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Birla Sun Life Insurance-Immediate Annuity Plan

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Birla Sun Life Insurance-Immediate Annuity Plan Review

BSLI Immediate Annuity Plan is a traditional insurance plan which is designed for providing a regular source of income after retirement. The income payout starts immediately after the plan commencement.


Highlights of the Birla Sun Life Insurance-Immediate Annuity Plan

  • This is a traditional annuity plan wherein the annuity payments start immediately after the plan is purchased.
  • The plan can be taken by individuals for themselves or by employers for their employees.
  • The premium is payable at once on plan inception after which the annuity payouts commence.
  • There are six types of payout options to select from.
  • Medical tests are not required when buying the plan.


Working of the Birla Sun Life Insurance-Immediate Annuity Plan

  • The policyholder chooses the Single Premium he wants to pay, the annuity frequency and the annuity payout option. Based on the above parameters, the amount of annuity payable is calculated. 
  • The annuity is paid as per the chosen frequency and the payout option.
  • There is no maturity under the plan. On death, the benefit received depends on the annuity payout option selected.

COMPARE THIS PLAN WITH OTHER PENSION PLANS


Benefits and Features of Birla Sun Life Insurance-Immediate Annuity Plan

  • Annuity Payouts – The plan has 6 different types of annuity payout options. The options and their respective payouts are as follows:
    • Uniform Annuity paid for the entire life of the annuitant
    • Uniform annuity paid for the entire life and return of Purchase Price on death of the annuitant
    • Annuity paid for a guaranteed tenure of 5, 10, 15 or 20 years and thereafter payable for life at a uniform rate
    • Annuity paid for the entire life which would increase every year at a simple rate of 3% per annum.
    • Joint Life, Last Survivor annuity wherein the annuity is paid for the annuitant’s lifetime. After the death of the annuitant, the annuity is paid for the lifetime of the surviving spouse.
    • Joint Life, Last Survivor annuity with return of Purchase Price. Under this option, annuity is paid for the annuitant’s lifetime after which it continues till the spouse’s lifetime. On the death of the spouse, the purchase price is paid.
  • 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 80CCC. The annuity payments received, however, would be taxable under Section 10(10A) of the Income Tax provisions.


Eligibility Criteria of Birla Sun Life Insurance-Immediate Annuity Plan

The plan can be bought only by Resident Indians. The other eligibility criteria of the plan includes:
 
  Minimum Maximum
Entry age (Last Birthday) 30 years 90 years
Premium payable (Purchase Price) Depends on the annuity payout required and the option selected.
Premium Paying Term Single Pay
Annuity payouts Yearly – Rs.12,000
Half-yearly – Rs.6000
Quarterly – Rs.3000
Monthly – Rs.1000
No limit
Premium payment mode Single Pay
 


Additional Benefits of Birla Sun Life Insurance-Immediate Annuity Plan

  • Riders – Riders are not available with the plan.
  • Grace Period – Since it is a single premium plan, grace period clause is not applicable.
  • 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


How Does The Plan Works?

Step 1
Choose the regular income you wish to receive. This defines the premium you will need to pay
 
Step 2
Choose between the Annuity options offered
 
Step 3
Choose the frequency of payout – monthly, quarterly, semi-annual or annual
 
Step 4
Receive your income through Direct Bank Account Credit
 
 

Choose the Annuity Plan that best suits you

Birla Sun Life Insurance Immediate Annuity Plan offers a choice of 6 Annuity options you can choose from.
 
Option 1
Regular annuity until the annuitant's death.
 
Option 2
Regular annuity for life with return of the purchase price on annuitant's death.
 
Option 3
Regular annuity for chosen term and after that as long as annuitant is alive. On annuitant's death during the chosen term, a nominee receives the balance annuity.
 
Option 4
Increasing annuity at 3% per annum until annuitant's death.
 
Option 5
Joint life - Last survivor. Primary annuitant receives annuity until death. Second annuitant continues to receive annuity until death.
 
Option 6
Joint Life Last Survivor with return of purchase price. Here the annuity is first paid to the primary annuitant. After the death of the primary annuitant, the second annuitant (spouse) continues to receive the annuity. Upon the unfortunate death of the secondary annuitant, the purchase price is returned to the beneficiary/nominee.
 

Exclusions in Birla Sun Life Insurance-Immediate Annuity Plan

  • If the policyholder commits suicide within a year of policy issuance the death benefit as per the annuity payout option selected would be paid.


Surrendering the policy

Surrendering the policy is not allowed and annuity payouts would continue till the annuitant and/or his spouse’s lifetime.
 
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