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Birla Sun Life Insurance-Wealth Aspire Plan

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Birla Sun Life Insurance-Wealth Aspire Plan Review

BSLI Wealth Aspire Plan is a Unit Linked Insurance Plan designed for wealth creation purposes. The plan invests the premiums in them market for attractive returns and also provides insurance coverage.


Highlights of the Birla Sun Life Insurance-Wealth Aspire Plan

  • This is a Unit Linked Plan where premiums paid are invested in the market.
  • The plan has four investment options to choose from according to the policyholder’s investment strategy.
  • The policyholder can also change the investment strategies if required.


Working of the Birla Sun Life Insurance-Wealth Aspire Plan

  • The policyholder decides on the amount of premium he wants to pay, the premium paying term and frequency and the investment option required.
  • There are three bands in which premiums amounts are categorized. The bands are as follows:
Premium Bands Premium Range
Band 1 Rs.30,000 to Rs.199,999
Band 2 Rs.2 lakhs to Rs.499,999
Band 3 Rs.5 lakhs and above
 
  • The Sum Assured depends on the premium paid and the age of the insured. The Sum Assured would be as follows:
    • Higher of (10*annual premium)or (term*0.5*annual premium) for ages below 45 years
    • Higher of (10*annual premium) or (term*0.25*annual premium) for ages 45 years and above
  • There are 4 investment strategies from which the policyholder can choose any one.
  • The first option is the Smart Option wherein the investment depends on the plan term and the chosen risk profile. Then policyholder chooses one risk profile from the available three profiles of Conservative, Moderate and Aggressive. The net premium is invested in the Maximizer Fund and the Income Advantage Fund as per the chosen profile and term in a pre-defined proportion. This option systematically transfers the funds to less risky funds as the plan nears maturity. 
  • Under the second Systematic Transfer Option strategy, the net premium is first invested in the Liquid Plus Fund. Thereafter, every month, the investment is allocated to Enhancer, Maximizer or Super 20 Fund as per the policyholder’s choice. This strategy helps the policyholder to average out the risk inherent in the equity market. This investment option is available to policyholder’s who choose to pay annual premiums.
  • The third strategy is Return Optimizer Option. This option protects the returns generated from market volatility. Under this option, the net premium is invested in Maximizer Fund. The growth in this fund would then be tracked every day. Whenever the growth exceeds 110% of the net premium invested, the returns generated would be transferred to the Income Advantage Fund. This transfer of return protects the return from future volatility.
  • The last strategy is the Self-Managed Option wherein the policyholder manages his investments himself. 9 funds are available and the policyholder can choose to invest in any one or more of such 9 funds. The funds include the following:
    • Asset Allocation
    • Capped Nifty Index
    • Super 20
    • Maximizer 
    • Magnifier
    • Enhancer
    • Assure
    • Income Advantage
    • Liquid Plus
  • The premium paid, net of the applicable allocation charge is invested in the above funds based on the policyholder’s investment strategy.
  • If the policyholder dies during the tenure of the plan the death benefit is paid.
  • If the plan attains maturity, the maturity benefit is paid.


