Appendix-1 Comparison of Traditional Products

Transcription

1 LIST OF APPENDICES

2 Appendix-1 Comparison of Traditional Products PRODUCT COMPARISON - TRADITIONAL Plan / Type of Plan LIC - Jeevan Nidhi Traditional - Deferred Annuity with life cover LIC- New Jeevan Suraksha- I Traditional Deferred Annuity Plan SBI Life - Lifelong Pension Plus Traditional pension plan TATA AIG Assure Golden Years Traditional deferred annuity Term Premium Payment Mode 6 to 35 years under Single Premium policies and 5 to 35 years under Regular Premium policies Yearly, Half-yearly, Quarterly, SSS & Single Premium Yearly, Half-yearly, Quarterly, SSS & Single Premium Min 5 years Max 40 years Single or Regular payment You can contribute additionally during the policy term. Monthly, Quarterly, half yearly, yearly Monthly / Quarterly / Half yearly / Annually Entry Age Min 18 Max 65 min 18 yrs and Max 65 yrs Min 18 Max 50 Maturity Age Min 40 Max 75 Min 40 yrs Max 70 yrs Sum Assured Premium Amount Rs.50,000/- and in multiples of Rs.5,000/- thereafter, with no upper limit. Min Annual Premium Rs. 3,000 Min Single Premium Rs. 10,000 Min SA Rs. 50,000 Max Rs. 10 lacs Annualized min prem amount for Regular - Rs. 7,500 Annualized max prem amount for Regular - No limit Annualized min prem amount for single - Rs. 50,000 Annualized max prem amount for single - No limit Additional contribution amt Min Rs, 2,000 Max No limit Minimum Rs. 25,000/- 367

3 Appendix-1 Comparison of Traditional Products Retirement Benefits Death Benefits LIC - Jeevan Nidhi Option to commute upto 1/3 of the vesting amt. which shall include SA, accrued guarantee additions, bonuses Annuity on the balance amount if commutation is exercised, otherwise annuity on the full amount On the death of the Life Assured during the deferment period of the policy, i.e. before the annuity vests, an amount equal to the SA under the Basic plan along with the accrued Guaranteed Additions, simple Reversionary Bonuses and Terminal Bonus, if any, will be paid in a lump sum to the appointed nominee, provided the policy is in force for full SA. Nominee will also have the option to purchase an annuity with this amount. LIC- New Jeevan Suraksha- I At maturity the policyholder can encash up to a maximum 25% of the maturity proceeds as a tax-free lump sum. The balance should be compulsorily converted to an annuity at the rates applicable at the time of maturity of the policy. On death of the Life Assured during the term of the policy the basic premiums paid, excluding any rider premiums or extra premiums, up to the date of death accumulated with interest at such rates as decided by the Corporation will be payable to the nominee. Currently, the interest rate is 3%, 4% or 5 % if the death occurs within the first 10 years, 20 years or thereafter respectively SBI Life - Lifelong Pension Plus Option to prepone or postpone the vesting age. If death occurs the accumulated FV will be paid to the Nominee or legal heir. Term cover SA if opted for is also payable and the policy terminates thereafter. TATA AIG Assure Golden Years Sum assured on maturity. Guaranteed addition of 10% in case of death or on maturity if the policy is in force for 10 yrs. On death nominee will get sum assured. 368

4 Appendix-1 Comparison of Traditional Products Options of Taking Pension LIC - Jeevan Nidhi Annuity for life - till the person is alive Annuity Guaranteed for certain periods - annuity is paid for 5,10,15, 20 yrs as chosen whether survives or not. After this period the Annuity is paid to the person as long as he/she is alive. Annuity with return of purchase price on death: The annuity is paid to the life assured as long as he/she is alive. On the death of the life assured, the purchase price of the annuity is paid as death benefit.the amount is increases every year at a simple rat eof 3% per annum Joint Life Last Survivor Annuity: The annuity is paid to the life assured as long as he/she is alive. On death of the life assured, 50% of the annuity is payable to the nominated spouse as long as the spouse is alive LIC- New Jeevan Suraksha- I (i) annuity payable for remainder of life (ii) annuity payable for life with guaranteed period of 5, 10, 15 or 20 years (iii) Joint life and last survivor annuity to the annuitant and his/ her spouse under which annuity payable to the spouse on death of the purchaser will be 50% of that payable to the annuitant (iv) Life annuity with a return of purchase price on death of the annuitant (v) Life annuity increasing at a simple rate of 3% per annum SBI Life - Lifelong Pension Plus i) Purchase annuity plan for the entire amount ii) commute upto one third of FV as lump sum and the Balance can be used for the purchase of annuiy. iii) 2% discount if annuity is purchased from SBI Life. TATA AIG Assure Golden Years Guaranteed Rs. 50 per thousand SA for each completed year for the first five years From 6th year the bonus will get. 369

