Bancassurance State Life National Bank Product Learning

Bancassurance Course
National Bank State Life
Bancassurance Products’ Training

Learning Contract
I hereby abide by the following terms:
• I shall keep my cell phone on silent
• I shall not take calls during the session
• I shall ask every single question that comes to mind!
• There are no wrong answers. Participate!
HAPPY LEARNING !!!

COMMON VALUES
VISION OF NBP
“To be recognized as a
leader and a brand
synonymous with
trust, highest
standards of service
quality, international
best practices and
social responsibility”
MISSION OF SLICP
“To remain the leading
insurer in the country by
extending the benefits of
insurance to all sections
of society and meeting
our commitments to our
policy holders and the
nation”

Formed under the
Life Insurance
Nationalization
Order 1972 (LINO)
Policies have
Sovereign Govt.
Guarantee
97.5% of all
Actuarial surplus
distributed to with
profit policyholders
State Life - Overview

Strengths
Market share
still 65% by total
premium
income By far the
largest
distribution
network
Strong stable
financial Base
Life Fund is 415
Billion
AAA rated by
PACRA
Has been the
nursery for
producing
professionals for
the whole life
industry.
Over 7 Million
Policy Holders
Most Popular
Insurance
Company in
Pakistan

InsuranceInsurance – A Mechanism of Risk Transfer
Insurance will
provide funds in
crisis to protect
customer’s
assets, savings,
standard of
living and
business needs.

Basic Types of Life Insurance
3 basic
forms of life
insurance
are
• Term
Assurance
• Endowment
Assurance
• Whole Life
Assurance

Bancassurance & Life Insurance

Bancassurance
Bancassurance is a
French term
Bancassurance is
the provision of
insurance and
banking products
as well as services
via the banks’
distribution
networks to the
same client base.

Fulfilling Needs of the Customer
• Loans, Cards, Overdrafts, running finance
Borrowing
Needs
• Investment, Fixed Deposits, Saving
Plan (Life insurance Plan)
Savings & Growth
Need
• CASA, CB, ATM, Mobile
Banking, Online Banking,
Phone Banking
Transaction Needs
• All types of InsuranceProtection Needs

Role of Bancassurance
BANCA Plans Provides
Funds for
• Children education
• Daughter’s wedding
• Retirement
• House expenses
• Succession planning
• Purchasing a house
• Business and asset protection
• Hospitalization & Disability
• Life time income
Well being of Clients’ family

Why Do Customers Need Insurance ?

Safest and surest method of
guaranteed cash provision either at
a specified time or at death.
Contracts have a Basic sum
assured to which bonuses are
added. So every year cash value
and risk cover value increase
steadily.
Full Sum assured plus all accrued
bonuses payable on death of life
assured.
Different type of Bonuses are added to the
policy. Sum assured and declared
bonuses are guaranteed by
Government of Pakistan.
Once a bonus is added it cannot be
removed from the policy. This strengthens
more security and peace of mind.
Excellent for financial planning;
• Children education.
• Capital accumulation for business
or any purpose.
• Retirement Planning.

• State Life is the only company which offers bonus based
conventional life products fully guaranteed by GOP.
 Thereby allowing “The Bank” to adjust focus depending on
economic conditions
 State Life has the following products which will be sold through
“National Bank of Pakistan”
 Conventional Products
 Endowment Assurance
 Anticipated Endowment Assurance
 Sadabahar Plan
Products Offered

State Life Products
Sadabahar
Plan
Endowment
Assurance
Anticipated
Endowment

State Life Products
Endowment Plan

Endowment Assurance
Plan Type Bonus Based
Entry Age 10 to 65
Tenure Minimum 10 years, Maximum By the Age of 75 years
Mode Monthly, Quarterly, Semi Annual & Annual
Riders Family Income Benefit, Accidental Death Benefits, Accidental Death & Indemnity,
Term Insurance, Waiver of Premium, Special Waiver of Premium, Term Insurance,
Guaranteed Insurability, Refund of Premium Rider, Hospital & Surgical Benefit
Need Guaranteed Sum Assured & return on Savings through Guaranteed Bonuses

Brief
It’s a safest and surest method of guaranteed cash provision either at a specified time
or at death which provides the peace of mind with guaranteed return of your all basic
premiums paid during the saving term. The plan serves the requirements of a family
in various shapes by way of financial help at retirement, education of children or
provision of capital for business.
USPs
Guaranteed sum Assured + All Bonuses is payable at the end of the specified term or at
death of the assured.
All Riders are open, Make your own mix as per customer requirements
Lowest Management Charges & Lowest Riders Cost
Yield once credited is guaranteed to be paid to the customer.
No bid offer spread and No Hidden surprises.
One of the highest selling plan of Life Insurance Industry
Non Medical Limit Up to PKR 6.5 Million for the age 18 years to 40 years
Endowment Assurance

