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Birla Sun Life Insurance- Future Guard Plan
Birla Sun Life Insurance- Future Guard Plan Review
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.
Working of the Birla Sun Life Insurance- Future Guard Plan
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.
COMPARE THIS PLAN WITH OTHER TERM PLANS
Benefits and Features of Birla Sun Life Insurance- Future Guard Plan
Maturity Benefit – 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:
Death Benefit – 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:
Maturity Sum Assured
10 times the annual premium
105% of total premiums paid till death
Bonus – This is a non-participating plan and as such, bonuses are not declared.
Loan –Loans are not available under the plan.
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 Criteria of Birla Sun Life Insurance- Future Guard Plan
The plan can be bought only by Resident Indians. The other eligibility criteria of the plan includes:
Entry age (Last Birthday)
Maturity Age (Last Birthday)
10, 15, 20, 25 or 30 years
Depends on Sum Assured, age and plan tenure
Premium Paying Term
Equal to plan term
Premium payment mode
Monthly, quarterly, half-yearly and annually
Additional Benefits of Birla Sun Life Insurance- Future Guard Plan
Riders – 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
Grace Period – 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.
Free Look 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.
Let's Understand The Plan With An Example:
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:
Term – 15 years
Term – 20 years
Term – 25 years
Exclusions in Birla Sun Life Insurance- Future Guard Plan
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.
Non-Payment of premium in Birla Sun Life Insurance- Future Guard Plan
Premiums 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)
Surrendering the policy
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.
Revival is allowed within 2 years from the date of the first unpaid premium. The policyholder would be required to pay the outstanding premium and any interest charged by the insurer to revive his policy.