5 Appendix-1 Comparison of Traditional Products LIC - Jeevan Nidhi LIC- New Jeevan Suraksha- I SBI Life - Lifelong Pension Plus Riders Choice of Add on covers e.g. Term cover, Total Permanent Disability cover In Total Permanent Disability cover if the person is incapacitated then the SA will be paid TATA AIG Assure Golden Years Term benefit, accident benefit, disability benefits, critical illness benefits with a nominal extra charge. Bonuses Simple Reversionary Bonuses are declared per thousand Sum Assured annually at the end of each financial year. Once declared, they form part of the guaranteed benefits of the plan. Final (Additional) Bonuses may also be payable provided policy has run for a certain minimum period. Guaranteed additions of 10% of annual premium on 15th policy anniversary and 10% of annual premium on every 5th policy anniversary thereafter in case of regular premium policy whereas single premium policy 1% of single premium every on 15th anniversary and 1% of single premium on on every 5th policy anni. Thereafter. Reversionary and terminal bonus. Death and maturity benefit may further be increased by way of bonuses depends on actual company s performances. Tax Benefits The premiums are exempt under section 80CCC of IT Act. Tax relief under Section 80ccc is available on premiums paid under New Jeevan Suraksha I 80 C At the vesting 1/3rd of the amount received under commutation is exempt u/s 10(10A)(iii) of IT Act As per current IT law 370

6 Appendix-1 Comparison of Traditional Products LIC - Jeevan Nidhi LIC- New Jeevan Suraksha- I SBI Life - Lifelong Pension Plus TATA AIG Assure Golden Years Surrender The policy may be surrendered after it has been in force for 2 years or more but before the vesting date. The guaranteed surrender value is 90% of the basic premiums paid excluding the first year s premium. In case of a single premium policy the guaranteed Regular Premium: 1st-NA, 2-15%, 3-10%, 4-5%, 5-5%, 6-3%, 7-3%, 8,9,10-2%, 11-1% Single Premium 1st-NA, 2-5%, 3-4%, 4-3%, 5-2%, 6,7,8,9,10-2%, 11-1% Guaranteed cash value of poliy is equal to 30% of the total amount of premium of basic policy paid, excluding 1 st yr premium and all extra premium of basic policy provided premium has been paid for at least 3 consecutive years. surrender value is allowed after 2 years from the date of commencement of the policy. Loans Loan is not available Automatic premium loan in case you are unable to pay the premium within the grace period, it will be advanced as an automatic loan. Charges Charges for Regular premium: 1st Year for prem. Upto Rs.49,900/- 15%p.a. of the annual prem. Above Rs. 50,000 and above 12% p.a. of the annual prem. 2nd year onwards 4% of annual premium Additional prem contribution allocatin charges 3% Charges for Single Premium: 1st year for prem upto Rs.199,900-4% of the single premium For premium Rs.200,00 and above 3.50% of the single premium. 2nd year onwards - No charge 371

7 Appendix-1 Comparison of Traditional Products LIC - Jeevan Nidhi LIC- New Jeevan Suraksha- I SBI Life - Lifelong Pension Plus TATA AIG Assure Golden Years Other Reduced paid up value- this benefit comes into effect if 3 annual premiums paid wherein SA is reduced in proportion to the no. of premiums actually paid to the total no. of premiums payable. On maturity or in death a reduced SA would be payable. Reduced amount does not participate in any future bonus and guaranteed addition. Reinstatement: within 5 yrs after the due date of first unpaid premium. 372

