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| In this policy, the investment risk in investment portfolio is borne by the policyholder |
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Highlights |
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Guaranteed maturity benefits* |
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Death benefits of Sum Assured and Fund Value |
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5% Guaranteed additions* |
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Inbuilt Accidental death benefit . |
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* conditions apply |
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Birla Sun Life Insurance Life Companion - Endowment Plan |
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You live life only once. Make sure you live it in a worry free way. As your responsibilities increase with marriage, children and parents, you feel a pressing need to keep your loved ones safe and secure even when you are not around. The Birla Sun Life Insurance Life Companion Endowment plans understands your needs. The plan that gives you family protection and helps your savings over long term. It’s a plan that not only fits your budget but also takes care of your varied needs. It provides for emergency support for education, marriage and medical costs by blending life insurance protection and long term savings. Giving you complete peace of mind. Now family bhi fit ,budget bhi fit.
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About Birla Sun Life Insurance |
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Birla Sun Life Insurance Company Limited is a joint venture between The Aditya Birla Group, one of the largest business houses in India and Sun Life Financial Inc., a leading international financial services organisation. The local knowledge of the Aditya Birla Group combined with the expertise of Sun Life Financial Inc., offers a formidable protection for your future.
The Aditya Birla Group has a turnover of close to Rs. 119000 crores, with a market capitalisation of Rs. 133875 crores (as on 31st March 2008). It has over 100,000 employees across all its units worldwide. It is led by its Chairman - Mr. Kumar Mangalam Birla. Some of its key companies are Hindalco, Grasim and Aditya Birla Nuvo.
Sun Life Financial Inc. and its partners, have operations in key markets worldwide. These include Canada, the United States, the United Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. Sun Life Financial Inc. has assets under management of over US$404.7 billion (as on 31st March, 2008). It is a leading performer in the life insurance market in Canada.
Birla Sun Life Insurance (BSLI) has been operating for 7 years. It has contributed significantly to the growth and development of the life insurance industry in India. It pioneered the launch of Unit Linked Life Insurance plans amongst the private players in India. It was the first player in the industry to sell its policies through the Bancassurance route and through the Internet. It was the first private sector player to introduce a Pure Term plan in the Indian market. BSLI has covered more than 2 million lives since it commenced operations. And its customer base is is spread across more than 1500 towns and cities in India. The company has a capital base of Rs. 1274.5 crores as on 31st March 2008.
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The Plan |
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Any person, male or female, in the age group as specified in the table is eligible to apply for the Birla Sun Life Insurance Life Companion Endowment plan.
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| Particulars |
Endowment Plan |
| Entry Ages |
30 days (3 years for the 15 year term) - 60 yrs age at last birthday, for all durations except “To age 60” plan where maximum entry age is 40 yrs.
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| Maximum Maturity Age |
75 years
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| Minimum Life Insurance Cover |
Rs. 75, 000
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| Maximum Life Insurance Cover |
No Limit
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| Maximum Accidental Death Benefit |
Rs. 10 lacs |
| Duration of the Plan |
15, 20, 25, 30 years or “To age 60”. |
| Premium Payment Period |
20 years in case of “To age 60” and throughout the term of the policy for other durations |
| Premium Payment Frequency |
Annual, Semi annual, Monthly (through ECS only) |
| Premium Payment Mode |
Cash (upto Rs. 20,000), Cheque, Credit Card, Salary Deduction, ECS, Direct Debit etc. |
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Who should buy the plan? |
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The plan is ideally suited for any person looking for life insurance protection and savings over the long term. The plan protects those who depend on your earnings, such as your spouse, children and quite possibly, your parents. If any unfortunate event were to take place prematurely, the plan can provide emergency support for education, marriage and medical costs.
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Benefits |
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| The plan offers excellent benefits, which are as detailed below: |
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A
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Maturity Benefits |
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On completion of the policy duration, you will receive a minimum guaranteed amount equal to the Sum Assured. In case the Fund Value on maturity is higher, then Fund Value will be paid instead of Sum Assured.
