|
|
 |
| |
|
| Home
>>
Individual Life
>>
Retirement
|
| |
|
| |
| Birla Sun Life Insurance Freedom 58 |
 |
|
| |
|
| |
| |
|
| |
|
| |
| In this policy, the investment risk in investment portfolio is borne by the policyholder. |
| |
 |
Living life shaan se - always! |
| |
BSLI Freedom 58 is designed so that you always remain in control of your destiny. Free from worries today, tomorrow and even when you retire.
Every individual has aspirations and we at Birla Sun Life Insurance understand that these aspirations change over an individual’s lifetime. With BSLI Freedom 58, we help you in making your aspirations come true.
Take one step today to ensure a lifetime without worries …
|
|
Your BSLI Freedom 58 |
| |
BSLI Freedom 58 is a unit linked, non-participating pension plan. A simple, hassle free plan it helps you accumulate your premiums and the investment returns thereof into a corpus for your retirement. We call this period of retirement corpus generation as the “accumulation phase”. Once you decide to vest your policy, you will enter into the “income phase” where your corpus will be used to purchase a stream of regular income payable for the rest of your lifetime.
During the accumulation phase we offer two unparalleled investment portfolio strategies for you to choose from:
|
 |
Self Managed Portfolio – with this option you can direct your investments in any of the 5 fund options based on your personal judgment |
|
LifeCycle Managed Portfolio - with this option you allow us to manage and administer your investment portfolio on your behalf and according to your risk profile. |
| |
In addition we offer you: |
|
Freedom to reduce policy premiums from 2nd year onwards. |
|
Freedom to change investment portfolio strategy at any time. |
|
Freedom to change premium allocation at any time. |
|
Freedom to change risk profile at any time. |
|
Freedom to meet your ever-changing needs through unlimited top-up premiums and fund switches. |
|
Freedom to meet any cash emergencies after three policy years through free of charge partial withdrawals or full surrender. |
Your retirement corpus accumulated by exercising either of the investment portfolio strategies is utilized at vesting (retirement) to purchase an annuity with us or any other life insurer of your choice. You have the freedom to opt for the best plan to enjoy your life, as you desire. You can vest your policy anytime after 5 completed years. |
|
|
Eligibility |
| |
Entry Age – 18 to 80 years.
Minimum Accumulation Phase – 5 years.
Policy Premium
|
|
Premium payment term – Regular Pay. |
|
Minimum Annual Policy Premium - Rs. 10,000. |
|
|
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 and unit prices may go up or down reflecting the market value of the underlying assets. Past performance is no guarantee of future results. |
|
|
| |
 |
| |
 |
| |
|
Your premiums |
| |
| |
You choose the annual policy premium amount you wish to pay regularly during the accumulation phase, subject to a minimum of Rs. 10,000 per annum.
You can pay your policy premium monthly (2 monthly installment is required at entry), quarterly, half-yearly or annually.
You can pay your policy premium by cash (up to Rs. 50,000 p.a.), cheque, credit card, and direct debit or for monthly and quarterly installments by salary deduction and ECS.
|
| |
Can I reduce my policy premium? |
| |
Yes – at any time after one year.
You have the freedom to reduce your policy premium amount any time from the 2nd year onwards, subject to a minimum annual policy premium of Rs. 10,000. |
| |
Can I increase my policy premium? |
| |
No – instead you can pay additional top-up premiums.
You have the freedom to top-up your corpus whenever you have additional savings during the accumulation phase. The minimum top-up premium is Rs. 5,000. |
| |
Can I choose how to invest my premiums? |
| |
Yes - by choosing one of the two investment portfolio strategy.
Your premiums will be used to purchase units in the various investment funds offered in this plan as per the investment portfolio strategy you choose. The units purchased in a particular investment fund will be based on the monetary amount invested in the investment fund divided by its then prevailing unit price.
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.
|
|
|
| |
|
| |
|
| |
|
Your investment portfolio |
| |
| |
With BSLI Freedom 58, you have the option to choose between two investment portfolio strategies – Self Managed Portfolio or LifeCycle Managed Portfolio.
|
 |
| |
Can I change my portfolio strategy? |
| |
Yes – at any time after one year and free of charge.
You select your investment portfolio strategy in the application form. At any time after one year while your policy is in effect, you can change from Self to LifeCycle Managed Portfolio or vice-versa. |
 |
Self Managed Portfolio |
| |
In this portfolio strategy, you decide how to invest your premiums. We offer five investment fund options ranging from 100% debt to 100% equity to suit your particular needs – Income Advantage, Protector, Builder, Enhancer and Maximiser.
If you wish to diversify your risk, you can choose to allocate your premium in varying proportions amongst the five investment fund options. We record your allocation instructions as per the premium allocation percentage and our only requirement is that the percentage allocated to any investment fund be in increments of 5%, ranging from 5% to 100%. |
| |
Can I change my premium allocation? |
| |
Yes –at any time and free of charge.
You can avail of our premium re-direction facility and change your premium allocation percentages applicable to policy premiums and top-up premiums paid from that point onwards.
|
| |
Can I switch between investment funds? |
| |
Yes - at any time and free of charge.
You can switch monies from one investment fund to another at any time provided the switched amount is for at least Rs. 5,000. |
|
LifeCycle Managed Portfolio |
| |
In this portfolio strategy, all you need is to decide on your risk profile – Conservative, Moderate or Aggressive.
