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OTHER INVESTMENT SCHEMES

LIFE INSURANCE COMPANY

The Whole Life Policy- Single Premium

This is the best form of life assurance for family provision since it
enables the Life Assured to pay the premium during the ordinarily
vigorous and most productive years of life, relieving him from the
necessity of making payments later in life when they might
become a burden.

With Profits Single Premium policies do not cease to participate in


profits after completion of the period for which premium has been
paid ,but continue to share in the periodical Bonus Distribution
until the death of the Life Assured.

Suitable For:
Being a limited-payment life assurance policy, this plan is suitable
for people of all ages and social groups who wish to protect their
families from a financial setback that may occur owing to their
demise.

BENEFIT

Insurance Regulatory & Development Authority (IRDA) requires all


life insurance companies operating in India to provide official
illustrations to their customers. The illustrations are based on the
investment rates of return set by the Life Insurance Council
(constituted under Section 64C(a) of the Insurance Act 1938) and
is not intended to reflect the actual investment returns achieved
or may be achieved in future by Life Insurance Corporation of
India (LICI). For the year 2004-05 the two rates of investment
return declared by the Life Insurance Council are 6% and 10% per
annum.
Product summary
This is a whole of life assurance plan that provides financial
protection against death through out the lifetime of the Life
Assured.

Bonuses:
This is a with-profit plan and participates in the profits of the
Corporation’s life insurance business. It gets a share of the profits
in the form of 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. A Final (Additional) Bonus may also be
payable provided a policy has run for certain minimum period.

Death Benefit :
The Sum Assured plus all bonuses to date is payable in a lump
sum upon the death of the life assured.

Maturity Benefit :
This is a whole of life assurance plan and hence does not have a
maturity date. You, however, have the option to take the Sum
Assured plus all bonuses declared under the policy anytime after
40 years from the date of commencement of the policy provided
you have attained, at least, 80 years of age.

Supplementary/Extra Benefits :
These are the optional benefits that can be added to your basic
plan for extra protection/option. An additional premium is
required to be paid for these benefits.

Surrender Value :
Buying a life insurance contract is a long-term commitment.
However, surrender value is available under the plan on earlier
termination of the plan.

Guaranteed Surrender Value :


The policy may be surrendered after it has been in force for 3
years or more. The guaranteed surrender value is 30% of the
basic premiums paid excluding the first year’s premium. In case
of a single premium policy the guaranteed surrender value is 90%
of the single premium paid excluding any extra/additional
premium.

Corporation’s policy on surrenders :


In practice, the Corporation will pay a Special Surrender Value –
which is either equal to or more than the Guaranteed Surrender
Value. The benefit payable on surrender reflects the discounted
value of the reduced claim amount that would be payable on
death. This value will depend on the duration for which premiums
have been paid and the policy duration at the date of surrender.
In some circumstances, in case of early termination of the policy,
the surrender value payable may be less than the total premiums
paid.

The Corporation reviews the surrender value payable under its


plans from time to time depending on the economic environment,
experience and other factors.

SURVIVAL BENEFIT
Sum assured plus accrued bonuses and the terminal bonuses, if
any, on the policyholder attaining age 80 years or on expiry of
term of 40 years from the date of commencement of the policy
whichever is later.

DEATH BENEFIT
Sum assured plus accrued bonuses and the terminal bonuses, if
any, on the death of the policyholder are paid to his/her
nominees/heirs.

