Great Cash Gain

Centre for Excellence Briefing Date: 8 September 2011

Disclaimer: This power-point presentation is purely a training tool for the internal agency training programmes of Great Eastern Life Assurance (Malaysia) Berhad. All or any part of the contents of this presentation shall not be used directly or indirectly for soliciting insurance business, policyholder services and/or facilitating any other form of communications with any external party whatsoever. This information is correct as at 07/09/2011 Version 1.

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Contents
1. Plan Description

Part I:Market Positioning

2. Market Positioning 3. Unique Selling Propositions 4. Target Market 1. Plan Overview

Part II: About Great Cash Gain Part III: Submission & Remuneration

2. Plan Benefits 3. Underwriting 4. Sales Ideas 1. New Business Submission 2. Agency Compensation

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PART I: - MARKET POSITIONING 1. Plan Description 2. Market Positioning 3. Unique Selling Propositions 4. Target Market

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Plan Description

This is an endowment protection/saving plan with immediate participation in profits. It may be a limited or full pay plan depending on the choice of premium payment term and term of assurance applied.
Premium Payment Terms 15 years 20 years Terms of Assurance 20 or 25 years

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Plan Description
End of premium payment term (15 or 20 years) Endowment Protection/Saving Plan with immediate participation in profits
*Enjoying benefits and coverage even though premium payment stopped

Term of assurance : 20 years or 25 years Plan Benefit: Death or TPD Additional Sum Assured Accidental Death Benefit Survival Benefit (guaranteed) Cash Bonus/Terminal Bonus (non-guaranteed) Maturity Benefit
Note: *Not applicable for policy term of 20 years with 20 years premium payment term.
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Market Positioning
Great Cash Gain offers you a host of Attractive Features that allow you to:

Grow your savings

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Fulfill your dreams

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Market Positioning
Targeted at senior executives, young managers and professionals aged 30 years and above. Addresses the need to grow your savings with additional payouts to realise your dreams. Visual concept: A road where can lead you to the high potential of savings opportunity and achieving your dreams. The prominent arrow denotes the high probability of receiving accumulated benefits at the end of your policy term. The man leaning relaxingly and happily on the road sign because he knew he chose the right plan to safeguard his finances.

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Unique Selling Propositions

Limited/Full premium payment feature,

depending on customers affordability.

Affordable savings plan aimed at middle

income market.

Survival Benefit that is payable yearly

during the last 5 policy years.

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Unique Selling Propositions

Additional Sum Assured up to 80%

of basic sum assured

Double Indemnity on accidental death

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Target Market
Sole Proprietors. Entrepreneurs. Professionals aged 30 50 years old. Middle to higher income group. Customers with children who plan to save for their marriage and education.

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PART II: - ABOUT GREAT CASH GAIN 1. Plan Overview 2. Plan Benefits 3. Underwriting 4. Sales Ideas

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Plan Overview
Death Death Benefit Benefit Additional Additional Sum Assured Sum Assured

Accidental Accidental Death Benefit Death Benefit

Total and Total and Permanent Disability Permanent Disability (TPD) Benefit (TPD) Benefit Survival Survival Benefit (SB) Benefit (SB) (Guaranteed) (Guaranteed) Terminal Bonus (TB) Terminal Bonus (TB) (Non-guaranteed) (Non-guaranteed)

Cash Bonus (CB) Cash Bonus (CB) (Non-guaranteed) (Non-guaranteed)

Maturity Maturity Benefit Benefit

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Plan Benefits
Policy Year Additional Sum Assured (as a % of Basic Sum Assured) Policy Term 20 15 6 7 10% 20% 30% 40% 50% 60% 70% 80% 80% 80% 80% 80% 80% 80% 80% Policy Term 25 10% 20% 30% 40% 50% 60% 70% 80% 80% 80% 80% 80% 80% 80% 80%

