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:

• 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.

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 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:

• Fund management Charge – These charges depend on the type of fund selected and are charged on a daily basis. The applicable charges are:

• 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:

• Mortality charge – This charge is deducted on the first day of each month based on the Sum at Risk and the policyholder’s age

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.