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Birla Sun Life Insurance-Vision LifeIncome Plan

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Birla Sun Life Insurance-Vision LifeIncome Plan Review

BSLI Vision LifeIncome Plan is a traditional Whole of Life Insurance Plan which provides coverage for the entire lifetime of the insured. The plan also pays benefits after a specified period thus fulfilling the saving need along with the protection need of individuals.


Highlights of the Birla Sun Life Insurance-Vision LifeIncome Plan

  • This is a traditional Whole of Life plan where bonuses are declared.
  • It is a Limited Premium Paying plan where premiums are paid for a limited period while the life cover continues for the entire lifetime.
  • After the completion of the Premium Paying Term, the plan pays guaranteed incomes till the end of the plan tenure.
  • Simple reversionary bonus and Terminal Bonus enhances the plan benefits.


Working of the Birla Sun Life Insurance-Vision LifeIncome Plan

  • The policyholder chooses the Sum Assured and the Premium Paying Tenure. Based on the age of the insured, the Sum Assured and the Premium Paying Tenure and frequency, the premium would be calculated.
  • The Sum Assured comes in 3 bands of Rs.2 lakhs to Rs.399, 999 (Band 1), Rs.4 lakhs to Rs.799, 999 (Band 2) and Rs.8 lakhs and above (Band 3).
  • At the end of the premium paying term, the insured should be aged a minimum of 18 years and a maximum of 75 years. 
  • If the insured dies any time before reaching 100 years of age, the death benefit is paid.
  • Guaranteed cash back as a percentage of the Sum Assured would be paid every year after the Premium Paying Term is completed as Survival Benefits.
  • On maturity when the insured reaches 100 years of age, the maturity benefit is paid.


Benefits and Features of Birla Sun Life Insurance-Vision LifeIncome Plan

  • Maturity Benefit – If the insured attains 100 years and the plan matures, the Sum Assured and any Terminal Bonus is paid to the policyholder. The Sum Assured payable should not be lower than 105% of all premiums paid under the plan.
  • Death Benefit – If the insured dies before reaching 100 years of age when the policy is in-force, the death benefit is paid depending on the period in which death has occurred. If the insured dies during the Premium Paying Tenure, the death benefit payable would be as follows:
    Sum Assured + accrued bonuses till death + any Terminal Bonus, subject to the benefit being a minimum of 105% of the premiums paid till death
    If the insured dies after the premium paying term when the Survival Benefits are being paid, the benefit would be as follows:
    Sum Assured + bonus earned in the year of death + any Terminal Bonus subject to a minimum of 105% of all premiums paid till death
  • Survival Benefits – Guaranteed benefits are paid to the policyholder after the completion of the Premium Paying Term which is called the Survival Benefits. Immediately after the premium paying term is completed, the accrued bonus under the plan is paid out. From the end of the nest policy year, the Income Benefit of 5% of the Sum Assured and the bonus earned in that year is paid out. This benefit is paid out every year till death or if the insured attains 100 years of age.
  • Loan –Loans are allowed under the plan only if the plan 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.
  • Bonus –Simple reversionary bonuses are declared under the plan. A Terminal Bonus might also be paid on death or maturity of 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.


Eligibility Criteria of Birla Sun Life Insurance-Vision LifeIncome Plan

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 60 years
Maturity Age (Last Birthday) NA 100 years
Plan tenure (100 – age at entry) years
Premium payable Rs.18,000 No Limit
Premium Paying Term (PPT) 15 years 40 years
Sum Assured Rs.2lakhs No limit
Premium payment mode Monthly, quarterly, half-yearly and annually
 


Additional Benefits of Birla Sun Life Insurance-Vision LifeIncome Plan

  • Riders – Five additional riders are available under the plan which can be added to the base policy for a comprehensive coverage option. The riders include:
    • BSLI Accidental Death and Disability Rider
    • BSLI Critical Illness Rider 
    • BSLI Surgical Care Rider
    • BSLI Hospital Care Rider
    • BSLI Waiver of Premium Rider
  • Sum Assured Rebates – If a higher amount of Sum Assured is chosen, the company provides premium rebates. The discount is expressed per Rs.1000 of Sum Assured and is applicable on Sum Assured Bands 2 and 3, i.e. for Sum Assured levels of Rs.4 lakhs and above. The rate of rebate is Rs.2.50 for Band 2 (Sum Assured ranging from Rs.4 lakhs to Rs.799, 999) and Rs.3.50 for Band 3 (Sum Assured of Rs.8 lakhs and above).
  • Modal Rebates – The premium paying frequency also attracts premium discounts. If the premium is paid annually, a discount of 3% is allowed and if the frequency is half-yearly, the discount allowed is 1.5%.
  • Grace Period – A grace period of 30 days is allowed for payment of premium after the due date for annual, half-yearly or quarterly modes of premium payment. For monthly modes, the grace period allowed is 15 days. 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


Key Features

  • 5% of the Sum Assured guaranteed plus bonus every year after premium paying term.
  • Comprehensive financial protection for your family with whole life covers to age 100.
  • Premium rebates on high Sum Assured, Annual & Semi Annual modes of payment and ECS method of payment.
  • Access to suitable Rider options for added protection, at a nominal extra cost.
  • Tax benefits under Section 80C, 80D and Section 10(10D) of the Income Tax Act, 1961.

COMPARE THIS PLAN WITH OTHER ENDOWMENT PLANS

 
How The Plan Works

Step 1: Choose your Sum Assured
Step 2: Choose your pay mode
Step 3: Choose Your Riders
 

Exclusions in Birla Sun Life Insurance-Vision LifeIncome 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


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

Premiums have to be paid for at least 3 years after which the policy can either be surrendered or made paid-up.

Making the policy Paid-up

If at least 3 full years’ premium has been paid, the policy could be converted to a paid-up policy if future premiums are not paid. The Sum Assured or 105% of all premiums paid till date, whichever is higher, would be reduced and the death and maturity benefits would depend on the reduced values. Bonuses accrued under the plan would not be reduced but the bonus for the year in which the premium is discontinued would be reduced. Future bonuses are not declared under a paid-up policy. The reduced Sum Assured would be calculated as follows:
Sum Assured * (number of premiums paid/total number of premiums payable)
The respective benefits paid in case of a paid-up policy are as follows:
  • Survival Benefit - Income Benefit of 5% of the Reduced Sum Assured. If the resultant Income Benefit is lower than Rs.1000 per annum, the company would pay a lump sum amount at the end of the premium paying term based on the prevailing conversion rates of the insurer.
  • Maturity Benefit – On maturity, the Reduced Sum Assured and any Terminal Bonus would be paid.
  • Death Benefit – In case of death, the benefit payable would be as follows:
    • During the Premium Paying Term – Reduced Sum Assured + Accrued Bonuses + any Terminal Bonus
    • After Premium Paying Term – Reduced Sum Assured + any Terminal Bonus


Surrendering the policy

Surrender is allowed only after the policy becomes paid-up, i.e. after 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)– Guaranteed Survival Benefits already paid}
  • 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. 


Foreclosure 

If a loan is availed under a policy, the loan and the interest therein should not exceed the Surrender Value in the policy. If the policy is in-force, this does not happen. If the policy is made paid-up, the policyholder would be notified and the policy would be foreclosed.

 
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