Additional Additional Sum Assured Sum Assured

8 9 10 11 12 13

Payable upon Death or TPD (before 65 ANB) or maturity whichever occurs first

14 15 16 17 18 19 20 21

Notes: 1. Death/TPD benefits from the 13th policy year onwards is 180% of the original Basic Sum Assured (for Policy Term 20) 2. Death/TPD benefits from the 18th policy year onwards is 180% of original Basic Sum Assured (for Policy Term 25)

22 23 24 25

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Plan Benefits

Death Death Benefit Benefit

Death (within the policy term)

Accidental Death (within the policy term & before ANB 65)

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Plan Benefits
Death Death Benefit Benefit

Death (within the policy term)

Basic Sum Assured (BSA)

Additional Sum Assured (if any)

Accumulated SB (if any)

Any CB (including Accumulated CB, if any)

Payable in One Lump Sum

Note: Child Lien Applies

Terminal Bonus on Death (if any)

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Plan Benefits
Death Death Benefit Benefit
Basic Sum Assured (BSA) Additional Sum Assured (if any)

Accidental Death* (within the policy term & before ANB 65)
Accumulated SB (if any)

Any CB (including Accumulated CB, if any)

One time of Sum Assured**

Terminal Bonus on Death (if any)

Child lien applies. *Subject to an overall limit of: 1. RM1.5m (inclusive of purchasable accidental rider) which provides similar benefits for any one life or 2. RM2.0m (inclusive of purchasable accidental rider) if the Life Assured is also covered under Great MultiCash (Plan Code:0273), Elite Builder (Plan Code: 0291) and/or Great Cash Wonder (Plan Code: 0295) as well as future similar products as specified there and then. ** Sum Assured = BSA + Additional SA (if any), up to max of RM500K

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Plan Benefits
Illustration of differences between natural death payout & accidental death payout Example 1: Death on 10th policy year (within Policy Term 20 years & before ANB 65) Assumptions: Male, 30 ANB BSA: RM100,000 Option 3: Accumulated SB & CB Additional SA 50k (50% of 100k) Basic SA: 100k Accidental Death Upon death: Death benefit = (100k + 50k) + Acc. SB + Acc. CB + TBD Upon accidental death: Death benefit = (100k + 50k) + (100k + 50k) + Acc. SB + Acc. CB + TBD

10

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Plan Benefits
Illustration of differences between natural death payout & accidental death payout Example 2:Death on 15th policy year (within Policy Term 25 years & before ANB 65) Assumptions: Male, 30 ANB BSA: RM400,000 Option 3: Accumulated SB & CB Upon death: Death benefit = (400k + 200k) + Acc. SB + Acc. CB + TBD Upon accidental death: Death benefit = (400k + 200k) + 500k + Acc. SB + Acc. CB + TBD

Additional SA 200k (50% of 400k) Basic SA: 400k

15

Accidental Death

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Plan Benefits
Total and Permanent Total and Permanent Disability (TPD) Disability (TPD) Benefit Benefit
Basic Sum Assured (BSA) Additional Sum Assured (if any) Life Assured between Age 1 and 65 NB

Accumulated SB (if any)

Any CB (including Accumulated CB, if any)

Refer Next Page for the benefits payout.

Note: Child lien applies for TPD of Life Assured below age 5n.b

Terminal Bonus on TPD (if any)

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Plan Benefits
Total and Permanent Total and Permanent Disability (TPD) Disability (TPD) Benefit Benefit
Upon TPD of the Life Assured between 1 ANB and 65 ANB, the Company will pay the benefit, subject to the following conditions:-

