bachat child plan brochure web

8/4/2019 Bachat Child Plan Brochure WEB

1/12

Protect your child's future

and enjoy more from your savings

Bachat (Child) Plan

Birla Sun Life Insurance

Protects your child's future through regular savings


2/12

You have aspirations and dreams for your children and would like to ensure that you

are able to meet them under all circumstances. For this, you would like an avenue to

save your hard earned money regularly to fulfil your child's dreams.

Introducing BSLI Bachat Child Plan, a traditional non-participating savings plan that

helps you protect your child's future by building a corpus through regular systematic

savings. You get your savings augmented through additions ever year and at

maturity. With BSLI Bachat Child Plan, you can now secure your child's future by

starting with as little as Rs. 400 per month.

You choose your Monthly Base Premium based on your needs and as little as

Rs. 400You are insured for up to 180 x the Monthly Base Premium

You get your Monthly Base Premiums back after 20 years - guaranteed - plus

THE SALIENT BENEFITS IN THIS PLAN ARE


3/12

After 20 Years Band I Band II Band III

Bachat Addition 5.00% 5.25% 5.50%

With Loyalty Additions (for entry age)

18 to 40 years 7.65% 8.17% 8.71%

41 to 50 years 6.72% 7.21% 7.71%

Based on current non-guaranteed Bachat Addition Rate and premiums paid annually for 20 years

Your policy continues till maturity as you planned to secure your child's future in

case of your untimely demise

You can double your Sum Assured in case of accidental death for a nominal

additional premium of 1.2% x the Monthly Base Premium

You plan to pay and stay invested for 10 years or more.

Entry Age - Grand / Parent 18 - 50 years

- Child 30 days - 17 years

Policy Term 20 years

Premium Pay Term 20 years

Monthly Base Premium Rs. 400 - Rs. 3,000

Sum Assured Up to 180 times Monthly Base Premium

Premium Payment Frequency Annual, Semi-annual, Quarterly and Monthly

In this plan, you start by choosing the Monthly Base Premium or MBP. In addition

you pay a Policy Continuation Premium to ensure continuation of the policy till

maturity in case of death of life insured during the policy term. The monthly Policy

Continuation Premium charged will be 4% of MBP for 18 to 40 years of entry age

and 10% of MBP for 41 to 50 years of entry age. The monthly premium payable issum of Monthly Base Premium and monthly Policy Continuation Premium.

You can choose to pay your premiums either Monthly, Quarterly, Semi-Annually or

Annually. You stand to benefit from a premium rebate if you choose to pay your

premiums Semi-Annually or Annually as illustrated below.

Premium Rebate --- --- 2% 4%

No. of Monthly Premium/s payable 1 3 5.88 11.52

Please note -

Your actual monthly premium payable will be higher by any applicable rider premium,

underwriting extras, service tax, education cess and any other applicable taxes and levies

as per the extant tax laws.

For premiums paid quarterly or monthly, you will have to choose either ECS or salary

deduction as a method of payment. Also, we will require 2 monthly premiums at inception

in case of monthly payments.

This plan is meant for you if:

Premium Payment Frequency Monthly Quarterly Semi-Annually Annually

CHOOSING YOUR MONTHLY BASE PREMIUM


4/12


5/12

The Sum Assured depends on the Entry Age as follows:

Entry Age 18 to 40 41 to 50

Sum Assured 180 x MBP 120 x MBP

- You have an option to increase the Sum

Assured in case the life insured dies accidentally.

Age at Entry 18 - 50 years

Rider Term 20 years

Rider Premium 1.2% x Monthly Base Premium

180 x MBP for Entry Age 18 to 40Rider Sum Assured

120 x MBP for Entry Age 41 to 50

- Once 36 MBPs have been paid, you may surrender your

policy and receive

All Monthly Base Premiums paid from the 2nd year onwards x the surrender

factor below; plus

After the 10th policy year, all Bachat Additions earned; plus

After the 15th policy year, the Loyalty Addition

The surrender factor is 100% after completing 10 policy years, otherwise it is

Policy Year of Surrender 3 4 5 6 7 8 9 10+

Surrender Factor 30% 40% 50% 60% 70% 80% 90% 100%

3. Accidental Death Benefit Rider

4. Surrender Benefit

u

u

u


6/12

The table below illustrates the benefits of the BSLI Bachat (Child) Plan. This has

been illustrated assuming premiums are paid annually, and factoring the 4%

premium rebate.

