Birla Sun Life Insurance Bachat Endowment Plan

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Birla Sun Life Insurance Bachat Endowment Plan
 
BSLI Bachat Endowment Plan is a Traditional Non-Participating Endowment plan. It means that the returns are guaranteed and there is no Bonus declared in this plan.
 
How it works – In this plan premiums need to be paid for the entire Policy Term of 20 years. The Sum Assured is automatically calculated upto 180 times the Monthly Premium.
 
When the Policy matures after 20 Policy Years, the (basic Monthly Premiums paid during the Policy Term) + (Bachat Addition) + (Loyalty Additions) are paid to the Life Insured as Maturity Benefit.
The Bachat Additions and the Loyalty Additions are calculated according to the Basic Monthly Premium amount.
 
However, if the Life Insured dies within the policy tenure, the nominee would receive the higher of Sum Assured or the total of Monthly Premiums paid till date + accrued Bachat Additions + Loyalty Additions as Death Benefit.
 
This plan also has Accidental Death Benefit Rider as an additional benefit.
 
 
Key Features of BSLI Bachat Endowment Insurance Plan
 
  • This is a Traditional Plan without Bonus facility but with Loyalty Additions
  • A monthly premium from Rs 400 to Rs 5000 needs to be chosen and Sum Assured= 180 times the monthly premium chosen.
  • The policy provides Bachat Addition declared each year depending upon the Premium Amount:
  • This policy provides for Loyalty Additions after completion of 15 policy years, which increases every year.
  • Double Accidental Benefit rider is also available as an additional feature.
 
 
Benefits you get from BSLI Bachat Endowment Policy
 
Death Benefit – In case of death of the Life Insured, the nominee gets the <higher of Sum Assured or the total of Monthly Premiums paid till date> + accrued Bachat Additions + Loyalty Additions as Death Benefit and the policy would terminate.
 
Maturity Benefit – All Monthly Basic Premiums paid + All Bachat Additions earned + Loyalty Addition.
 
Income Tax Benefit - Life Insurance premiums paid up to Rs.1,00,000 are allowed as a deduction from the taxable income each year under section 80C.
 
 
Eligibility conditions & other restrictions in BSLI Bachat Endowment Insurance Policy
 

 
Minimum
Maximum
Sum Assured (in Rs.)
180 X Monthly Premium for ages 0 – 40
120 X Monthly Premium for ages 41 – 50
60 X Monthly Premium for ages 51 – 60
Monthly Base Premium (in Rs.)
400
5000
Policy Term (in years)
20 years
Premium Payment Term (in years)
20 years
Entry Age of Life Insured (in years)
30 Days
60
Age at Maturity (in years)
-
80
Payment modes
Annual, Semi-Annual, Quarterly and Monthly

 
 
Sample illustration of Surrender Benefit in BSLI Bachat Endowment Plan
 
The below illustration is for a healthy Male (non-tobacco user) opting for a
Monthly Premium = Rs. 500
Annual Premium = Rs. 6,000
Policy Term = 20 years

Bachat Addition Rate = 5%
Birla Sun Life Insurance Bachat Endowment Plan Sample Surrender Benefits

 

 

Additional Features and Benefits of BSLI Bachat Endowment Plan
 
Riders – There are 1 rider available in this policy:
Accidental Death Benefit rider
 
Bachat Addition Rate— There is a monthly reward of Bachat Addition Rate depending on the Monthly Basic Premium amount.

Band
I
II
III
Monthly Basic Premium
400 – 599
600 – 899
900 +
Bachat Addition Rate
5%
5.25%
5.5%

 
The Bachat Addition is calculated as Sum of all Monthly Premiums paid till date X Bachat Addition Rate
 
 
What happens if?
 
You stop paying the premium - If the policy holder stops paying the premium, then all benefits of the policy will stop after the grace period ends. The policy can however be revived within 2 years from the date of first unpaid premium.
 
You want to surrender the policy – Surrender Benefit is allowed under this plan but after 3 policy years. There are no charges after 10 policy years.
Surrender Benefit = (Total Monthly Premiums paid – 1st year’s premium) x Surrender Factor (depending upon year of surrender) + Bachat Additions earned (After the 10th policy year) + Loyalty Addition (After the 15th policy year)
 
You want a loan against your policy – Loan facility is available under this policy after the 3rd policy year. The minimum loan amount is Rs. 5,000 and the maximum loan amount is 90% of the Surrender Benefit.
 
 
Alternate Endowment Plans from different insurance companies
 
IDBI Federal Bondsurance
 
 
Other Endowment Plans from Birla Sun Life Insurance
 
BSLI Rainbow Plan

BSLI Guaranteed Bachat Plan

Compare Endowment Plans

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