Professional Documents
Culture Documents
With thanks to all the great minds from various departments, who helped us coin the right solutions, for their time, patience and expertise.
Solution Capsules
1. Why should I take a Health Plan? I am not getting any returns there. 2. I trust LIC more than any other company as it has seen 50 years. 3. Market is highly volatile right now! 4. I incurred loss on my previous policy. 5. I do not need Life Insurance.
Objection Index
6. Bank gives Guaranteed returns at 10%. 7. Why should I take a Health Plan, when I can get Health Riders with ULIPs? 8. There is no liquidity in Insurance.
No Objection Movement
9. Bonus Rate is less than LIC, then why should I buy traditional plan from you? 10. What is the surety that your company will exist for next 15-20 years? 11. I am already over insured. 12. Regulators are not effective. Look at SEBI and RBI. 13. I do not have any dependants. 14. I am covered at work.
15. Mutual Fund + Term Plan is better than ULIPs. 16. I have loans on me. I cannot afford to buy insurance. 17. Fixed Deposit is a better option considering current market scenario. 18. 10(10D) may be removed/ altered by Government tomorrow. What if it not there at the time of policy maturity? 19. I have adequate money. 20. Not interested to take this policy now. Will buy later. 21. I dont have money. 22. BALIC is a private company. 23. Why to purchase Immediate Annuity when the rate of return is lower than Fixed Deposits? 24. Fund growth rates are lower than other companies. 25. Guaranteed returns are low in traditional plan. 26. What is the surety that Guaranteed Investment Return (GIR) in Invest Plus will not go below 7%? is
Solution Capsule
A. Health Plans are for protection against eventualities and not for return
Do you ask for return of Doctor's fee after you get well? If your objective is Health Coverage, you should go for a health plan. Financial assistance in respect of health eventualities is better than looking at returns. Your best return is your peace of mind. Health plan is like an invisible shield which lasts in case of medical emergency. You need a plan to cover you against sudden expense on account of medical emergencies. If you insist, I can give you two plans 1) Health 2) Any other investment plan. It will suffice both your needs.
Objection
1
Why should I take a Health Plan? I am not getting any returns there.
No Objection Movement
By Product Development
March 3, 2009
Solution Capsule
A. Our presence in the industry is more than that of LIC
LIC is there for 50 years because private insurers were not allowed before. Allianz has an astronomically high Assets Under Management spanning more than 70 nations. Bajaj on the other hand is a common household name in India. If vintage is the deciding factor then we have a vintage of more than 110 years. Experience of LIC = 50 years+, experience of Allianz = 110 years+. Do you have a telephone connection where the service provider is more than 50 years old? Do you have a bank account in a private bank which is more than 50 years old? BALIC (like any other private players) enjoys a place of pride in the industry as LIC. It is only a false perception that LIC being old is the only bankable company.
Objection
2
I trust LIC more than any other company as it has seen 50 years.
No Objection Movement
Solution Capsule
A. Think long term
Markets in the short run are like an election. In the long run, they are a test of weight. You can lose an election due to mood swings but cannot lose a test of weight if you have it. Thinking long-term is the key to manage your investments. In shorter term, you will always see that value fluctuates. Volatility of the market is a matter of concern for people going short-term, while it is an opportunity for people investing long-term. In long-term, all the investment avenues give positive returns be it real estate, gold or insurance. Ups and Downs are a way of market functioning. This is the best time to invest over a long-term. Remember that declines are natural. Time can be a great risk reducer. Think long-term.
Objection
3
Market is highly volatile right now!
C. Invest NOW !
Make the best out of this phase. Invest more so that your money may multiply as the market goes upwards. These are rare times when you get maximum number of units from premium paid. Just like it is better to buy a house now when the prices are low so that you can enjoy the appreciation. By investing now, you can fund for your post-retirement income and the corpus for your child that you always dreamt of. Rather than looking at markets, it is better to look at the company or the plan you are buying. It is this which matters most. Our product portfolio offers you investment opportunities which are not volatile. Make the best out of this opportunity. Buy today and get more units.
No Objection Movement
By Product Development
Solution Capsule
A. One bad experience should not lead to conclusions for lifetime
Have you stopped investing in Fixed Deposits, even when the interest rates have fallen? Have you stopped buying a vehicle, because your last vehicle depreciated early?