To understand the Surrender Benefits, you may evaluate them as a percentage of

the premiums paid. The illustration shows that the Surrender Benefits are 118%,

146% and 180% of premiums after 10, 15 and 20 years, respectively for Band I (for

entry age 18 to 40 years). Alternatively, you may determine an 'equivalent' Bachat

Addition Rate thereby combining the effect of the Bachat Additions and Loyalty

Addition. For Band I, the combined effect of the Bachat Additions and LoyaltyAddition amounts to a Surrender Benefit of Rs. 216,075 after 20 years and this is

the same as applying a 7.65% 'equivalent' Bachat Addition Rate on the premiums

paid to date in each of the 20 years. Using this method, the Surrender Benefits

correspond to an 'equivalent' Bachat Addition Rate of 3.22%, 5.70% and 7.65%

after 10, 15 and 20 years, respectively (for entry age 18 to 40 years).

Band I II III

MBP Range (in Rs.) 400 to 599 600 to 899 900 +

Bachat Addition Rate 5.00% 5.25% 5.50%

MBP chosen by you 500 750 1,000

MBP x 12 6,000 9,000 12,000

Surrender Benefit

After 10 years 70,500 106,988 144,300

After 15 years 130,800 200,561 273,336After 20 years 216,075 333,923 458,642

Entry Age (years) 18-40 41-50 18-40 41-50 18-40 41-50

Annual Premium paid by you 5,990 6,336 8986 9,504 11,981 12,672

Surrender Benefit / Total Premiums Paid

After 10 years 118% 111% 119% 113% 120% 114%

After 15 years 146% 138% 149% 141% 152% 144%

After 20 years 180% 171% 186% 176% 191% 181%

Equivalent Bachat Addition Rate

After 10 years 3.22% 2.05% 3.47% 2.29% 3.72% 2.52%

After 15 years 5.70% 4.70% 6.10% 5.09% 6.51% 5.48%

After 20 years 7.65% 6.72% 8.17% 7.21% 8.71% 7.71%

ILLUSTRATION of BENEFITS


7/12

Monthly Base Premium Rs. 500

Bachat Addition Rate at 5.00%

1 6,000 6,000 300 --- --- --- --- ---

2 6,000 12,000 600 --- --- --- --- ---

3 6,000 18,000 900 --- --- --- 3,600 3,600

4 6,000 24,000 1,200 --- --- --- 7,200 7,200

5 6,000 30,000 1,500 --- --- --- 12,000 12,000

6 6,000 36,000 1,800 --- --- --- 18,000 18,000

7 6,000 42,000 2,100 --- --- --- 25,200 25,200

8 6,000 48,000 2,400 --- --- --- 33,600 33,600

9 6,000 54,000 2,700 --- --- --- 43,200 43,200

10 6,000 60,000 3,000 16,500 -- 16,500 54,000 70,500

11 6,000 66,000 3,300 19,800 --- 19,800 60,000 79,800

12 6,000 72,000 3,600 23,400 --- 23,400 66,000 89,400

13 6,000 78,000 3,900 27,300 --- 27,300 72,000 99,300

14 6,000 84,000 4,200 31,500 --- 31,500 78,000 109,500

15 6,000 90,000 4,500 36,000 10,800 46,800 84,000 130,800

16 6,000 96,000 4,800 40,800 13,872 54,672 90,000 144,672

17 6,000 102,000 5,100 45,900 17,557 63,457 96,000 159,457

18 6,000 108,000 5,400 51,300 21,931 73,231 102,000 175,231

19 6,000 114,000 5,700 57,000 27,075 84,075 108,000 192,075

20 6,000 120,000 6,000 63,000 33,075 96,075 120,000 216,075

Notes:

[a] = MBP x 12

[b] = MBP's paid to date or sum of [a] to date

[c] = [b] x Bachat Addition Rate of 5.00%

[d] = After 10 years, sum of [c] to date

[e] = After 15 years, [d] x ratio of [d] over 240 x MBP

[f] = [d] + [e]

[g] = Surrender Factor x [b] less MBP's paid in first year.