8 Appendix-2 Comparison of ULIP products PRODUCT COMPARISON - ULIP Plan / Type of Plan LIC Pension Plus ULIP- deferred pension plan (No Life cover) TATA AIG Life Invest Assure Future Unit Linked SBI Life - Smart Pension Unit linked deferred Pension plan Premium Paying Term Min 10 years 10 yrs / 15 yrs / 20 yrs / 25 yrs Premium Payment Mode Monthly, Quarterly, half yearly, yearly (through ECS) single premium can be paid Single / annually / semi-annually / quarterly / monthly Regular Min 10 Max 35 yrs Single lump sum Entry Age Min 18 Max 75 Regular prem Min 18 max 65 Single prem Min 18 Max 70 Maturity Age Min 40 Max 85 Regular prem Min 45 max 75 Single prem Min 45 Max 75 Sum Assured Min.Rs. 15,000 p.a., Rs. 1,500 p.m. Single premium Rs. 30,000 Max Rs.1,00,000 p.a. Single premium no limit Single premium Min 30 yrs Max 65 yrs Min 45 yrs Max 75 yrs Premium Amount Min.Rs. 15,000 p.a., Rs. 1,500 p.m. Single premium Rs. 30,000 Max Rs.1,00,000 p.a. Single premium no limit Min. Regular Rs. 10,000/- Min Single Rs. 25,000/- Min Rs. 50,000 Max - No limit 373

9 Appendix-2 Comparison of ULIP products Retirement Benefits LIC Pension Plus Guaranteed interest shall accrue on the gross premium including top-up premiums at the end of financial year. Min 3% and Max 6% int rate. The minimum guarantee rate of 4.5% p.a. is applicable to all premiums received upto including top-ups No partial withdrawal is allowed TATA AIG Life Invest Assure Future Option of future capital guarantee is a twin benefit of market linked returns and capital guarantee. Maturity Benefit: total fund value, top ups if any with guaranteed bonus. 1/3 lump sum with guaranteed bonus is tax free and remaining to purchase annuity. SBI Life - Smart Pension Guaranteed amount of maturity or vesting Minimum guaranteed return of 4.5% per annuam (on gross prem) The guaranteed interest rate shall be50 basis points above the average of the reverse repo rate prevailing as on last working day of June, September, December and March. Phased retirement income (option to take multiple single premium policies) Death Benefits No life cover. Nominee will receive total fund value, top-up premium with guaranteed bonus. Capital guarantee is not applicable in case of death / surrender / lapsation If death occurs the fund value is payable in lumpsum to the nominee or legal heir of the the policyholder Options of Taking Pension Option to commute max 1/3 on fund value and guaranteed maturity proceeds in the event of vesting if policy is discontinued or surrendered within 5 yrs from the date of commencement i) Purchase annuity plan for the entire amount. ii) commute upto one third of fund value as lump sum and the balance can be used for the purchase of annuity. You can avail 2% discount on annuity purchase price if buy from SBI life. 374

10 Appendix-2 Comparison of ULIP products LIC Pension Plus TATA AIG Life Invest Assure Future SBI Life - Smart Pension Bonuses Guarantee bonus: yrs 3%, yrs 4.5% yrs 6% yrs 7% Tax Benefits 80 CCC Under Sec. 80 CCC and 10 (10A) iii of Income Tax Act 1961 Surrender Discontinuance charge: Annual premium below 25,000 : 1st yr - max. Upto 2500/-, 2nd year - max upto 1,750, 3rd year - max upto 1,250 4th yr - max upto 750/-, 5th and thereafter nil Annual premium above 25,000: 1st year max upto 6,000/- 2nd year - max upto 5,000, 3rd year - 4,000 4th year - max 2,000 and 5th and onwards - nil No discontinuation charge for single premium If surrender before lock in (i.e. 5 yrs) then the fund value at the time of surrender request is disinvested and credited to Discontinued Policy fund, there are no surrender charges. surrender value plus investment income accumulated subject to min. of 3.5% p.a. be credited to Discontinued Poicy. If death occurs before the payment of surrender value then the death claim is paid to the beneficiary or nominee immediately. Loans Loan is not available No loan No loan 375