Benefits and Features of Birla Sun Life Insurance-Wealth Aspire Plan

  • Maturity Benefit – On maturity, the Fund Value and any Top-up Fund Value available on the maturity date would be paid to the policyholder. The policyholder can avail the maturity benefit in equal installments over a period of 5 years starting from the year of maturity. This feature is available under the Settlement Option feature of the plan. The installments can be taken in annual, half-yearly, quarterly or monthly mode. At any time during the settlement period, the policyholder can also withdraw the entire Fund Value and no charges would be levied for such withdrawals.
  • Death Benefit – If the insured dies when the plan is in-force, the following death benefit would be paid:
    (Higher of the Sum Assured or Fund Value) + (higher of the top-up Sum Assured + top-up Fund Value)
    If the insured dies before attaining 60 years of age, the Sum Assured would be reduced by the amount of partial withdrawals made in the two years immediately preceding death
    If the insured dies after crossing 60 years of age, the Sum Assured would be reduced by the amount of partial withdrawals made from the Fund Value in the two years before attaining 60 years and all withdrawals made after attaining 60 years.
    The minimum Basic Sum Assured under the plan would be at least 10 times the annual premiums paid.
    The death benefit payable should not be lower than 105% of all premiums paid till death including any top-up premiums paid.
    If the insured is lower than 1 year as on the date of death, only the premiums paid would be returned as the death benefit
  • Bonus – Being a ULIP plan, bonus is not declared.
  • Guaranteed Additions – Two types of guaranteed additions are added to the Fund Value under the plan. The first addition is added from the 6th policy year (10th policy year if premium Band 1 is applicable) and every year thereafter. The rate of this addition is determined as a percentage of the Fund Value in the last 12 months and depends on the premium band. The rates are mentioned hereunder:
Policy year Band 1 Band 2 Band 3
6 to 10 0% 0.6% 0.6%
11 to 15 0.2% 0.9% 0.9%
16 onwards 0.2% 1% 1%

The second addition accrues from the 10th policy year and every 5 years thereafter. The rate of this addition would be 2% of the aggregate premiums paid in the last 5 years for Band 1 premiums and 2.5% of the premiums paid in the last 5 years for Premium Bands 2 and 3.
  • Claw-back Additions – As per the IRDA regulations, non-negative additions would be added to the Fund Value to fulfill the maximum reduction in yield criteria from the end of the 5th policy year.
  • Loan –Loan is 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.


COMPARE THIS PLAN WITH OTHER ULIP PLANS


Eligibility Criteria of Birla Sun Life Insurance-Wealth Aspire 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 PPT 5 years – 50 years
PPT 6 and 7 years – 55 years
PPT 8 years and above – 60 years
Maturity Age (Last Birthday) 18 years 70 years
Plan tenure 10 years PPT 5 years – 20 years
PPT 6 years – 35 years
PPT 7 years and above – 40 years
Premium payable Annually - Rs.30,000
Half-yearly – Rs.36,000
Quarterly or Monthly – Rs.48,000
No limit
Premium Paying Term 5 years 40 years
Sum Assured Rs.3 lakhs No limit
Top-up Sum Assured 1.25 times the top-up premium if age is lower than 45 years
1.10 times the top-up premium if the age is 45 years and above
Premium payment mode Annually, half-yearly, quarterly or monthly



Applicable charges in Birla Sun Life Insurance-Wealth Aspire Plan

Being a ULIP plan, there are certain charges applicable. The charges include the following:
  • Premium Allocation Charge – This charge is deducted on receipt of each premium before the premium is credited into the fund. The charges are:
Policy Year Premium Band 1 Premium Band 2 Premium Band 3
1 7% 6% 4.50%
2 onwards 5% 4% 3%

Top-up premiums would be charged a flat rate of 2% as allocation charges.
  • Policy Administration Charge – A monthly charge is deducted from the fund value at the start of each month as policy administration charges. The charge is subject to a maximum of Rs.6000 p.a. and depends on the Premium Bands. The charges are as follows:
Policy Year Premium Band 1 Premium Band 2 and 3
1 to 5 Rs.450 per annum 1.2% of the premium paid
6 onwards Rs.600 per annum increasing @5% every year from the 7th year Nil
 
  • Fund management Charge – These charges depend on the type of fund selected and are charged on a daily basis. The applicable charges are:
Fund Type Charge
Super 20 1.35% per annum
Maximizer 1.35% per annum
Magnifier 1.35% per annum
Enhancer 1.25% per annum
Assure 1% per annum
Capped Nifty Index 1% per annum
Asset Allocation 1% per annum
Income Advantage 1% per annum
Liquid Plus 1% per annum
 
