+ All Categories
Home > Documents > Aviva Young Scholar

Aviva Young Scholar

Date post: 07-Apr-2018
Category:
Upload: kc288
View: 228 times
Download: 1 times
Share this document with a friend

of 19

Transcript
  • 8/6/2019 Aviva Young Scholar

    1/19

    Aviva Young Scholar

  • 8/6/2019 Aviva Young Scholar

    2/19

    Agenda

    - Aviva Young Scholar

    - Product Construct

    - Process

    - Competition Benchmarking

    - Feature reckoner v/s competition

    - Comparing yields (IRRs)

    - Selling made easy

    - 4 Steps Sales Process- 30 Seconds sales pitch

  • 8/6/2019 Aviva Young Scholar

    3/19

    Agenda

    - Aviva Young Scholar

    - Product Construct

    - Process

    - Competition Benchmarking

    - Feature reckoner v/s competition

    - Comparing yields (IRRs)

  • 8/6/2019 Aviva Young Scholar

    4/19

    Aviva Young Scholar: Product construct

    Aviva Young Scholar Comprehensive Child Plan

    Entry Age Parent (Life Insured): 18 50 yearsChild (Beneficiary): 0 17 years

    Policy Term (PT) 10 25 years, subject to maximum maturity age of 70 of Parent

    Premium Payment Term (PPT) 3 years OR 5 years OR equal to Policy Term

    Annual Premium (Minimum) Minimum: Rs 15,000 for PPT = PT, No maximum limit

    Minimum: Rs 50,000 for PPT = 3 OR 5, No maximum limit

    Sum Assured Minimum: 5*APE

    Maximum: 1.5*PT*APE

    Top up Premium Minimum Rs 1,000; total upto 25% of total regular premium

    Riders Built-in: Waiver of PremiumOptional: ADB, IB, and CHB

    Fund options Enhancer, Growth, Balanced, Protector, Bond

    Other selling points Regular Loyalty Additions, Increase/ decrease in APE, reduce SA (Cover Level), STP, AAA, Settlement Option

  • 8/6/2019 Aviva Young Scholar

    5/19

    Aviva Young Scholar: Key Features

    Comprehensive Death Cover

    On the death of the parent:

    Sum Assured is paid

    Future premiums are waived and credited to units account as lump sum

    Pays 10% of Income Benefit rider sum assured (if opted for) upto age 17 of child

    Beneficiary becomes the owner of the policy

    On the death of the beneficiary

    Before the parent:

    Parent can nominate another beneficiary (other child)

    If the deceased beneficiary was the only child, new beneficiary can be anybody, subject to insurable interest.

    After the parent

    Policy terminates by paying the fund value

    Loyalty Addition

    Loyalty addition is paid as a percentage of units pertaining to regular premium

    Increased premium is not eligible for loyalty addition

    Paid by way of additional units every 5th policy anniversary

    All due premiums must have been paid

    Maturity Benefit

    Fund value of regular premiums along with the fund value of top-up premiums, if any is paid

    End of Policy Year Loyalty Addition5th year 0.50%

    10th year 1.00%

    15th year 1.50%

    20th year 2.00%

    25th year 2.50%

  • 8/6/2019 Aviva Young Scholar

    6/19

    Aviva Young Scholar: Key Features

    Increase / decrease premium

    You can change your premium with your changing needs or preferences

    Regular premium can be increased / decreased on any policy anniversary after 5 policy years

    A notice at least 7 days prior to policy anniversary is required to exercise this option

    Sum Assured (cover level) can also be revised while you change the premium

    Any increase in Sum Assured shall be subject to underwriting

    Reduce Sum Assured (CoverLevel)

    You can reduce the Sum Assured (Cover Level) without reducing premium

    The revised Sum Assured should not be less than the minimum SA allowed (5 times)

    This option can be exercised on any policy anniversary

    A notice at least 7 days prior to policy anniversary is required to exercise this option