Objection
4
I incurred loss on my previous policy.
No Objection Movement
Solution Capsule
A. Why do you feel you dont need Life Insurance ?
Am I sure, that no unfortunate event like death/ disability/ critical illness will ever occur to me? Am I also sure that I will wake up tomorrow morning? Am I sure that my family will have the same kind of lifestyle in my absence? Can we afford to remain irresponsible towards our family? Do you insure your vehicle? Why? Do you value yourself lesser than your vehicle for which you have an insurance policy? Have you ever calculated your Human Life Value? Your cost of Not living. Living without insurance is like Gambling Have you come across any financial expert who has advised NOT TO BUY Life Insurance? No one can say no to Life Insurance. Either you pay for it now, or your family pays for it. Life Insurance is no more a choice it is a need.
Objection
5
I do not need Life Insurance.
No Objection Movement
By Product Development
Solution Capsule
A. Guarantee comes at a cost
Guarantee caps your return potential. Guarantee affects liquidity of the asset. Guarantee limits you to take benefit from different asset classes. Guarantee gives you satisfaction only at the point of investment. When you get your money back, you may realize that others have gained by investing in products without guarantee. If investment decisions are based on Guarantee only, then everyone would have invested in Fixed Deposits only. When you work hard for money, your money should work harder for you. Why settle for less? No Risk No Gain.
Objection
6
Bank gives Guaranteed returns at 10%.
No Objection Movement
By Product Development
April 7, 2009
Solution Capsule
A. Health Plans are for TOTAL peace of mind
Health Plans provide you with cashless facility while Health Riders dont. Health Plans cover the actual expenses incurred, while Riders would give you a specified amount only as claim. Health Plans provides you with a network of hospitals ensuring quality Health Care for you. Health Plans cover you at older ages compared to Health Riders.
Objection
With the soaring medical costs, a Health Rider only will not suffice.
7
Why should I take a Health Plan, when I can get Health Riders with ULIPs?
No Objection Movement
Solution Capsule
A. Liquidity of Insurance weakens your protection and economic value
What do you value more - protecting yourself and your family or option of liquidity? Liquidity does not ensure good returns. Insurance provides you targeted amount for specific events in life like marriage, education, retirement, etc. Insurance is aimed to preserve your economic value even in your absence. You are so concerned about liquidity to meet contingencies of your day-to-day life. Think about the money one will require in case of an eventuality in future. Insurance is meant for compensating the financial loss due to death, disease and disability. Do you ask for liquidity while insuring your vehicle?
Objection
8
There is no liquidity in Insurance.
No Objection Movement
By Product Development
Solution Capsule
A. Bonus is a non-guaranteed component of a plan
Are you looking at current Bonus Rates or average Bonus Rate as bonuses declared every year are different? Bonus Rate may fluctuate. Bonus declared 5 years back may not be given today. Higher Bonus Rate may not necessarily mean higher maturity benefit.
Objection
9
Bonus Rate is less than LIC, then why should I buy traditional plan from you?
Most of LICs plans give SRB like Jeevan Anand, Jeevan Dhara but all of the BALIC plans give CRB so it will not be an apple to apple comparison. In CRB platform less % of bonus = Higher % of bonus in SRB. BALIC gives CRB. So your money increases exponentially with the passage of time. CRB gives you Bonus on Bonus. Rather than looking at todays benefit, look at long term benefit that a BALIC traditional plan can fetch you with CRB. If unfortunately you have to surrender your plan or use it as collateral, you will find that the surrender value of our plan would be good because of CRB.
No Objection Movement
E. Better Features
We have a more innovative and comprehensive product basket. Our product portfolio caters to all your requirements. FIB is a unique rider that we provide you with, which no one else provides. Limited premium payment option. Our High Sum Assured Rebate is one of the best in the industry. Expertise of Allianz is 120 years old in industry. Being highly transparent, we have our Benefit Illustration on website, LIC doesnt have. We also have our product brochures available on website but LICs are not available on their website. We charge reasonably and give adequately.
By Product Development
May 5, 2009
F. Customer orientation
For a good investment product experience, you should buy BALICs product. Our customer service is one of the best in the industry.