11 Appendix-2 Comparison of ULIP products LIC Pension Plus Allocation charges single premium policies : 3.3% Regular premium : 1st year % 2nd to 5th year % thereafter 2.50% allocation charges for top up charges % TATA AIG Life Invest Assure Future Future equity pension fund 50%, Future income pension fund 50% Regular: Rs.10,000 49,999/- 1 st yr-15%, 2-12%, 3-3%, 4-3%, 5-3%, 6 or above 0% Rs.50,000 and above 1 st yr-13%, 2-12%, 3-3%, 4-3%, 5-3%, 6 or above 0% Single premium: to % 1 lc to % 5 lac to % 10 lac and above 2% SBI Life - Smart Pension Premium allocation charges - 3% of single premium Fund Management charges Fund Management Charges: 0.70% p.a. of unit fund for Debt fund 0.80% p.a. of unit fund for mixed fund Future equity P.Fund 1.25% Future capital guarantee PF- 1.5% Future growth P. fund 1.10% Future Balance P. Fund 1.05% Future Income P.Fund 1% Future select equity Fund 1.45% Fund management chrges for guaranteed pension fund is 1.% p.a. Policy Admn charges Policy admn. Charges: Rs. 30 p.m. during the first policy ear and Rs. 30 pm escalating at 3% p.a. thereafter throughout the term of the policy shall be levied. Regular Rs 55 per month Single Rs. 25 per month Top up- 1.5 of premium per top up Policy administratio charges - Rs. 50/- monthly Switching charges Switching charges: Two switches will be allowed free of charge. Subsequent switches in that year will be Rs. 100 per switch. 12 free switches Rs. 100 per switch 376

12 Appendix-2 Comparison of ULIP products Miscellaneous charges LIC Pension Plus Miscellaneous carge: charge levied for change in premium mode. Rs. 50/- per transaction. TATA AIG Life Invest Assure Future SBI Life - Smart Pension Guarantee charge is 0.35% of the fund value per annum. Duplicate copy of statement - Rs. 100/- per statement Charges Bid/offer spread - nil Other Policy reinstatement : can reinstate within two years 377

13 Appendix-2 Comparison of ULIP products PRODUCT COMPARISON - ULIP Bajaj New UnitGain Easy Pension Plus SP Plan HDFC Unit Linked Pension Plan IDBI Federal Retiresurance Milestone Pension Plan Kotak Retirement Income Plan Plan / Type of ULIP Unit Linked Unit Linked Pension Plan Unit Linked Plan Term Min 5 Max 40 Min 10 yrs Max 15 yrs Min 10 Max 30 yrs Premium Paying Term Single Premium Min. 10 yrs Max. 40 yrs. Single Premium Premium Monthly / half yearly / Annually Payment Mode Entry Age Min 18 Max 65 Min. 18 Max. 65 Min 25 yrs (for 15 yrs term), 30 Min. 18 Max 60 yrs (for 10 yrs term) subject to min age at vesting equal to 40 yrs Max 75 yrs subject to max age at vesting equal to 85 yrs Maturity Age Min 45 Max 70 Min. 50 yrs. Max. 75 yrs. Min 40 Max 85 yrs Min 45 Max 75 Sum Assured depends upon minimum premium Premium Amount Min Rs. 1,00,000 and Max No limit Min 10,000/- annually and top-up Min. 10,000/- Retirement Benefits Single premium Rs /- Max No limit Min top up premium Rs. 5000/- The fund value as on the vesting date will be used to purchase an immediate annuity, at rates prevailing at that point of time. Min. Regular premium Rs. 12,000/- p.a. and half yearly, for monthly mode Rs.2,400/- p.m. Max. Annualized premium Rs. 10 lac. Single premium can top-up, premium can be reduced or increased after 3 yrs. 1/3 of the total benefit at vesting is tax free. For policies with term equal or greater than 15 yrs the customer gets Bumper Addition of 50% of original annualised premium at vesting and on death. At vesting your maturity benefit is higher of: the guaranteed benefit at vesting (as per IRDA CIR 124)_ the guaranteed maturity value per unit x no. of units (on vesting) guaranteed maturity value. 1/3 can be withdrawn lump sum and the balance can be used to buy an annuity. Ill health Retirement or Early Retirement: In case of illness policyholder may choose to 378

