Birla Sun Life Insurance-Vision Endowment Plan
Birla Sun Life Insurance-Vision Endowment Plan
BSLI Vision Endowment Plan is a traditional, participating Endowment Insurance Plan which creates savings for the policyholder while at the same time providing insurance coverage too.
Key Features
This is a traditional Endowment Plan which participates in bonus declarations. Simple reversionary bonuses are added under the plan.
Premiums are payable only for a limited tenure.
There is an inbuilt Accidental Death Benefit rider which provides additional Sum Assured in case of accidental death.
Comprehensive coverage can be opted through an optional rider available under the plan.
Premium discounts are given for higher Sum Assured levels and premium paying frequencies.
Benefits
BSLI Waiver of Premium Rider is available under the plan which can be added for a more comprehensive protection.
Discount in premiums are allowed if the premiums are paid in the annual or half-yearly mode. The discount would be 5% for the annual mode and 2% for half-yearly mode of premium payment.
Discounts are also given in premiums for choosing Sum Assured levels of Rs.2 lakhs and above. The Sum Assured levels are categorized in 4 bands and bands 2, 3 and 4 qualify for the rebate. The applicable rebates are as follows:
| Sum Assured Bands | Rebate per 1000 Sum Assured |
| Band 1 – Rs.100,000 to Rs.199,999 | NA |
| Band 2 – Rs.200,000 to Rs.399,999 | Rs.1 |
| Band 3 – Rs.400,000 to Rs.799,999 | Rs.5 |
| Band 4 – Rs.800,000 and above | Rs.7 |
A grace period of 30 days is allowed for payment of premium after the due date for yearly and half-yearly modes of premium payment. For monthly mode, the grace period allowed is reduced to 15 days. 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
When the plan matures and the premiums have been duly paid, the following benefits would be paid:
Maturity Sum Assured + Vested reversionary Bonuses +Terminal Bonus, if any
The Maturity Sum Assured is equal to the total premiums paid under the plan.
If the insured dies during plan term and the policy is in force, the death benefit payable would be:
Sum Assured on Death + accrued reversionary bonuses + Terminal Bonus, if any.
The Sum Assured on death would be higher of the following:
- 10 times the annual premium
- Sum Assured chosen on plan commencement
- Maturity Sum Assured
- 105% of all premiums paid till death
If the insured dies due an accident, an additional Sum Assured would be paid as an Accidental Death Benefit which is inbuilt in the plan. The benefit would be equal to the Sum Assured of the plan subject to a maximum of Rs.1 crore. Furthermore, the insured would be eligible to receive the benefit only if his age as on the date of accidental death is 18 years and above.
Reversionary bonuses are declared under the plan and are paid every year for which the policy is in-force. An interim bonus may be added during the plan tenure and a terminal bonus may also be paid on death, surrender or maturity of the plan.
Loan can be taken on the policy after the policy has acquired a Surrender Value. The maximum amount of loan available is 85% of the acquired Surrender Value while the minimum amount is Rs.5000.
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.
How it works
- The policyholder chooses the Sum Assured, the premium paying term and frequency. Based on the policyholder’s age and the above criteria, the premium would be determined.
- The Sum Assured is divided into four bands which are as follows:
| Sum Assured Bands | Sum Assured range |
| Band 1 | Rs.1 lakh to Rs.199,999 |
| Band 2 | Rs.2 lakhs to Rs.399,999 |
| Band 3 | Rs.4 lakhs to Rs.799,999 |
| Band 4 | Rs.8 lakhs and above |
- Bonuses are added every year if the policy is in-force.
- On death during the period, the death benefit is paid.
- On maturity, the maturity benefit is paid.
Plan Details
Let's Understand The Plan With An Example:
Shravan is 35 years old. He wants to secure his family's financial future should anything unfortunate were to happen to him. He wants to secure his family's financial future with an investment solutions that also offers returns on his investment. He chooses to secure his life for a 20 year term with the BSLI Vision Endowment Plan.
He chooses a sum assured of Rs.2,50,000 and a premium paying term of 10 years in the annual mode, where his premium is set at Rs.16,017. Total Maturity Benefit he can expect at the end of a 20 year term at 8% interest will be Rs.3,75,170 and Rs. 225,170 at 4% interest. He can also expect Guaranteed Maturity Benefit of Rs. 160,170 at the end of the policy term.
In case of Sachin's untimely demise, the total Death Benefit his family can expect will be to the tune of Rs.4,40,00 at 8% interest and Rs. 290,000 @ 4% interest. In case of death by accident, his sum assured will double, i.e. Rs.5,00,000.
Note: The rates mentioned above are bound to change in the future.
Please contact the company for final rates applicable to you at the time of purchase.
Non-Payment of premium in Birla Sun Life Insurance-Vision Endowment Plan
Premiums have to be paid for at least 2 years for a premium paying term of 7 years or 3 years for a premium paying term of 10 years. After this compulsory period, the policyholder can surrender the policy or make it paid-up.
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 would be reduced and would be called Paid-up benefits. Bonuses would not be declared under the policy and the following benefits would be paid as and when they occur:
- Death Benefit –Reduced Sum Assured on death + accrued bonus
Reduced Sum Assured on death = (number of premiums paid/ number of premiums payable) * Sum Assured on Death
The Accidental Death Benefit would also be reduced in the same manner as the Sum Assured on death. Bonus accrued in the year of discontinuance would also be reduced similarly. - Maturity benefit – Maturity Sum Assured would be paid which is equal to the total premiums paid under the plan until discontinuation.
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)+ (Vested bonuses * GSV factor of bonus)}
- 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) | 1 year | 55 years |
| Plan tenure | 20 years | |
| Premium payable | Rs.10, 000 | No limit |
| Premium Paying Term (PPT) | 7 or 10 years | |
| Sum Assured | Rs.1 lakh | No limit |
| Premium payment mode | Monthly, half-yearly 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
- For the Accidental Death Benefit Rider, the benefit would not be paid if the death occurs due to suicide or self-inflicted injury, war, service in the armed forces, alcohol or drug abuse, aviation, acts of criminal nature, participation in hazardous sports or activities, disease or infection and radiation.