State Life Products
Three
Payment
Plan

Three Payment Plan
Entry Age 20 to 57
Tenure Minimum 18 years, Maximum 30 years
Riders Family Income Benefit, Accidental Death Benefits, Accidental Death & Indemnity,
Term Insurance, Waiver of Premium, Special Waiver of Premium, Term Insurance,
Guaranteed Insurability, Refund of Premium Rider, Hospital & Surgical Benefit
Need A saving plan which provides guaranteed 3 payouts & bonuses on
savings. Besides fulfilling the long-term financial needs, it also helps
in meeting the medium term & short-term financial exigencies.

Brief
This is a modified form of endowment assurance and is also called ‘Three Payment
Plan’., the plan offers three payments throughout term of the policy. The plan offers
survival benefits equal to 25% of sum insured on completion of 1/3rd and 2/3rd term of
the policy It gives you the opportunity to earn guaranteed bonuses and guaranteed
payouts on your savings.
USPs
Guaranteed sum Assured is payable equal to 25% of sum insured on completion of
1/3rd and 2/3rd term of the policy & all the bonuses and remaining 50% will be paid at
the end of the specified term
Provides three guaranteed payouts during the policy term.
Non Medical Limit Up to PKR 6.5 Million for the age 18 years to 40 years
Three Payment Plan

State Life Products
Sadabahar
Sadabahar
Plan

Sadabahar Plan
Entry Age 20 Years to 60 Years
Tenure Minimum 12 years, Maximum 30 years
Riders
Family Income Benefit, Accidental Death & Indemnity, Term Insurance, Waiver
of Premium, Special Waiver of Premium, Term Insurance, Guaranteed
Insurability, Refund of Premium Rider, Hospital & Surgical Benefit
Need This plan is a safe instrument for cash provision at the time of
need. With this plan, the policyholder can secure greater
protection and continued prosperity for the family at an
affordable cost.

Sadabahar Plan
Brief
Sadabahar is an anticipated endowment type with-profit plan that provides
lump sum benefit at certain stages during the premium-paying term or on
earlier death. On completion of 1/3rd of the policy term, 20% of basic sum
assured can be taken by the policyholder. Another 20% of the sum assured
can be taken on completion of 2/3rd of the policy term and the remaining
60% of basic sum assured plus accrued bonuses (if any) shall be payable at
the end of the policy term
USPs
This policy will participate in State Life’s surplus. Rates of bonus applicable
will be 25% higher than those on anticipated endowment plan.
This plan has a built-in Accidental Death Benefit (ADB) rider
Non Medical Limit Up to PKR 6.5 Million for the age 18 to 34 years

SLIC Plan Riders
• AIB provides for payment of additional amount equal to the sum insured under the policy in the
event of death by accidental means, or in the event of loss of two or more limbs or loss of sight in
both eyes.
• 50% of the sum insured will be paid for loss of one limb; one-third of sum insured in the event of
loss of one eye and one-fourth of sum insured will be paid for loss of thumb and index finger.
• Moreover, weekly indemnities are also available for total and partial disability
• If the life insured becomes permanent and total disable, an annuity of 10% of sum insured will be
payable for a maximum period of ten years.
• AIB is available for the ages between 18 to 55 years.
Accident Death & Indemnity Benefit (AIB)
• This supplementary cover will provide for payment of an additional amount equal to sum insured
in the event of death by an accident.
• The cover is available to lives between 5 and 55 years of ages.
• Maximum term of this supplementary benefit is not allowed to exceed the premium paying term
of the basic policy, or 60 years of age of the life proposed whichever is earlier.
Accidental Death Benefit (ADB)

• This supplementary cover provides that incase of death of the life insured
during term of this cover, an annuity of 10% to 50% per annum of the
basic sum insured will be payable till the completion of term of this cover.
• This supplementary cover is available to lives between 18 and 55 years of
ages.
Family Income Benefit (FIB)
• In the event of death of the life insured during term of TI, the sum insured
will be payable in addition to the benefits payable under the basic policy.
• This supplementary cover is an excellent opportunity for individuals who
want to enhance coverage
• TI is available to lives between 18 and 55 years of age
Term Insurance (TI)
SLIC Plan Riders