The Sum Assured is guaranteed on maturity only if the following conditions are satisfied:
1) All Coverage Premiums are paid by you; and
2) Each Coverage Premium is paid by you on or before the expiry of a period of 60 days from the due date.
If these conditions are not satisfied, or in case policy is revived then only the Fund Value will be paid to you.
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| B |
Death Benefits*
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The death benefit is the amount payable to your nominees in case of death. The benefit amount will be equal to the sum of the Sum Assured and the entire Fund Value at the time of death
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| C |
Additional Benefits
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In case of death as a result of an accident an additional amount equal to the Sum Assured chosen by you will be payable to your nominee. The maximum amount will be Rs.10 lakh across all Birla Sun Life Insurance Life Companion Endowment policies owned by you. This benefit is available only in case of death in an accident between the ages of 18 and 65 years.
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| D |
Waiver of Premium Rider
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This rider waives payment of future premiums on the happening of any of any of the unforeseen events as covered under this rider. For further details please refer to detailed brochure on riders.
Please note that the riders are not available if you are an NRI investor. |
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| E |
Guaranteed Additions |
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You stand to gain an additional 5% of the Fund Value as Guaranteed Additions in your maturity benefits, provided of course, that the two conditions for Guaranteed Maturity Benefit mentioned in the paragraph on maturity benefits above are satisfied
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| E |
Tax Benefits$
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The premium that you pay and all the benefits payable to you under the plan are eligible for tax benefits under Section 80 C and Section 10(10D) of the Income Tax Act of 1961.
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| Policy Benefits |
Details |
| Maturity Benefits |
Higher of Sum Assured or Fund Value (subject to conditions)
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| Death Benefits* |
Sum Assured + Fund Value on the date of death
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Additional Benefits in case of
death due to accident |
Between the ages 18 and 65 an amount equal to the Sum Assured upto a maximum of Rs. 10 lakhs across all LifeCompanion Endowment policies
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| Rider |
Waiver of Premium Rider available. |
| Free Look Period |
15days after receipt of the Policy Document |
| Tax Benefits$ |
Under Section 80C and Section 10(10D) of the Income Tax Act of 1961 |
| Guaranteed Additions |
An additional 5% of the Fund Value as Guaranteed Additions on maturity. |
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* Provided that where the death of the policyholder takes place before the date of the Policy Anniversary, coinciding with or immediately following the date when the policyholder attains the age of five, only the Fund Value shall be payable to the Policy Owner.
$ As per the current tax provisions
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Fund Value |
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What is Fund Value and how does it accumulate? |
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The Fund Value is the savings portion of your plan. The Fund Value at any time is equal to the number of units multiplied by the NAV. Each premium that you pay will be reduced by the Premium Allocation Charge and converted into units by dividing this amount by the NAV on that day. The NAV reflects the performance of the underlying investments of the Investment Fund. The Fund Value is also the amount, which is added to the Sum Assured and paid to your nominees in case of death.
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What are the options available to you if you want to discontinue this plan? |
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The plan offers you the option to surrender the policy anytime you may need to do so subject to surrender charges as mentioned in the section on Policy charges. The Surrender charges to be levied vary based on the duration of the policy. There are no surrender charges after the third year.
However, if the policy is surrendered anytime before the completion of three policy years, Surrender Value at the time of surrender will be paid at the end of the third policy year. Once the policy is surrendered , the policy will terminate and will not be eligible for revival. |
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What happens to the plan in case of non-payment of premium? |
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Premium Discontinuance
(a) Non-receipt of Policy Premium within first three Policy Years:
To keep the Coverages in force, you must contribute, within the grace period of 30 days, an amount equal to due but unpaid Policy Premium. At the end of the grace period if the premium is not received, then the Policy will lapse and all Coverages will terminate immediately.