All future premiums will be waived up to a maximum Sum Assured of RM2,000,000; BSA not exceeding RM1,000,000* will be advanced in one lump sum; BSA exceeding RM1,000,000*, if any, but not exceeding RM2,000,000*, will be payable in two equal annual payments.
Notes: 1. 2. 3. 4. Overall TPD limit is RM3,500,000. For 1 ANB 5 ANB, child lien shall apply and subject to TPD limit of RM500,000. All these limits shall apply on any one life across all distribution channels & other terms and conditions as specified in the policy contract. *Applicable on this policy and other policies (if any) on the same life within the Agency distribution channel.
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Plan Benefits
Option to Purchase New Policy at Maturity (Standard child life only)*
(a) (b) Within 30 days before or after the maturity date Attained age of the Life Assured is at least 18 years n.b. but not more than 25 years n.b. Option to purchase a new ordinary level annual premium Whole Life or Endowment policy (except Living Assurance policy) sold by the Company at the option date for an amount of assurance up to the Basic Sum Assured. The premium for this new policy will be at the same class of rating based on the attained age at the option date. The total Sum Assured purchased by the Life Assured for this or similar options on all policies must not be more than RM200,000. Without Evidence of Assurability

(c)

(d)

(e)

*Note: Please refer to the sample policy contract for details.

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Plan Benefits
Survival Survival Benefit Benefit (Guaranteed) (Guaranteed)
Policy Year

A percentage of BSA will be payable as per the following schedule until death, TPD, surrender, maturity or termination of the policy, whichever occurs first.
Survival Benefit (as a % of Basic Sum Assured)

Policy Term 20 1 - 15 16 17 18 19 20 21 22 23 24 25 Total 55.00% 10.00% 10.00% 10.00% 10.00% 15.00%

Policy Term 25 10.00% 10.00% 10.00% 10.00% 15.00% 55.00%

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Plan Benefits
Cash Bonus Cash Bonus (Non-guaranteed) (Non-guaranteed)
The cash bonus that would be declared may be more or less, depending on the operating and investment results experienced by the Company. Any cash bonus declared for the 1st and 2nd policy years shall vest and be payable only after the policy has been in-force for 2 full years. Cash bonus will vary by terms of assurance and policy year.
Policy Year Cash Bonus (as a % of Basic Sum Assured) @ 7% Scenario 1 2 3 4 5 6 -10 11 15 16 20 21 - 25 0.50% 0.85% 1.20% 1.50% 1.80% 2.10% 2.40% 2.70% 3.00% @ 5% Scenario 0.40% 0.70% 1.00% 1.15% 1.35% 1.60% 1.70% 1.90% 2.10%

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Plan Benefits

Terminal Bonus Terminal Bonus (Non-guaranteed) (Non-guaranteed)

Payable upon
Death TPD Surrender Maturity

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Plan Benefits

Maturity Maturity Benefit Benefit

Basic Sum Assured Additional Sum Assured

Final Year SB

Accumulated SB (if any)

Any CB (including Accumulated CB, if any)

Payable in One Lump Sum

Note: Maturity Benefit is payable provided no Death, TPD, Surrender claim is made prior to maturity

Terminal Bonus on Maturity (if any)

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Plan Benefits Illustration of Plan Benefits

Male, age 35, non-smoker, BSA 100K, 25 years Great Cash Gain, 20 years premium payment term

Pay premium for 20 years

Entry Age 35 ANB 0

20 15% 10%

Receive yearly SB* during the last 5 policy years (guaranteed) Receive yearly CB* (non-guaranteed)
*Note: SB & CB is payable as a percentage of original basic sum assured.
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Maturity: 60 ANB Basic Sum Assured Additional Sum Assured Survival Benefit for the final year Accumulated SB (if any) Any Cash Bonus (including accumulated Cash Bonus, if any) Terminal Bonus on maturity (if any)

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Underwriting
Entry Age
Policy Term Minimum Maximum 20 Years 55 years next birthday 25 Years 50 years next birthday 30 days attained age

Note: Maximum expiry age is 75 years next birthday

Policy Term
Premium Payment Term 15 years 20 years Available Policy Term 20 years 25 years

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Underwriting
Sum Assured
Minimum Maximum : RM20,000 : Subject to underwriting

For determining the non-medical limits, the basic sum assured for the term plan and any existing policies (basic & riders) within 3 calendar years will be considered for calculation. The non-medical limits are listed below: Age Next Birthday 30 days attained age to 16 years 17 to 30 31 to 40 41 to 50 51 to 55 Sum Assured (RM) 250,000 500,000 400,000 250,000 100,000

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Discount
Large Sum Assured Discount
Sum Assured (RM) 20,000 24,999 25,000 49,999 50,000 99,999 100,000 299,999 300,000 & above Discount per RM1,000 Sum Assured (RM) Nil 2.00 3.00 3.50 4.00

Non-smoker Discount
Separate premium rates are available for Smoker and Non-smoker.

