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BSLI Classic Endowment Plan

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This plan has been withdrawn by the insurance company and is no longer available for sale.

 

Birla Sun Life Insurance (BSLI) Classic Child Plan

 

BSLI Classic Child Plan from Birla Sun Life Insurance is a unit linked non-participating child plan, where the parent is the primary life insured and the child is the secondary life insured till the Savings Date, when the child becomes the primary life insured. This is a Double Benefit plan, where both the Sum Assured and the Fund Value is paid on death of the primary life insured.

 

The Premium Amount and the Savings Date, subject to child’s age between 18 to 27 years, are chosen and the Basic Sum Assured is calculated automatically. Thus, on the Savings Date, the child becomes the primary life insured and no further premium is paid. However the policy continues for another 20 years till the end of the policy tenure. If the parent dies before the Savings Date, the Sum Assured is paid to take care of the immediate expenses and the future premiums are paid by the insurer and the policy continues. On Savings Date, the child becomes the primary life insured and the Fund Value is paid out on the policy maturity.

 

Our Advice – This policy from Birla Sun Life Insurance offers returns and additions such that the child does not face any financial crunch when the money is required even if the parent or the grandparent, whoever has taken the policy for the benefit of the child, is not alive. Hence it is a guarantee that you can provide for your child by insuring your life for her bright future and career and most importantly your dreams as both you and your child is covered under the same plan.

 

 

Key Features of BSLI Classic Child Plan

 

  • A parent or a grandparent till 65 years of age can apply for this plan.
  • This is a Joint Life Insurance Policy wherein the parent is the primary life insured and the child is the secondary life insured. On the Savings Date, the child becomes the primary life insured and the parent becomes the secondary life insured
  • The life coverage can be increased by opting for Enhanced Sum Assured.
  • There are Guaranteed Additions of 2.5% of the Basic Premiums paid in the last 60 months on 10th policy anniversary and on every 5 policy anniversary thereafter + 0.25% of the average Fund Value in the last 12 months is added every anniversary from 11th policy anniversary
  • There are 4 additional riders available and 10 investment funds that are available.

 

COMPARE THIS PLAN WITH OTHER ULIP PLANS
 

 

Benefits you get from BSLI Classic Child Plan

 

Death Benefit –

Before the Savings Date- When the primary life insured is the parent

If the Parent dies- then Basic Sum Assured + Enhanced Sum Assured, if any and all future Basic Premiums are paid and the policy continues

If the child dies- The policy would be terminated on the Savings Date and the Fund Value would be paid out.

After the Savings Date- When the primary life insured child, Basic Sum Assured is paid

Upon the Last Death of either the Primary or Secondary Life Insured, the Fund Value is paid and the policy is terminated.

 

Maturity Benefit – The Fund Value is paid.

 

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

 

 

Eligibility conditions and other restrictions in BSLI Classic Child Plan

 

 

 

Minimum

Maximum

Basic Sum Assured

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

 

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

Policy Term

Savings Date + 20 years

Premium Payment Term

Till Savings Date

Entry Age of Parent/Grandparent

18 years

65 years

Entry Age of Child

30 days

17 years

Age at Maturity on Savings Date

-

75 years

Single premium

NA

NA

Payment modes

Annual, Semi-Annual, Quarterly and Monthly

 

 

Additional Features and Benefits of BSLI Classic Child Plan

 

Riders – There are 4 additional 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

 

 

Investment Fund Options - There are 10 Investment Fund that are available:

  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 - The minimum Top Up Amount is Rs 5000 and can be paid anytime during the policy term, except in the last 5 years. The Sum Assured increases automatically.

 

Switching - Minimum Switch Amount = Rs 5000.

 

Partial Withdrawal - Unlimited partial withdrawals are allowed any time after completion of 5 Policy Years or the child is at least 18 years of age, whichever is later. The minimum amount of partial withdrawal is Rs. 5,000. There is no maximum limit, but a minimum Fund Value of Rs. 25,000 needs to be kept in the Fund Value.

 

                                             

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 – The policy can be surrendered anytime after 5 policy years and the Fund Value will be paid out.

Prior to Savings Date, in situations where the primary life insured (grand /parent) is dead, the secondary life insured (child) can surrender the policy anytime after attaining age 18

 

You want a loan against your policy - There is loan available under this plan. The minimum loan amount is Rs. 5,000 and the maximum loan amount is 40% of the fund value.




 

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