Birla Sun Life Insurance Dream Plan

By: Investors Please Listen

• Guaranteed Maturity Benefits.
• Options to double or triple the Guaranteed Maturity Benefit by choosing 200% or 300% options.
• 100% premium allocation to optimise savings.
• Sum Assured(Basic and Enhanced) plus the greater of fund value and Guaranteed fund value is paid as death benefit.
• Enhanced Sum Assured - Choice to enhance life cover anytime during the policy term at minimal additional cost.

 

YOU AND YOUR DREAM…
As we go through life, we all have dreams, for ourselves and our loved ones. We endeavor to shape our dreams and bring our dreams to reality in the best possible way.

To make those dreams possible you need financial freedom and confidence. That's exactly where the Birla Sun Life Insurance Dream Plan comes in. It is a thoughtfully designed savings plan that enables you to achieve your dreams.

It helps you to save today … to Secure your and your loved ones future.

Birla Sun Life's SOLUTION
Birla Sun Life's Insurance Dream Plan is a long-term Unit Linked insurance plan that is specifically designed to provide financial security for your future requirements. With this plan, your future is guaranteed.

This plan combines a guaranteed return on your savings with upside potential based on the performance of the investment funds you decide to invest in. No matter what the future performance of the investment funds is, you are always guaranteed a minimum amount at maturity.

This plan also ensures your nominee, in case of your demise, will get the sum assured you choose plus the value of your savings to date and we guarantee your savings will have earned no less than 3% per annum till date.

ELIGIBILITY

You can choose a plan term ranging from 5 to 25 years
You, the Life Insured, must be 18 to 60 of age at entry
You must be of age 75 or younger when your plan matures

The Guaranteed Maturity Benefit you choose must be at least:

Rs. 75,000 for the 100% Guaranteed Maturity option
Rs. 37,500 for the 200% Guaranteed Maturity option
Rs. 25,000 for the 300% Guaranteed Maturity option

The Enhanced Sum Assured you choose, if any, must be at least Rs.50,000.

How to Pay Your Premiums
You can pay the policy premium monthly (through ECS only), quarterly, half-yearly or annually. The modes of payment we currently offer are cash (up to Rs. 50,000), cheque, credit card, salary deduction, ECS (Electronic Clearing Service) and direct debit.

Policy Surrender
After the completion of three policy years, you can surrender your policy to the company and receive the Fund Value at that time.
You can surrender your policy in the first three policy years but:

The company will retain a Surrender Charge; and
The company will defer the payment till the end of the third policy year.

The deferred payment will be for an amount equal to the Fund Value (net of the Surrender Charge) as of the date of your surrender and remain constant till paid to you.

If the life insured dies before the deferred payment is paid then the Fund Value (net of the Surrender Charge) as of the date of surrender will be paid immediately .

Policy Loans
This plan does not offer this facility.

Benefits
In the unfortunate event of your demise
In the unfortunate event of your demise, your nominee will receive the Basic Sum Assured plus the Enhanced Sum Assured plus the greater of Fund Value and Guaranteed Fund Value. The Basic Sum Assured is associated with the Guaranteed Maturity Benefit you choose. Your financial advisor will provide you with the Basic Sum Assured specific to the plan you are considering.

Based on your insurance needs, you can increase the amount of protection via the Enhanced Sum Assured. You can specify the Enhanced Sum Assured at entry and/or increase it at any time during your lifetime. The minimum Enhanced Sum Assured increment is Rs. 50,000 and is subject to evidence of insurability satisfactory to us. Your annual policy premium will be increased if and when the Enhanced Sum Assured is increased.

Your Guaranteed Maturity Benefit
The minimum Guaranteed Maturity Benefit is payable on the maturity date of your policy. This assumes however that you paid all policy premiums when due. Otherwise, the Guaranteed Maturity Benefit when due will be limited to the Guaranteed Fund Value at that time.

By choosing the 100% Guaranteed Maturity Option, we will pay the higher of the Fund Value or Guaranteed Fund Value on the maturity date of your policy and end the contract.

Double or Triple the Guaranteed Maturity Benefit
By choosing the 200% or 300% Guaranteed Maturity Option, your contract will continue under a settlement option for a period of 5 years starting on the maturity date of the policy. During the settlement option period, we will not levy any policy charges except for the Fund Management Charge. Also, all riders will cease and no life insurance cover is provided.

At any time during the settlement option period, you can cancel the contract and we will pay the higher of the Fund Value or Guaranteed Fund Value at that time.

Policy Charges

Premium Allocation Charge
No premium allocation charge is deducted from your policy premium so all of your policy premium will be invested in the investment funds of your choice.
For top-up premiums, we will first deduct a 2% premium allocation charge and then invest the remaining 98% in the investment funds of your choice.

Fund Management Charge
The daily unit price of each investment fund is adjusted to reflect the fund management charge of 1.0% per annum of the fund's value. This charge is currently the same for Protector, Builder and Enhancer, but we may increase this charge in any time in the future subject to a maximum of 1.5% per annum.

Policy Administration Charge
The policy administration charge will be deducted monthly by canceling units proportionately from each investment fund you have at that time. The annual rate per 1000 of Basic Sum Assured is shown in Schedule B. We may increase this charge at any time after the 4th policy year, subject to a maximum increase of 5% per annum since inception.

Surrender Charge
The surrender charge is applied if and when you surrender your policy in the first 3 policy years. The amount you will receive will be the fund value less this charge. The rate per 1000 of Basic Sum Assured is shown in Schedule B.

Revival Charge
The current charge for policy revival is Rs. 100. We may increase this charge at any time in the future subject to a maximum of Rs.1,000.

Other Policy Charges
Your can make two fund switches, two partial withdrawals and two premium redirections free of charge per policy year. A charge of Rs.100 will be levied per additional request, and we may increase this charge at any time in the future subject to a maximum of Rs. 500 per additional request.

Mortality Charge
Every month we will deduct a mortality charge for providing you with the death cover. We will take these charges by canceling units proportionately from each of the investment funds at that time.

The annual rate for each of this charge will depend on the plan term as well as the age and gender of the life insured. Sample rates are provided in Schedule C for your reference. Please visit our website or ask your financial advisor for the rates applicable to you.

Rider Premium Charge
A rider premium charge will be recovered monthly by canceling units proportionately from each of the investment funds you have at that time. The rider premium charge will be exactly equal to the rider premium payable on a monthly basis. Rider premiums paid less frequently than monthly will be subject to the market risks associated with the investment funds you have chosen.

Current Tax Benefits
You will be eligible for tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961.
Under Section 80C, premiums up to Rs. 100,000 are allowed as a deduction from your taxable income each year.
Under Section 10 (10D), the benefits you receive from this plan are exempt from tax, subject to mentioned exclusions.