Solution Capsule
A. Stringent regulations to protect interest of policyholders
Regulatory framework ensures that players in the market remain healthy. IRDA keeps an eye on operations of insurance companies and guide, counsel and direct them. Regulations are formulated in such a manner that insurance companies stay afloat under any circumstances. Insurers are required to have a start-up capital of Rs. 100 crores. Insurers are required to maintain 150% of solvency margin which is monitored by IRDA. IRDA periodically verifies valuation records of all the insurance companies. Investments of policyholders money by an insurer are also guided by IRDA. An Appointed Actuary ensures that the companys actions fulfill the requirements as approved by IRDA. The regulatory framework is evolving and every step taken ensures sustainence of existing players. If you look at present financial scenario, government across the world have intervened to keep insurance and banking companies healthy and sound, it is because they are the backbone of the economy.
Objection
10
What is the surety that your company will exist for next 15 - 20 years?
B. Role of Ombudsman
Ombudsman act as protection for the policyholders. Ombudsman ensures that policy level grievances are well attended.
No Objection Movement
By Product Development
Solution Capsule
A. Are you really over insured?
Have you calculated your Human Life Value? Your very idea of being over insured may be misleading. Human Life Value shows immediate financial needs of dependents in case of untimely death of a person. Your life cover should be equal to your Human Life Value. Is your present life insurance policy enough to take care of your present liabilities? If no, then you are not over insured. Keep re-evaluating your life insurance need to make up the mismatch between the present earnings and future liabilities. While deciding on your level of insurance make sure you are provisioning for 1) Standard of Living 2) Inflation 3) Income. Have you made enough provision so that your family continues to maintain the same lifestyle even if you are not there? The only thing constant in this world is change. With changing life pattern, your insurance needs will also change. Most of the insurance plans that people buy, generally mature at 50/60 years of age. However, insurance coverage is required even at advanced ages. The problem is that today you think you have enough provision and tomorrow you repent, that you should have done more.
Objection
11
I am already over insured.
No Objection Movement
By Product Development
C. Life Insurance provides you host of additional coverages May 19, 2009
Reinforce your health coverage through health plans. Critical Illness rider provides extra coverage against specific critical diseases. Fortify your coverage with additional accidental protection.
Solution Capsule
A. Role of IRDA
Functions to protect the interest of policyholders. Monitoring insurer and doing audit is one of the primary functions of IRDA, so that customers interest is met and IRDA guidelines are adhered to. Regulator is autonomous. It exercises control over insurance companies at every level - Operation - Formation - Valuation - Reporting. IRDA controls not only the Insurer but also its distributors (agents, training and licensing are regulated).
Objection
12
Regulators are not effective. Look at SEBI and RBI.
No Objection Movement
C. IRDA is trustworthy
IRDA suggests of Trust, Transparency and Technology. IRDA is formed by an act of Parliament. Till now no scam has taken place in the insurance industry. Globally, the regulators follow the highest standard of procedural, ethical and transparent methodology and openness. I agree that when seen from consumers side the biggest issue is one of regulatory arbitrage. Let me assure you that IRDA is very strict. IRDA is staffed by people who are technically qualified and have quite a rich experience in the industry. You cannot afford to distrust the regulator. Do you accept a Rs. 10 note not signed by RBI Governor?
By Product Development
Solution Capsule
A. Financial Security for Self
It is a myth that insurance is taken only for dependants. Insurance plan is an asset for you. You not having any dependents make it even more crucial for you to ensure your financial independence at the earliest. Insurance makes you self-sufficient. You will not have to depend on anybody and you will be living your life with self respect.
Objection
Insurance provides you growth, safety of funds, liquidity and above all protects you from unforeseen eventualities which can harm you financially. Insurance is a forced saving for you. Average life span has increased. Outliving your saving is a big risk. You need good financial planning to cover yourself against this risk. Planning today will help you pursue your dreams tomorrow. Financial security gives you peace of mind. You can even pledge your insurance policy as collateral for loan. Insurance, being a tax-efficient tool, will help you in tax planning.
13
I do not have any dependants.
No Objection Movement
By Product Development
Insurance liberates you from financial constraints where you are free to choose the quality of your life. A regular income post retirement is a must. It is better to make provisions now. Financial independence will be of utmost concern post retirement. You can choose a pension plan depending upon your requirements. We have pension plans with and without life cover. Pension will help you lead your retired life with dignity. A regular pension means No tension.
