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Birla Sun Life Insurance-Wealth Secure Plan

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Birla Sun Life Insurance-Wealth Secure Plan

 
BSLI Wealth Secure Plan is a Whole Life Unit Linked Insurance Plan (ULIP). It is a Non-Traditional Plan without Bonus Facility for the Whole Life.
 

How it works – In this plan, premium needs to be paid for a Limited Period while the policy continues for the whole life.

This plan, being a Whole Life Plan has no Maturity Benefit. Thus, whenever the Life Insured dies, higher of the Fund Value or the Sum Assured is paid to the nominee as Death Benefit and the policy terminates.
 
This plan has 3 unique Investment Strategies with 13 investment fund options for wide array of Investment Opportunity. This plan also has Guaranteed Additions and 5 additional riders.
 

Key Features of Birla Sun Life Insurance-Wealth Secure Plan

  • This is a Whole Life Unit Linked Insurance Plan without Bonus Facility
  • This plan is a Limited Premium Paying Plan
  • The Life Coverage can be selected as 100%, 150%, 200%, 250% or 300% of the minimum Basic Sum Assured.
  • The Guaranteed Additions are received -
    • From the 10th policy anniversary and thereafter every 5 years, there is a Guaranteed Addition of 2.50% of the Basic Premiums paid in the last 60 months.
    • And from the 11th policy anniversary there is a Guaranteed Addition of 0.25% of the average Fund Value in the last 12 months.
  • The higher of Fund Value or Sum Assured is paid as Death Benefit
  • The Fund Value is paid as Maturity Benefit when the policy matures
  • There are 3 Investment Strategies in this policy
    • Life Cycle Option- individuals who would like their investments to alter over time based on their age and risk profile since the risk appetite decreases with age
    • Systematic Transfer Option- for individuals who would like to eliminate the need to time one's investments in the market so that the market volatility does not affect the maturity proceeds
    • Self-Managed Option- where the investment is managed by the policyholder
  • There are 13 investment fund options and 5 additional riders that can be added.

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Benefits you get from Birla Sun Life Insurance-Wealth Secure Plan

Death Benefit – In case of death of the Life Insured, the nominee would get Sum Assured or Fund Value, whichever is higher as Death Benefit.
 
Maturity Benefit – Being a Whole Life Plan, there is no Maturity Benefit.
 
Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,50,000 are allowed as a deduction from the taxable income each year under section 80C. The Maturity Proceeds are Tax Free under section 10(10)D subject to fulfilment of all requirements.
 
 

Eligibility conditions & other restrictions in Birla Sun Life Insurance-Wealth Secure Plan

 
Minimum
Maximum
Basic Sum Assured (in Rs.)
The higher of 10 or (70 –Age at Entry)/2, for entry ages < 45 yrs
or
The higher of 7 or (70 –Age at Entry)/4, for entry ages >= 45 yrs
Policy Term (in years)
Whole Life
Premium Payment Term (in years)
5
30 (Maximum Age of 70 yrs)
Entry Age of Life Insured (in years)
18
60
Age at Maturity (in years)
-
Whole Life
Premium (in Rs.)
15000
No Limit
Payment modes
Yearly, Half-Yearly, Quarterly or Monthly
 

 

Additional Features & Benefits of Birla Sun Life Insurance-Wealth Secure Plan 

Riders – There are 5 riders available in this policy
  1. BSLI Accidental Death and Disability Rider
  2. BSLI Critical Illness Rider
  3. BSLI Surgical Care Rider
  4. BSLI Hospital Care Rider
  5. BSLI Premium Waiver Benefit Rider

 

Investment Fund Options - There are 3 Investment Strategies in this plan
  • Life Cycle Option- where the Funds are moved from the Maximiser Fund(i.e. 100% Equity exposure) to the Income Advantage Fund(100% Debt exposure) as age increases. The initial exposure depends upon the risk appetite selected as Aggressive, Moderate or Conservative.
  • Systematic Transfer Option- where 1/12th of the Fund moves from the Liquid Plus Fund to any other funds selected on a pre-specified date of the month such that regular transfer can ease out the market volatility and safeguard investment
  • Self Managed Option- There are 13 investment fund options:
    • Liquid Plus
    • Income Advantage Fund
    • Assure Fund
    • Protector Fund
    • Builder Fund
    • Enhancer Fund
    • Creator Fund
    • Magnifier Fund
    • Maximiser Fund
    • Multiplier Fund
    • Super 20 Fund
    • Pure Equity fund
    • Value Fund
    • Momentum Fund
 
Top-up - The Minimum Top Up premium amount is Rs 5000 and the Basic Sum Assured increases automatically.
 