• This supplementary cover will provide for waiver of premiums under the
policy incase of the life insured’s Total and Permanent Disability due to
accident or disease which renders him unable to engage in any occupation.
•SWP is available to lives between 20 and 55 years of age.
Special Waiver of Premium (SWP)
• RPR provides for refund of premiums paid under the policy in the event
of death of the life insured during term of the policy.
• This supplementary cover is available to lives between 20 and 60 years of
ages.
• The available term ranges from 10 to 25 years.
Refund of Premium Rider (RPR)
SLIC Plan Riders

State Life Bonuses
Reversionary
bonus
Special
Reversionary
bonus
Terminal
bonus
Special
Terminal
bonus
Terminal
bonus for
(With Profit
Tables/Plans)
PAID-UP
Policies
State Life offers attractive bonuses that are declared on the basis of Actuarial Valuations
Thirtieth
Anniversary
bonus
Millennium
bonus
Golden Jubilee
bonus
One Time
bonus
Loyalty
Terminal
Bonus

Regular Bonuses
• Terminal bonus is available for all with profit policies in force for the full
sum assured, except Anticipated Endowment policies.
• It is payable only on maturity or earlier death of the life insured and does
not carry any surrender value
• A pre-condition for entitlement of this bonus is that more than ten years’
premiums must have been paid against a policy.
• Presently, the rate of the bonus is Rs.60 per thousand sum.
Terminal
Bonus
• Special Terminal bonus, at present rates, is available for all with profit
policies.
• It is payable on maturity of the policy and does not carry any surrender
value
• It is attached on the policies where Family Income Benefit (FIB)
supplementary cover has remained in force for more than 10 years.
• Currently the rate of special terminal bonus is Rs.10 per thousand basic
sum assured
Special
Terminal
Bonus
• This Bonus is payable to Paid-up policies (Whole Life and
Endowment) terminating by way of death or maturity in 2010.
• It is attached on the policies where policies have been on the
books for more than 10 years.
• The rate is Rs.50 per thousand Paid-up Sum Assured for each year
Terminal bonus for
(With Profit
Tables/Plans) PAID-UP
Policies

Other Bonuses
Millennium
• It is payable in full on maturity or earlier death of the life insured.
• The rate of bonus is Rs.51 per thousand sum assured. This is just a one-time bonus.
Golden Jubilee
• It is payable on maturity of the policy or earlier death of the life insured and does not have any surrender value.
One Time
• It is payable on maturity of the policy or earlier death of the life insured and does not have any surrender value.
Loyalty Terminal
• This bonus was announced for the first time in 2007 Actuarial Valuation.
• This bonus has been retained in 2010 Valuation. It is payable to all with profit Pak Rupee policies that have been with
State Life since 1991 or earlier.
• The rate of Loyalty Terminal Bonus is Rs.200 per thousand sum assured and will be paid on claims by death or
maturity in 2011 to with profit Pak Rupee policies with risk year 1991 or earlier.

Reversionary Bonus
Reversionary Bonuses per thousand of sum assured to with profit Pak Rupee policies
Description of Plans
For first five
policy year/ Rs. Per
thousand
From 6th
policy year to
16th policy year / Rs. Per
thousand
From 17th
policy year
onwards / Rs. Per
thousand
FOR ENDOWNMENT PLANS
Term of policy
20 years and over 50 94 130
15 to 19 years inclusive 35 81 81
14 years and less 20 66 -

Reversionary Bonus
Reversionary Bonuses per thousand of sum assured to with profit Pak Rupee
Description of
Plans
For first five
policy year/ Rs. Per
thousand
From 6th
policy year to
16th policy year /
Rs. Per thousand
From 17th
policy year
onwards / Rs.
Per thousand
FOR SADABAHAR PLANS
Term of policy (in
years)
20 years and over 44 86 125
15 to 19 years inclusive 31 74 74
14 years and less 24 66 -

0
20
40
60
80
100
120
140
48 48 48 48 48 50
90 90 90
94 94 94
130 130 130
PerThousandSumAssured(PKR) Endowment Plan – 20 Years & Above
1999 - 2011
From1to5Years
From1to5Years
From1to5Years
From1to5Years
From1to5Years
From1to5Years
From6to16Years
From6to16Years
From6to16Years
From6to16Years
From6to16Years
From17YearstoOnwards
From6to16Years
From1to5Years
From1to5Years
From1to5Years
From1to5Years
From1to5Years
From1to5Years
From6to16Years
From6to16Years
From6to16Years
From6to16Years
From6to16Years
2001-2003 2004-2005 20061999-2001 2007-2009 2010-2011