June 2, 2009
Solution Capsule
A. Coverage by employer should not be your primary cover
What if you are in the transition phase of shifting to another employer? You are not covered in the interim period. What if your employer decides to call-off the facility tomorrow? Usually coverage at workplace is only certain times of your basic salary. You may be underinsured at workplace. Evaluate your needs and insure yourself accordingly. You should look for comprehensive protection for yourself. Coverage should be adequate to support your family financially. Your Human Life Value should be the basis of your coverage.
Objection
14
I am covered at work.
No Objection Movement
Have you come across anyone who is only dependent on the cover provided by the employer? Individual plan - You are the owner. Will you not buy a car/bike of your own even if your employer offers you pick and drop facility? You need to review your life cover and continuously enhance the same. Workplace cover does not provide you that. Your individual plan can cover you for Critical Illness and provide lump-sum benefit which your workplace cover cannot provide. Having a health plan of your own gives you cover in situation of service gaps.
By Product Development
Individual Insurance plan will ensure the attainment of your goals whether you are there or not there.
June 9, 2009
Solution Capsule
A. ULIPs are more convenient
Why do you want to go for 2 different plans when you can get advantages of life cover and investment in the same plan under ULIP? In a pure term plan, you do not get back anything at maturity. Failure to make timely payment of premium in term plan shall lead to ceasing of benefits and shall attract interest on revival. ULIPs ensure continued cover even if you fail to pay your premium. Mutual Fund + Term Plan do not offer flexibility of adjusting life cover so you pay more cost of insurance even if your life cover need has reduced. Re-instatement of ULIPs is hassle-free. The charge calculation in mutual fund is not as transparent as in ULIPs. Sum total of features and benefits offered by ULIPs is much more than mutual fund + term plan combination. It is better to buy a home theatre rather than buying speaker, DVD, TV individually. One can easily reach an insurance company like BALIC because of our wider reach and number of offices compared to a fund house.
Objection
15
Mutual Funds + Term Plan is better than ULIPs.
No Objection Movement
By Product Development
Solution Capsule
A. Insurance helps you in present and future
Loans help you to enjoy the lifestyle you want. But insurance help you to sustain that lifestyle. The cost of living tends to increase with each passing year. Loans can be the solution to your immediate need. But insurance is designed for needs in future. You dont want to leave your family with all the liability. Insurance ensures that the loan does not become a burden to the borrowers family.
Objection
16
I have loans on me. I cannot afford to buy insurance.
No Objection Movement
By Product Development
With insurance, you can plan a targeted amount in future and the question of loan will not arise. Even by contributing as low as Rs. 30 per day, you can plan your future. Dont we save that little extra to buy a car? Then why dont we go that extra mile for insuring our lives.
It is wise to increase an appreciating asset - Insurance. Your loan raising ability reduces with age. In future, you have to be more dependant on the pool of fund that you have created. Two things can kill you worry and hurry. Insurance can save you from worry.
Solution Capsule
A. Fixed deposit is not alternative to insurance
Comparing Fixed deposit and Insurance is not an apple-to apple comparison as objectives of both these instruments are different. If your objective is to get protection + returns, then Fixed deposit may not be able to help you. For investment + protection, you should go to an Insurance Specialist and Bajaj Allianz is the one. How do you take care of a Guaranteed Uncertainty - DEATH? Insurance will take care of this uncertainty from very first year.
Objection
17
Fixed Deposit is a better option considering current market scenario.
D. Think long-term
No Objection Movement
Thinking long-term is the key to manage your investments. In shorter term, you will always see that value fluctuates. In long-term, all the investment avenues give positive returns be it real estate, gold or insurance. Ups and Downs are a way of market functioning. Time tested formula to beat volatility is to invest regularly and stay invested.
By Product Development
Solution Capsule
A. 10(10D) cannot be the sole motive of taking a life insurance policy
Tax free maturity under 10(10D) is only one aspect of life insurance. Insurance is a risk mitigation tool. Can you afford to remain uncovered or stop planning about your childs education just by wondering about the fate of 10(10D)? Tax planning cannot surpass your personal financial plan for which, life insurance is a vital tool.
Objection
Interest on fixed deposits attracts TDS. Have you stopped investing in fixed deposits?