Female Discount
Separate premium rates are available for Female and Male.

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Attachable Riders
The Riders available are: Accident and Health: a. Juvenile Accident Rider (A5) b. Premier Accidental Death and Dismemberment Benefits Rider (A54) c. Premier Comprehensive Accident Benefits Rider (A55) d. Hospitalisation Benefit (Police & Military) (H2) e. Hospitalisation & Surgical Benefits (H3) f. Premier Medical Reimbursement and Hospitalisation Benefits Rider (H28) Payer and Waiver Riders: a. Waiver of Premiums Rider (U15) b. Waiver of Premium on DD Rider (U82) c. Payer Benefit Rider (U8) d. Payer Benefit Rider with Annual Benefit (U9) e. Payer Benefit Rider Plus (W21) f. Payer Benefit Rider Plus with Annual Benefit (W22)
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Attachable Riders
Others: a. ChildrenCare Rider (W25) b. Reducing Term Rider with TPD Benefits (U2) c. Reducing Term Rider Plus with TPD Benefits (W23) d. Living Assurance Rider with TPD Benefits (W7) e. Enhanced TPD Rider (T12Y) f. GreatLady Rider A, B and C (U27, U28, U29)

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Other Features

Surrender Value Partial Surrender Policy Loans Automatic Premium Loan Extended Term Assurance Paid-up Assurance Free Look Period Assignment 3rd Party Policy Reinstatement

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Sales Idea

House Happy Family

Car Recognition

What do you want in

LIFE?
Success Quality Life Vacation
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High Income
FOR INTERNAL CIRCULATION & TRAINING PURPOSES ONLY

Sales Idea
Savings / Investment

Life stages and Insurance Needs

RM
Savings for Education Mortgage Protection Savings + Income Replacement

Protection Income Replacement

Commitment

Savings / Investment

Mortgage Protection

Protection

Accumulation assets & debts

Accumulation & Savings

Savings

Pre-retirement Pre-

Young Adults

Young Family

Mature Family

Empty Nest

Protection

Retirement

Old Age

Savings / Investment

Age
Below 25 years old 26 35 years old
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36 45 years old

46 55 years old

Over 55 years old

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Sales Idea HUMAN LIFE CYCLE IN A NUTSHELL

Mid 50s to Retirement Mid 50s to Retirement THE REAPING THE THE REAPING THE REWARD YEARS REWARD YEARS
1. Health Insurance 2. Unit Trust

Mid 20s to 30s Mid 20s to 30s THE FOUNDATION THE FOUNDATION YEARS YEARS
1. Life Insurance 2. HP & Motor Insurance 3. Credit Card

Mid 40s to 50s Mid 40s to 50s THE ACCUMULATION THE ACCUMULATION YEARS YEARS
1. Annuity/ Unit Trust 2. Top up insurance 3. Mortgage (2nd house) 4. Savings
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Mid 30s to 40s Mid 30s to 40s THE ACQUISITION THE ACQUISITION YEARS YEARS
1. Education Insurance 2. Mortgage 3. Unit Trust 4. Share Trading Accounts
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Sales Idea

Life is the sum of all your choices.

~ Albert Camus, French Author and Philosopher

We can choose actions and We can choose actions and habits that keep us happy, habits that keep us happy, healthy, and successful. healthy, and successful.

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Sales Idea

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Sales Idea

Source: The Sunday Star dated 27 May 2007

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Sales Idea

Malaysias inflation rate rose to a 24month high of 3.2% year-on-year in April after a 3% increase in March.
Source: The Star dated 24 May 2011

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Sales Idea

The Impact of Inflation

Cost of 3 Meals a Day Now 20 Years Later
Assuming 6% Inflation Rate.