Switching - Unlimited Switches are allowed in this plan but with a minimum charge. The minimum Switching amount is Rs 5,000.
 
Partial Withdrawal - You are allowed to make partial withdrawals in this policy after 5 complete policy years or the life assured is 18 years old, whichever is later.
The minimum amount of partial withdrawal should be Rs. 5,000 such that Rs 25,000 should be maintained as Fund Value after Partial Withdrawal.
 

Charges in Birla Sun Life Insurance-Wealth Secure Plan

Premium Allocation Charge – This charge is deducted from the Premium Paid by you
Policy Year
Premium Allocation Charge
1st Year
7.50%
2nd Year
6.50%
3rd Year onwards
5%
Top Up Premium
2%
 
 
Policy Administration Charge— This is the charge for the administrative working of the policy and is deducted by cancellation of units on a monthly basis.
Policy Year
Policy Administration Charge
Year 1 to Year 5
Rs 20 p.m.
Year 6 onwards
Rs 25 p.m. inflating at 5% p.a. subject to a maximum of Rs 6000
 
 
Fund Management Charge– This charge is deducted by adjusting the NAV of the units on a daily basis.
Type
Charge
Liquid Plus Fund
1% p.a.
Income Advantage Fund
1% p.a.
Assure Fund
1% p.a.
Protector Fund
1% p.a.
Builder Fund
1% p.a.
Enhancer Fund
1.25% p.a.
Creator Fund
1.25% p.a.
Magnifier Fund
1.35% p.a.
Maximiser Fund
1.35% p.a.
Multiplier Fund
1.35% p.a.
Super 20 Fund
1.35% p.a.
Pure Equity Fund
1.35% p.a.
Value & Momentum Fund
1.35% p.a.
 
 
Discontinuation Charge— This charge is for discontinuing the plan before the end of the Policy Tenure.
Year of Discontinuation
Annual Premium <= Rs 25,000 p.a.
Annual Premium > Rs 25,000 p.a.
1st
Lower of 20% of (Annual Premium or Fund Value) subject to a maximum of Rs 3,000
Lower of 6% of (Annual Premium or Fund Value) subject to a maximum of Rs 6,000
2nd
Lower of 15% of (Annual Premium or Fund Value) subject to a maximum of Rs 2,000
Lower of 4% of (Annual Premium or Fund Value) subject to a maximum of Rs 5,000
3rd
Lower of 10% of (Annual Premium or Fund Value) subject to a maximum of Rs 1,500
Lower of 3% of (Annual Premium or Fund Value) subject to a maximum of Rs 4,000
4th
Lower of 5% of (Annual Premium or Fund Value) subject to a maximum of Rs 1,000
Lower of 2% of (Annual Premium or Fund Value) subject to a maximum of Rs 2,000
5th onwards
NIL
 
 
Mortality Charge — This charge is paid for the Life Coverage provided according to the Sum At Risk. This is based on the mortality rates which are specified for all ages and amount of cover being provided.
 
Service Tax would be applicable on the charges depending on the applicable rates.
 
 

What happens if? 

You stop paying the premium before 5 years - If the policy holder stops paying the premium, the insurance cover will cease and the fund value net of any discontinuance charge will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will be credited with a minimum interest rate of 3.5% p.a. and the proceeds from this will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated fund value will be payable to the nominee.
The policy however can be revived within 2 years from the due date of the first unpaid premium.
 
You stop paying the premium after 5 years - If the policy holder stops paying the premium after 5 years, then the accumulated policy fund amount till the date of discontinuance shall be paid to the policy holder and the policy will terminate immediately.
 
You want to surrender the policy – If the policy holder wants to surrender the policy before completing 5 years, then the insurance cover will cease and the fund value net of any discontinuance charge will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will be credited with a minimum interest rate of 3.5% p.a. and the proceeds from this will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated fund value will be payable to the nominee.
 
If the policyholder surrenders the policy after completion of 5 policy years, then the insurance cover will cease and your fund value shall be paid immediately and the policy would be terminated.
 
You want a loan against your policy – Policy Loan is not allowed under this plan.




 
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