    Partial Withdrawals

    Partial withdrawals can be made first from the top-up account, if eligible, and then from the regular premium account

    Allowed after 5 policy years from the regular premium account

    Minimum withdrawal allowed is Rs. 5,000/-, Maximum partial withdrawal can be upto 25% of the Fund Value

    The upper limit is not applicable in last 2 years

    Withdrawal from top-up account is allowed after 3 years from the date of top-up

    There is no upper limit for withdrawal from top-up amount, if eligible

  • 8/6/2019 Aviva Young Scholar

    7/19

    Aviva Young Scholar: Key Features

    Riders

    Built-in

    Waiver of Premium:

    Pays future premiums - credited to your unit account as a lump sum

    Optional

    Accidental Death Benefit (ADB) rider:

    Pays additional SA equal to rider SA in the event of accidental death

    ADB rider SA = base SA, Max SA = lower (base SA, Rs. 50L)

    Comprehensive Health Benefit (CHB) rider:

    Pays SA as lump sum in the event of permanent total disability or any of the Critical Illnesses covered.

    Pays future premiums - credited to your unit account as a lump sum (subject to a maximum of Rs.25 Lacs)

    CHB rider SA = base SA, Max SA = lower (base SA, Rs. 20L)

    Income Benefit (IB) rider:

    Pays 10% of IB rider SA to the appointee till age 17 of beneficiary.

    IB rider SA = base SA, Max SA = lower (base SA, Rs. 10L)

    Riders can be taken at inception only

    The ADB, CHB and IB rider cover expires at age 60

    All riders including built-in Waiver of Premium will cease if policy is under premium discontinuance mode.

  • 8/6/2019 Aviva Young Scholar

    8/19

    Aviva Young Scholar: Fund Options

    Fund Fund Composition and Objective

    ProtectorEquities

    Debt instrumentsMoney Market

    0-20%

    60-100%0-40%

    To generate steady returns withminimum exposure to equities

    BalancedEquities

    Debt instrumentsMoney Market

    0-45%

    50-90%0-40%

    To generate a balance of capital growth and steady returns

    GrowthEquities

    Debt instrumentsMoney Market

    30-85%

    0-50%0-40%

    To generate long term capital appreciation with high equity

    exposure

    EnhancerEquities

    Debt & Money Market

    60-100%

    0-40%

    To generate aggressive, long term capital growth with high equity

    exposure

    Bond

    Equities

    Debt & Money Market

    0%

    100%

    To generate a steady income through investment in high quality

    fixed incomesecurities

  • 8/6/2019 Aviva Young Scholar

    9/19

    Aviva Young Scholar: Fund Related Options

    STP (Systematic Transfer Plan)

    Allowed at any policy anniversary only for annual premium frequency policies

    Option of a weekly or a monthly STP

    Systematic switches from Protector to Enhancer will be carried out free of charge

    No other switches into or from Protector fund are allowed during this period

    Option to close and restart STP on policy anniversaries

    STP can not be opted along with AAA

    AAA (Auto Asset Allocation)

    Allowed at inception for the policies with annual premium frequency

    Automatic decrease in equity exposure and increase in Debt instruments over time

    To leverage the returns from equity market and book the profits by way of AAA

    Initial allocation in Enhancer and Bond Funds to be chosen by the policyholder

    Auto switching and redirection of future premiums by fixed percentage between Enhancer and Bond Funds

    such that at the end of the policy term 100% fund is in Bond fund

    All switches under AAA are free of charge

    No other switches into or from Bond and Enhancer funds are allowed during this period