Illustration 1:
Age at entry: 35 years
Sum Assured: Rs.1,00,000/-
Premium Paying term: 45 years
Mode of premium payment: Yearly
Annual Premium: Rs.2917/-
En Total Benefit payable on death / maturity
d premi at the end of year
of ums Variable Total
ye paid Guarant
ar till end Scena Scena Scena Scena
eed
of year rio 1 rio 2 rio 1 rio 2
10390 11080
100000 3900 10800
1 2917 0 0
10780 12160
100000 7800 21600
2 5834 0 0
11170 13240
100000 11700 32400
3 8751 0 0
11560 14320
100000 15600 43200
4 11668 0 0
11950 15400
100000 19500 54000
5 14585 0 0
12340 16480
100000 23400 64800
6 17502 0 0
12730 17560
100000 27300 75600
7 20419 0 0
13120 18640
100000 31200 86400
8 23336 0 0
13510 19720
100000 35100 97200
9 26253 0 0
10800 13900 20800
100000 39000
10 29170 0 0 0
16200 15850 26200
100000 58500
15 43755 0 0 0 PLAN PARAMETER
10400 28800 20400 38800
100000
20 58340 0 0
Minimum 0 0 Maximum
Entry age 13000 12
100000
36000 23000
(Nearer 46000
Birthday) 60
25 72925 0 0 0 0
Sum assured 30000 NO LIMIT
(Rs.) 15600 43200 25600 53200
100000
30 87510 0 0 0 0
Term (years) N.A. N.A.
18200 50400 28200 60400
100000
35 102095 0 0 0 0

Mode of100000 20800


Payment 57600 premium
Maximum 30800 67600 Policy loan
40 116680 0 paying
0 period0 0 available
Single premium 23400 64800 33400 74800
80 years or 40 years from Yes
100000
45 131265
only 0 0 of 0
the date 0
commencement
whichever is later

STATE BANK OF INDIA

TERM DEPOSITS

Now you can earn a higher income on your surplus funds by investing those with
us.We provide security, trust and competitive rate of interest.

•Flexibility in period of term deposit from 15 days to 10 years.

•Affordable Low Minimum Deposit Amount: You can open a term deposit with
SBI for a nominal amount of Rs.1000/- only.

•Please check our Interest Rates online or simply email through our Helpline.

•Flexibility in choosing the amount you wish to invest and the maturity period.

Highlights

Safety - We understand the value of your hard earned money and continue to
deliver on our promise of safety and security over 200 years.

Liquidity

Loan /overdraft facility: You can avail a loan/overdraft against your deposit.SBI
provides you loan / overdraft upto 90% of your deposit amount at nominal cost. So
you continue to earn interest in your deposit and still can meet your urgent
financial requirements.

Premature Withdrawal
Interest to be charged on premature withdrawal of term deposits at 1.00% below
the rate applicable for the period deposit has remained with the Bank.
•Transferability- Transfer of Term Deposits between our wide networks of
branches without any charge.
• Compounding / Flexible / Timely Payment of Interest - Under our
Special Term Deposit Scheme, interest accrues in your account and gets
compounded quarterly. Besides, we assure timely delivery of the proceeds of your
deposit with interest, on maturity. Flexibility of payment on maturity through Cash
(subject to prevalent Income Tax Act), Banker's Cheque, Credit in Savings
Bank/Current account.

• Term Deposits are available at all SBI Branches


• Easy and convenient access of 24X7 information at SBI Internet Banking.
• Nomination Facility - Available.
Tax Implications.

Tax Deductible at Source, as per Income Tax Act.

Automatic Renewals

There is no need for you to keep track of the maturity of your deposits. Your
deposits with us will be renewed automatically, post maturity. And you continue to
earn interest for same period as that of your matured deposit, at the interest rate
prevailing at the time of maturity. Automatic renewals take place where there are
no standing instructions for renewal.

SBI COMMERCIAL & INTERNATIONAL BANK LTD.

RATES AT A QUICK GLANCE AS ON 16.06.2009

Deposit Accounts

2. Term Deposits
A. Domestic Deposit RATE OF INTEREST

Upto & For Deposits above Rs.15


Term Deposits
including lakhs but less than
(All Maturities) Rs.1.00 Crore
Rs.15 lakhs

For a single deposit of Rs.


7 days to 14 days (For a single
2.75% p.a. 15 Lakhs and above: Daily
deposit of Rs. 15 lacs & above)
Fixation

15 days and upto 45 days 3.10% p.a.

46 days and upto 90 days 4.10% p.a.

91 days and upto 180 days 5.35% p.a.

181 days to less than 1 year 6.35% p.a.