  • Miscellaneous Charges – A charge of Rs.50 per transaction for any service rendered could be charged. Such services include switching, premium redirection and partial withdrawal. This charge could increase subject to a maximum of Rs.500.
  • Discontinuance Charge – Applicable for policies in which premiums are discontinued. The charges are:
Year of Discontinuance Charge
1 Lower of 6% of annual premium or Fund Value up to a maximum of Rs.6000
2 Lower of 4% of annual premium or Fund Value up to a maximum of Rs.5000
3 Lower of 3% of annual premium or Fund Value up to a maximum of Rs.4000
4 Lower of 2% of annual premium or Fund Value up to a maximum of Rs.2000
5 year onwards Nil
 
  • Mortality charge – This charge is deducted on the first day of each month based on the Sum at Risk and the policyholder’s age


Additional Benefits of Birla Sun Life Insurance-Wealth Aspire Plan

  • Riders – There are no riders under this plan.
  • Partial Withdrawals – Unlimited partial withdrawals are allowed in the plan after a completion of 5 policy years provided the insured is aged 18 years and above on the date of such withdrawal. The minimum amount of partial withdrawal is Rs.5000 and in one year, the maximum allowed withdrawal amount is 25% of the Fund Value as at the beginning of the year. The policyholder should maintain a minimum balance of one Basic Premium and any top-up premiums paid in the preceding 5 years in the Fund Value after withdrawal.
  • Switching –Switching between investment strategies is allowed if done after one year of policy continuance. Switching from the Return Optimizer Option is not allowed.  Under the Self-Managed Option, switching between different funds is allowed provided the minimum switching amount is Rs.5000. Under the Smart Option, the policyholder may switch his risk profiles free of cost.
  • Premium Redirection –Under the Self-Managed Option, premiums can also be redirected into other funds from the next policy anniversary.
  • Top-up Premiums – Additional premiums by way of top-up premiums are allowed after the first 5 policy years. The minimum amount of top-up is Rs.5000 and every top-up premium has a lock-in of 5 years.
  • Grace Period – A grace period of 30 days is allowed for annual, half-yearly and quarterly payment of premium and 15 days for monthly mode of premium payment.
  • 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
 

Exclusions in Birla Sun Life Insurance-Wealth Aspire Plan

  • If the policyholder commits suicide anytime during the plan tenure, the available Fund Value and any top-up premium Fund Value would be paid to the nominee.


Non-Payment of Premiums in Birla Sun Life Insurance-Wealth Aspire Plan

Premiums should be compulsorily paid for the first 5 policy years. If they are not paid, the policyholder can surrender the policy and the surrender benefits would be available after the lock-in premium of 5 years. If premiums for the first 5 years are paid and are later discontinued, the policyholder can either surrender the policy and avail the surrender value or continue the policy on a paid-up basis.


Surrendering the policy

  • Within the first 5 policy years
The policy has a 5 year lock-in period. If the policy is surrendered within the first 5 years, the funds in the Fund Value and any top-up Fund Value would be transferred to the Linked Discontinued Policy Fund after deducting the Discontinuation charges. This fund would earn a minimum interest of 4% per annum. The money would remain in the Discontinuance Policy Fund till the completion of 5 years and the Fund Management charges would be deducted as and when applicable. If the policyholder dies during this period, the Fund Value as on the date of death would be paid. Otherwise, after the completion of the lock-in period of 5 years, the available Fund Value would be paid
 
  • After 5 years
If the plan is surrendered any time after the completion of 5 years, the available Fund Value and any top-up Fund Value would be paid without deduction of any charges.

Making the policy Paid-up

This option is available only if premiums for the first 5 years are paid and then discontinued. In case the policyholder does not wish to surrender his policy, he can continue the policy on a paid-up basis. Under a paid-up policy, the Sum Assured would be reduced and called Paid-up Sum Assured. It would be calculated as follows:

Paid-up Sum Assured = Sum Assured * (number of premiums paid/total number of premiums payable)

The death benefit would be calculated using the Paid-up Sum Assured.


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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