Birla Sun Life Classic Life Plan

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Birla Sun Life Insurance Classic Life Plan
 
BSLI Classic Life Plan is a Unit Linked Insurance Plan (ULIP). It is a Non-Traditional Plan without Bonus Facility.
 
How it works – In this plan, premium needs to be paid as selected, either for 5 years or till the end of the Policy Term.
The Premium Amount, the Premium Paying Term and the Savings Date are chosen and the Basic Sum Assured is calculated automatically. The policy matures on the Savings Date. The insurance coverage can be increased by opting for Enhanced Sum Assured at inception for which an additional premium would be payable.  

If the Life Insured dies before the Savings Date, the higher of the Fund Value or the Sum Assured along with Enhanced Sum Assured, if opted for, are paid to the nominee and the policy terminates.
However, if the Life Insured survives till the policy tenure is over, the Fund Value would be paid as Maturity Benefit on the Savings Date.
 
This plan also has Guaranteed Additions, 10 investment fund options and 5 additional riders available.
 
 
Key Features of BSLI Classic Life Plan
 
  • This is a simple Unit Linked Insurance Plan
  • The Premium amount, Premium Paying Term and the Savings Date is selected by the Policyholder
  • The higher of Fund Value or Sum Assured is paid as Death Benefit
  • The Fund Value is paid as Maturity Benefit on the Savings Date when the policy matures
  • There is an Option to increase Sum Assured under this plan
  • There is a flexibility to pay premiums for only 5, 10, 15 or 20 years of the policy term.
  • There are Guaranteed Additions are received on maturity-
    • On the 10th policy anniversary and on every 5 policy anniversary thereafter, a Guaranteed Addition of 2.50% of the Basic Premiums paid in the last 60 months.
    • In addition to that on the 11th policy anniversary and every policy anniversary thereafter, a Guaranteed Addition of 0.25% of the average Fund Value in the last 12 months is paid.
  • There are 10 investment fund options and 5 additional riders that can be added.
 
 
Benefits you get from BSLI Classic Life Plan
 
Death Benefit – In case of death of the Life Insured before the Savings Date, the nominee would get Sum Assured or Fund Value, whichever is higher + Enhanced Sum Assured, if any as Death Benefit and the policy would terminate.
 
Maturity Benefit – On maturity, the Fund Value is paid to the policyholder on the Savings Date.
 
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. The Maturity Proceeds are Tax Free under section 10(10)D subject to fulfilment of all requirements.
 
 
Eligibility conditions and other restrictions in BSLI Classic Life Plan
 

 
Minimum
Maximum
Sum Assured (in Rs.)
The higher of 10 or (70 –Age at Entry)/2, for entry ages < 45 yrs
or
The higher of 7 or (70 –Age at Entry)/4, for entry ages >= 45 yrs
Policy Term (in years)
Till age 70
Premium Payment Term (in years)
5/10/15/20
Till Savings Date
Entry Age of Life Insured (in years)
18
60
Savings Date or Age at Maturity (in years)
Till age 55, 60 or 65 depending on age at entry
Till age 70
Premium (in Rs.)
25,000 p.a.
No Limit
Payment modes
Annual, Semi-Annual, Quarterly and Monthly

 
 
Additional Features and Benefits of BSLI Classic Life Plan
 
Riders – There are 5 riders available in this policy
  1. BSLI Accidental Death and Disability Rider
  2. BSLI Critical Illness Rider
  3. BSLI Surgical Care Rider
  4. BSLI Hospital Care Rider
  5. BSLI Waiver of Premium Rider
 
Investment Fund Options - The plan has 10 investment fund options:
  1. Income Advantage Fund
  2. Assure Fund
  3. Protector Fund
  4. Builder Fund
  5. Enhancer Fund
  6. Creator Fund
  7. Magnifier Fund
  8. Maximiser Fund
  9. Multiplier Fund
  10. Super 20 Fund
 
Top-up - Unlimited Top Up is allowed except in the last 5 years of the policy. Minimum Top Up premium is Rs 5,000. Each top up premium has a lock in of 5 years. Each Top Up premium is accompanied by Sum Assured according to the multiplier
• Less than 45 years- SA is 1.25 to 5 times
• Greater than or equal to 45 years- SA is 1.10 to 5 times
 
Switching - Unlimited Switches are allowed in this plan. Minimum Switching amount is Rs 5,000.
 
