirement!

Work life is getting shorter; To see through more than two decades ofretired life, you will need much more money than the previous generations

did!

What would you want?

A luxurious retired life? Or old age, spent working?

We all wish to fulfill our responsibilities towards our parents in a betterway we can do that by gifting them a comfortable lifestyle during their

golden years


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Inflation increases your expenses butnot your Income!

Food inflation grewby 11.6% from 2008-

09 to 2010-11

Source: http://news.in.msn.com/business/article.aspx?cp-documentid=5248221&page=2

Indias inflation rateamongst the

steepest in the world

Fight inflation better by planning yourmonthly income well

In last 12 months alone,the fuel prices have

gone up by almost 25%


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Guaranteed returns

Protection of Life

Protection of FinancialGoals

Beating inflation

Monthly cash flows that helpwith expense management


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to give a boost to yourmonthly income!


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Guaranteed Monthly Income Plan :Give and Get

GMIP:In which you pay 11 Annual

Premiums

Year 1 - 11 Year 12 - 21

Your GMIP pays you back:120 payouts, every month, from 12 th year

onwards. For 10 years


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GMIP Benefits Money if one lives

Living benefits

Guaranteed MonthlyIncome Starting 12 th Year

Monthly Income Booster(Non-Guaranteed)

Starting 12th

Year

Guaranteed TerminalBenefit With the last

monthly payout in the 21 st year

Money if one doesnt

Death Benefits

Guaranteed MonthlyIncome Starting 12 th Year

Monthly Income Booster(Non-Guaranteed)

Starting 12 th year

Guaranteed TerminalBenefit With the last

monthly payout in the 21st

year

Refund of all premiums paid, immediately

All future premiums borne by the Company

GMI starts getting paid every month from thepolicy anniversary following the date of

intimation of death


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Living Benefits

GMIP

1:GuaranteedMonthlyIncome

2: MonthlyIncome

Boosters

3:GuaranteedTerminalBenefit


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FIMMDA 5-YearG-Sec Benchmark

Rate

Monthly Income BoosterRate

< 4.0 % 0.00%4.0 % to < 4.5 % 5%4.5 % to < 5.0 % 10%5.0 % to < 5.5 % 15%

5.5 % to < 6.0 % 21%6.0 % to < 6.5 % 27%6.5 % to < 7.0 % 33%7.0 % to < 7.5 % 39%7.5 % to < 8.0 % 46%8.0 % to < 8.5 % 53%8.5 % to < 9.0 % 60%9.0 % to < 9.5 % 68%

9.5 % to < 10.0 % 76%10.0 % to < 10.5 % 84%10.5 % to < 11.0 % 92%11.0 % to < 11.5 % 101%11.5 % to < 12.0 % 111%12.0 % to < 12.5 % 120%12.5 % to < 13.0 % 130%

>= 13.0 % 141%

Calculation of Monthly Income Boosters

CALCULATION:

Monthly Income Booster Ratecorresponding to 8.5% benchmark

rate: 60% Monthly Income Booster = 60% * Rs.10,000

Monthly Income booster = Rs. 6,000

SCENARIO:

Guaranteed Monthly Income Chosen: Rs. 10,000

In year 2, on payment of renewalpremium, assume that thebenchmark rate is: 8.5%

So your total monthly income is Rs. 16000


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Year 1 - 21

Premium Paying Phase 1-11 yrs Payout phase 12-21 yrs

1 st Renewal Premium Jan 2013 Rate as on 31 st Dec 2012 = 8.0% Booster rate attached to policy is 53%,

which will be paid for 12 months in 2023

2nd Renewal Premium Rate as on 31 st Dec 2013 = 8.5% Booster rate attached to policy is 60%

This rate gets locked in your policy for the 12 months of the benefityear; once accrued, boosters are guaranteed to be paid out

Year2023

Year2024

Jan - 1 st Premium

Year2012

Year2013

Year2014

FIMMDA 5-YearG-Sec Benchmark

Rate

Monthly Income BoosterRate

7.5 % to < 8.0 % 46%8.0 % to < 8.5 % 53%8.5 % to < 9.0 % 60%

Living Benefits in detail


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GMIP: A transparent plan!

Is there any better guarantee than this in Life !

So today, in2012, you knowthe income youwill get paid 10years later, in2023


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200% of 1 st annual premium is given as theGuaranteed Terminal Benefit with the finalmonthly payout

3:GuaranteedTerminalBenefit

Living Benefits in detail

If the annual premium is Rs. 70000,the final payout will include the GTBof Rs. 1,40,000/-


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Mr. Singh is 40 old and works in an MNC. He wants an additional regular

monthly income to meet his future needs.

Step 1: Mr. Singh decided that he needs a monthly income of Rs. 10,000

Step 2: His policy term is 11 years

Step 3: The premium for his policy comes out to be Rs. 1,05,120* payablefor 11 years

*exclusive of Service Tax

This is how your GMIP works


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GMIP: Living / Survival Benefits

Mr. Singh survives till the end of the payout period

Each year will have a differentbooster rate attached.