If the Policy is not revived within two years from the lapse date, the Surrender Value as at lapse date will be paid out at the end of the third Policy Year or at the end of the revival period whichever is later. In case, the Policy is surrendered during the Revival Period, then the Surrender Value as at lapse date will be paid out at the end of the third Policy Year or the date of Surrender whichever is later. The Surrender Value will be calculated by deducting the Surrender Charges applicable on the lapse date. The Surrender Value will not be affected by the market fluctuations and will remain constant till the time it is paid out. There will be no deduction of the Policy Charges (as set out in the Policy Charges provision) thereafter from the Surrender Value.
(b) Non-receipt of Policy Premium after the first three Policy Years:
To continue the Policy, you must contribute, within the grace period of 30 days, Policy Premium due but unpaid. At the end of the grace period if the premium is not received, you will be given a period of two years to pay all due but unpaid Policy Premiums. During these two years all Coverages will continue to be in force and all applicable charges will continue to be deducted from the Fund Value till the Surrender Value falls to one Annual Policy Premium. At this time the Policy will be terminated and the Surrender Value will be paid out.
At the end of the two-year period we will give you an option to continue the Policy. If you do not opt to continue the Policy, the Policy will be terminated and the Surrender Value will be paid out.
If you decide to continue with the Policy the Company will not accept further Policy Premium under this Policy. All Coverages will continue to be in force and all applicable charges will continue to be deducted till the Surrender Value falls to one Annual Policy Premium. At this time the Policy will be terminated and the Surrender Value will be paid out
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What is the process for revival of my policy? |
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If the policy lapses due to non-receipt of premium within first three Policy Years, you can request that it be revived within two years from the lapse date. Revival or re-instatement of Life Insurance Coverage is subject to the following:
• Evidence of insurability satisfactory to us with respect to the Life Insured (if applicable); and
• Contribution in full of an amount equal to all Policy Premiums due but unpaid till the Effective Date of Revival.
The Effective Date of Revival is the date on which the above requirements are met and approved by the company. On this date, the Fund Value as on the lapse date will be re-invested in the Investment Fund at the NAVs applicable on the Effective Date of Revival All outstanding Policy Charges, if any, for the period between the lapse date and the Effective Date of Revival shall be deducted from the Fund Value |
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Portfolio Fund |
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What will be the portfolio of the fund # in which the premiums are invested? |
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The indicative portfolio of the Investment Fund where the savings portion of the premiums will be invested is as under:
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| Investment Fund Option |
Risk Profile |
Asset Allocation * |
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Max. |
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Medium |
Debt Instruments, Money Market &Cash |
75% |
90% |
| Equities & Equity Related Securities |
10% |
25% |
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This Investment Fund has a varying amount of debt and equity.
The investment objective and strategy of the Investment Fund Option offered is as follows:-
Objective: The objective of this Investment Fund is to achieve value creation of the policyholder at an average risk level over medium to long-term period.
Strategy: The strategy is to invest predominantly in debt securities with an additional exposure to equity, maintaining medium term duration profile of the portfolio. The Valuation of assets under the Investment Fund will be done in accordance to the regulations issued by IRDA in this regard and the internal rules of the Company. Fund valuation will be computed at least once a week. |
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Policy Charges |
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What are the Policy Charges? |
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The Premium Allocation charge is an up-front charge recovered as a percentage of the Life Insurance Coverage Premium that you pay and varies as per the Policy Year as given under:
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| Policy Year |
% of Life Insurance Coverage Premium |
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65% |
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20% |
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20% |
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15% |
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15% |
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0% |
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The Premium Allocation Charge on underwriting extra (if any) is 2%. There is no Premium Allocation Charge on Rider Coverage Premiums
In addition to the above Premium Allocation Charge the following Charges will be recovered from the Fund Value.