Partial Withdrawal - You are allowed to make partial withdrawals in this policy after 5 complete policy years or the life assured is 18 years old, whichever is later.
The minimum amount of partial withdrawal should be Rs. 5,000 such that Rs 25,000 should be maintained after Partial Withdrawal.
 
 
Charges in BSLI Classic Life Plan
 
Premium Allocation Charge – This charge is deducted from the Premium Paid by you
Policy Year
Premium Allocation Charge
1st Year
7.50%
2nd Year
6.50%
3rd Year onwards
5%
Top Up Premium
2%
 
 
Policy Administration Charge— This is the charge for the administrative working of the policy and is deducted by cancellation of units on a monthly basis.
Policy Year
Policy Administration Charge
Year 1 to Year 5
Rs 20 p.m.
Year 6 onwards
Rs 25 p.m. inflating at 5% p.a. subject to a maximum of Rs 6000
 
 
Fund Management Charge– This charge is deducted by adjusting the NAV of the units on a daily basis.
Type
Charge
Income Advantage Fund
1% p.a.
Assure Fund
1% p.a.
Protector Fund
1% p.a.
Builder Fund
1% p.a.
Enhancer Fund
1.25% p.a.
Creator Fund
1.25% p.a.
Magnifier Fund
1.35% p.a.
Maximiser Fund
1.35% p.a.
Multiplier Fund
1.35% p.a.
Super 20 Fund
1.35% p.a.
 
 
Discontinuation Charge— This charge is for discontinuing the plan before the end of the Policy Tenure.
Year of Discontinuation
Annual Premium > Rs 25,000 p.a.
1st
Lower of 6% of (Annual Premium or Fund Value) subject to a maximum of Rs 6,000
2nd
Lower of 4% of (Annual Premium or Fund Value) subject to a maximum of Rs 5,000
3rd
Lower of 3% of (Annual Premium or Fund Value) subject to a maximum of Rs 4,000
4th
Lower of 2% of (Annual Premium or Fund Value) subject to a maximum of Rs 2,000
5th onwards
NIL
 
 
Mortality Charge — This charge is paid for the Life Coverage provided according to the Sum At Risk. This is based on the mortality rates which are specified for all ages and amount of cover being provided.
 
Service Tax would be applicable on the charges depending on the applicable rates. 
 
 
What happens if?
 
You stop paying the premium before 5 years - If the policy holder stops paying the premium, the insurance cover will cease and the fund value net of any discontinuance charge will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will be credited with a minimum interest rate of 3.5% p.a. and the proceeds from this will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated fund value will be payable to the nominee.
 
You stop paying the premium after 5 years - If the policy holder stops paying the premium after 5 years, then the accumulated policy fund amount till the date of discontinuance shall be paid to the policy holder and the policy will terminate immediately.
 
You want to surrender the policy – If the policy holder wants to surrender the policy before completing 5 years, then the insurance cover will cease and the fund value net of any discontinuance charge will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will be credited with a minimum interest rate of 3.5% p.a. and the proceeds from this will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated fund value will be payable to the nominee.
 
If the policyholder surrenders the policy after completion of 5 policy years, then the insurance cover will cease and your fund value shall be paid immediately and the policy would be terminated.
 
You want a loan against your policy - The minimum loan amount is Rs. 5,000 and the maximum loan amount is 40% of the fund value
 
 
Alternate ULIPs from different insurance companies
 
 
 
Other ULIPs from Birla Sun Life Insurance
 
 

BSLI Dream Life Plan

Download Birla Sun Life Classic Life Plan Brochure download
~ By Rupanjali Mitra Basu
Note: This is a statement of facts based on the information collected from the Birla Sun Life Classic Life Plan brochure and insurance company's website. It should not be construed as a Critical or Favourable Birla Sun Life Classic Life Plan Review, Analysis or Recommendation.
Insurance is a subject matter of the solicitation.


Leave a Comment

Sir,

This ismy policy number005861697,given for autodebit to your agent but till now not started.
kindly look in to this matter have a link with my bank for autodebit.
Hope will do needful.

yours sincerely,

K.BASAVARAJKUMAR
TADIPATRI.

By K.Basavarajkumar on Mar 01, 2013 Reply

Hi
I am an owner of two policies # 000690614 and 000690565 drawn in favor of Ms.Janet Antony and Betsy Maria respectively.
I would like to surrender these policies,and here by seek advise with regard to the procedure,and how much amount I shall be getting by doing so.

Thanking you in anticipation.

By Anton Ribal on Jul 15, 2012 Reply

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