Guess Who? Sachin Tendulkar: Alternate Channel Training

Guess Who?
Sachin Tendulkar
Alternate Channel Training
Journey into Sachins Life
Sachin s Life Journey..

Just like Sachin, every individual passes through different life stages
The Stages In Human Life Cycle

0- 25 Years dependent on Parents for everything 25 30 Years pressure of Job & Marriage
30-60 Years pressure of Childrens Education & Marriage
60 - 80 Years Retirement & old age
My Fears
DEATH DISEASE
DISABILIT Y
DESTITUTIO N
The M factor
MONEY..
Inescapable truth that money is means to many an end.
EDUCATION
HOUSE
FOUR WHEELER
EARLY RETIREMENT
Similarly in your case, you also have gone through different life stages
School College Work
What were the expenses in each life stage?
Similarly what will be your expenses later on in your life ?

Financial Goals to achieve in the coming years
5 -10
10-15
15 +
Is there a solution for the same?

Earn Wisely
Dont care
No Time
Save Regularly
Invest Smartly
No Discipline No Knowledge
o o o o o o o o o o o
Gold Real Estate Shares Equity Mutual Fund Public Provident Fund Government Bond & Securities National Savings Certificate Post Office Savings Scheme Insurance Banks Savings account & Fixed deposits
Investment options available in the Market
Financial Pyramid
Retirement
Wealth
Childs Education/Marriage
Life Insurance & Health Insurance

Concept of Card Pyramid
This is a pyramid made of cards What would happen if one card is removed from bottom?
Same concept applies while planning for various financial goals.

The Financial Pyramid

Financial planning continues as long as we make investments and till the goal is achieved But it gets affected or even stops in case of health expenses or unfortunate event of death.
Life Insurance and Health Insurance forms the foundation for any financial plan.
Integrated Approach to Financial Planning

Cash Protection
Planned / Unplanned
Family Protection Protection against disability Protection against Dreaded diseases
Integrated Financial Planning

Investment
Retirement Children Education Asset creation
Various investment options to create wealth
How about a journey into life
Choice is yours
nf U
r o
se e
n e
f n
r o
se e
n e
Yield
nf U
re o
se
n e
Inflation 3 Ds
Emergency
U f n r o s e
en e
Opportunity
You
Possibly dont have any control
We are puppet in the hands of Unforeseen & Uncertainty
We wait mercilessly For our turn to come
Protect the family from Unforeseen & Uncertainty

We require money all the way Money while we Live Money for Opportunities in life Money for the D factor Money for Emergencies
Unforeseen + Uncertainty = LODE (of life)
In which life stage do you think LODE does not exist ?
A g e
Infancy
Life Stages
Growth Adulthood
Old age
LODE runs parallel to life line
A g e
Infancy
Life Stages
Growth Maturity
Decline
No Escape
P rovision & P rotection

But for
Power of Life Insurance

Insurance is a mechanism that helps to reduce the effect of such adverse situations.
An Insurance Agent explains concept of Insurance and helps them buy the ticket for the BIG SHIP
Insurance is always
SOLD
never
BOUGHT
Need is Provision + Protection = Life long
Insurance is NOT Investment Insurance is BETTER than Investment
How Insurance Works?
In a village there are 400 houses, each valued at Rs 20,000. Every year on an average, 4 houses get burnt, resulting into a total loss of Rs 80,000.
Insurance as a Risk sharing Device

People exposed to the same risk come together and agree that if any one member suffers a loss, the same will be shared by others, who will make good to the person who lost
Larger Impact
Unfortunate Few
Fortunate Many
Larger Impact reduced to smaller manageable impacts
Purpose & Need of Insurance

The damage due to the perils is the Risk the asset is exposed to
Peril Damage/ Financial loss
Cannot be prevented
Asset
Risk can be insured against
Insuring Human Life

Human Being is an Income Generating Asset
It can be lost due to early death It can be Non Functional due to Accident or Sickness
Insuring Life
Risk for Human beings
Dying too Early
Living too Long
Economic Loss
Principles of Insurance
Life Insurance Contract Principle of Utmost Good Faith (Uberrima Fides) Insurable Interest
The Indian Contract Act 1872

