Indian Insurance

You don’t settle for anything less than the best. So here’s an investment option that caters exclusively to your unique needs. Brought to you by BSLI, The Birla Sun Life Insurance Supreme – Life Plan is just the plan for you. This plan gives you more than just an increasing life insurance cover; it has the potential to give you returns that are best in the class. It puts you in the driving seat by giving you the flexibility to choose your benefits and returns. All this, coupled with an efficient charge structure makes the Supreme – Life Plan perfect for you.

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 is a unit linked non participating plan

It offers a choice of 8 investment fund options to invest your premiums into, depending on your risk profile

Additionally you have the flexibility to allocate the premiums (including top ups) in varying proportions into the different funds to create your own fund option

The opportunity to top up your Fund Value whenever you have additional savings

High liquidity in the form of partial withdrawals and surrender benefits

A choice of 2 death benefits to opt from based on the benefits you would like your nominees to receive

An Accidental Total Permanent Disability benefit in the event of Total Permanent Disability (TPD) caused by accident, injury or illness

You can choose from eight Investment Fund Options to match your risk profile and help you earn efficient returns on your funds. If you wish to diversify your risk, you can choose to allocate your premium in varying proportions amongst the available Investment Fund Options. You can switch between the Investment Fund Options or change the Premium Allocation Percentage (using premium re-direction facility) into the various Investment Fund Options anytime during the tenure of the policy.

The portfolio of the different Investment Fund Options is given below:

You can select the Investment Fund Options based on your risk preference and switch between the Investment Fund Options based on market performance. See the risk profile of each Asset Class at the end of the brochure.

Assure
Objective: The primary objective of this Investment Fund Option is to provide conservation, at a high level of safety and liquidity through judicious investments in high quality short-term debt.

Strategy: Generate better return with low level of risk through investment into fixed interest securities having short-term maturity profile.

Protector
Objective: The objective of this Investment Fund Option is to generate consistent return 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.

Enhancer
Objective: This Investment Fund Option helps you grow your 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 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 diversified equity portfolio and seek to earn regular return on fixed income portfolio by active management resulting in wealth creation for policyholders.

Creator
Objective: The objective of the Invest Fund Option is to achieve optimum balance between growth and stability to provide long-term capital appreciation with balanced level of risk by investing in fixed income securities and high quality equity security. This Investment Fund Option is for those who are willing to take average to high level of risk to earn attractive returns over a long period of time.

Strategy: The strategy is to invest into fixed income securities &maintaining diversified equity portfolio along with active Fund management policyholder’s wealth in long run.

Magnifier
Objective: The objective of the Investment Fund Option is to maximize wealth by managing diversified portfolio.

Strategy: The strategy is to invest in high quality equity security to provide long-term capital appreciation with high level of risk. This Investment Fund Option is suitable for those who want to have wealth maximization over long-term period with equity market dynamics.

Maximiser
Objective: To provide long term capital appreciation by actively managing a well-diversified equity portfolio of fundamentally strong blue chip companies. Further, the fund seeks to provide a cushion against the sudden volatility in the equities through some investments in short-term money market instruments.

Strategy: To build and actively manage a well-diversified equity portfolio of value and growth driven stocks by following a research focused investment approach. While appreciating the high risk associated with equities, the fund would attempt to maximize the risk-return pay off for the long-term advantage of the policyholders. The fund will also explore the option of having exposure to quality mid cap stocks. The non-equity portion of the fund will be invested in good rated (P1/A1 & above) money market instruments and fixed deposits. The fund will also maintain a reasonable level of liquidity.

Multiplier
Objective: To provide long-term wealth maximization by actively managing a well-diversified equity portfolio, predominantly comprising of companies whose market capitalization is close to Rs. 1000 crores and above.Strategy: To build and actively manage a well-diversified equity portfolio of value & growth driven stocks by following a research driven investment approach. The investments would be predominantly made in mid cap stocks, with an option to invest 30% in large cap stocks as well. While appreciating the high risk associated with equities, the fund would attempt to maximize the risk-return pay-off for the long-term advantage of the policyholders. The fund will also maintain reasonable level of liquidity

The plan also offers you the flexibility of surrendering your policy if the need arises. There will be no Surrender Charge on policies surrendered after six completed policy years, which means that the entire Fund Value is payable to you in case you surrender the policy anytime after six policy years till maturity.
However, if the Policy is surrendered within three years from inception, then the Surrender Value will be paid to you after the completion of the third Policy Anniversary. 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.

After the third Policy Anniversary, should you decide to surrender the Policy, the Surrender Value will be payable immediately.

Once surrendered, all Coverages will immediately terminate and the Policy will not be eligible for Revival.

