BSLI Dream Endowment Plan
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
Some additional benefits can be taken in the form of riders by paying extra premium
| Type of Rider | Available with Policy |
| Accidental death benefit | |
| Permanent disability benefit | |
| Waiver of premium benefit | |
| Critical illness (or dread diseases) benefit | |
| Increased death benefit / Term rider | Yes
(called as Enhanced Sum Assured) |
| Hospital cash benefit | |
| Surgical Care benefit |
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.
Benefits
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.
If the policy holder survives the policy term, then he/she gets the higher of Fund Value + Guaranteed Savings Fund at maturity.
How it works
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.
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
| 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 | No Limit |
| Payment modes | Yearly, Half-Yearly, Quarterly and Monthly (ECS) |
|
| Top-up premium | NA | NA |
FAQs
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.
What happens if 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.
What happens if 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.
What happens if 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.
