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Dec 21 2008

Birla Sun Life Insurance Life Companion Endowment

Posted by Sachin

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Birla Sun Life Insurance LifeCompanion Endowment Plan

In this policy, the investment risk in investment portfolio is borne by the policyholder
Highlights
Guaranteed maturity benefits*
Death benefits of Sum Assured and Fund Value
5% Guaranteed additions*
Inbuilt Accidental death benefit .
* conditions apply
Birla Sun Life Insurance Life Companion - Endowment Plan
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.
About Birla Sun Life Insurance

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.
The Plan

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.
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.
Maximum Maturity Age
75 years
Minimum Life Insurance Cover
Rs. 75, 000
Maximum Life Insurance Cover
No Limit
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.
Who should buy the plan?
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.
Benefits
The plan offers excellent benefits, which are as detailed below:

A

 Maturity Benefits

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.
B

Death Benefits*
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
C

Additional Benefits
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.
D

Waiver of Premium Rider
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.
E Guaranteed Additions
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
E

Tax Benefits$
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.
Policy Benefits Details
Maturity Benefits
Higher of Sum Assured or Fund Value (subject to conditions)
Death Benefits*
Sum Assured + Fund Value on the date of death
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
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.
* 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
Fund Value
What is Fund Value and how does it accumulate?
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.
What are the options available to you if you want to discontinue this plan?
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.
What happens to the plan in case of non-payment of premium?
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
What is the process for revival of my policy?
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
Portfolio Fund
What will be the portfolio of the fund # in which the premiums are invested?
The indicative portfolio of the Investment Fund where the savings portion of the premiums will be invested is as under:
Investment Fund Option Risk Profile Asset Allocation * Min. Max.
Balancer Medium Debt Instruments, Money Market &Cash 75% 90%
Equities & Equity Related Securities 10% 25%
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.
Policy Charges
What are the Policy Charges?
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:
Policy Year % of Life Insurance Coverage Premium
1 65%
2 20%
3 20%
4 15%
5 15%
6 + 0%
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.
1)
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:
Age 20 30 40 50
Male 1.016 1.171 2.150 5.532
Female 0.896 1.163 1.657 4.030
The Mortality Charges are guaranteed for the entire period of the contract.
2)
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.
3)
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.
4)
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:
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
5)
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.
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.
NAV

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)
Free Look Period

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
Service Tax and other levies
Service Tax and other levies, as applicable, will be levied as per the extant tax laws.
Accidental Death Definition
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.
EXCLUSIONS FOR THE BENEFITS DUE TO ACCIDENTAL DEATH
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:
Suicide or self inflicted injury, whether the Life Insured is medically sane or insane.
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.
Service in the armed forces, or any police organization, of any country at war or service in any force of an international body.
War means any war whether declared or not.
Committing an assault, a criminal offence, an illegal activity or any breach of law.
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.
Inhaling any gas or fumes, accidentally or otherwise, except accidentally in the course of duty.
Bodily or mental infirmity or any disease.
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.

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.”
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.
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.
Risk Factors/Disclaimers:

This is non-participating unit linked plan.

This policy is underwritten by Birla Sun Life Insurance Company Limited (BSLI).

The above- mentioned charges are applicable to base coverage only.

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.

The charges mentioned above are applicable to the Investment Fund Option offered at present.

All the policy charges (except Mortality & Premium Allocation Charges) can be modified by the Company subject to approval of the IRDA.

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.

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.

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.

This brochure contains the salient features of the plan. For further details please refer to the policy contract.

Insurance is the subject matter of solicitation.

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.
Filed under : Birla Sun Life Insurance Term Plan | No Comments »
Sep 11 2008

Birla Sun Life Insurance Dream Plan

Posted by Sachin

Tags: , , , , ,
Birla Sun Life Insurance Dream Plan

In this policy the investment risk in investment portfolio is borne by the policyholder.
Highlights
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.

and yes, it has … Our Commitment.
OUR SOLUTION
Our Birla Sun Life Insurance Dream Plan is a long-term Unit Linked insurance plan that is specifically designed to provide financial security for your future requirements. With us, your future is guaranteed.Our 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.

Our 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
We have some criteria you should consider.

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.
YOUR OPTIONS

You are considering this plan for acquiring financial security in future. With us, you are guaranteed to succeed, no matter what happens.