0
20
40
60
80
100
35 35 35 35 35 35
65 69 69 69 69 69
100 100 100
PerThousandSumAssured(PKR)
2001-2003 2004-2005 20061999-2001 2007-2009 2010-2011
From6to16Years
From1to5Years
From1to5Years
From1to5Years
From1to5Years
From1to5Years
From1to5Years
From6to16Years
From6to16Years
From6to16Years
From6to16Years
From6to16Years
Anticipated Endowment Plan – 20 Years & Above (1999 –
2011)

Minimum Premium
• PKR 4,000
(Annually PKR 48,000)
Monthly
Mode
• PKR 5,000
Quarterly
Mode
• PKR 7,500
Semi Annual
Mode
• PKR 15,000Annual Mode

Sum at Risk
Age
18 - 34 35 - 40 41 - 55 56 - 65
Up to 500,000 Non-Medical Non-Medical Non-Medical Non-Medical
500,001 to
1,000,000
Non-Medical Non-Medical Non-Medical Non-Medical
1,000,001 to
2,000,000
Non-Medical Non-Medical Non-Medical
MR, PUR, BS, EX-ECG,
LFT
2,000,001 to
3,000,000
Non-Medical Non-Medical Non-Medical
MR, PUR, BS, EXECG,
LFT, SC, HEP(B&C)
3,000,000 to
5,000,000
Non-Medical Non-Medical
LFT
MR, PUR, BS, EXECG,
LFT, SC, HEP(B&C)
5,000,001 to
6,500,000
Non-Medical MR, PUR, BS, EX-ECG, LFT
MR, PUR, BS, EX ECG,
LFT, SC,HEP(B&C)
MR, PUR, BS, EX ECG,
LFT, SC, HEP(B&C)
6,500,001 to
10,000,000
LFT, SC
MR, PUR, BS, EX-ECG, LFT,
SC, HEP(B&C)
LFT, SC, HEP(B&C)
MR, PUR, BS, EXECG,
LFT, SC, HEP(B&C)
Above 10,000,000 MR, PUR, FBS, EX-ECG, LFT, SC, CHEST X-RAY, HEP(B&C), HIV, RFT
Medical & Non Medical Limits

Other Policy Options• Policy should be inforce for at least 2 consecutive years.
• Surrender Value is Guaranteed to be not less then 30% of Aggregate Premiums.
• Following are the exclusions
• Premium for the 1st policy year
• Extra premiums and premiums for any riders.
Surrender
• The amount of Loan shall not exceed 80% of the net Surrender Value
• Current Mark Up Rate is 12.5% per Annum
Loan
• Policy has acquired a surrender value and premium remained unpaid.
• Following Two options are available .
• Automatic Paid Up
• Automatic Premium Loan
Automatic Non – Forfeiture Option
• Policy Holder can cancels the policy within 14 days of its commencement date.
• Premium will be refunded without any deduction.
Free Look Period
AFTER SALES SERVICES

How to sell
Bancassurance??
SALES
PROCESSING

Prospecting
(Client
Profiling KYC)
Pre-approach
preparation
Approach
(A.I.D.A)
Fact
Finding/Need
Assessment
Plan
Presentation
(S.P.I.N)
Objection
Handling
Closing

S = Situation:
1. Discuss the general situation or a subject of
prospect’s interest e.g. Cricket, sports.
2. Avoid controversial topics like politics etc.
P = Problems:
Now come to the problem (Needs, Wants, Desires) of the client
and the solution, which you want to offer through life
Insurance.
I = Implications:
What are the different aspects of the problems and how it
relates to the prospect may be discussed at this stage and
solution applied.
N = Negotiation:
This means details of the sale. When he should buy,
sum assured, premium mode Etc.

Comparison of SLIC Actual
Declared Bonuses
Rate of Return 1st – 5th Year Policy 6th – 16th Policy
year
From 17th Policy
Year and Onward
7% 19 35 49
9% 30 57 79
11% 44 83 115
(15% +) SLIC
Actual Bonuses
Declared
50 (Actual) 94 (Actual) 130 (Actual)

Group Work
• Case Study of Bonus Based Polices (Actual
Comparison)
• Trainer Illustration (10 Min)
• Group preparation (25 min)
• Presentations by group (05 min/Group)

Assigned Questions
• What total amount (Guaranteed by GOP) a
accountholder of NBP will get after completion of
20 years NBP-SCLIC Policy?
• After how many years an accountholder may get full
amount back on his/her policy (Breakeven Point)?
• In case of death of a policyholder (Allah Forbid),
after 8 years, what amount payable to nominee?
• What amount payable as cash value on surrender of
a policy after 12 years?

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