14 Appendix-2 Comparison of ULIP products the fund value retire early and can withdraw max. 1/3 of units in cash and balance annuity. This option can be availed of three years after policy inception. Death Benefits Death during the deferment period - spouse will have the option to take the fund value as a lump sum or purchase an annuity. Open market option is also available. But the spouse age should be above 45 If death during policy term, spouse will receive a cash lump sum. If death occurs before vesting date, the nominee will get the FV the beneficiary can also opt to use the FV to purchase annuity. The beneficiary can also opt to choose to receive 1/3rd part as lumpsum and utilise the rest to purchase an annuity. Family will get 1/3 of death benefit in cash and rest to purchase an annuity. Options of Taking Pension 1) Option to take lumpsum 1/3 of the fund value as a lump sum. The balance amount would be use to purchase immediate annuity. 2) Open Market option we can purchase an immediate annuity from Bajaj or from any other company. If purchased from Bajaj the annuity will be marked up as applicable in the immediate annuity product available on that time. 3) the minimum instalment of annuity from Bajaj depending on the immediate annuity product Customer can choose retirement age between 50 yrs and 75 yrs. On vesting you have the following options: i) to receive upto 1/3rd of the FV in lump sum and utilise the balance to purchase an annuity from IDBI or any other annuity provider ii) to utilise the entire FV to purchase an annuity from IDBI Fed or any other annuity provider. 379

15 Appendix-2 Comparison of ULIP products available on that time. Annuity Options: a) Annuity for Life b) Annuity for life with 5,10,15 or 20 yrs certain payout c) Annuity for Life with return of capital Riders Term benefits / Accidental death benefits / Permanent disability benefit / Critical illness benefit / Accidental disability guardian benefit Bonuses i) The guaranteed benefit at vesting will be equal to the single premium paid accumulated annually at the minimum guarantee rate ii) The min guarantee rate of 4.5% is applicable to all proemium received upto March 31, iii) after that the guarantee rate would be 50 basis points above the avg. reverse repo rate prevailing as on last working day of June, Sept. Dec and March. The min. guarantee rate shall be max of 6% and min 3% Tax Benefits 1/3 amount would be tax free as punder the current 80CCC tax law. under 80 C Under sec. 80 CCC upto Rs. 1,00,000, 1/3rd of the retirement corpus can be commuted tax free Under 80 CCC and Sec 10(10A). Premium paid for Kotal Critical illness benefit 380

16 Appendix-2 Comparison of ULIP products Surrender full withdrawal / surrender of fund value, net of surrender charge is allowed any time after 3 years from commencement 1 st yr 100%. No. Of anualised premiums not paid in the 5 yrs. Percentage of value in 4 yrs-95%, 3 yrs-35%,2 yrs-15%,1yr-5%, 0 yr-nil under sec 10 (10A) may qualify for 80 D. If surrender or death before vesting After then 3rd the policy units are year redee on med at the attainment of age 45 NAV and the guarantee will not apwhichever ply. is later. 3% in 4 th year, 2% in 5 th year, 1% in 6 th year, 0% from 7 th year. No charge applicable on top-ups. Loans Loan is not available No loan facility Allocation charges Allocation: A portion of the premium paid will be charged towards expenses. Accordingly, the allocation of single premium and top ups would be 98% Regular premium 1 yr - 12,000 to 4,99,999 - Yly-60%, Hly-60%, Monthly-60% 5 lac to 10 lac - Yly- 80%,Hly-80%, Monthly-80% Year 2 - Yly-85%, Hly-80%, Monthly-80% Year 3+ - Yly-98%, Hly-98%, Monthly-98% Single Premium 1 yr-97.50%, 2+ yr-98% % of annual premium in 1 st year and 2.8% from 2 nd year onwards and on top-ups 2.5% Fund Management charges Policy Admn charges Fund Management charge : 1.75% p.a. of NAV for Equity Growth Pension Fund, Accelerator Mid-Cap Pension Fund and Pure Stock Pension Fund, 1.25% p.a. of NAV for Equity Index Pension Fund II, 0.95% p.a. of the NAV for Bond Pension 0.95% p.a. of NAV for Liquid Pension Fund Policy admn charges: applicable for first five years only and will be 1.25% p.a. (will not exceed 2.5% p.a.) Fund Management charges % p.a. Dynamic Money market fund 0.6, Dynamic Gilt fund 1.0%, Dynamic bond fund 1.2%, Dynamic floating rate fund 1.2%, Dynamic balance fund 1.8%, Aggressive growth fund 1.6% Rs. 60/- per month 1 st year 13% of annual premium upto Rs. 20,000/- for portion of premium over Rs. 381

