Customer Wealth=Customer mind peace+long term happiness

Created by
Abhisek Kr. Baranwal
Branch Trainer, Mirzapur
 INDEX
1. BALIC TRADITIONAL CAMP.
2. Why Traditional Camp?
3. Penetration of Life Insurance Market.
4. Aggravated problem of Under- Insurance.
5. What are Traditional policies?
6. Benefits of Traditional policies.
7. Benefits of Traditional Camp.
8. Benefit to the Company.
9. Benefit to the Policyholder.
10. Benefit to the Society.
11.Traditional products are better than MF.
12. Market Segmentation of Traditional policies.
13. 8 steps to success.
14. Bajaj Allianz Traditional Bucket.
15. Summary
 BAJAJ ALLIANZ Traditional Camp

It is a unique movement initiative taken by the company to

promote and proliferate the traditional life insurance policies to
the common mass to fulfill their financial goals at their
important life stages.
 Why Traditional camp?
•Under-Penetration of Life Insurance Market.

•Aggravated problem of Under-insurance.

•To tap the Rural & Semi-urban middle class market by increasing the
customer count & enhancing the economic & social goodwill of the
company in the insurance Market .

•Ulip policies generally tap the big premium policies. There is a very large
small savings market untapped. Traditional camp may help to grab that
market opportunity.

•
PENETRATION OF LIFE INSURANCE MARKET

•As per IRDA statistics (2007-08), the total amount of life cover or sum
assured on the 26 crore policies in 2007-08 were merely Rs 23.96 lakh crore.
This translates into average life cover per policy to just about Rs 93,000.
Knowing the present growing economic scenario, it cannot be termed as
financial security by any stretch of imagination.
 AGGRAVATED PROBLEM OF UNDER INSURANCE

The Ratio of ULIPs to traditional policies is currently 70:30.

•Investors are preferring ULIP as the investment vehicle and thus opting for
less Sum Assured, as their prime motive is to make money within a small span
of time.
•As a result more frequent Surrender of the policies, hampering the long term
savings and objective of Insurance.
What are Traditional Policies?

Traditional Policies can be regarded as long term saving plans

under which certain contributions are made year after year by
way of premium, and where the returns are paid back with the
Bonus/guarantee and on which Sum Assured is payable on the
unfortunate death of the policyholder.
 Benefits of Traditional Policies

The traditional policy is like a joint family where there is a safety
net (against adverse circumstances)


Encourages small savings

Saves from Volatility of the stock market

Policyholder stands to gain as the investment Risk is borne by
the Insurer.

• Growth through dividends - Traditional policies offer an

opportunity to participate in the economic growth without taking
the investment risk. The investment income is distributed among
the policyholders through annual announcement of
dividends/bonus.

• Helps in solving the problem of Under-Insurance.

 Benefit of Traditional camp
• Benefit for the Company.
• Benefit for the Policyholders.
• Benefit for the Indian Society.
 Benefit to the Company
• Higher Retention Ratio.
• Consistent and higher valuation of the company.
• Help the insurer to cover the lower & upper middle
class at a more speed.
• Focusing over the Traditional Camp will change the
ratio and thus help our prime responsibility to
adequately cover the life Assured.
• It will also ensure the inflow of regular premium over
the long period of time.
• It will be possible to provide a better participation to
the policyholders in the surplus of the traditional
policies.
 Benefit to the Policyholder
• The traditional policy investor would get what has been projected in
the illustration, irrespective of the investment environment, and
therefore stands to gain.

• Unit linked policies are more risky where the investment risk are
borne by the policyholder.

• Encourages the habit of saving.

• Encourages small savings for the middle class society.
• Savings are income-tax free under section 80C & 10(10D).

• Long term financial goals in one capsule:

Traditional Plans are taken for generally 15,20,25 Years, and thus
are available to fulfill long term financial goals like Children
education, their marriage, wealth Creation through small savings,

Back
 Benefit to the Indian Society
• These regular premium collections are invested in the development of
the nation infrastructure, thus strengthening the quality infrastructure
for long term development.

• Investment through traditional life insurance premium thus helps

society to upgrade for a better standard of living.

• It is easy to “ADEQUATE INSURE” the Indian population as high sum

assured can be given at a low premium rates.

• Thus, the policyholder by investing in a traditional policy not only

earns a monetary corpus for the family but also participate in the
social development as his/her social responsibility.

• Back
Traditional Products are better than Mutual Funds:
• Traditional products are invested as per IRDA guidelines (65% in
Government Bonds & Infrastructure Bonds and the balance in stocks
specified by IRDA) safety and market conditions Political conditions will
not affect either the Capital or the Growth.
• Traditional products are meant for financial security for the family. Mutual
Funds presumes the financial risk for investment return.
• Family financial long term goals can not be risked simply for money
making.
• Traditional Policies are the better products for those who do not have the
sufficient knowledge of MF.
• Traditional Products are simple to understand in comparison to ULIP/MF.
 Market segmentation of Traditional Policies
Traditional Products market can be segmented on the basis of Family Life
Cycle, social class, Life Style, Cultural values,Occupation,etc.

•Newly Married couple.

•Career Starter
•People planning for their retirement in their early age.
•Parents who have children in age group 0-5.
•Rural Areas with less or no financial awareness.
•Middle Class people.
•Employers who want to provide financial security to their employees &
their family under Employer-Employee Insurance.
•Low income group.

•Old Married Couple with no Children.

 8 STEPS TO SUCCESS
To successfully sell Traditional life insurance policy, keep these points
in mind.

•Aggressively go for referrals and profile your clientèle

•Learn to manage the indecisiveness of your clients and prospects.
•Capture every opportunity.
•Increase your Client retention.
•Focus on value selling.
•Specialize the knowledge.
•Sell the client what he need.
•Above all, passion for what you sell.
 BAJAJ ALLIANZ Traditional Bucket

•Child Gain
•Invest gain
•Invest Plus Premier
•New Risk Care-II
•Family Care First
CHILD GAIN: A traditional Product for creating a wealth pool for the
children education/marriage/carrier when he/she becomes major with
guarantee of Sum Assured during the policy term in case of any unfortunate
even, together with the tax benefits u/s 80C & 10(10D).

INVEST GAIN: It is the traditional product with the combination of high Sum
Assured plus investment growth. It suits the need of each and every individual
as we can attach riders too. Persons investing in Invest gain enjoys the benefit
u/s 80C & 10(10D).

INVEST PLUS PRIMIER: A Traditional Product accompanying the features

of ULIP with the guarantee of 7.05% and extra guarantee of 10% from 11th
Policy year till maturity, together with high Sum Assured and tax-benefits.
This Product can be beneficial for all the customer-segments as per to his
needs.
NEW RISK CARE-II: It is a term product providing high Sum Assured to
the policyholder for the financial security of the family in case of unfortunate
death, at a very less premium.

FAMILY CARE FIRST: It is Traditional Product for health care treatments of

the policyholder and his/her family at a low cost premium.
Summary :
•Traditional Products are beneficial for the insurer to increase the
profitability,credibility & valuation of the company in the long term.

•Traditional Products are beneficial for the Policyholders. They get their
financial security for their family in situation of mis-happening and wealth
creation for long term financial goals.
•Traditional policies develops the habit of small & long term savings.

•Traditional Products solves the problem of under-penetration of Insurance

market and Under-Insurance of the policyholder.
•Investment through Traditional Policies will increase the participation in
economic development and GDP growth.