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The Mortality Charge of the Life Insurance Cover will be deducted by cancellation of Units on a monthly basis at the prevailing NAV. The Annual Mortality Charges per thousand of the Sum Assured for sample ages are as follows:
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| Age |
20 |
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50 |
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1.016 |
1.171 |
2.150 |
5.532 |
| Female |
0.896 |
1.163 |
1.657 |
4.030 |
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The Mortality Charges are guaranteed for the entire period of the contract. |
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Policy Administration Charge which is an Annual charge of Rs 8 per thousand of the Sum Assured will be deducted in the first 5 years of the Policy. In the next 5 years, an annual charge of Rs 6 per thousand of the Sum Assured would be deducted and thereafter this charge would be Rs 3.75 per thousand of the Sum Assured. The charge will be deducted by canceling units on a monthly basis. The upper limit for this charge is Rs. 10 per thousand of the Sum Assured.
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Fund Management charges not exceeding 1.5% per annum of the Fund Value will be charged by adjustment of the daily Navs. Currently this charge is 1% per annum.
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The Policy can be surrendered by you anytime during the tenure of the Policy. If the Policy is surrendered within three years from inception, then the Surrender Value is paid to you after the completion of the third Policy year. If the Policy is surrendered after three years from inception, then the Surrender Value is paid to you immediately. The Surrender Value is calculated after deducting the Surrender Charges from the Fund Value applicable at the time of surrender. The Surrender Charges to be levied vary based on the duration of the Policy and are levied as a percentage of the Annual Life Insurance Coverage Premium payable. The Surrender Charges levied on this policy are as per the table below:
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| Policy Year |
Surrender Charges (As a % of the Annual Life Insurance Coverage Premium) |
| Year 1 |
100 |
| Year 2 |
25 |
| Year 3 |
10 |
| Year 4 onwards |
Nil |
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If there is an attached Rider, a Coverage Premium for that Rider will be payable by you. A Rider Premium Charge will be recovered monthly by cancellation of Units. The Rider Premium Charge will be the equivalent monthly Rider Coverage Premium payable when the Rider Coverage Payment Period equals the Rider Coverage Benefit Period. Rider Coverage Premiums may be subject to market risk.
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These Policy Charges (except Mortality Charges and Premium Allocation Charges) are subject to change and a three-month notice will be provided to all Policy Owners prior to the implementation of the new rates of charges. This will be subject to approval of the IRDA.
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NAV |
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The basis used for calculation of NAV would be the appropriation price and expropriation Price.
The Appropriation price shall apply in a situation when the company is required to purchase the assets to allocate the units at the valuation date.
The Expropriation price shall apply in a situation when the company is required to sell assets to redeem the units at the valuation date.
The NAV per unit of each Investment Fund will be calculated as per the prevailing IRDA guidelines mentioned below
When Appropriation price is applied: The NAV shall be computed as:
(Market Value of Investments held by the fund + The Expenses incurred in Purchase of the Assets + Value of Any Current Assets + Any Accrued Income Net of Fund Management Charges - Value of any Current Liabilities - Provisions, if any)
Divided by the number of units existing at valuation date (before any new units are allocated)
When Expropriation price is applied: The NAV shall be computed as:
(Market Value of Investments held by the fund - The Expenses incurred in Sale of the Assets + Value of Any Current Assets + Any Accrued Income Net of Fund Management Charges - Value of any Current Liabilities - Provisions, if any)
Divided by the number of units existing at valuation date (before any new units are allocated)
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Free Look Period |
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You will have the right to return your policy to us within 15 days from the date of receipt of the policy. We will pay the Fund Value plus all charges levied till date (excluding the Fund Management Charge) once we receive your written notice of cancellation (along with reasons thereof) together with the original policy documents. Accidental Death Definition
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Service Tax and other levies |
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Service Tax and other levies, as applicable, will be levied as per the extant tax laws. |
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Accidental Death Definition |
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Traumatic death caused solely by external, violent, unforeseeable and visible means, occurring independently of any other causes; and occurs within 6 months of the trauma; but does not result from any of the causes listed in the Exclusions stated below.
