India's 1st IRDAI Approved Insurance Web Aggregator

Birla Sun Life Insurance-Vision Endowment Plus Plan

  •  views
  •  views

Birla Sun Life Insurance-Vision Endowment Plus Plan Review

BSLI Vision Endowment Plus Plan is a traditional, participating Endowment Insurance Plan where the policyholder is provided dual benefits of savings and insurance protection. Thus, the plan also provides an opportunity of wealth accumulation besides providing the underlying coverage benefit.


Highlights of the Birla Sun Life Insurance-Vision Endowment Plus Plan

  • This is a traditional Endowment Plan which participates in bonus declarations. Simple reversionary bonuses are added under the plan.
  • There are two options of premium payment. Premiums can be paid either for a limited period or for the entire plan duration.
  • There are two death benefit options of A and B and a policyholder can choose any option as per his requirement.
  • Comprehensive coverage can be opted through multiple riders available under the plan.
  • Premium discounts are given for higher Sum Assured levels and premium paying frequencies.


Working of the Birla Sun Life Insurance-Vision Endowment Plus Plan

  • The policyholder chooses the Sum Assured, the plan tenure, 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.

COMPARE THIS PLAN WITH OTHER ENDOWMENT PLANS


Benefits and Features of Birla Sun Life Insurance-Vision Endowment Plus Plan

  • Maturity Benefit – 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.
  • Death Benefit – 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 depends on the death benefit option selected by the policyholder. There are two options of A and B and the benefit under these options are as follows:
    Option A – The Sum Assured on Death would be higher of the following:
    • 10 times the annual premium
    • 100% of the Sum Assured chosen on plan commencement
    • Maturity Sum Assured
    Option B – The Sum Assured on Death is higher of the following:
    • 10 times the annual premium
    • 150% of the Sum Assured chosen on plan commencement
    • Maturity Sum Assured
The death benefit payable under any of the above-mentioned options should not be lower than 105% of all premiums paid till death. Moreover, if the insured has not attained one year as on the date of death, only the premiums paid under the plan would be returned.
  • Bonus –Simple 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 –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.
  • 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 and the Survival benefit received would also be tax exempt under Section 10(10D) of the Income Tax Act.


Eligibility Criteria of Birla Sun Life Insurance-Vision Endowment Plus 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 days 55 years
Maturity age (Last Birthday) NA 70 years
Plan tenure 10 years 40 years
Premium payable Rs.7000 No limit
Premium Paying Term (PPT) Limited Pay – 7,10,15 or 20 years or Regular pay
Sum Assured Rs.1 lakh No limit
Premium payment mode Monthly, half-yearly, quarterly and annually



Additional Benefits of Birla Sun Life Insurance-Vision Endowment Plus Plan

  • Riders –The plan provides a choice of 5 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 Waiver of Premium Rider
    • BSLI Hospital Care Rider
  • Premium Rebates – 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. 
  • Sum Assured Rebate – 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
 
  • Grace Period – 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.
  • 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.


Plan Details

Let's Understand The Plan With An Example:
Ketan is 35 years old. He wants to secure his family's financial future with an investment solution that also offers returns on his investment. He chooses to secure his life for a 20 year term with the BSLI Vision Endowment Plus Plan. He chooses a sum assured of Rs.2,50,000 and premium paying term for 10 years. For this plan, he has a choice of selecting Death Benefit options best suited for his family. Based on his life stage & death benefit option A, his premium per year is set at Rs. 17,509. He can expect Rs. 4,05,085 as the total Maturity Benefit at the end of a 20 year term at 8% p.a and Rs. 222,585 at 4% p.a. He can also expect Guaranteed Maturity Benefit of Rs. 1,75,085 at the end of the policy term. In case of Ketan's untimely demise, the total Death Benefit his family can expect will be Rs. 4,80,000 at 8% pa. And Rs. 297500 at 4% p.a.
 
If he chooses the Death Benefit Option B, the premium he has to pay is Rs. 18,131. The total Maturity Benefit is Rs. 411,308 at the end of a 20 year term at 8% p.a. and Rs. 228,808 at 4% pa He can also expect Guaranteed Maturity Benefit of Rs. 1,81,308 (Option B) at the end of the policy term. The total Death Benefit his family can expect will be Rs. 6,05,000 for Option B at 8% p.a. and Rs. 422,500 at 4% pa.
 
Note: The rates mentioned above are bound to change in the future. For more details on Death Benefit options, please refer to the product brochure.
Please contact the company for final rates applicable to you at the time of purchase.
 

How The Plan Works

Step 1    Choose your sum assured
Step 2    Choose your premium paying term
Step 3    Choose your premium frequency
Step 4    Choose the Death Benefit Option

Your premium will depend on the amount of the Sum Assured you select.
 

Exclusions in Birla Sun Life Insurance-Vision Endowment Plus Plan

  • 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 insured aged less than 1 year, only the premiums paid would be returned.


Non-Payment of premium in Birla Sun Life Insurance-Vision Endowment Plus Plan

Premiums have to be paid for at least 2 years for a premium paying term of 7 years or 3 years for other terms. After this compulsory period, the policyholder can surrender the policy or make it paid-up.

Making the policy Paid-up

If at least2 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 but the vested bonuses would not be reduced. However, bonuses accruing in the year in which premiums are discontinued would be reduced 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
  • Maturity benefit – Reduced Maturity Sum Assured + accrued bonuses.
    Reduced Maturity Sum Assured = Maturity Sum Assured *(number of premiums paid/total number of premiums payable)


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.


 
Compare Endowment Plans

Leave a Comment

Endowment Plan Calculator