100% x [b] in 20th policy year

[h] = [g] + [f]

For an extra 1.2% of MBP additional Sum Assured is paid in case of accidental death.

Extra 180 x MBP payable in case death is accidental for entry ages 18 to 40.Extra 120 x MBP payable in case death is accidental for entry ages 41 to 50.

DETAILED ILLUSTRATION ofBACHAT ADDITIONS and LOYALTY ADDITION

Base Premium Bachat Addition Total Addition Surrender BenefitPolicy Loyalty

payable onYear AdditionAnnual Paid Earned Payable Gtd TotalSurrender

[a] [b] [c] [d] [e] [f] [g] [h]

Accidental Death Benefit - Optional Rider for Entry Ages 18 to 50

u

u


8/12

- You will be eligible for tax benefits under Section 80C and

Section 10(10D) of the Income Tax Act, 1961. Currently,

Under Section 80C, premiums up to Rs. 1,00,000 are allowed as a deduction

from your taxable income, each year.

Under Section 10 (10D), the benefits you receive from this plan are exempt

from tax, subject to mentioned exclusions.

- Starting from the 3rd policy year you can get a loan on your

policy. The minimum loan amount is Rs. 5,000 and the maximum loan amount is90% of the Surrender Benefit. The interest we charge on such loans will be fixed

by us from time to time.

- If you are unable to pay your premium by the due

date, you will be given a grace period of 30 days and during this grace period all

coverage under your policy will continue. If you do not pay your premium within

the grace period, the following will be applicable:

a) In case your policy has not acquired a surrender benefit, then all benefits

under your policy will cease immediately.

b) In case your policy has acquired a surrender benefit, then your policy will be

continued on a paid-up basis.

You can reinstate your policy for its full coverage within two-years from the due

date of the first unpaid premium by paying all outstanding premiums together

with interest as declared by us from time to time and by providing evidence of

insurability satisfactory to us.

OTHER BENEFITS

1. Tax Benefits

2. Policy Loans

3. Grace Period and Revival


9/12

4. Free-look period

Refund of Premiums upon Death

Guaranteed Minimum Bachat Addition Rate

Prohibition of Rebates - Section 41 of the Insurance Act, 1938

Non-Disclosure - Section 45 of the Insurance Act, 1938

- You will have the right to return your policy to us within 15

days from the date of receipt of the policy. We will refund all premiums paid

till date once we receive your written notice of cancellation (along with reasons

thereof) together with the original policy documents. Depending on our then current

administration rules, we may reduce the amount of the refund by expenditures

incurred by us in issuing your policy and as permitted by the IRDA and in

accordance to IRDA (Protection of Policyholders Interest) Regulations, 2002.

We will refund only the premiums paid to date, excluding rider premium, if any in the

event the life insured dies by suicide, whether medically sane or insane, within one

year after the issue or reinstatement date.

We guarantee that the Bachat Addition Rate declared by us will be no less than

4.50%; plus 75% of any excess of the Benchmark Rate over 7.00%; less 80% of anyexcess of 7.00% over the Benchmark Rate; all rounded down to the nearest 0.25%.

For Band II and Band III, the resulting Bachat Addition Rate is increased by 0.25%

and 0.50% respectively. The Benchmark Rate is the average of the daily 10-year

Constant Maturity Treasury (10-Year CMT) yields recorded over the last 3 years.

Currently, the source of the 10-Year CMT yield is that published by Bloomberg.

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 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 policyholder and that

the policyholder 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 inquestion 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.

