1. Understanding ULIPs and Mutual Funds
ULIP PLANS MUTUAL FUNDS
Investment for a longer horizon Investment is fund specific
Money invested as per IRDA Is subject to high redemption
Regulations. Pressure
Regulatory requirement to maintain Depend on Daily fluctuation of the
a solvency margin. market
Multiple fund options under one Over haul portfolio very often
single plan. During a bear market – a 100%
No redemption pressure – premium Equity Fund cannot mitigate risk
lock for 3 years. Short term capital gains are
Make gains by switching funds taxable.
(Book profits) without any short
term capital gains
Provides Life Cover
2. What you can sell?
Investment plans
Life Insurance plans
Health Insurance plans
Pension plans
Child Education/Marriage plans
3. Investment business is all about…
• It is all about HEART
• It is all about RELATIONSHIPS
• It is all about BUILDING AWARENESS
• It is all about PATIENCE & PERSISTENCE
• It is all about THINKING LONG-TERM
• It is all about GETTING OFF-TO-FLIER
4. Investment business is not all about…
• It is not about LOGIC
• It is not about HARD-SELLING
• It is not about SEASONAL CYCLES
• It is not about TANGIBLE
• It is not about SALES
6. Life Expectancy in India
The average LIFE EXPECTANCY of
• Indian Men = 63.9 years (from 59.7 in 1991)
• Indian Women = 66.9 years (from 60.9 in 1991)
Most of the insurance companies are pricing their premium based on
decade old mortality tables of LIC (since it has longer history of claims)
and their own claim ratios. The mortality calculations were last revised
in 1995-96.
8. Investments in Equity Market in FY 07-08
Life Insurance Companies = Rs. 55,000 crore
Foreign Institutional Investors = Rs. 53,403 crore
Mutual Funds = Rs. 16,305 crore
9. Health Insurance in India
There are 2 types of health Insurance products now available in India
- Reimbursement Products
- Lump sum Benefit Products
Reimbursement Products Lump sum Benefit Products
You need to incur the expense, which Pays the full sum assured, regardless of the
will be reimbursed. actual expense incurred.
The claim amount is equal to or less than The claim amount is likely to be more than the
the actual expenses actual expenses incurred.
Can be used to pay additional expenses eg
You get what you have spent for the hospital related travel expenses, hospital stay
treatment. for caretaker
Example - Mediclaim Health Investor / Protector / First are Lump
sum Benefit Product.
10. Savings Rate of over 30% of GDP.
Nearly 40% of Household Savings in the form of Physical Assets (residential
houses and white goods)
Gold and Jewellery is not included in the physical assets
Average household savings has gone up from 6.6% in the 50’s to 23.2% in
00’s.
Investments in financial products rose from 1.9% of GDP to 10.8%
The Premium foregone by Policyholders due to lapses was around Rs. 20,500
crore during 02-03 to 06-07.
The industry paid Rs. 20,000 crore in Insurance Commissions on new policies
last year.
14. FHB (Features, How it works and
Benefits)
Selling is based on the concept of FHB.
F H B
What? It does. For me
If need is a problem statement, Benefit is the
solution provided by the product
15. Life Stage and needs at each stage
18-25 25-35 35-45 45-55 55…..
• Money for
• Money for • Money for
child’s
• Money for purchase of providing • Money for
marriage.
purchase of house, assets, children with a child’s higher
• Money for
small assets furniture, vehi good primary education
comfortable
cle. education
retired life
Protection and Protection and Protection and Protection and Protection and
Savings. Savings. Investments. Investments. Pension.
Living Benefits
(protection from health and disabilities)
Tata AIG Life has the right solutions to help customers achieve their goals.
16. Objection vs. Query
Objection Query
An objection is A query is just a
anything the prospect question about the
says which causes a product. It is merely a
roadblock in closing request for more
the sale. information.
Understanding the difference is a key to
successful closing
