Life is a journey

There are Milestones …..

100km 200km 300km 400km

….and a Destination

Your Destination is more enjoyableif….

Each milestone you cross leaves you with a nice feeling

Each milestone you cross

100 km

brings you closer to your destination…

And gives you instant gratification

Presenting ICICI Pru Cash Advantage

Because customers love liquidity Customers want to access their money

ULIPs More than 80% of the

sales done through ULIPS

After returns, Liquidity was the key selling point

Top objection in traditional endowment policies like GSIP is liquidity

Safety or Guarantee Liquidity

What does the customer want

In the last five years customers have asked for

What does Cash Advantage offer?

Milestones in life

In life, small milestones are Child’s tuition fee, child’s cricket coaching

or guitar class, car servicing, electricity bill, monthly grocery, own gym membership, Fuel cost etc.

The list goes on & on… For now we pay most of this from our salary

How about an insurance product that pays every month for your small milestones and later a big lump sum for your bigger milestones?

100km

How does the plan work?

Premium payment term

Guaranteed Cash Benefit

Life cover for the entire policy term

Guaranteed Maturity Benefit

+

Payout term

Vested reversionary bonuses + Terminal

bonus

Premiums

How does the plan work?

Benefits

Step 1: Choose Premium payment term, premium, Sum Assured, premium payment mode and cash benefit mode

Step 2: Guaranteed Maturity Benefit and Guaranteed Cash Benefit calculated basis above factors as well as age at entry Maturity Benefit

Death benefit

Guaranteed Cash Benefit

Bonuses

Surrender

Policy acquires a surrender value as per the table below

Premium payment option

Surrender Value

5 or 7 pay After 2 full year’s premium

10 pay After 3 full year’s premium

Boundary conditions

Premium payment option 5 pay 7 pay 10 pay

Premium payment term (PPT)

5 years 7 years 10 years

Payout term 10 years

Policy term (PPT + Payout term)

15 years 17 years 20 years

Minimum annual premium Rs. 30,000

Rs. 18,000 Rs. 12,000

Maximum annual premium Unlimited

Sum Assured on death

Min/Max age at entry 0 / 60

Min/Max age at maturity 18 / 80

Premium payment mode Annual / Half-yearly / Monthly

Cash benefit mode Annual / Monthly

Age at entry

Sum Assured multiple

<45 10

45 to 54 7 or 10

>54 7

Cash advantage- A Five Star product

Five star benefits

Guaranteed maturity benefit

Guaranteed Cash

benefit

Guaranteed Death benefit

Reversionary bonus

declared every year

Tax benefits

How to pitch ICICI Pru Cash Advantage

ICICI Pru Cash Advantage – Child story

From school fees to university admission!

Customer pen portrait: 30 year old, recently became a father

Needs: Comprehensive education solution for the child

What he saves: Rs. 1 lakh for 7 years

What he gets School fee support: From child’s age 7 to 17 (till class

12) Rs. 3,600 per month for 120 months, i.e. total Rs. 4.3 lakh

Higher education corpus: For university admission at 17

Rs. 8.5 lakh (@8%)

Education protection: Life cover of Rs. 10 lakh + bonuses

How does the solution work?

Premium payment term

Get Rs. 3,600 p.m. for 10 yrs

Life cover for the entire policy term

Higher education corpus of Rs. 8.5

lakh

Payout term

Pay Rs. 1 lakh for 7 yrs

Gift your Grand child, Cash every year

Every Kid loves to visit his grand parents, specially during festivals in anticipation of gifts.

Grand parents also love to shower their grand children with gifts when they visit.

Through Cash Advantage make your presence felt every year in your grand child’s life.

Also Get Gift tax benefit!!

ICICI Pru Cash Advantage – Gifting Story Mr. Zubin is a 65 year old ex-serviceman. He wants to gift Rahul something which will

benefit him throughout his schooling. Mr. Zubin gifts a policy of ICICI Pru Cash

Advantage to Rahul with a PPT of 5 years and annual premium of Rs. 100000.

Premium payment term

Life cover for the entire policy term

Payout term

Premium Rs. 1 lakh per annum 5 yrs Guaranteed cash benefit

28 k p.a for 10 yrs for Rahul’s schooling

Maturity benefit of 5.5

lakhs for graduation

Commission rates

Thank You

Death Benefit

Death Benefit = Higher of SA, Minimum Death Benefit, Guaranteed Maturity benefit + vested reversionary bonuses, if any

+ interim bonus, if any + terminal bonus, if any

Minimum Death Benefit is equal to 105% of sum of premiums paid till date*

*excluding extra mortality premiums, service tax and cesses, if any

Guaranteed Cash Benefit

For each small milestones in life Guaranteed Cash Benefit is payable in advance during the pay out term

Guaranteed Cash Benefit can be received in monthly or annual instalments

Cash benefit mode

Guaranteed Cash Benefit

Monthly 1% of GMB

Annual 11.5% of GMB

100km

Guaranteed

Guaranteed

pay outs pay outs

for for

120 months

120 months

Maturity Benefit

Maturity Benefit = Guaranteed maturity benefit

+ vested reversionary bonuses, if any

+ terminal bonus, if any

Maturity Benefit shall be at least 100.1% of the sum of premiums paid* less the sum of Guaranteed cash benefits received during the policy term.

*excluding any extra mortality premium, service tax and cesses

Bonuses

Yearly Compound reversionary bonus to be declared for in force policies

Year GMB(Rs) Cumulative GMB incl. bonus

accumulation (Rs)

Compounded Bonus

Computation per year (Rs)

Simple Bonus

Computation per year

(Rs)Year 1 100,000 100,000 4,000 4,000Year 2 100,000 104,000 4,160 4,000Year 3 100,000 108,160 4,326 4,000Year 4 100,000 112,486 4,499 4,000Year 5 100,000 116,986 4,679 4,000

Year 10 100,000 142,331 5,693 4,000Year 15 100,000 173,168 6,927 4,000

  Total 180,095   160000

Illustration: cumulative accumulated bonus amount over a 15 year term for a guaranteed maturity benefit of Rs 1 lakh and a reversionary bonus of 4%.

In rupee terms, for the same rate of 4% Compound reversionary bonus> Simple reversionary

bonus

Historical Compounded Reversionary Bonus

Financial Year

Forever Life (SP)

Smart Kid

Save 'n' Protect(RP

)

Cash Bak Forever Life(RP)

2006-07 3.25% 3.25% 3.25% 3.25% 3.25%2007-08 3.00% 3.00% 3.00% 3.00% 3.00%2008-09 2.50% 2.25% 2.25% 2.25% 2.50%2009-10 4.00% 4.00% 4.00% 4.00% 4.00%2010-11 3.00% 2.50% 2.50% 2.50% 3.00%2011-12 2.75% 2.25% 2.25% 2.25% 2.75%

Note: 2010 numbers have a reversionary bonus component and a special bonus component

* Past performance may or may not be sustained in future

Terminal bonus

It’s like a loyalty bonus added as a percentage of GMB to the policy held for more than 10 years

It is paid in lump sum at the maturity in addition to the Vested bonusFinancial Year Terminal Bonus

Save n Protect Series I 20.00%Save n Protect Series II 15.00%

Smartkid Series I 20.00%Smartkid Series II 15.00%

Forever Life Regular Premium Series-I

20.00%

Forever Life Regular Premium Series-II

15.00%

Forever Life Single Premium 25.00%

Terminal Bonus for FY 2012

* Past performance may or may not be sustained in future