    There is an option to stopAAA on any policy anniversary

    On opting out of AAA, all 5 fund options will be available

    AAAcan not be opted along with STP

  • 8/6/2019 Aviva Young Scholar

    10/19

    Aviva Young Scholar: Key Features

    Switching between funds

    Switching between the 5 unit linked funds allowed, anytime, any number of time

    Minimum switch amount and balance after (part) switch: Rs 5,000

    First 4 switches in a policy year are free of charge; 0.5% of amount switched (max Rs 500) for subsequent

    switches

    Premium re-direction

    Change of allocation proportion of future premiums allowed, anytime, free of charge

    Premium redirection is allowed upto 2 times a year

    Minimum allocation in each selected fund must be 10%

    Settlement Option

    Allowed if all the due premiums are paid Minimum proportion for opting this option is 25% of maturity value

    Paid as structured payouts over 1 to 5 years

    Payout frequency can be Yearly / Half-yearly / Quarterly or Monthly

    No charges except the Fund Management Charges shall be levied during the payout term.

  • 8/6/2019 Aviva Young Scholar

    11/19

    Aviva Young Scholar: Charges

    Premium Allocation Charge (100 Allocation Rate)

  • 8/6/2019 Aviva Young Scholar

    12/19

    Aviva Young Scholar: Charges

    Fund Management Charge

    Bond Fund 1.00% p.a.

    Protector Fund 1.00% p.a.

    Balanced Fund 1.25% p.a.

    Growth Fund 1.50% p.a.

    Enhancer Fund 1.75% p.a.

    Policy Administration Charge

    Rs. 55 per month

    Admin charge will increase by 5% p.a. from 1st January each year

    Surrender Charge for regular payment policies (as a %age of regular premium units)

    If less than one policy years premium has been paid 100%If exactly one policy years premium has been paid 90%

    If more than one but up to two policy years premium has been paid 60%

    If more than two but up to three policy years premium has been paid 30%

    If more than three but up to four policy years premium has been paid 20%

    If more than four but up to five policy years premium has been paid 5%

    If more than five but up to eight policy years premium has been paid 1%

    If more than eight policy years premium has been paid Nil

  • 8/6/2019 Aviva Young Scholar

    13/19

    Aviva Young Scholar: Charges

    Surrender Charge for PPT = 3 years (as a %age of regular premium units)

    If less than one policy years premium has been paid 100%

    If exactly one policy years premium has been paid 90%

    If more than one but up to two policy years premium has been paid 20%

    If more than two but up to three policy years premium has been paid 10%

    If full three years premium are been paid Nil

    Surrender Charge for PPT = 5 years (as a %age of regular premium units)

    If less than one policy years premium has been paid 100%

    If exactly one policy years premium has been paid 90%

    If more than one but up to two policy years premium has been paid 20%

    If more than two but up to three policy years premium has been paid 10%

    If more than three but up to five policy years premium has been paid 5%If full five years premium has been paid Nil

  • 8/6/2019 Aviva Young Scholar

    14/19

    Aviva Young Scholar: Illustration

    Following are the projected maturity values for a male aged 30 years, who pays premiums yearly and invests

    100% into Protector Fund

    The values illustrated above are excluding the Service Tax

  • 8/6/2019 Aviva Young Scholar

    15/19

  • 8/6/2019 Aviva Young Scholar

    16/19

    Agenda

    - Aviva Young Scholar

    - Product Construct

    - Process

    - Competition Benchmarking

    - Feature reckoner v/s competition

    - Comparing yields (IRRs)

    -

  • 8/6/2019 Aviva Young Scholar

    17/19

    Aviva Young Scholar Feature reckoner v/s competition

    Na

    e Of P

    an

    v

    va

    Young Scho

    ar

    -Pru

    S

    art K

    dNew

    n

    t

    Linked

    Kotak

    eadstart Future

    Protect

    ir

    a Sun Life

    hildren's

    rea

    Plan

    F

    nit Linked Young

    Star Plus

    Max New ork Life

    S

    artSteps Plus

    over on parent Y Y Y Y Y Y

    over on hild Y

    oP

    Y

    100

    paid into

    und as lump

    sum

    Y

    Paid as and

    hen due

    Y

    100

    paid into

    und as lump sum

    O

    spread over 5

    years paid semi-

    annually

    Y

    Paid as and

    hen due

    Y

    nits added as &

    hen due

    50

    pa id into Fun d

    and 50

    as

    B bene

    it

    Y

    Paid as and

    hen

    due

    nco

    e

    enefit!