A contract is an agreement between two or more parties to do or to abstain from doing an act and which is intended to create a legally binding relationship
An Agreement enforceable by Law is a contract
Essentials of a Valid Contract
Essentials of a valid Contract
The Life Insurance Contract
Insurer will pay claims
Agreement
Insured will pay Premiums
On happening of insured event or survival to a specified term
Principles of Life Insurance
Utmost Good Faith
Insurable Interest
Insurance Contract is based on Fair Play
Utmost Good Faith

Positive Duty to voluntarily disclose, accurately and fully, all facts material to risk being proposed, whether requested or not.
Utmost Good Faith is also called Uberrima Fides
What is a Material Fact ?
Any Fact or Circumstance
Which Influences
The Mind of a Prudent Underwriter
In Fixing the premium
In determining whether to take the risk
What is Insurable Interest ?

Relationship with subject Matter Recognized in Law and gives Legal Right to a person
To insure that Subject Matter

Insurable Interest is the monetary interest
Who have Insurable Interest in each other?

Any person has unlimited insurable interest in himself Husband and wife in each other Creditor on Debtor (To the Extent of Outstanding Mortgage with Interest) Surety on Principal (To the extent of Debt) Partners in business Employer on its employees Parents in Lives of their Minor Children
When do these Principles apply ?

Insurable Interest interest is required at the time of entering the contract Utmost Good Faith is required Throughout the contract
Terminology of Insurance
Rs.10,00,000
Sum Assured Maturity Benefit SA + Bonus 55 Yr Maturity Benefit Death Benefit Premium SA + Bonus
Policy Term 25 Yrs 30 Yr Entry Age
Type of Products in Life Insurance

Traditional Plan Term Plan Endowment Plan Money Back Plan Children Plan Pension Plan Health Plan
ULIP Plan
Regular Premium Single Premium
ULIP - Terminology
Premium
Allocation Charges
Mortality Charge
FMC
Admin Charges
No. of Unit Net Allocation in Fund NAV Death Benefit NAV X No of Units Fund SA / Fund value
Maturity Benefit

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Guess Who? Sachin Tendulkar: Alternate Channel Training

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Guess Who?

Alternate Channel Training

Journey into Sachins Life

Alternate Channel Training

Sachin s Life Journey..

Alternate Channel Training

The Stages In Human Life Cycle

30-60 Years pressure of Childrens Education & Marriage

60 - 80 Years Retirement & old age

Alternate Channel Training

What were the expenses in each life stage?

Similarly what will be your expenses later on in your life ?

Financial Goals to achieve in the coming years

Is there a solution for the same?

Investment options available in the Market

Life Insurance & Health Insurance

Concept of Card Pyramid

Same concept applies while planning for various financial goals.

The Financial Pyramid

Alternate Channel Training

Alternate Channel Training

Integrated Approach to Financial Planning

Family Protection Protection against disability Protection against Dreaded diseases

Integrated Financial Planning

Retirement Children Education Asset creation

Various investment options to create wealth

How about a journey into life

Alternate Channel Training

Alternate Channel Training

Alternate Channel Training

Possibly dont have any control

Alternate Channel Training

We are puppet in the hands of Unforeseen & Uncertainty

Alternate Channel Training

We wait mercilessly For our turn to come

Alternate Channel Training

Protect the family from Unforeseen & Uncertainty

Alternate Channel Training

Unforeseen + Uncertainty = LODE (of life)

Alternate Channel Training

In which life stage do you think LODE does not exist ?

LODE runs parallel to life line

Alternate Channel Training

P rovision & P rotection

Power of Life Insurance

Alternate Channel Training

Alternate Channel Training

Need is Provision + Protection = Life long

Alternate Channel Training

Insurance is NOT Investment Insurance is BETTER than Investment

How Insurance Works?

Insurance as a Risk sharing Device

Larger Impact reduced to smaller manageable impacts

Purpose & Need of Insurance

Peril Damage/ Financial loss

Insuring Human Life

Dying too Early

Living too Long

The Indian Contract Act 1872