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Birla Sun Life Insurance- Protect @ Ease Term Plan

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Birla Sun Life Insurance- Protect @ Ease Plan Review

BSLI Protect@ Ease Plan is a traditional Term insurance plan which is meant for fulfilling the protection needs of individuals easily.


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Highlights of the Birla Sun Life Insurance- Protect @ Ease Plan  

  • This is a pure Term Assurance plan which is available online.
  • The plan comes in two variants of level term insurance and increasing term insurance. 
  • Individuals with healthy lifestyles, non-smokers and preferred non-smokers, are rewarded with lower rates of premiums.
  • The death benefit can be taken in annual incomes instead of one lump sum.


Working of the Birla Sun Life Insurance- Protect @ Ease Plan  

  • The policyholder chooses the Sum Assured, the plan type, premium paying term 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 or in one lump sum under the Single Pay option of premium payment.
  • The plan can be easily bought online on the website of the company.
  • If the insured dies during the specified tenure of the plan, the death benefit, depending on the plan option selected would be paid.

COMPARE THIS PLAN WITH OTHER TERM PLANS
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Benefits and Features of Birla Sun Life Insurance- Protect @ Ease Plan  

  • Maturity Benefit – This is a pure term insurance plan where no maturity benefit is paid if the policyholder survives till maturity. 
  • 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 depend on the plan option selected. The two options and their respective benefits are as follows:
    • Plan Option I – a level Sum Assured which once selected at plan inception remains constant throughout.
    • Plan Option II – Increasing Term Assurance where the Sum Assured selected under the plan would increase every year by 5% or 10% as chosen by the policyholder. In case of death, the Sum Assured level attained in the year of death would be paid to the nominee.
Furthermore, the Sum Assured on death would be determined as highest of the following:

For Regular Premium Plans:
  • 10 times the annual premium
  • 105% of all premiums paid till death
  • Sum Assured on the date of death as per the plan option above.
For Single Premium Plans:
  • 125% of the single premium paid
  • Sum Assured on the date of death as per the plan option above.
The death benefit can be taken as annual incomes instead of a lump sum. This is called staggered payments wherein 20% of the death benefit is paid in lump sum on death and thereafter, the remaining is paid as annual incomes over a chosen payout period. The policyholder can choose a payout period of 10, 15 or 20 years and the rate of the payouts is given below:
 
Payout Term % of Sum Assured on death payable
10 years 11%
15 years 8.37%
20 years 7.12%

If the policyholder chooses to receive the remaining payouts in lump sum, the benefit would be paid after discounting it @6.25% per annum.
  • 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.

HAVE ANY DOUBTS THAT NEED TO BE CLARIFIED?

 


Eligibility Criteria of Birla Sun Life Insurance- Protect @ Ease Plan   

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 55 years
Maturity Age (Last Birthday) NA 80 years
Plan tenure 5 years 30 years
Premium payable Depends on Sum Assured, age, premium paying term and plan tenure
Premium Paying Term Equal to plan term or Single Pay
Sum Assured Rs.50 lakhs Rs.500 crores
Premium payment mode Monthly and annually or Single Pay



Additional Benefits of Birla Sun Life Insurance- Protect @ Ease Plan  

  • Riders – Riders are not available with the plan.
  • 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


How Does The Plan Work?

Step 1    Choose your Sum Assured and Plan Option (Level Sum Assured / Increasing Sum Assured)
Step 2    Choose your Policy Term and Premium Paying Term
Step 3    Fill Application form and pay premiums


Premium Illustration

The following chart shows the amount of premium payable by a 35 year old male for different plan variants. Different combinations of terms and individual’s lifestyle preferences are considered for calculation purposes while the Sum Assured (SA) is considered to be Rs.1 crore.



The tabulated rates of premiums are as follows:
 
Plan Option Smoker Non-Smoker Preferred Non-Smoker
Term - 20 years Term - 30 years Term - 20 years Term - 30 years Term - 20 years Term - 30 years
Level Term 12,705 17,903 8,950 12,400 7,900 10,800
SA Increasing @ 5% 18,480 31,343 12,750 21,350 11,150 18,450
SA increasing @ 10% 24,268 44,918 16,550 30,300 14,400 26,150



Exclusions in Birla Sun Life Insurance- Protect @ Ease Plan  

  • If the policyholder commits suicide within a year of policy issuance or revival, the premiums paid would be refunded and no death benefit would be paid.


Non-Payment of premium in Birla Sun Life Insurance- Protect @ Ease Plan 

Premiums have to be paid for the specified tenure failing which the plan would lapse and no benefits would be payable. The plan does not acquire any Surrender Value or Paid-up Value. Single Premium plans, however, do have the provision of surrender as they do not require regular payment of premiums.


Surrendering the policy

In case of regular premiums, the plan does not acquire any Surrender Value. However, in case of Single Premium Plans, the policy would acquire a Surrender Value after the first policy year.


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.
 
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