Indian Insurance

Every Sunrise marks a new beginning. Every dawn brings with it a new hope, new joys ,new promises.And every ray of light illuminates the path ahead.Much like Birla Sun Life Insurance. Where every product is designed with the promise of peace of mind for you and your family. Not to mention a radiant future as well. In keeping with this, we offer customized life insurance plans and solutions to turn your dreams into reality. And to give you and your loved ones all the protection they need for a life time. Thanks to our Unit linked plans that offer a blend of life insurance and investment to give you most out of life .Come discover the joy of having the Birla Sun Life Insurance Flexi Save Plus by your side.

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.

Birla Sun Life Insurance was the first Private Life Insurer in India to introduce Unit-Linked life insurance plans. A Unit-Linked plan is an auspicious coming together of security from life insurance and earnings from investments. Which means, apart from securing your future, they offer efficient returns.What’s more, they’re transparent, flexible and simple to understand.

This plan not only offers you the advantages of a Unit-Linked plan as mentioned above, but also provides you the opportunity to make large tax-free* savings over a period of time. Thanks to the benefits of compounding, it empowers you with a substantial amount to meet the bigger requirements of life.

A choice of three Investment Fund Options: Protector, Builder and Enhancer, with the freedom to switch between the Investment Fund Options anytime during the policy tenure.*

Flexibility to make additional lump sum investments (top ups) to increase the savings portion of your policy.

Minimum Guaranteed returns of 3% p.a. on your premium and any top up amounts, net of all Policy Charges. More importantly the entire upside in the performance of the Investment Fund is passed on to you. ^@

Options to make tax free Partial Withdrawals ** from your Fund Value, any time after three years.

Surrender of the policy without penalty any time after 4 policy years. ^@

Increase the Sum Assured during the premium paying period depending on your requirements.

Convenient premium payment options: Single, Short or Regular Premium Paying Period.

The ECS is a convenient and hassle-free method of paying your premiums through an electronic debit to your bank account.

The Investment Funds have a varying amount of debt and equity. You can select the Investment Funds based on your risk preference and switch between them based on your needs.

Protector
Objective: The objective of the Investment Fund Option is to generate consistent returns through active management of fixed income portfolio and focus on creating long-term equity portfolio, which will enhance yield of 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 product is suitable for those who want to preserve their capital and earn steady return on investment through higher exposure to debt securities

Builder
Objective: This Investment Fund Option helps build your 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: Generate better return with moderate level of risk through active management of fixed income portfolio and focus on creating long term equity portfolio which will enhance yield of composite portfolio with low level of risk appetite.

The Premium Allocation Charge* is an up-front charge and varies as per the premium payment term and the Policy Year as given under:

Mortality Charges for the Life Insurance Coverage will be deducted by cancellation of units at the prevailing NAV on a monthly basis. The annual Mortality Charges per thousand Sum At Risk for sample ages are as follows:

The Mortality Charges are guaranteed for the entire period of the contract.

A Fund Management Charge not exceeding 1.5% p.a. of the Fund Value will be charged by adjustment of daily NAVs. Currently this charge is 1% p.a. for Protector, Builder and Enhancer.

A Policy Administration Charge will be deducted by canceling units on a monthly basis at the prevailing NAV. The annual Policy Administration Charge per 1000 of the Life Insurance Coverage Sum Assured is given in the table below

This annual charge cannot exceed Rs. 20 per thousand of the Life Insurance Coverage Sum Assured:

For example, Suppose you had chosen a Sum Assured of Rs 10,00,000. In this case the total Policy Administration Charge in Year 1 is 5.52 * 100 + 2.88 * (1000 –100) = 3144 and the amount Rs 3144/12 = 262 will be collected on every monthly processing date by cancellation of units during the first Policy Year.

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 risks.

The Surrender Charges are levied in the first four years and varies based on the duration of the Policy. During the first 24 months of the Policy, the charge will be an amount equal to the annualised Life Insurance Coverage Premium payable for this Policy. For the purpose of Surrender Charges only, annualised Life Insurance Coverage Premium is defined, as the amount that is payable if the Coverage Paying Period is equal to the Coverage Benefit Period. In the 25th month, the Surrender Charge is 24 percent of the annualised Life Insurance Coverage Premium. The Surrender Charge per cent reduces by one for every month thereafter. If the Policy is surrendered at any time after the 49th month, the Surrender Charge is zero.

The Surrender Value is calculated after deducting the Surrender Charges from the Fund Value.

To keep the Policy in force, you must contribute, within the grace period of 30 days, the amount of Policy Premiums, which is due but unpaid. Even at the end of the grace period if the premium is not received, then the Policy will lapse and all Coverages will terminate immediately.

Once the Policy lapses it has to be revived within two years from the lapse date, failing which the Surrender Value as at the 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 section) thereafter, from the Surrender Value.

To continue the Policy, you must contribute, within the grace period of 30 days, the amount of 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 and 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

This clause will not be applicable if you have opted for Single Pay option.

Should your Policy lapse due to non-receipt of premiums within the first three Policy Years; you can request that it be revived within two years from the lapse date. Revival or Reinstatement of the Life Insurance Coverage is subject to the following:

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 NAV 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.

We reserve the right to levy a charge subject to our administrative rules then in force to cover the Underwriting costs arising at the time of Revival. The Revival charge currently is Rs 100. This charge cannot exceed Rs. 1000.

In case of non-receipt of premium after the first three Policy Years, you can request that it be continued within two years from the end of grace period after non-receipt of premium by contributing all Policy Premium due but unpaid from the date of premium discontinuance.

Premium discontinuance Clause will not be applicable if you have opted for Single Pay option.

After first three Policy Years, if the Fund Value falls to one Annual Policy Premium net of Surrender Charges, we will terminate the Policy and pay the Surrender Value to you.

Premium- The amount one has to pay during the premium paying period in order to subscribe to a particular plan for a given level of plan benefit.

Premium Paying period- The period over which you agree to pay the premiums.

Policy Period- the period for which the insurance plan has been taken.

Sum Assured- Is the amount of life insurance cover chosen by you.

Maturity- The time when the insurance plan taken comes to an end for example the maturity for 10 year plan will be at the end of the 10th year.

Age- As per the last birthday.

Top Up the Lump sum investment that you can make to enhance the savings portion of the Policy Sum at Risk – is the Sum Assured less the Fund Value.

Sum At Risk- is the Sum Assured less the Fund Value

“If the Life Insured dies by suicide within one year of the issue of the policy or the reinstatement of the Life Insurance Coveragewhichever is later, 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 on the date of death”.

Section 41 of 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 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