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EXCLUSIONS FOR THE BENEFITS DUE TO ACCIDENTAL DEATH |
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We will not pay the additional accidental death benefit amount referred to in the ‘Additional Benefits’ section in case of death due to an accident, which is a direct or indirect result of any of the following:
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Suicide or self inflicted injury, whether the Life Insured is medically sane or insane.
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War, terrorism, invasion, act of foreign enemy, hostilities, civil war, martial law, rebellion, revolution, insurrection, military or usurper power, riot or civil commotion. War means any war whether declared or not.
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Service in the armed forces, or any police organization, of any country at war or service in any force of an international body.
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War means any war whether declared or not.
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Committing an assault, a criminal offence, an illegal activity or any breach of law.
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Taking or absorbing, any intoxicating liquor, drug, narcotic, medicine, sedative or poison, except as prescribed by a licensed doctor other than the Policy Owner or the Life Insured.
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Inhaling any gas or fumes, accidentally or otherwise, except accidentally in the course of duty.
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Bodily or mental infirmity or any disease.
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Participation in aviation other than as a fare-paying passenger in an aircraft, which is authorised by the relevant regulations to carry such passengers, between established aerodromes.
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| Suicide |
| ” If the life insured dies by suicide within one year of the issue or re-instatement of the Life Insurance Coverage, we will not pay the Life insurance cover. In such a case, we will refund the higher of the premiums paid towards the policy since the issue date or the Fund Value at the time of death.” |
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| Section 41 of the Insurance Act |
No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer.
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| Section 45 of the Insurance Act |
| No Policy of Life Insurance effected before the commencement of this Act shall after the expiry of two years from the date of commencement of this Act and no Policy of Life Insurance effected after the coming into force of this Act shall, after the expiry of two years from the date on which it was effected be called in question by an Insurer on the ground that statement made in the proposal or in any report of a medical officer, or referee, or friend of the Life Insured, or in any other document leading to the issue of the Policy, was inaccurate or false, unless the Insurer shows that such statement was on a material matter or suppressed facts which it was material to disclose and that it was fraudulently made by the Life Insured and that the Life Insured knew at the time of making it that the statement was false or that it suppressed facts which it was material to disclose.Provided that nothing in this section shall prevent the Insurer from calling for proof of age at any time if he is entitled to do so, and no Policy shall be deemed to be called in question merely because the terms of the Policy are adjusted on subsequent proof that the age of the Life insured was incorrectly stated in the application. |
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| Risk Factors/Disclaimers: |
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This is non-participating unit linked plan.
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This policy is underwritten by Birla Sun Life Insurance Company Limited (BSLI).
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The above- mentioned charges are applicable to base coverage only.
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Birla Sun Life Insurance, LifeCompanion-Endowment, Balancer are only the names of the company, Policy and the Investment Funds respectively and do not in any way indicate the quality of the Policy, Investment Funds or their future prospects or returns.
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The charges mentioned above are applicable to the Investment Fund Option offered at present.
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All the policy charges (except Mortality & Premium Allocation Charges) can be modified by the Company subject to approval of the IRDA.
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The value of the investment fund reflects the value of the underlying investment. These investments are subject to market risks and change in fundamentals such as tax rates etc affecting the investment portfolio.
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The premium paid in Unit Linked Life Insurance policies are subject to investment risk associated with capital markets and the NAV of the units may go up or down based on the performance of Investment Fund and factors influencing the capital market and the insured is responsible for his/her decisions. There is no guarantee or assurance of returns above the guaranteed returns from the Funds.
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BSLI reserves the right to recover levies such as the Service Tax levied by the authorities on insurance transactions. If there be any additional levies, they too will be recovered from you.
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This brochure contains the salient features of the plan. For further details please refer to the policy contract.
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Insurance is the subject matter of solicitation.
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For more details and clarification call your Birla Sun Life Insurance Advisor or visit our website and see how we can help make your dreams come true.
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