Policyholder to pay premiums from year 1-11:Rs. 105120

Year 11 Year 1

Year 21Year 12

Guaranteed Monthly Income

Rs. 10000 per month (Rs. 120000 annually)

Monthly Income Booster

Rs.6000

Rs.6000

Rs.6800

Rs.6000

Rs.6800

Rs.6000

Rs.6000

Rs.6000

Rs.6000

Rs.6000

Guaranteed Terminal Benefit

Eg:Year 12 payouts include:

o

Total payouts: (GMI+MIB)Rs. 16000 X 12 = Rs.1,92,000,consisting of:

Guaranteed Monthly Income:Rs. 10000 X12 = 120000

+ Monthly Income Boosters:

Rs. 6000 X12 = 72000

Eg:Year 14 payouts include:

o

Total payouts: (GMI+MIB)Rs. 16800 X 12= Rs. 2,01,600,consisting of:

Guaranteed Monthly Income:Rs. 10000*12 = 120000

+ Monthly Income Boosters:

Rs. 6800*12 = 81600


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GMIP: Death Benefit

In case Mr. Singh dies after paying 5 annual premiums

MNYL refunds theannual premiumspaid by thepolicyholder fromyear 1-5(Rs. 5.25 Lacs)

1

Year 21Year 12Guaranteed Monthly Income continues

Rs. 10000 p.m. (Rs. 120000 annually)

4

Monthly Income Booster

Rs.6000

Rs.6000

Rs.6800

Rs.6000

Rs.6800

Rs.6000

Rs.6000

Rs.6000

Rs.6000

Rs.6000

5Guaranteed Terminal Benefit6

Rs. 105120

2

Rs. 630720

Nominee gets a monthlyincome of Rs. 10000 from

year 6 - 11

3


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A glimpse of the monthly incomeyou earn from GMIP

Year 12:

*Assuming policy taken in Jan month; amt inclusive ofguaranteed amt + boosters;

Jan* Rs. 16000

Feb Rs. 16000

Mar Rs.16000

Apr Rs. 16000

For the year:

Rs. 2,01,600

Year 14:

Jan Rs. 16800Feb Rs. 16800

Mar Rs. 16800

Apr Rs. 16800

For the year:

Rs. 1,92,000

May Rs. 16000

July Rs. 16000

June Rs. 16000

Dec Rs. 16000

Aug Rs. 16000

Sept Rs. 16000

Oct Rs. 16000

Nov Rs. 16000

May Rs. 16800June Rs. 16800

July Rs. 16800

Aug Rs. 16800

Sept Rs. 16800

Oct Rs. 16800

Nov Rs. 16800

Dec Rs. 16800


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Rajesh is 40 years old and works in a Software firm.He wants an additional regular monthly income ofRs. 10,000 to meet his future needs.

Rate as perMonthly Income

1000

**Sum AssuredPremium

**Sum Assured = 240 times monthly income

GMIP: Premium Calculation

Rajeshs SA = 10,000 X 240 = Rs. 24,00,000

L h M Sh i


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Lets see how Mr. Sharma isthinking about GMIP

I need a monthlyIncome of Rs. 10000/-

The last 3 years average of thebenchmark rate is near about 8%...soI should be able to earn around 60%

as income boostersMy AIP told me to look at a 70:30 ratiobetween the 2 returnsso if I take Rs.

7000 as the GMI & let the balancecome through boosters, at 60%

booster rate, I can earn Rs. 4200 asboosters, making my monthly income

to be 11,200/-This will also help mesave almost 30% of

the annual premium/-

Mr. Sharma, age 35, needs Rs. 10,000monthly income from GMIP.


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I need a monthly

Income of Rs.10000/-

I can take this entire amountas the guaranteed monthlyincome, so that there is no

shortage of money.

I can earn the monthly incomeboosters over and above thisGMI ! Which means that I can

earn upto Rs.15300* every

month!Higher premiums =higher savings, +

guaranteedfulfillment of dreams

*@8% booster returns

Alternatively!


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GMIP: Product Features

Parameters Specifications

Entry Age Min: 25 yearsMax: 60 years

Policy Term* 11 years

Monthly Income to begin

from Year 12 (Month 133 onwards)

Income Payout Period 10 years (120 monthly payouts)

Minimum guaranteedMonthly Income

Rs. 2000(In multiples of Rs. 500)

Sum Assured 240 times guaranteed monthly Income

Premium Payment Mode Annual (Only)

Underwriting Multiple 125 times guaranteed monthly Income

*Note: Premium Payment Term is equal to the policy term


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GMIP: Tax Benefit

It may be noted that the tax authorities may independently examine the availability of theaforesaid benefits. Also, this is subject to any changes made to the tax legislation infuture.

The policyholders are advised to independently consult their tax advisor on their income-tax implications.

The tax benefits under Max New York Life Guaranteed Monthly Income

Plan are available as per the prevailing provisions and conditions of the

Income-tax Act, 1961, including benefits under section 80C and 10 (10D)

of the Act that should be available in respect of sums received under Max

New York Life Guaranteed Monthly Income Plan


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Documents Required

Signed application form, version 2.1

One latest passport size photo, colour

Address Proof

Income ProofAge Proof

1 Cancelled cheque copy of the customers bank account

Goal Finder, signed by the customer

Acknowledgement, signed by the customer

All documents to be self-attested by the customer


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Operational Must Dos for smooth processingof your case

1. Ensure that the guaranteed monthly income + the sum

assured is filled in the proposal form clearly

2. Mandatory to have customer bank a/c details in theproposal form for payouts

3. Cancelled cheque copy is mandatory, at the time ofsourcing the proposal

4. Checkbox to be checked as acceptance of monthly

remittance by NEFT

5. The revival period in GMI is 6 months ONLY, postwhich either the policy lapses or goes into non-

forfeiture


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The excitement is just building

And Get this exclusive

Sales Kit absolutely

For ABOs only:

Submit 1 case of

On 12 th Jan, 2012


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Sales K i t


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YearFirst YearPremium

1 st Year renewal

2nd Yearrenewal3 rd Year

renewal

GMIP50%

50%10%

10%

And now, the news weve all beenwaiting for


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All the Best!