18
10(10D) may be removed/ altered by Government tomorrow. What if it is not there at the time of policy maturity?
Since Life Insurance is the most efficient tool for mobilization of money and helps the economy in Capital formation. Since India is yet to have a proper social security net, life insurance industry shall be continued to be patronized by the Government. Since, indirectly Government gets revenue from life insurance like service tax, stamp duty, corporate tax, etc. Thus removal/ alteration of 10(10D) will impact Government too.
No Objection Movement
Removal/ alteration of 10(10D) will be a contradiction to the legal provisions of Married Womens Property Act.
By Product Development
Till now, no tax laws have come into force in a retrospective manner. Thus, we may assume that the life insurance policies issued today will not be impacted. Even if 10(10D) is removed, entire maturity proceeds cannot be taxed, since it consists of premium paid by the Policyholder/ life assured also.
As Insurance industry has greatly helped in the development of capital markets (debt and equity markets), removal/ alteration of 10(10D) will negatively impact the same.
Solution Capsule
A. Insurance is for uncertainity
Insurance is a means to mitigate risk. How about reviewing your insurance needs? It is important to have adequate protection along with adequate money so that you and your loved ones do not suffer heavy financial loss. You are saving/ investing today for your future, but what if the future does not turn out to be as planned?
Objection
It is important to calculate the cost of NOT LIVING. Insurance is about covering this cost.. You may have covered yourself of the existing liabilities but what about future commitments or ''out living your saving'' ? The family needs a steady flow of income in case of unfortunate demise of a earning member . Insurance is not about adequacy of money. It is about provisioning for uncertainties.
19
I have adequate money.
No Objection Movement
Insurance helps you in mitigating the increasing cost of living. It will help you against rising medical costs. You have to put a very little part of your money in buying a plan. The benefits it will deliver are manifold. It is the best way to pass inheritance.
Solution Capsule
A. Most people feel like this
Once we discuss your financial need, I will surely be able to offer you something better. If we can talk for another 5 minutes, I can help you in taking a logical decision to buy now or later. Time is an important factor in insurance because your Human Life Value and future cost of living change with every passing year. Thus it is wise to keep on reviewing.
Objection
I promise I will not insist on you buying insurance. I also promise you that giving me a few minutes to talk will not be a waste of your time. Have you taken a plan that takes care of both your cost of not living and also risk of out living your savings?
20
Not interested to take this policy now. Will buy later.
No Objection Movement
Postponement might result in loss. As you defer, the Cost of Insurance increases. Failing to PLAN is planning to FAIL.
By Product Development
I agree that most people are reluctant to buy insurance but it should be an important part of your investment portfolio. What you can do with Rs. 10,000 today, you will need Rs. 20,000 tomorrow to do the same thing. Have you planned for this?
Decision making becomes easy when you have number of choices. Even if you buy later, you have a host of options with BALIC. You can have plans ranging from pure protection to pure investment. BALIC plans help you manage your money better.
Solution Capsule
A. What is Savings?
We follow income minus expenses equal to savings. However, we should follow income minus savings equal to expenses. If money is scarce today, so it will become more scarce tomorrow. Have you experienced a situation where you did not have any money at all? Think what will happen when our earning capacity gets reduced due to retirement or old age. The day to start investment in lump-sum will never come.
Objection
We all know that drops of water make an ocean but we fail to follow the same. If you seriously think about your present and future commitments, I am sure you will like to manage money better. Would you like to live a life where you are in a situation of constantly worrying about money? If you think that you dont have money - then it is the right time to change the situation to say I have money.
21
I dont have money.
No Objection Movement
Imagine the feeling of comfort and confidence when you actually know that you have money to fulfill dreams of your loved ones.
By Product Development
You need to prioritize now on how you want to use your money. Your todays decision bears tomorrows results.
Lost opportunities are never re-gained. Thus it is better to start now. Lack of financial planning can upset your lifestyle because of increase in cost of living and health care. Not having money calls for more insurance so that I do not suffer in case of health or accidental contingencies and my family is also financially secured.
Solution Capsule
A. IRDA regulated insurance company Government has control over sectors which are privatized. They have
specialized regulatory bodies like RBI for Banks, TRAI for Telecom and IRDA for insurance.
Objection
Regulation provides a level playing field for all insurance companies. So decision
based on how safe a company is not relevant.