    ider Y Y

    Part o

    "

    oP

    Y

    otan optional rider

    this is built-in

    !

    ider Y

    Y

    Y#

    hoice o

    $

    eath cover -

    1 $ eath only

    2 $

    eath+#

    Y

    Built-in

    rider Y Y Y Y

    ncreasePre

    iu

    Y

    YY Limited to

    s 5

    000

    only

    ecrease Pre

    iu

    Y

    Y

    ncreaseS

    Y

    Y

    ecrease S

    Y

    Partial Withdrawal A

    ter 5 yrs A

    ter 5 yrs A

    ter 3 yrs A

    ter 3 yrs A

    ter 3 yrs A

    ter 5 yrs

    Lo alt additionY

    Every 5 years

    Y (

    ) End o

    10/15

    & 20 yrs

    Y (

    ) Every year

    LimitedPP%

    Y

    Y

    (

    )

    egular

    (M) @ Maturity vivaYoung Scholarstandsoutas mostcomprehensivechildplan.

  • 8/6/2019 Aviva Young Scholar

    18/19

    Comparing yields

    Policy Term 10 years Policy Term 15 years

    Policy Term 20 years

    Assumptions:

    Age: as indicated

    FMC: 1% (HDFC is 1.25%)

    SA: 5*APE

    APE: 100,000

    Pl Note:

    * HDFC Std. doesnot show the illustration

    # BSLI CDP figs for 18 years term

    A ge IR R @ a g eAviva Young

    S cholar

    IC IC I

    s ma rtK id

    K otak

    He ads tart

    Fu ture

    protect

    Birla

    C hildren's

    Dream P lan

    H D F C U L

    Young S tar

    P lus II

    1237 635 1 1 97 76 3 1 23 55 48 1 19 38 95 1 ,1 17 ,1 75

    IR R -6% 3 .8 4% 3 .26% 3 .8 1% 3 .20% 2 .0 0%

    1 54 14 23 1 49 10 06 1 53 60 69 1 49 23 47 1 ,3 74 ,4 61

    IR R -10% 7 .7 4% 7 .15% 7 .6 8% 7 .17% 5 .7 1%

    1 22 95 42 1 19 02 60 1 22 99 01 1 19 18 23 1 ,1 13 ,2 32

    IR R -6% 3 .7 2% 3 .14% 3 .7 3% 3 .12% 1 .9 4%

    1 53 15 71 1 48 18 43 1 52 92 07 1 48 98 75 1 ,3 69 ,6 96

    IR R -10% 7 .6 2% 7 .04% 7 .6 0% 7 .09% 5 .6 5%

    1 21 41 66 1 17 59 40 1 21 94 89 1 18 52 96 1 ,1 05 ,1 85

    IR R -6% 3 .5 0% 2 .93% 3 .5 8% 2 .97% 1 .8 1%

    1 51 26 69 1 46 43 16 1 51 63 72 1 48 19 44 1 ,3 59 ,9 35

    IR R -10% 7 .4 1% 6 .83% 7 .4 5% 6 .95% 5 .5 2%

    30 yrs

    35 yrs

    40 yrs

    A ge IR R @ a g eAviva Young

    S cholar

    IC IC I

    s ma rtK id

    K otak

    He ads tart

    Fu ture

    protect

    Birla

    C hildren's

    D ream P lan

    H D F C U L

    Young S tar

    P lus II

    2 14 9 00 4 2 ,0 59 ,2 8 1 2 ,1 54 ,2 57 2 ,0 3 1,0 5 5 1 ,9 32 ,2 62

    IR R -6% 4 .3 7% 3 .87% 4 .4 0% 3 .62% 3 .1 0%

    3 01 0 14 3 2 ,8 78 ,4 1 3 3 ,0 07 ,7 39 2 ,8 4 7,9 7 4 2 ,6 66 ,3 63

    IR R -10% 8 .3 0% 7 .79% 8 .2 9% 7 .59% 6 .9 0%

    2 12 5 75 5 2 ,0 39 ,1 0 4 2 ,1 38 ,3 62 2 ,0 0 5,9 8 4 1 ,9 21 ,1 45

    IR R -6% 4 .2 4% 3 .75% 4 .3 2% 3 .50% 3 .0 3%

    2 97 8 81 7 2 ,8 51 ,2 9 2 2 ,9 86 ,2 74 2 ,8 1 3,2 8 1 2 ,6 51 ,7 54

    IR R -10% 8 .1 8% 7 .68% 8 .2 1% 7 .50% 6 .8 4%

    2 08 2 31 1 2 ,0 01 ,4 5 6 2 ,1 08 ,5 20 1 ,9 7 3,6 7 1 1 ,8 98 ,6 73

    IR R -6% 4 .0 0% 3 .53% 4 .1 5% 3 .33% 2 .8 9%

    2 91 9 71 9 2 ,8 00 ,4 4 7 2 ,9 45 ,7 47 2 ,7 6 8,8 2 3 2 ,6 22 ,0 81

    IR R -10% 7 .9 5% 7 .47% 8 .0 5% 7 .31% 6 .7 1%

    30 yrs

    35 yrs

    40 yrs

    Ag e IR R @ a g eAviva Young

    S cholar

    IC IC I

    s ma rtK id

    K otak

    He ads tart

    Future

    protect

    BirlaC hildren's

    Dream P lan #

    H D F C U LYoung S tar

    P lus II

    3 3 19 3 05 3 ,1 34 ,1 31 3 ,3 4 7,5 7 8 2 ,5 97 ,5 27 2 ,9 4 1,6 4 5

    IR R -6% 4 .61% 4 .1 1% 4 .68% 3 .7 3% 3 .54%

    5 2 84 8 46 4 ,9 68 ,4 87 5 ,3 0 7,8 8 0 3 ,9 19 ,2 44 4 ,5 9 6,5 4 0

    IR R -1 0% 8 .56% 8 .0 4% 8 .59% 7 .6 9% 7 .39%

    3 2 62 3 30 3 ,0 87 ,7 69 3 ,3 0 8,3 2 3 2 ,5 69 ,2 38 2 ,9 1 4,7 0 2

    IR R -6% 4 .46% 3 .9 7% 4 .58% 3 .6 1% 3 .46%

    5 2 00 2 11 4 ,8 99 ,3 56 5 ,2 4 9,6 2 3 3 ,8 77 ,4 22 4 ,5 5 8,3 5 9

    IR R -1 0% 8 .42% 7 .9 3% 8 .50% 7 .5 9% 7 .32%

    3 1 61 8 24 3 ,0 06 ,9 57 3 ,2 3 7,8 6 5 2 ,5 21 ,8 90 2 ,8 6 3,2 7 0

    IR R -6% 4 .18% 3 .7 4% 4 .39% 3 .4 1% 3 .30%5 0 47 6 16 4 ,7 77 ,1 30 5 ,1 4 3,3 8 2 3 ,8 07 ,5 37 4 ,4 8 4,3 1 1

    IR R -1 0% 8 .18% 7 .7 2% 8 .33% 7 .3 9% 7 .19%

    30 yrs

    35 yrs

    40 yrs

    Aviva Young Scholar is clearly superior than ICICI,Birla and HDFC child plan.

  • 8/6/2019 Aviva Young Scholar

    19/19

    Thank You


Recommended