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Birla Sun Life Insurance-Vision Regular Return Plan
Birla Sun Life Insurance-Vision Regular Return Plan
BSLI Vision Regular Return Plan is a traditional, participating Endowment Insurance Plan which creates savings and provides life insurance coverage. The plan pays out money back benefits every year after a stipulated period thus providing liquidity too.
Highlights of the Birla Sun Life Insurance-Vision Regular Return Plan
This is a traditional Endowment plan which also provides survival benefits after the first 5 years.
Simple reversionary bonuses are also added from the first plan year till the end of the tenure if premiums are duly paid.
Premiums are payable for the entire duration of the plan.
Riders are available for enhancing coverage.
Premium discounts are given for higher Sum Assured levels and premium paying frequencies.
Working of the Birla Sun Life Insurance-Vision Regular Return Plan
The policyholder chooses the plan term, Sum Assured and the premium paying frequency. Based on the policyholder’s age and the above criteria, the premium would be determined.
The Sum Assured is categorized under four Bands which are as follows:
Sum Assured Bands
Sum Assured Range
Rs.2 lakhs to Rs.399,999
Rs.4 lakhs to Rs.599,999
Rs.6 lakhs to Rs.799,999
Rs.8 lakhs and above
Premiums are to be paid for the tenure as determined by the policy term.
Guaranteed Survival benefits accrue after the end of 5 policy years and till the end of the plan term.
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 Regular Return Plan
Maturity Benefit – When the plan matures and the premiums have been duly paid, the following benefits would be paid:
Accrued Bonuses – the non-guaranteed Survival Benefits already paid.
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 which also includes any interim bonus or terminal bonus declared under the plan
The death benefit payable should not be lower than 105% of the premiums paid till death
The Sum Assured on death would be higher of the following:
10 times the annual premium
Sum Assured chosen on plan commencement
Survival Benefit – Money back payouts, called Guaranteed Survival Benefits, are paid every year starting from the end of the first five policy years. The rate of the payouts would be expressed per thousand Sum Assured. In addition to these Guaranteed Survival Benefits, 6.25% of the accrued bonuses are also paid which are called the non-guaranteed Survival Benefits.
The rate of the Guaranteed Survival Benefit payable in the different plan years is as follows:
Rate per Rs.1000 Sum Assured
Rate per Rs.1000 Sum Assured
Bonus – Compounded reversionary bonuses are declared under the plan and are paid every year for which the policy is in-force. An interim bonus and a terminal bonus may also be paid on death, surrender, survival 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 Regular Return Plan
The plan can be bought only by Resident Indians. The other eligibility criteria of the plan includes:
Entry age (Last Birthday)
Depends on the Sum Assured, age, plan tenure and gender of the insured
Premium Paying Term (PPT)
Equal to plan tenure
Premium payment mode
Monthly, quarterly, half-yearly and annually
Additional Benefits of Birla Sun Life Insurance-Vision Regular Return Plan
Riders – Five additional riders can be added to the base plan for a comprehensive coverage option. The available riders are as follows:
BSLI Accidental Death and Disability Rider
BSLI Critical Illness Rider
BSLI Surgical Care Rider
BSLI Hospital Care Rider
BSLI Waiver of Premium Rider
Premium Rebates – Discount in premiums are allowed if the premiums are paid in the annual or half-yearly mode. The discount would be 3% for the annual mode and 1.50% 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
Band 2 – Rs.200,000 to Rs.399,999
Band 3 – Rs.400,000 to Rs.799,999
Band 4 – Rs.800,000 and above
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
Let's Understand The Plan With An Example:
Rahul is 25 years old. He wants to invest his money that offers returns on his investment & also earn an additional source of Income that can take care of his growing responsibilities in future. He chooses to secure his life for a 20 year term with the BSLI Vision Regular Return Plan.
He chooses a sum assured of Rs.1,000,000 and his premium is set at Rs.62109 annually. He will receive Guaranteed Survival Benefit every year 5th year onwards as per the defined rate(refer to the table under survival benefit) starting from Rs. 15,625 to Rs. 181,537 in 20th year & Non Guaranteed Survival Benefit i.e. 6.25% of accrued bonus along with Guaranteed Survival Benefit. At maturity, he can expect to receive Rs. 5,59,137 at 8% p.a and Rs. 362,477 at 4% pa. inclusive of total survival benefit & maturity benefit at the end of 20 year term. Plus In case of Rahul's untimely demise, the total Death Benefit his family can expect will be to the tune of Rs.1771363 at 8% pa and Rs. 1387227 at 4% pa
Growth to your savings – Enhance your savings by accrued bonuses starting from the first policy year.
Easy liquidity at regular intervals – You receive survival benefits every year starting from end of five years till the end of policy term.
Tax Benefits – under Section 80C, 80D and Section 10(10D) of the Income Tax Act, 1961.
Safety to your loved ones – Comprehensive financial protection of your family depending on your choice of Sum Assured.
Entry Age (Age on last birthday)
13 – 45 years
Premium Paying Term
Same as policy term
Minimum Sum Assured
Annual - for all ages
Semi-annual, Quarterly and Monthly – for ages less than equal to 40 years
Exclusions in Birla Sun Life Insurance-Vision Regular Return 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 Regular Return Plan
Premiums have to be paid for at least 3 years. After this compulsory period, the policyholder can surrender the policy or make it paid-up.
Making the policy Paid-up
If at least3 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. Bonuses would not be declared under the policy but the bonuses accrued till premium discontinuation would not be reduced. However, bonus declared in the year of discontinuation would be reduced proportionately. The reduced values under a paid-up policy would be as follows:
Reduced Sum Assured = Sum Assured * (number of premiums paid/total number of premiums payable)
Reduced Sum Assured on Death = Sum Assured on Death* (number of premiums paid/total number of premiums payable)
The plan benefits would be calculated using these reduced values.
If premiums are not paid for the first 5 years, there would be a change in the Survival Benefits Payable. The Guaranteed Survival Benefit payable would be reduced and would be calculated as follows:
Reduced Guaranteed Survival Benefit = benefit applicable in the 5th policy year * (number of premiums paid / 5).
This benefit would remain constant for all the years in which the premiums remain unpaid.
If premiums have been paid for at least the first five years, the Guaranteed Survival Benefit rate would be determined using the last rate at which the benefit was paid. This last rate would then become constant for all future benefit calculations and would not increase.
Surrendering the policy
Surrender is allowed only after the policy becomes paid-up, i.e. after3 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.
The SSV factors would be declared by the company based on its performance
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.