1year and above but less than 2 years 7.10% p.a.

2 years and above but less than 3


7.35%p.a.
years

3 years and above and less than 4


7.35%p.a.
years

4 years and above and upto 10 years 7.75%p.a.

Senior Citizen Deposits: 0.50% extra for deposit(s)for a period of 1 year and
above for Senior Citizens above age of 60 yrs.

RATES AS ON 18.05.2009

B. Non-Resident Accounts

a. NRO Accounts

7days to 14 days (For a single 2.75 % p.a. For a single deposit of Rs.
15 Lakhs and above: Daily
deposit of Rs. 15 lacs & above)
Fixation

15 days and upto 45 days 3.35% p.a.

46 days and upto 90 days 4.35% p.a.

91days and upto 180 days 5.60% p.a.

181 days to less than 1 year 6.60% p.a.

1year and above but less than 2


7.35% p.a.
years

2 years and above but less than 3


7.60%p.a.
years

3 years and above and less than 4


7.60%p.a.
years

4 years and above and upto 10 years 8.00%p.a.

RATES AS ON 01.06.2009

B. Non-Resident Accounts
1 year to less than 2 years 3.35% p.a. --

2 years to less than 3 years 3.13% p.a. --

3 years Upto 5 years 3.74% p.a. --

The revised interest rates on Domestic Term Deposits (below Rs One


Crore) effective from the 15.06.2009 are furnished as under:

Interest Rates for Deposits below Rs. One Crore

(% p.a.)

Tenors Existing w.e.f. Revised w.e.f. 15.06.2009


18.5.2009
15 days to 45 days 3.25 3.00

46 days to 90 days 4.25 4.00

91 days to 180 days 5.50 5.25

181 days to less than 1 year 6.50 6.25

1 year to less than 2 years 7.25 7.00

2 years to less than 1000 days 7.50 7.25

1000 days 7.75 7.50

1001 days to less than 3 years 7.50 7.25

3 year to less than 5 years 7.50 7.25

5 years to less than 8 years 8.00 7.75

8 years and up to 10 years 8.25 8.00

Note: Term deposits for maturity period of "7 days to 14 days" will continue to be
accepted for amounts of Rs. 1 Crore and above.

OTHER COMMERCIAL BANK INTEREST RATES

YEAR 1-3 YEARS 3-5 YEARS ABOVE 5 YEARS


2006- 2007 7.50-9.00+ 7.50-9.00+ 7.75-9.00+
2007-2008 8.25-8.75+ 7.50-9.00+ 7.50-9.00+
2008-2009 9.50-10.00+ 8.75-9.75+ 8.75-9.75+

INVESTMENT IN GOLD

The main reasons why gold finds a place in the portfolios of


investment are -

1. Gold has historically proved to be a good hedge against


inflation

2. It is liquid and can be easily converted into hard currency

3. It has ornamental value (more so for Indians)


On the other hand, investment in gold also has its disadvantages:

1. It does not provide regular current income like in the case of


debentures which pay interest (gold bonds did not take off
and lending of gold for a fee is not a viable option for retail
investors)

2. It does not offer any tax advantages e.g. investment in a


infrastructure bond entitles one to certain tax advantages

3. There is a possibility of being cheated with respect to the


purity of the metal

4. There is a storage cost involved in preserving gold

The Face-off: Gold vs. Other asset classes

1 yr 3-Yr 5-Yr

Diversified Equity Fund 40.0% 65.0% 22.0%

BSE Sensex 12.3% 26.5% 5.7%

Liquid Fund 5.0% 6.0% 7.0%

Gilt Fund 4.7% 11.0% 14.0%

Dow Jones (USA) 3.8% 2.7% -1.1%

Income Fund 3.8% 9.0% 11.0%

Gold ($) 2.7% 17.0% 9.3%

Gold (Rs) 1.5% 13.7% 9.5%

(Growth over 1-Yr is compounded annualised. Returns for the mutual


funds are averages of best performers)

TREND IN PRICES OF GOLD