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.
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
BSLI Classic Endowment Plan
BSLI Platinum Advantage
BSLI Foresight Plan