So start today!
Choose the Guaranteed Maturity Benefit
The first step is for you to decide on the amount you want to receive at maturity guaranteed. This is the Guaranteed Maturity Benefit.
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. You are therefore assured that you will receive no less than the Guaranteed Maturity Benefit when this plan matures.
Choose the Guaranteed Maturity Option
Our Birla Sun Life Insurance Dream Plan comes with three Guaranteed Maturity Options designed to allow you to secure more for yourself with three separate maturity amount payout schedules. Choose one of the three Guaranteed Maturity Options and you will receive:
Year End 100% Option 200% Option 300% Option
at maturity 100% 100% 100%
+ 1 year – 20% 25%
+ 2 year – 20% 25%
+ 3 year – 20% 25%
+ 4 year – 20% 25%
+ 5 year – 20% 100%
Total 100% 200% 300%

As a percentage of the Guaranteed Maturity Benefit.
Don’t forget, your plan has further upside potential. You will get this upside, if any, together with the last installment of the Guaranteed Maturity Benefit.
Choose the Investment Fund(s)
We offer three investment funds to suit your particular investment needs - Protector, Builder and Enhancer. Simply tell us in which investment fund(s) you want your premium to be invested in. You can decide to invest in only one investment fund or in a combination of all three - it’s your choice. Also, you can change your mind at any time for future premiums and can even switch existing investments in one investment fund to another.
Choose the Additional Protection
A Basic Sum Assured is associated with the Guaranteed Maturity Benefit you choose. This amount is paid in the unfortunate event that you die while your plan is in effect. We give you the option to increase this protection to suit your particular insurance needs. Simply specify the amount you want (the Enhanced Sum Assured) in addition to the Basic Sum Assured and your insurance protection will equal the sum of the Basic and Enhanced Sum Assured.
BEFORE YOU CONTINUE READING …
All Unit Linked life insurance plans are different from Traditional insurance plans and are subject to different risk factors. The name of the investment funds and that of this plan do not in any way indicate the quality of the plan or future returns.In this plan, the investment risk in the investment funds chosen by you is borne by you. Investment funds are subject to investment risks associated with the capital markets and unit prices may go up or down reflecting the market value of the underlying assets. Past performance is no guarantee of future results.

We do however guarantee the payment of the Guaranteed Maturity Benefit as described in this document, provided all policy premiums are paid when due.
Premiums
Your financial advisor will provide you with the annual policy premium specific to the plan you are considering. The annual policy premium is based on:
the Guaranteed Maturity Benefit and Option you choose
the Enhanced Sum Assured you desire
the plan term and your gender and age at entry; and
the premium associated with any riders you add.
You can also increase your savings at any time by paying additional amounts over and above the policy premium - this is known as top-up premiums. Each top-up premium must be Rs. 500 or more provided your total top-up premiums to date does not exceed 25% of your total policy premiums to date. We do accept top-up premiums in excess of 25% of your total policy premiums to date, but in this case, the minimum top-up premium is Rs. 5,000 and your Enhanced Sum Assured will be increased by 125% of the excess of your top-up premiums over 25% of policy premiums to date, subject to evidence of insurability satisfactory to us.
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.
Investing Your Premiums

You decide on the proportion of your policy premium and top-up premium to be invested in each of the three investment funds we offer - Protector, Builder and Enhancer.

PROTECTOR
Objective: To generate consistent returns through active management of a fixed income portfolio and focus on creating a long-term equity portfolio, which will enhance the yield of the composite portfolio with minimum risk appetite.

Strategy: To invest in fixed income securities with marginal exposure to equity up to 10% at low level of risk. This Investment Fund is suitable for those who want to preserve their capital and earn a steady return on investment through higher exposure to debt securities.

BUILDER
Objective: To build capital and generate better returns at moderate level of risk, over a medium or long-term period through a balance of investment in equity and debt.

Strategy: To generate better returns with moderate level of risk through active management of a fixed income portfolio and focus on creating a long-term equity portfolio, which will enhance the yield of the composite portfolio with low level of risk appetite.

ENHANCER
Objective: To grow capital through enhanced returns over a medium to long-term period through investments in equity and debt instruments, thereby providing a good balance between risk and return. This Investment Fund is suitable for those who want to earn higher return on investment through balanced exposure to equity and debt securities.

Strategy: To earn capital appreciation by maintaining a diversified equity portfolio and seek to earn regular returns on the fixed income portfolio by active management resulting in wealth creation for policy owners.

See Schedule A below for specifics on each investment fund.

We record your allocation instructions through the Premium Allocation Percentage, and our only requirement is that the percentage allocated to each investment fund be in increments of 5%, ranging from 0% to 100%.

You will be allocated investment fund units based on the monetary amount you invest in an investment fund divided by its then prevailing unit price. Units will be allocated based on:

100% of your policy premiums when received; and
98% of your top-up premiums when received - we retain 2% of your top-up premium as a Premium Allocation Charge.

