Life is a journey
There are Milestones …..
100km
200km
300km
….and a Destination
400km
Your Destination is more enjoyable
if….
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
What does the customer want

In the last five years customers have asked for
Safety or Guarantee
Liquidity
What does Cash Advantage offer?
Guaranteed Cash Benefit for 10 years.
Choice of Monthly or Annual payouts
Lump sum at maturity in addition to the cash
benefits
Limited premium payment term of 5/7/10 years
Life cover to secure your family
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,
100km
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?
How does the plan work?
Vested
reversionary
bonuses +
Terminal bonus
+
Guaranteed
Maturity
Benefit
Premiums
Guaranteed Cash
Benefit
Premium payment term
Payout term
Life cover for the entire policy term
How does the plan work?

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
Guaranteed Cash Benefit
Benefits
Death 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
Premium payment term (PPT)
5 pay
7 pay
10 pay
5 years
7 years
10 years
10 years
Payout term
Policy term (PPT + Payout term)
Minimum annual premium
15 years
17 years
20 years
Rs. 30,000
Rs. 18,000
Rs. 12,000
Unlimited
Maximum annual premium
Sum Assured on death
Age at entry
Sum Assured multiple
<45
10
45 to 54
7 or 10
>54
7
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
Cash advantage- A Five Star product

Five star benefits
Guaranteed
maturity
benefit
Reversionary
bonus
declared
every year
Guaranteed
Death
benefit
Guaranteed
Cash
benefit
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)


Higher education corpus: For university admission at 17


Rs. 3,600 per month for 120 months, i.e. total Rs. 4.3 lakh
Rs. 8.5 lakh (@8%)
Education protection: Life cover of Rs. 10 lakh + bonuses
How does the solution work?
Higher
education
corpus of Rs.
8.5 lakh
Pay Rs. 1 lakh for 7 yrs
Get Rs. 3,600 p.m. for 10 yrs
Premium payment term
Payout term
Life cover for the entire policy term
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.
Maturity benefit
of 5.5 lakhs for
graduation
Premium Rs. 1 lakh per annum
5 yrs
Premium payment term
Guaranteed cash benefit
28 k p.a for 10 yrs for Rahul’s
schooling
Payout term
Life cover for the entire policy term
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
100km Monthly
Annual
Guaranteed Cash Benefit
1% of GMB
11.5% of GMB
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
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%.
Year
GMB(Rs)
Cumulative GMB
incl. bonus
accumulation (Rs)
Year 1
Year 2
Year 3
Year 4
Year 5
Year 10
Year 15
100,000
100,000
100,000
100,000
100,000
100,000
100,000
Total
100,000
104,000
108,160
112,486
116,986
142,331
173,168
180,095
Compounded Simple Bonus
Bonus
Computation
Computation per per year (Rs)
year (Rs)
4,000
4,000
4,160
4,000
4,326
4,000
4,499
4,000
4,679
4,000
5,693
4,000
6,927
4,000
160000
In rupee terms, for the same rate of 4%
Compound reversionary bonus> Simple reversionary bonus
Historical Compounded Reversionary
Bonus
Financial Year Forever Life Smart Kid
Save 'n'
Cash Bak
(SP)
Protect(RP)
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 bonus
Terminal Bonus for FY 2012
Financial Year
Save n Protect Series I
Save n Protect Series II
Smartkid Series I
Smartkid Series II
Forever Life Regular Premium
Series-I
Forever Life Regular Premium
Series-II
Forever Life Single Premium
* Past performance may or may not be sustained in future
Terminal Bonus
20.00%
15.00%
20.00%
15.00%
20.00%
15.00%
25.00%