Expenses for 1-year RM48,000 RM153,942

Purchasing Power RM500,000 RM145,053

RM20 RM64

Source: The Sunday Star dated 27 May 2007

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Plan Benefits Illustration of Plan Benefits

Male, age 30, non-smoker, BSA 100K, 25 years Great Cash Gain, 15 years premium payment term (Option 3)

Pay premium for 20 years

Entry Age 30 ANB 0

20 15% 10%

Maturity Benefit:

Total Premiums Paid RM11,604 x 20 = RM232,080

RM461,608**

Accumulate yearly SB* during the last 5 policy years (guaranteed) Death and TPD Coverage
Note: *SB & CB is payable as a percentage of original basic sum assured. **Maturity Benefit is estimated based on 7% interest rate scenario as illustrated in Gelsis, which is inclusive of Basic Sum Assured, Additional Sum Assured, Survival Benefit for the final year, Accumulated SB, Accumulated Cash Bonus and Terminal Bonus on maturity
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PART III: - SUBMISSION & REMUNERATION 1. New Business Submission 2. Agency Compensation

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New Business Submission

Proposal Form Agents Confidential Report Confirmation of Advice (CA) Customer Fact Find (CFF) Form Survival Benefit and Cash Bonus Option Form (optional) Request for Non-incorporation of Vesting Clause (optional, juvenile plans only)

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Agency Compensation
Commission Structure for 15 years premium payment term: Year Basic Commission Overriding Commission Production Bonus on Personal Sales Organiser Production Bonus Persistency Bonus Total Agency Related Expenses (ARE)

1 2 3 4 5 6 >6 Total

26.30% 18.80% 11.40% 11.30% 7.60% 7.60% 83.00%

15.00% 8.20% 4.30% 3.50%

5.00%

5.00% 5.00% 5.00%

51.30% 32.00% 20.70% 14.80% 7.60% 7.60%

2.25% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% -

31.00%

5.00%

5.00%

10.00%

134.00%

Standard Commissions as per OCC Guidelines

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Agency Compensation
Commission Structure for 20 years premium payment term: Year Basic Commission Overriding Commission Production Bonus on Personal Sales Organiser Production Bonus Persistency Bonus Total Agency Related Expenses (ARE)

1 2 3 4 5 6 >6 Total

35.00% 25.00% 15.00% 15.00% 10.00% 10.00% 110.00%

20.00% 10.00% 6.00% 5.00%

5.00%

5.00% 5.00% 5.00%

65.00% 40.00% 26.00% 20.00% 10.00% 10.00%

2.25% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% -

41.00%

5.00%

5.00%

10.00%

171.00%

Standard Commissions as per OCC Guidelines

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Agency Compensation
First Year Production from the plan can be used as follows: -

Purpose Maintenance Promotion Contest Qualifying for Payment

15 or 20 Years Premium Payment Term 100% 100% 100% 100%

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Agency Compensation
Notes: -

1. Overriding Commission: shown above is maximum payable and is apportioned according to rank held and is payable upon meeting required quota.

2. Production Bonus: 5% production bonus on PS (personal sales) and 5% organizer production bonus is paid upon meeting the required quota

3. Deferred benefit: upon meeting requirements

4. Agency Office Maintenance (AOM): upon meeting requirements

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All rights reserved. No part of this publication may be produced ,translated, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying and recording without the prior written permission of the copyright the developer and owner.

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Sales Training Faculty

Franco Wong Wai Keong

Chua Pei Chyn

03-4259 8673
FrancoWongWaiKeong@lifeisgreat.com.my

03-4259 8677
ChuaPeiChyn@lifeisgreat.com.my

Tutu Foong

03-4259 8693
TutuFoong@lifeisgreat.com.my

Should you have any further enquiries, you may forward to ICM via ePartner.

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Q&A Session

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