Birla Sun Life Insurance-Guaranteed Future Plan
Birla Sun Life Insurance-Guaranteed Future Plan
BSLI Guaranteed Future Plan is a traditional, non-participating insurance plan which provides a means of savings and insurance protection bundled into one.
Key Features
This is a traditional non-participating savings plan which does not earn bonuses.
The plan requires regular payment of premiums until the end of the plan term.
There are two death benefit options of A and B and a policyholder can choose any option as per his requirement.
There is an inbuilt Waiver of Premium Rider which waives the premiums payable in case of death of the insured while the plan continues.
Comprehensive coverage can be opted through multiple riders available under the plan.
Benefits
When the plan matures and the premiums have been duly paid, the Guaranteed Maturity Benefit is paid. The Guaranteed Maturity Benefit is the Sum Assured on Maturity which depends on the amount of premium, premium paying frequency, gender of the insured and the death benefit option selected. The benefit can be taken either in lump sum or in installments over a period of 5 years starting from the year of maturity. If the premium is paid in the annual or the half-yearly mode, the Guaranteed Maturity Benefit payable increases by 3% and 1.5% respectively.
If the insured dies during plan term and the policy is in force, the death benefit payable would depend on the death benefit option selected. There are two options and the benefit under each option is as follows:
Option A – Guaranteed Death Benefit is paid on death. Future premiums are waived off but the plan continues. At the end of the plan tenure, the Guaranteed Maturity Benefit is paid.
Option B – Guaranteed Death Benefit is paid on death and future premiums are waived off. From the next policy anniversary, a Guaranteed Income is paid to the nominee till the second last policy year or 3 years, whichever is higher. This income is equal to twice the annual premium paid under the plan. Finally at the end of the plan term, Guaranteed Maturity Benefit is paid.
The Guaranteed Death Benefit under both the options would be equal to the Sum Assured on Death which is higher 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 do not accrue under it.
Loans are not available under the plan.
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 and the Survival benefit received would also be tax exempt under Section 10(10D) of the Income Tax Act.
The plan provides a choice of 4 riders which can be attached to the policy for a comprehensive coverage option. The available riders include the following:
- BSLI Accidental Death and Disability Rider
- BSLI Critical illness Rider
- BSLI Surgical Care Rider
- BSLI Hospital Care Rider
A grace period of 30 days is allowed for payment of premium after the due date. 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 premium he wants to pay, the plan term and the death benefit option.
- The Sum Assured and the maturity benefit under the plan depend on the amount of premium and the premium paying frequency chosen by the policyholder.
- The premium paid is divided into three bands which are as follows:
| Premium Bands | Premium range |
| Band 1 | Rs.10,000 to Rs.17,999 |
| Band 2 | Rs.18,000 to Rs.29,999 |
| Band 3 | Rs.30,000 and above |
- On death during the period, the death benefit is paid. Future premiums are not required and a maturity benefit is also paid after the completion of the plan term.
- On maturity, the maturity benefit is paid.
Non-Payment of premium in Birla Sun Life Insurance-Guaranteed Future Plan
Premiums have to be paid for at least 2 years for a term less than 10 years or 3 years for other terms. After this compulsory period, the policyholder can surrender the policy or make it paid-up. If the plan tenure is more than 10 years and the policy is lapsed after paying premiums for at least 2 policy years, 10% of the annual premium would be paid by the company either on death, surrender or at the end of the revival period of 2 years whichever is earlier.
Making the policy Paid-up
If at least 2 or 3 full years’ premium has been paid, the policy would become a paid-up policy if future premiums are not paid. The benefits under the plan, namely, the Sum Assured, Sum Assured on Death, Guaranteed Maturity Benefit and the Maturity Sum Assured would be reduced proportionately to the number of premiums paid against the total number of premiums payable. The death benefit under the paid-up plan would be as follows:
Reduced Sum Assured on Death is paid and the plan continues. If death benefit Option B is selected, the Guaranteed Income would stop when the policy becomes a paid-up policy. At the end of the plan term, the reduced Guaranteed Maturity Benefit is paid which can be taken in lump sum or in five equal installments over five years.
Surrendering the policy
Surrender is allowed only after the policy becomes paid-up, i.e. after2 or 3 full years’ premiums have been paid. On surrendering the policy, higher of the Guaranteed Surrender Value (GSV) or the Special Surrender Value (SSV) would be paid.
- GSV = {(Basic Premium paid excluding taxes * GSV Factor)
- The SSV factors would be declared by the company based on its performance
Revival
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.
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 | 50 years |
| Maturity age (Last Birthday) | NA | 70 years |
| Plan tenure | 8 years | 20 years |
| Premium payable | Rs.10,000 | No limit |
| Premium Paying Term (PPT) | Equal to the chosen plan term | |
| Sum Assured | 10 times the annual premium paid | |
| Premium payment mode | Monthly, half-yearly, quarterly and annually | |
Exclusions
- If suicide is committed within a year of policy issuance or revival, higher of the premiums paid till death or the Surrender Value acquired would be paid provided the policy is in force.