For added flexibility, you can at any time:

use our premium redirection facility and change your Premium Allocation Percentage applicable to future policy premiums and top-up premiums; and
switch part or all of your allocated units in one investment fund to another at the then prevailing unit prices.
Keeping Track Of Your Investments
Keeping track of your investment is easy with us:

we will send you an annual statement detailing the number of units you have in each investment fund and their respective unit price as of the last policy anniversary; and
we publish the unit prices of all investment funds on our website www.birlasunlife.com as well as in the newspapers.
SCHEDULE A
Schedule A
Investment Fund Option Risk Profile Asset Allocation* Min. Max.
Protector Low Debt Instruments, Money Market & Cash 90% 100%
Equities & Equity Related Securities 0% 10%
Builder Low Debt Instruments, Money Market &Cash 80% 90%
Equities & Equity Related Securities 10% 20%
Enhancer Medium Debt Instruments, Money Market &Cash 65% 80%
Equities & Equity Related Securities 20% 35%
* In each Investment Fund Option, the Money Market & Cash asset allocation will not exceed 40%.
Accessing Your Investments

The total value of your investments in this plan is known as the Fund Value - the balance of all units allocated to your policy multiplied by their respective then prevailing unit price.

Our plan offers guaranteed maturity benefits and we track your guarantees via the Guaranteed Fund Value - the accumulation at 3% per annum of all your policy premiums and top-up premiums (net of the 2% Premium Allocation Charge) paid till date less policy charges deducted monthly.

Both the Fund Value and Guaranteed Fund Value will be reduced at the beginning of every policy month to cover your policy charges. We will redeem units equal to the monetary amount of the policy charge divided by the then prevailing unit price from each investment fund under your policy, in proportion to their value at that time.

Partial Withdrawals
After the completion of three policy years, you are free to make a partial withdrawal at any time. The partial withdrawal must be at least Rs. 5,000 and cannot exceed the excess, if any, of the Fund Value over the Guaranteed Fund Value at that time
.
The units redeemed will equal the partial withdrawal divided by the then prevailing unit price of the investment fund from which the partial withdrawal is taken. Partial withdrawals will not reduce the Guaranteed Fund Value.

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

we will retain a Surrender Charge; and
we 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
We do not offer this facility on this plan.
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.

At the start of the settlement option period and at the end of each year thereafter, the Guaranteed Fund Value will be reduced by:
Date 200% Option 300% Option
at maturity 100% 100%
year-end 1 20% 25%
year-end 2 20% 25%
year-end 3 20% 25%
year-end 4 20% 25%
year-end 5 20% 100%
Total 200% 300%
As a percentage of the Guaranteed Maturity Benefit.

The Guaranteed Fund Value will never be reduced below nil.

Partial withdrawals not exceeding the excess of the Fund Value over the Guaranteed Fund Value can be made at any time during the settlement option period.

