Birla Sun Life Insurance- Future Guard Plan
BSLI Future Guard Plan is a traditional Term insurance plan along with the Return of Premium option. Thus, the plan provides protection in case of death and also returns the premiums paid if the plan matures.
Highlights of the Birla Sun Life Insurance- Future Guard Plan
- This is a traditional Term Assurance plan which provides affordable protection.
- Other than the guaranteed death benefit, the plan also returns the premiums paid on maturity.
- The plan comes in two variants.
- Females are charged a lower rate of premium compared to males.
Benefits
When the plan attains maturity the maturity benefit paid would be a percentage of the total premiums paid under the plan. The percentage depends on the type of plan opted and the plan tenure. The percentage of premiums paid as maturity benefit is as follows:
| Plan Type | Term-10 years | Term-15 years | Term-20 years | Term-25 years | Term-30 years |
| A | 100% | 100% | 100% | 100% | 100% |
| B | 110% | 120% | 130% | 140% | 150% |
If the life insured dies during the tenure of the plan the Sum Assured on Death is paid. The Sum Assured on death would be the highest of the following:
-
- Sum Assured
- Maturity Sum Assured
- 10 times the annual premium
- 105% of total premiums paid till death
This is a non-participating plan and as such, bonuses are not declared.
Loans are not available under the plan.
Five additional riders are available which can be attached to the plan for a comprehensive coverage. The riders are:
-
- BSLI Accidental Death and Disability Rider
- BSLI Critical Illness Rider
- BSLI Surgical Care Rider
- BSLI Hospital Care Rider
- BSLI Waiver of Premium Rider
A grace period of 30 days is allowed for payment of premium after the due date for all modes of premium payment. The life cover under the policy would continue during the grace period.
A cooling off period or a free look period of 15 days (30 days for distance marketing channels) is granted to the policyholder after the policy issuance to review the policy terms and conditions. If found unsatisfactory, the plan can be cancelled within this period and the premium paid would be refunded after deducting the relevant mortality charge, service tax, cess and stamp duty paid.
How it works
- The policyholder chooses the Sum Assured, the plan variant and the plan tenure. Based on these parameters, age and gender the amount of premium payable is determined.
- Premiums are payable for the entire tenure of the plan.
- In case of death, the death benefit available under the plan is paid.
- When the plan matures, the premiums paid are returned depending on the plan type and plan tenure.
Tax Benefit
Premiums paid under the plan would be exempt from tax under Section 80C up to a limit of Rs.1.5 lakhs. The death benefit or the maturity benefit received would also be tax exempt under Section 10(10D) of the Income Tax Act.
Eligibility
The plan can be bought only by Resident Indians. The other eligibility criteria of the plan includes:
| Minimum | Maximum | |
| Entry age (Last Birthday) | 18 years | 65 years |
| Maturity Age (Last Birthday) | NA | 75 years |
| Plan tenure | 10, 15, 20, 25 or 30 years | |
| Premium payable | Depends on Sum Assured, age and plan tenure | |
| Premium Paying Term | Equal to plan term | |
| Sum Assured | Rs.5 lakhs | No limit |
| Premium payment mode | Monthly, quarterly, half-yearly and annually | |
Plan Details
Let's Understand The Plan With An Example:
Premium Illustration
The following chart shows the amount of premium payable by a 30 year male for the two plan variants. Different combinations of terms and Sum Assured are considered for calculation purposes.
The tabulated rates of premiums are as follows:
| Sum Assured | Term – 15 years | Term – 20 years | Term – 25 years | |||
| Rs.5 lakhs | 6,765 | 12,055 | 5,885 | 9,600 | 5,325 | 7,760 |
| Rs.8 lakhs | 10,824 | 19,288 | 9,416 | 15,360 | 8,520 | 12,416 |
Surrender Value
The plan acquires a Surrender Value only if 3 years’ premiums have been paid. On surrendering the plan, higher of the Guaranteed Surrender Value (GSV) or the Special Surrender Value (SSV) would be paid to the policyholder.
- GSV = GSV Factor * total premiums paid till the date of surrender
- The Special Surrender Value would be determined by the company at periodic intervals.
Exclusions
- If the policyholder commits suicide within a year of policy issuance or revival, higher of 80% of the premiums paid or the Surrender Value acquired would be paid.
FAQs
What happens if Non-Payment of premium in Birla Sun Life Insurance- Future Guard PlanPremiums have to be paid for 3 years failing which the policy lapses and no benefits are payable. If the premiums have been paid for the minimum specified duration and thereafter the premiums are discontinued, the policy can be surrendered, made paid-up or revived. If at least 2 full years’ premiums have been paid, the maturity or death benefit under the plan would be limited to 10% of all premiums paid.
Making the policy Paid-up
One can make the policy paid-up only if 3 years’ premiums have been paid. On making the policy paid-up, the death and the maturity benefit would be reduced. The benefits payable would be as follows:
Death benefit – Sum Assured on death* (total premiums paid/total premiums payable)
Maturity Benefit – Maturity Sum Assured * (total premiums paid/total premiums payable)