Partial Withdrawals can be made after three Policy Years or when the Life Insured attains majority (i.e. on or after attainment of age 18) whichever is later.

The minimum amount of Partial withdrawal is Rs.25,000. There is no limit to the maximum amount subject to balance in the Fund which equals to the higher of Rs.25000 plus Surrender Charges applicable in the year of partial withdrawal and one Annual Policy Premium, or the sum of top-up premiums made, if any, in the three years preceding the withdrawal. Any Partial Withdrawals will first be adjusted from the Top Up Premiums.

We provide our customers with a high level of transparency in all our plans to put them in total control. In this plan too we provide the NAVs of the different Investment Fund Options on a daily basis in the newspapers and on our website www.birlasunlife.com. We will send you an annual statement giving details of the number of units held by you under various Investment Fund Options as of the last policy anniversary. Besides we are just a phone call away and you could call us on our toll free number 1800 22 7000.

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)

If the premium is not received on the premium due date, a grace period of 30 days is given. 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. If the Policy is not revived within two years from the lapse date, 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 the 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 willbe 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 Chargesprovision) thereafter from the Surrender Value.If the life insured dies while the policy is not yet revived, we will pay the Fund Value as of the lapse date immediately and terminate the contract.

If all due premiums have been received for the first three Policy Years and subsequent due premium is not received on the premium due date, a grace period of 30 days is given. Even at the end of the grace period if the Policy 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 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.

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 Reinstatement 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 Surrender Value will be re-invested in the Investment Fund Options at the NAVs applicable on the Effective Date of Revival. All outstanding Policy Charges (as mentioned in the section ‘What are Charges applicable in the policy?’), if any, for the period between the lapse date and the Effective Date of Revival shall be deducted from the Fund Value. In case of non-receipt of premium after the first three Policy Years, you can continue the policy by contributing all Policy Premiums due but unpaid from the date of premium discontinuance, within two years from the end of grace period after nonreceipt of premium.

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.

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

Service Tax and other levies, as applicable, will be levied as per the extant tax laws.

The Mortality Charge of the Life Insurance Coverage will be deducted by cancellation of units on a monthly basis at the prevailing NAV. The Mortality Rate will be levied on the following amounts: -

Where Death Benefit ‘A’, Death Benefit ‘B’ stands for different Death Benefit options as described in the detailed table.
The annual rate of Mortality Charge per thousand for sample ages are as follows:

The Mortality Charge will be guaranteed over the duration of the contract.

An underwriting extra (if any and net of premium allocation charge) is an additional amount that will be recovered from the Fund Value by cancellation of units on a monthly basis.

Policy Administration Charges for the Life Insurance Coverage will be deducted by canceling units on a monthly basis at the prevailing NAV as follows:
A Sum Assured charge which varies as per the Life Insurance Coverage Sum Assured is given under. This charge will be recovered by canceling units on monthly basis at the prevailing NAV.

From policy year 6 onwards, for all types of benefits, benefit terms and sum assured bands, a sum assured related charge of Rs.3.6 per thousand sum assured per annum will be levied on the first Rs.2,00,000 of sum assured only. On the balance sum assured there will be no sum assured related charge.

Where Death Benefit ‘A’ & Death Benefit ‘B’ stands for different Death Benefit options as described in the detailed table.

And the different Sum Assured Bands (B1, B2 & B3) are as follows:

The Surrender Value is calculated after deducting the Surrender Charges applicable at the time of surrender. The Surrender charges are levied as a percentage of the Annual Policy Premium (excluding underwriting extra, top-up premium) payable. The Surrender Charges levied on this Policy are as per the table below:

Subject to our then current administrative rules, as mentioned earlier you can switch between Investment Fund(s). Any switch request, whether for single or multiple transfers would be treated as a single switch.

Switching charges:
In a year two switches are free. Every additional switch will be subject to a charge as per the then current administrative rules of the company. Our current Charge for an additional switch is Rs 100/-. The switching charge shall not exceed Rs.500/-.

Premium Redirection charge:
You can change the Premium Allocation Percentage (using premium redirection facility) free of Charge twice every year. Every additional change is subject to Charge of Rs.100/- The charge will not exceed Rs.500/-.

Partial withdrawal charges:
In a year only 4 Partial Withdrawals are permitted. Two Partial Withdrawals in every policy year will be free of Charge and every additional Partial Withdrawal will be subject to a Charge of 0.5% of the amount withdrawn. This amount cannot exceed 1.0% of amount withdrawn.

“If the life insured dies by suicide within one year of the issue of the policy or reinstatement of Life Insurance Coverage, whichever 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 as on the date of death”.

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.

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.