You are therefore given the choice to en-cash the guaranteed maturity benefits when due or leave them invested in the investment funds until the end of the settlement option period. At the end of the 5-year settlement option period, we will terminate the contract and pay the higher of the Fund Value or Guaranteed Fund Value.
Policy Charges
Our Birla Sun Life Insurance Dream Plan offers discounts at higher Guaranteed Maturity Benefit amounts based on bands provided below:
Band Minimum Guaranteed Maturity Benefit
Band 100% Option 200% Option 300% Option
1 75,000 37,500 25,000
2 1,50,000 75,000 50,000
3 3,00,000 1,50,000 1,00,000
4 6,00,000 3,00,000 2,00,000
5 12,00,000 6,00,000 4,00,000
The charges under this plan are designed to optimize the long-term return on your investment while providing for the costs of insurance, distribution and administration of your policy.
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.
IRDA Approval
Only when specified and within stated limits, we may increase a particular charge at any time in the future. We, however, need to get prior approval from the IRDA before such charge increase is effective. Otherwise, all other charges in this policy are guaranteed to never increase during the tenure of the policy.
SCHEDULE B
Policy Terms Basic Sum Assured Policy Administration Charge
year 1-3 plus in all years
Band 1 Band 2 Band 3 Band 4 Band 5
100% Guaranteed Maturity Option
5 1,133 8.45 12.26 9.02 7.41 6.60 6.20
6 944 9.99 12.99 9.24 7.37 6.44 5.98
7 810 11.47 13.66 9.41 7.28 6.22 5.69
8 710 12.89 14.36 9.58 7.20 6.00 5.41
9 632 14.27 15.09 9.78 7.12 5.80 5.14
10 570 15.58 15.90 10.06 7.15 5.69 4.97
11 578 15.14 15.10 9.36 6.49 5.06 4.34
12 586 14.71 14.46 8.79 5.96 4.55 3.85
13 595 14.27 13.91 8.32 5.53 4.14 3.44
14 605 13.82 13.44 7.92 5.16 3.79 3.10
15 618 13.32 12.97 7.55 4.84 3.49 2.81
16 613 13.22 12.95 7.44 4.70 3.33 2.65
17 608 13.13 12.96 7.38 4.59 3.21 2.51
18 602 13.05 13.02 7.35 4.52 3.11 2.41
19 596 12.98 13.11 7.35 4.47 3.04 2.32
20 590 12.91 13.23 7.37 4.44 2.98 2.25
21 580 12.93 13.00 7.03 4.05 2.57 1.83
22 571 12.93 12.79 6.73 3.71 2.20 1.44
23 561 12.95 12.67 6.49 3.41 1.88 1.11
24 551 12.98 12.58 6.29 3.15 1.59 0.81
25 541 13.01 12.54 6.12 2.93 1.33 0.54
200% Guaranteed Maturity Option
5 2,185 8.39 13.45 8.88 6.66 5.59 5.06
6 1,821 9.92 14.09 9.05 6.65 5.47 4.88
7 1,561 11.40 14.70 9.22 6.62 5.31 4.66
8 1,367 12.83 15.33 9.47 6.61 5.19 4.47
9 1,217 14.19 16.02 9.75 6.65 5.09 4.31
10 1,099 15.48 16.82 10.06 6.70 5.01 4.17
11 1,111 15.09 15.95 9.39 6.12 4.48 3.67
12 1,127 14.65 15.20 8.82 5.64 4.05 3.25
13 1,145 14.20 14.58 8.35 5.24 3.69 2.92
14 1,165 13.75 14.04 7.95 4.92 3.40 2.64
15 1,191 13.24 13.51 7.58 4.62 3.15 2.41
16 1,181 13.15 13.47 7.49 4.51 3.03 2.28
17 1,171 13.06 13.46 7.44 4.43 2.93 2.19
18 1,159 12.99 13.52 7.43 4.39 2.87 2.11
19 1,149 12.90 13.59 7.42 4.35 2.82 2.05
20 1,137 12.84 13.70 7.46 4.34 2.79 2.01
21 1,119 12.84 13.45 7.12 3.97 2.39 1.61
22 1,099 12.87 13.28 6.85 3.65 2.05 1.25
23 1,081 12.88 13.14 6.62 3.37 1.75 0.94
24 1,063 12.89 13.05 6.42 3.12 1.48 0.65
25 1,045 12.90 12.99 6.26 2.91 1.23 0.40
300% Guaranteed Maturity Option
5 3,175 8.41 13.09 8.53 6.34 5.24 4.69
6 2,647 9.94 13.80 8.81 6.37 5.15 4.54
7 2,269 11.43 14.49 9.06 6.37 5.03 4.35
8 1,990 12.84 15.23 9.34 6.40 4.93 4.19
9 1,774 14.19 16.06 9.65 6.46 4.86 4.06
10 1,600 15.50 16.96 10.01 6.55 4.81 3.95
11 1,621 15.07 16.10 9.36 6.00 4.32 3.48
12 1,645 14.63 15.38 8.83 5.55 3.92 3.10
13 1,669 14.20 14.80 8.39 5.19 3.60 2.80
14 1,702 13.71 14.24 8.00 4.88 3.32 2.54
15 1,738 13.22 13.75 7.65 4.61 3.09 2.33
16 1,726 13.11 13.70 7.57 4.51 2.98 2.22
17 1,711 13.02 13.71 7.53 4.44 2.90 2.13
18 1,696 12.94 13.76 7.51 4.40 2.84 2.07
19 1,678 12.87 13.87 7.54 4.38 2.81 2.02
20 1,663 12.79 13.98 7.57 4.37 2.78 1.98
21 1,663 12.79 13.98 7.57 4.37 2.78 1.98
22 1,609 12.81 13.56 6.98 3.69 2.06 1.24
23 1,582 12.82 13.44 6.75 3.42 1.76 0.93
24 1,555 12.84 13.36 6.57 3.18 1.49 0.65
25 1,531 12.83 13.30 6.40 2.97 1.26 0.40
Basic Sum Assured is per 1000 of Guaranteed Maturity Benefit.
• Policy Administration Charge - annual rate per 1000 of Basic Sum Assured
• Surrender Charge - rate per 1000 of Basic Sum Assured
Surrender Charge years 1-3 only
Band 1 Band 2 Band 3 Band 4 Band 5
100% Guaranteed Maturity Option
41.45 35.98 33.25 31.88 31.20
49.38 42.71 39.38 37.71 36.88
57.13 49.23 45.28 43.30 42.31
64.70 55.54 50.96 48.67 47.52
64.70 55.54 50.96 48.67 47.52
79.49 67.70 61.81 58.87 57.39
77.91 66.09 60.19 57.23 55.76
76.40 64.55 58.62 55.66 54.18
74.83 62.96 57.02 54.05