Birla Sun Life Insurance (BSLI) Foresight Plan
Birla Sun Life Foresight Plan is a unique Unit Linked Insurance Policy (ULIP) which provides choice to the customer to manage his own fund himself or rely completely on the fund managers with a minimum guaranteed return. The policyholder needs to pay in a lumpsum or over 5 instalments and be covered for 10 years. On death of the life insured, nominee would receive the prevailing Fund Value along with the Sum Assured and on maturity the policyholder would receive the Fund Value according to the option selected.
There is a Minimum Guarantee Maturity Benefit that is provided to the policyholders. Thus if the market is favourable, then the Fund Value at the time of maturity would be higher than the Minim Guaranteed amount and the policyholder can get that Fund Value. But if the market is not favourable, and the Fund Value falls below the Minimum Guaranteed Maturity benefit, then also the policyholder would get the minimum Guaranteed Fund Value at maturity.
Key Features of BSLI Foresight Plan
- Option of Guaranteed Maturity Benefit or self management of the investment funds
- Premiums need to be paid in a lumpsum or for a period of maximum 5 years only
- 10 different fund options under Self Managed Funds
Benefits you get from BSLI Foresight Plan
Death Benefit – In case of death of the policy holder, the nominee gets the Sum Assured and the Fund Value. Death Benefit will never be less than 105% of all the premiums paid.
Maturity Benefit - If the policy holder survives the policy term, then he gets the Fund Value. The Fund Value will be calculated according to the option selected:
· Under Self Managed Option, you will receive the Fund Value is given at the prevailing NAV
· Under Guaranteed Option, you will receive the Minimum Guaranteed Fund Value or the Fund Value at maturity, whichever is higher.
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) subject to the provisions stated therein.
Eligibility conditions and other restrictions in BSLI Foresight Plan
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Minimum
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Maximum
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Sum Assured (in Rs.)
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For age at entry below 45 years: 1.25 X Basic Premium and For age at entry 45 years and above: 1.1 X Basic Premium
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For age at entry below 45 years: 10 X basic Premium and For age at entry 45 years and above: 7 X Basic Premium
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Policy Term (in years)
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10 years
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Premium Payment Term (in years)
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Single
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5 years
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Lock-in period
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5 years
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Entry Age of Policyholder
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0 years
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60 years
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Age at Maturity
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-
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70 years
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Regular premium
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Rs 1,00,000 p.a.
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No Limit
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Single premium
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Rs 2,00,000
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No Limit
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Payment modes
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Single and Annual
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Top-up premium
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NA
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NA
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Additional Features and Benefits of BSLI Foresight Plan
Riders – No additional benefits can be taken in the form of riders by paying extra premium
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Type of Rider
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Available with Policy
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Accidental death benefit
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No
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Permanent/Accidental disability benefit
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No
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Waiver of premium benefit
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No
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Critical illness (or dread diseases) benefit
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No
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Increased death benefit / Term rider
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No
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Hospital cash benefit
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No
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Surgical care benefit
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No
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Investment Fund Options
1. Self Managed Option: There are 10 different fund options available to the customer for investment under Self Manager Option, where he can manage the funds himself:
a. Income Advantage Fund
b. Assure Fund
c. Protector Fund
d. Builder Fund
e. Enhancer Fund
f. Creator Fund
g. Magnifier Fund
h. Maximiser Fund
i. Multiplier Fund
j. Super 20 Fund
These funds range between 100% debt to 100% equity options. It depends on the customer’s risk appetite to choose the fund accordingly.
2. Under Guaranteed Option, all the money would be invested in the Foresight Fund and customer cannot switch or manage it himself.
Top-up - Not applicable
Switching - Switching from Guaranteed Option to Self-Managed option is allowed but not vice-versa.
Within the 10 different funds of Self Managed Option, switching is allowed but the minimum switch amount is Rs 5,000.
Partial Withdrawal - Partial withdrawal is allowed after you are at least 18 years of age and on completion of 5 years of the policy. The minimum partial withdrawal amount is Rs 5,000 and there is no limit for maximum withdrawn, except that at least Rs 25,000 should remain in the Fund value after withdrawal.
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 discontinuance charge will be charged according to the year of discontinuance. 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 – The maximum tenure of premium payment is 5 years.
You want to surrender the policy – Surrender of plan is allowed but only after 5 years. In case you surrender the plan, you would receive the Fund Value at that time along with a refund of the mortality charges of the remaining term which had been deducted already.
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 net of any discontinuance charges.
Alternate ULIPs from different insurance companies
Reliance Life Highest NAV Advantage Plan
Bajaj Allianz Max Advantage
Tata AIG Life Invest Assure Flexi Supreme
Other ‘Wealth with Protection’ plans from Birla Sun Life Insurance
BSLI Classic Endowment
BSLI Platinum Advantage
BSLI Dream Endowment