17 Appendix-2 Comparison of ULIP products deducted through cancellation of units at monthly intervals. If Single Premium is less than Rs.25,000, then Policy Administration Charge is Rs.300 p.a. inflating at 5% p.a. If Single Premium is greater than or equal to Rs.25,000, then Policy AdministrationCharge is Rs.600 p.a. inflating at 5% p.a. 20,000/- the charge would be 3% and for subsequent years 8% below Rs. 20,000 and 2% above Rs. 20,000/- Switching charges Switching charges: Three free switches would be allowed every year. Subsequent switches would be 5% of switch amount or Rs. 100, whichever is lower 24 switches free in a year and any additional switch will be Rs. 100 per switch. First four switches free. Rs. 500/- would be charged for every additional switches thereafter. Revival charges Rs. 250/- Lapsed policy or policy in Automatic Cover Maintenance mode within 2 years from the date of unpaid premium can be revived by paying revival charge of Rs. 500/- Miscellaneous charges Miscellaneous Charge: The miscellaneous charge would be charged at the rate of Rs.100/- per transaction in respect of issuance of copy of policy document. 12 premiums reduction free in a year and additional would be charged Rs.250/- per request. 6 servicing request free additional Rs. 250/- Investment guarantee charge % p.a. Mortality charges -The cost of life cover through cancellation of units on a monthly basis. The mortality rates are guaranteed. Charges for alteration in policy contract (change in SA, change in premium mode, etc.) and revivals are Rs. 50/-, Premium 382

18 Appendix-2 Comparison of ULIP products Other Unlimited top ups Choice of 5 investment funds mortality charges are nil Choice of Invt options with Guaranteed NAVs: Guaranteed Returns Funds- this fund aims to deliver a min guaranteed maturity value per unit at vesting. This fund invests in fixed income instruments. Guaranteed Growth Funds- This fund seeks to manage the debt exposure with an aim to deliver min guaranteed maturity value per unit at vesting. The balance of the fund is invested in equity to further enhance returns. redirection fee Rs. 100/ Premium not paid for first 3 policy years within the grace period. Automatic Cover Maintenance: remains insurance cover intact. This can avail after payment of premium of 3 completed years. 383

19 Appendix-3 Comparison of Company Profile COMPARISON OF COMPANY PROFILE Mode LIC TATA IDBI SBI BAJAJ ICICI HDFC KOTAK Trust with Yes Yes Yes Yes Yes Yes Yes Yes the brand name Years of experience in March 2008 March December the market 576 yrs 12 yrs 12 yrs 12 5 yrs 12 yrs 13 yrs 13 yrs International Alliance Efficient service Convenient location for contact Easily approachable Internet accessibility No AIA Federal And Ageas BNP Paribas Cardif Allianz Prudential Standard Life Old Mutual Yes Yes Yes Yes Yes Yes Yes Yes More than 200 offices 54 offices 62 offices & branches of IDBI banks 635 and SBI bank branches 1043 branches 1400 offices 568 branches in 700 cities No.could not get Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 384

20 Appendix-4 List of Insurance Companies selected for Study LIST OF INSURANCE COMPANIES SELECTED FOR STUDY Sr. No. Name of the Company 1 Life Insurance Corporation of India 2 ICICI Prudential Life Insurance Co. Ltd. 3 SBI Life Insurance Co. Ltd 4 IDBI Federal Life Insurance Co. Ltd. 5 TATA AIA Life Insurance Co. Ltd., 6 HDFC Standard Life Insurance Co. Ltd 7 Kotak Mahindra Old Mutual Life Insurance Ltd. 385

21 QUESTIONNAIRE FOR POLICYHOLDERS OF PENSION PRODUCTS 1. Does your employer provide pension after retirement? YES / NO 2. From which company have you bought a pension / retirement plan? 3. What type of a plan you have opted for? ULIP / CONVENTIONAL 4. In what manner do you contribute to your pension plan? Monthly Quarterly Half-yearly Yearly 5. What is your contribution to your pension plan? a Less than Rs. 1,000/- b Between Rs. 1,000/- to Rs. 3,000/- c Between Rs. 3,000/- to Rs. 5,000/- d Between Rs. 5,000/- to Rs. 10,000/- e More than Rs. 10,000/- 6. What are the features of a provider you have considered while buying a pension product? [Circle the option giving rank 1 to the least important and 5 to the most important] a Trust with the brand name b Years of experience in the market c International alliance d Security of funds and financial strength e Efficient service f Convenient location for contact g Easily approachable h Internet accessibility What are your important considerations while buying a pension product? [Circle the option giving rank 1 to the least important and 5 to the most important] a Premium b High Investment returns c Retirement benefits d Death benefits e Options of taking pension f Tax benefit g Vesting (Retirement) age option e.g. age 50, 55, h Allocation charges I Security of money invested J Additional benefits in a plan k Good service by the company