TERMS and CONDITIONS


10/12

Birla Sun Life Insurance Company Limited (BSLI) is a joint venture between the

Aditya Birla Group, a well known Indian conglomerate and Sun Life Financial Inc,

one of the leading international financial services organization from Canada. With

an experience of over a decade, BSLI has contributed significantly to the growth

and development of the Indian life insurance industry and currently is one of the

leading life insurance companies in the country. Enjoying trust of its over 2 Million

customers, BSLI is known for innovations. BSLI offers a complete range of offerings

comprising of protection solutions, children's future solutions, wealth with

protection, health and wellness as well as retirement solutions and has an

extensive distribution reach over 500 cities through its network of over 600

branches, close to 1,40,000 empanelled advisors and over 700 partnerships with

Corporate Agents and Banks. This is well supported by the sound financials that the

Company has. The AUM of Birla Sun Life Insurance is close to Rs. 16,000 crs and it

has a robust capital base of over Rs. 2450 crs as on March 31, 2010. For more

information, please visit www.birlasunlife.com

The Aditya Birla Financial Services Group (ABFSG) has a significant presence

across various verticals, including life insurance, insurance broking, mutual funds,

private equity, security based lending, factoring, insurance advisory services, retail

broking and distribution of third party products.

The seven companies representing Aditya Birla Financial Services Group are Birla

Sun Life Insurance Company Ltd., Birla Sun Life Asset Management Company

Ltd., Aditya Birla Capital Advisors Ltd., Aditya Birla Money Ltd., Aditya Birla Money

Mart Ltd, Aditya Birla Finance Ltd. and Birla Insurance Advisory & Broking

Services Ltd.

The ABFSG is committed to being a leader and role model in a broad based and

integrated financial services business. Its 7 lines of businesses, with over 5.5

million customers manages assets worth USD 18 billion approximately and prides

itself for having a talent pool of over 16,000 committed employees. ABFSG has its

wings spread across more than 500 cities in India through 1600 branches and over

200,000 channel partners. This allows ABFSG to offer its customers virtually

anything other than a savings or current account. With over billion dollar revenue,

ABFSG is a significant non bank player and one of the few players who have a top 5

position in both life insurance and mutual funds.

ABFSG is a part of Aditya Birla Nuvo Ltd (ABNL), a USD 3 billion conglomerate

having leadership position across its manufacturing as well as services sector

businesses. ABNL is a part of the Aditya Birla Group, a USD 29 billion Indian

business house operating in 25 countries across the globe.

BIRLA SUN LIFE INSURANCE -A COMING TOGETHER OF VALUES

About Birla Sun Life Insurance

About Aditya Birla Financial Services Group (ABFSG)


11/12

About Sun Life Financial Inc.

Sun Life Financial is a leading international financial services organization

providing a diverse range of protection and wealth accumulation products and

services to individuals and corporate customers. Chartered in 1865, Sun Life

Financial and its partners today have operations in key markets worldwide,

including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the

Philippines, Japan, Indonesia, India, China and Bermuda. As of March 31, 2009,the Sun Life Financial group of companies had total assets under management of

$375 billion. For more information please visit www.sunlife.com

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

This is a non-participating traditional insurance plan. All terms & conditions are

guaranteed throughout the policy term except for the Bachat Addition Rate which

will vary from year to year and be declared by BSLI on April 1st of every calendar year.

BSLI reserves the right to recover levies such as the Service Tax and Education

Cess levied by the authorities on insurance transactions. If there be any additional

levies, they too will be recovered from you. This brochure contains only the salient

features of the plan. For further details please refer to the policy contract. Tax

benefits are subject to changes in the tax laws. Insurance is the subject matter of

the solicitation. For more details and clarification call your BSLI Insurance Advisor

or visit our website and see how we can help in making your dreams come true.

DISCLAIMERS


12/12

Regd. Office: One Indiabulls Centre, Tower 1, 15th & 16th Floor, Jupiter Mill Compound,

841, Senapati Bapat Marg, Elphinstone Road, Mumbai - 400 013. Reg. No.109 Unique no.:

109N58V01 ADV / 7 / 10-11 / 4070 VER 1/July/2010

Call Toll-free: 1-800-270-7000 www.birlasunlife.com SMS FUTURE to 56161

bachat child plan brochure web

Documents