BSLI Dream Endowment Plan

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Birla Sun Life Insurance (BSLI) Dream Endowment Plan

  

Policy opening date – 28th August 2010

 

This is a unit-linked insurance policy (ULIP) where the premium amount is invested in the markets (debt, equity and cash market instruments). The value of investments may go up or down, hence the risk in ULIPS is borne by the policy holder and not by the insurance company.


 

Key Features of Birla Sun Life Dream Endowment Plan

 

  • The policy adds a certain guaranteed amount to your investments from the 10th policy year
  • Option to choose a specific Guaranteed Savings date when the Fund Value would be paid out to the Life Insured
  • Option to increase Sum Assured by opting for Enhanced Sum Assured

 

 

Benefits you get from Birla Sun Life Dream Endowment Plan

 

Death Benefit – In case of death of the policy holder, the nominee gets Basic Sum Assured + Fund Value + Enhanced Sum Assured (if opted). Death benefit shall never be less than 105% of total basic premiums paid to date minus any previous partial withdrawals.

 

Maturity Benefit - If the policy holder survives the policy term, then he/she gets the higher of Fund Value + Guaranteed Savings Fund at maturity.

 

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 amounts you receive from this plan are exempt from tax under section 10(10D)

 

 

Eligibility conditions and other restrictions in BSLI Dream Endowment Plan

 

 

Minimum

Maximum

Sum Assured (in Rs.)

The higher of 10 or the number of  years to maturity divided by 2, for entry ages below 45 and

The higher of 7 or the number of years to maturity divided by 4, for entry ages 45 and above

No limit

Policy Term (in years)

10 years

30 years

Premium Payment Term (in years)

5 years

Same as Policy term

Lock-in period

5 years

Entry Age of Policyholder

1 year

65 years

Age at Maturity

18 years

75 years

Regular premium

Annual- Rs 12000

Half-Yearly- Rs 15000

Quarterly- Rs 20000

Monthly- Rs 24000

No limit

Single premium

Not Allowed

Not Allowed

Payment modes

Yearly, Half-Yearly, Quarterly and Monthly (ECS)

Top-up premium

Not Allowed

Not Allowed

 

 

Additional Features and Benefits of Birla Sun Life Dream Endowment Plan

 

Riders – Some additional benefits can be taken in the form of riders by paying extra premium

 

Type of Rider

Available with Policy

Accidental death benefit

Yes

Permanent disability benefit

Yes

Waiver of premium benefit

Yes

Critical illness (or dread diseases) benefit

Yes

Increased death benefit / Term rider

Yes

(called as Enhanced Sum Assured)

Hospital cash benefit

Yes

Surgical Care benefit

Yes

 

Investment Fund Options– Under this plan the policy holder gets the following fund options:

Fund Enhancer

 

Top-up - There is no top-up facility under this policy.

 

Switching - Since this policy has only one choice of investment fund, there is no switching facility.

 

Partial Withdrawal - The policy holder is allowed to make partial withdrawals in this policy after completing 5 policy years or when the Life Insured is 18 years of age, whichever is later. The minimum amount of partial withdrawal should be Rs. 5000. There is no maximum limit, but a minimum Fund Value of Rs. 25,000 needs to be maintained.

 

 

 
Charges in BSLI Dream Endowment 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%

 
 
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
Enhancer Fund
1.25% p.a.

 
 
Investment Guarantee Charge – 2% of the Basic Premium is charged as Investment Guarantee Charge.
 
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.
Annual Premium > Rs 25,000 p.a.
1st
Lower of 20% of (Annual Premium or Fund Value) subject to a maximum of Rs 3,000
Lower of 6% of (Annual Premium or Fund Value) subject to a maximum of Rs 6,000
2nd
Lower of 15% of (Annual Premium or Fund Value) subject to a maximum of Rs 2,000
Lower of 4% of (Annual Premium or Fund Value) subject to a maximum of Rs 5,000
3rd
Lower of 10% of (Annual Premium or Fund Value) subject to a maximum of Rs 1,500
Lower of 3% of (Annual Premium or Fund Value) subject to a maximum of Rs 4,000
4th
Lower of 5% of (Annual Premium or Fund Value) subject to a maximum of Rs 1,000
Lower of 2% of (Annual Premium or Fund Value) subject to a maximum of Rs 2,000
5th onwards
NIL
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 be discontinued and the accumulated fund value till that time minus discontinuance charge will be transferred to the Discontinued Policy Fund. The proceeds from this Discontinued Policy Fund 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 policyholder stops paying the premium after 5 years, then the insurance cover will be discontinued and the fund value shall be paid immediately and the policy would stand terminated.

 

You want to surrender the policy – The policy can be surrendered from the 6th (sixth) policy year. The surrender value will be equal to the fund value.

 

You want a loan against your policy – There is a loan facility under this policy. The minimum loan amount is Rs. 5,000 and the maximum loan amount is 40% of the fund value net of any discontinuance charge.

 

 

Alternate ULIPs from different insurance companies

 

HDFC SL Crest

ICICI Prudential Elite Wealth

Kotak Wealth Insurance

Bajaj Allianz Max Advantage

 

 

Other investment plans from Birla Sun Life

 

Birla Sun Life Classic Endowment

Birla Sun Life Wealth Secure

Birla Sun Life Wealth Max

Birla Sun Life Platinum Advantage

BSLI Foresight Plan

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


Leave a Comment

Dear sir, Birla sun life dream endover plan is best idea benefit in human life coverage. So, best benefit plan. I like plan.

By Divya Kala on Aug 01, 2013 Reply

one information i couldn't get regarding fund allocation in 1st, 2nd ..so on year.

By Shailesh Kumar on Sep 30, 2012 Reply

Dear team,
I have intersestd

By Rashmita Sahoo on Feb 23, 2012 Reply

I am interested

By Ramkumar on Nov 16, 2011 Reply

call back@9052568468

By Sindhu on Oct 10, 2011 Reply

Please send one of your representative to explain to me in detail regarding this policy.
Since it has some hospital facilities I would be interested in buying one for myself.

Robert
8928466111

By Robert Christy on Sep 21, 2011 Reply

Good one

By Ram on Jul 11, 2011 Reply

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