22 8. Was the product selected by you available in other company? YES? NO 9. What is your preferred channel for buying pension products? (please tick) a b c d e f Insurance Agents Brokers Banks Insurance Companies Post Office Internet 10. What are your preferences regarding the mode of obtaining the account information? [Circle the option giving rank 1 to the least important and 5 to the most important] a Periodic statements of the account by regular mail b Access to the account through Internet c Regular contact over phone or in person What kind of service do you expect? [Circle the option giving rank 1 to the least important and 5 to the most important] a Periodic information of account statements and investment decisions b Promptness in settlement c Portability (flexibility) in terms of change in job, location d Ease of withdrawal What is the preferred frequency of account statements? Monthly Quarterly Six-monthly Annually 13. How would you rank the various tax incentives available for retirement savings / pension plans? [Circle the option giving rank 1 to the least important and 5 to the most important] a Exemption on contribution (for self / other family members) b Exemption to investment income earned on contributions during accumulation period c Tax on maturity of plan What kind of pension fund investment would you prefer? (Tick the most appropriate alternative) a b c Conservative: Low Risk Balanced: Less conservative a mix of bonds and equities Equity: higher rate of return, High risk 15. What kind of information do you expect from the provider? [Circle the option giving rank 1 to the least important and 5 to the most important] a Explanation of tax benefits b Investment options c Performance records d Provider profile

23 16. Switching over of contribution to different Pension Fund Managers option should be given at no cost or negligible cost, do you agree? AGREE / DISAGREE 17. Do you find the following charges hefty while buying a pension product? [Circle the option giving rank 1 to the least important and 5 to the most important] a Allocation charges b Fund Management charges c Administrative charges d Surrender charges Are you willing to go for another pension plan? YES / NO 19. What are the product drawbacks? 20. What is your experience with the existing product as well as the provider? Respondent Information Name : Address: Mobile / Landline: Gender : MALE / FEMALE Education: Professionals (Engineer/CA/Doctor/Lawyer) Post Graduate Graduate Class XII X std Annual family Income (gross) Upto Rs. 1 lakh Between 1 to 3 lakh Between 3 and 5 lakhs Between 5-10 lakhs Over 10 lakhs Family members dependent on this income Only Husband & Wife Husband, Wife & kids Husband, Wife with dependents (Parents / Sister / Brother) None Occupation Service Professionals Doctor / Lawyer / CA / Engineer Businessman Agriculturist Date Signature 3

24 QUESTIONNAIRE FOR PROSPECTIVE BUYERS OF PENSION PRODUCTS 1. Have you started saving for your retirement? YES / NO 2. Does your employer provide pension after retirement? YES / NO 3. Do you expect any kind of support from your children in your retired life? No Yes, partially Yes, totally 4. Are you aware of any voluntary pension plans available in the market? YES / NO a) What type of a plan you would like to opt for? ULIP / CONVENTIONAL b) In what manner you would like to contribute to your pension plan? Monthly Quarterly Half-yearly Yearly 5. What will be the approx. contribution to your pension plan per month? a Less than Rs. 1,000/- b Between Rs. 1,000/- to Rs. 3,000/- c Between Rs. 3,000/- to Rs. 5,000/- d Between Rs. 5,000/- to Rs. 10,000/- e More than Rs. 10,000/- 6. What are the features of a provider you will consider while buying a pension product? [Circle the option giving rank 1 to the least important and 5 to the most important] a Trust with the brand name b Years of experience in the market c International alliance d Security of funds and financial strength e Efficient service f Convenient location for contact g Easily approachable h Internet accessibility What are your important considerations while buying a pension product? [Circle the option giving rank 1 to the least important and 5 to the most important] a Premium b High Investment returns c Retirement benefits d Death benefits e Options of taking pension f Tax benefit g Vesting (Retirement) age option e.g. age 50, 55, h Allocation charges