22
BALIC is a private company.
No Objection Movement
We understand your insurance needs and provide you a plan that meets your needs. Perception is the deciding factor here. Being a private company makes us all the more responsible and watchful towards policyholders interest. Private insurance industry in India has tested positive for Growth steroid. Why 80C/ 80D/ 10 (10D) benefits are given on policies of a private player like us, if we were not under proper regulation of Indian laws? A research shows that 62% of our policyholders are our Brand Fan.
Our number of branches itself proves that we are here to stay and not run away. Being highly transparent, we have our product brochures and benefit illustration on website. Lacs of customers in 8+ years bears a testimony that BALIC as a brand commands enormous trust and credibility. Our Asset Under Management is Rs. 23,136 crore as on June 30th 2009.
Solution Capsule
A. Pension is a regular income post retirement Unlike Fixed Deposits, your Pension is a regular income. Immediate Annuity
plan guarantees regular income (Pension) for life. The average lifespan is increasing; therefore there is greater need for regular income. One can have it through Immediate Annuity plans only. Immediate Annuity plan offer the convenience of invest and forget.
Objection
What is it that you value in old age - safety, security or growth? Immediate annuity is the best tool to ensure safety and security. Stability of income is important in old age. When you are assured of a regular income, it is always easy to plan your day-today expenses.
23
Why to purchase Immediate Annuity when the rate of return is lower than Fixed Deposits?
No Objection Movement
By Product Development
Fixed Deposit is for specific time frame and the proceeds needs to be re-invested with the risk of having low interest rate on re-investment. Fixed Deposits have credit risk.
Solution Capsule
A. Comparing right Fund and the right time frame
Compare return of the Funds which has similar asset profile and objective. One should look at long-term for performance rather than short-term. One should not compare return across different time frames. 1 month return of a fund against 3 months return of another fund is not an apple to apple comparison. Before comparing two different Funds, we should make sure that they have the same underlying assets and risk profile.
Objection
Comparing Funds is not as easy as it may appear to be. One has to make sure that the right funds are compared.
24
Fund growth rates are lower than other companies.
Consistent returns are the key to build corpus over a time horizon.
No Objection Movement
It is important to focus on Risk adjusted returns. A large-cap fund may show good performance for a short while by adding high-beta stock to its portfolio but during bad times, the returns may go away. While deciding on a fund, it is important to see how well the fund is managed in terms of preserving value in bad market condition. Comparing funds in both rising and falling market is more relevant. Protecting value is equally important as earning returns.
It is of no/ little use if funds of a 20-year policy perform remarkably well in the first 2 years and bad during last 5 years. Long-term performance is the true value added to the customer. We target objectives of life like retirement, childs education. We need to see long-term and thus short-term volatility is irrelevant.
Solution Capsule
A. Guarantee comes at a cost
You should realize that in a guaranteed plan, your exposure is kept low to avoid losing money. Risk and return go hand in hand. Higher the risk, higher the return. The premium of traditional products is invested carefully to match the guarantee and therefore gives less return. The kind of plan that you opt for depends upon your risk appetite. Guarantees are more attractive for risk adverse people who want to secure a minimum guaranteed return. Returns of a guaranteed plan are less if plan is opted at a higher age.
Objection
25
Guaranteed returns are low in traditional plan.
No Objection Movement
Though guarantee comes at a cost, they are more beneficial in volatile environment. It is a myth that only a plan with high guaranteed component helps you get a good maturity value. One should calculate Internal rate of return i.e. IRR. Maximum benefits are shared with you in traditional plans. The investment mandate of traditional plan is regulated. Just the way saving is as important as earning, preservation of value is as important as earning high returns. Traditional plan offers you the vehicle of asset preservation.
Solution Capsule
A. Invest Plus has proved to be a unique product Invest Plus gives you the twin advantage of investment and life cover with
GUARANTEE.
Along with guarantee, Invest Plus offers a host of very attractive features and
benefits.
Objection
26
What is the surety that Guaranteed Investment Return (GIR) in Invest Plus will not go below 7%?
No Objection Movement
By Product Development
Since GIR declared for a financial year is fixed, thus you can time your additional premiums to take advantage of the same.
Strictly for internal training purpose. Insurance is the subject matter of the solicitation.