25 I Security of money invested J Additional benefits in a plan k Good service by the company What is your preferred channel for buying pension products? (please tick) a b c d e f Insurance Agents Brokers Banks Insurance Companies Post Office Internet 9. What are your preferences regarding the mode of obtaining the account information? [Circle the option giving rank 1 to the least important and 5 to the most important] a Periodic statements of the account by regular mail b Access to the account through Internet c Regular contact over phone or in person What kind of service do you expect? [Circle the option giving rank 1 to the least important and 5 to the most important] a Periodic information of account statements and investment decisions b Promptness in settlement c Portability (flexibility) in terms of change in job, location d Ease of withdrawal What is the preferred frequency of account statements? Monthly Quarterly Six-monthly Annually 12. How would you rank the various tax incentives available for retirement savings / pension plans? [Circle the option giving rank 1 to the least important and 5 to the most important] a Exemption on contribution (for self / other family members) b Exemption to investment income earned on contributions during accumulation period c Tax on maturity of plan What kind of pension fund investment would you prefer? (Tick the most appropriate alternative) a b c Conservative: Low Risk Low return Balanced: Less conservative a mix of bonds and equities Equity: High Risk High Return 2

26 14. What kind of information do you expect from the provider? [Circle the option giving rank 1 to the least important and 5 to the most important] a Explanation of tax benefits b Investment options c Performance records d Provider profile What is your inclination while selecting a service provider? LIC SBI Life TATA AIG New Pension Scheme (PFRDA) Max New York ING Vysya ICICI Met Life Bajaj Allianz Reliance Life HDFC Standard Life Aviva Life Birla Sunlife Bharati Axa IDBI Fortis Kotak Mahindra Respondent Information Name : Address: Mobile / Landline: Gender : MALE / FEMALE Education: Professionals (Engineer/CA/Doctor/Lawyer) Post Graduate Graduate Class XII X std Annual family Income (gross) Upto Rs. 1 lakh Between 1 to 3 lakh Between 3 and 5 lakhs Between 5-10 lakhs Over 10 lakhs Family members dependent on this income Only Husband & Wife Husband, Wife & kids Husband, Wife with dependents (Parents / Sister / Brother) None Occupation Service Professionals Doctor / Lawyer / CA / Engineer Businessman Agriculturist Date. Signature 3

27 QUESTIONNAIRE FOR EXPERTS IN THE FIELD OF PENSION (1) Is total shift from Defined Benefit to Defined Contribution is desirable from the view point of Customer? (2) Give reasons Yes No (3) Do you think early withdrawal should be allowed in Tier-I account of New Pension System (NPS)? Yes No (4) Give reasons (5) What are the benefits according to you in Defined Contribution Pension? (6) In Defined Contribution Pension, in the context of changing economic and demographic environment, a subscriber does not have any specific idea about final payout and the annuity that it would secure for him. How can a pension provider help the subscriber in this regard? (7) Do the NPS offered by the PFRDA meet the preferences / requirements of a Customer? (8) Give reasons Yes No (9) Do you think an intermediary is required in NPS which may add expenses to the subscriber? Yes No (10) Give reasons (11) Do you think fee based advice is feasible in NPS? Yes No (12) Are you agreeable to the NPS not allowing more than 50% allocation to equities? Agree Disagree Vaishali Bhambure, Ph.D. Student Mobile No

28 (13) If agree give reasons (14) If Disagree, why do you want higher allocation to equities? (15) What presents to you as a face of NPS? Pension Fund Manager Point of Presence Central Record-keeping Agency NPS Trust Annuity Provider (16) Do you think NPS is a low cost structure? Yes No (17) Do you think private PFMs will invest prudently in Pension asset to get larger amount to individual at the time of retirement? (18) Do you agree that the element of forced saving into the system of mandatory contributions lead to aid capital formation and economic growth? Yes Agree No Disagree (19) What changes do you suggest to the NPS to meet the pension requirement of the subscribers? (20) Do you think NPS can reach to the poor masses through Swavalamban Scheme? Yes No (21) Pension reforms will lend stability to the capital market and widen and deepen the bond market, please comment (22) Are the PFRDA s reforms in tune with the needs and preferences of customer? Yes No (23) If No give reasons Vaishali Bhambure, Ph.D. Student Mobile No