Thereon, we will manage and administer your investment portfolio on your behalf, thus saving you time and effort. This portfolio strategy will automatically switch from riskier assets to safer assets progressively as your vesting date approaches.
We will invest your premiums in Maximiser (100% equity) and in Income Advantage (100% debt) in a predetermined proportion based on the selected risk profile and your age when the premium is invested.
The proportion invested in Maximiser (100% equity) will be according to the following schedule – the remaining amount will be invested in Income Advantage (100% debt):
|
| |
| |
Risk Profile |
| Age |
Conservative |
Moderate |
Aggressive |
| 18 – 30 |
50% |
70% |
90% |
| 31 – 40 |
40% |
60% |
80% |
| 41 – 50 |
30% |
50% |
70% |
| 51 – 60 |
15% |
35% |
55% |
| 61 – 70 |
0% |
20% |
40% |
| 71 + |
0% |
5% |
25% |
|
| |
Can I change my risk profile? |
| |
Yes – at any time and free of charge.
You can switch risk profile at any time and all policy premiums and top-up premiums paid from that point onwards will be invested in Maximiser and Income Advantage according to your new risk profile. |
| |
Can I switch between investment funds? |
| |
No – instead we will automatically rebalance your portfolio.
We will rebalance your portfolio on each policy anniversary to ensure that the portfolio maintains its predetermined proportion in Maximiser and Income Advantage as per the risk profile you have selected. This is done free of charge. |
|
|
| |
|
| |
|
| |
|
Accessing your investments |
| |
| |
Can I access my savings? |
| |
Yes – at any time after three completed policy years.
You can make unlimited partial withdrawals after three complete policy years – free of charge. Extant tax laws will be applicable. |
| |
The minimum partial withdrawal is Rs. 5,000 and the maximum is the excess, if any, of your fund value over the higher of: |
| |
|
Rs. 30,000; or |
|
Top-up premiums paid by you during the three years preceding the partial withdrawal date. |
|
| |
Can I withdraw all of my savings? |
| |
Yes – at any time after three completed policy years.
After the completion of three policy years, you can surrender your policy to us and receive 100% of its 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 remain constant till paid to you. |
|
|
Tracking your investments |
| |
| |
We provide you with a high level of transparency in all our plans to put you in total control. |
| |
|
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. |
|
We publish the unit prices of all investment funds on our website www.birlasunlife.com as well as in the newspapers. |
|
|
|
| |
|
| |
|
| |
|
Your Benefits |
| |
| |
Death Benefit |
| |
Upon the unfortunate event of death during the accumulation phase, we will pay the fund value as a death benefit to your nominee. If the nominee is your spouse, the proceeds can be taken in a lump-sum or used to purchase an annuity. |
| |
Vesting Benefit |
| |
The vesting date is the date you decide to end the accumulation phase and enter the income phase. You have the freedom to vest at any time after the completion of 5 policy years. |
| |
On the vesting date, your fund value will be used to purchase an income stream payable for the rest of your lifetime. You have the option to: |
| |
|
Enter into an income phase with us as per our then available products on your vesting date. |
|
Enter into an income phase with another life insurer of your choice (open market option). |
|
Commute up to 1/3rd of your fund value on the vesting date and receive the amount in a lump-sum and tax free (as per the current Income Tax Act) and annuitize the balance 2/3rd to receive a stream of regular income. |
|
|
|
| |
|
| |
|
| |
|
Our Policy Charges |
| |
|
Premium Allocation Charge |
| |
Premium allocation charge is deducted from your premium when received and before invested in the investment funds of your choice. This charge is: |
| |
| Policy Year |
1 |
2 |
3 |
4+ |
| On Policy Premium |
10% |
2% |
2% |
--- |
| On Top-Up Premium |
2% |
2% |
2% |
2% |
|
| |
This charge is guaranteed to never increase. |
|
Fund Management Charge |
| |
The daily unit price of each investment fund is adjusted to reflect the fund management charge of (per annum of fund value): |
| |
|
1.00% for Income Advantage, Protector, Builder and Enhancer |
|
1.25% for Maximiser. |
|
| |
We may increase this charge any time in the future subject to a maximum of 1.50% per annum. |
|
Policy Administration Charge |
| |
Policy administration charge is deducted monthly by canceling units proportionately from each investment fund. This monthly charge as a percentage of the annual policy premium chosen at issue is: |
| |
| Policy Year |
1 |
2 |
3 |
4+ |
| On first Rs. 10,000 |
1.20% |
1.20% |
1.20% |
0.60% |
| On excess over Rs. 10,000 |
0.60% |
0.60% |
0.60% |
--- |
|
| |
This charge is guaranteed to never increase for the first three years, after which it can be increased by no more than by 5% per annum since inception. |
|
Surrender Charge |
| |
Surrender charge is applied if and when you surrender your policy in the first 3 policy years. The amount you receive is the then current value of the fund value less this charge. This charge as a percentage of the annual policy premium chosen at issue is: |
| |
| Policy Year |
1 |
2 |
3 |
4+ |
| Surrender Charge |
27% |
20% |
13% |
--- |
|
| |
This charge is guaranteed to never increase. |
|
Other Charges |
| |
The current charge for policy revival is Rs. 100. We may increase this charge at any time in the future up to Rs. 1,000 per revival. |
| |
Any request for partial withdrawal, premium re-direction, investment fund switch, change in investment portfolio strategy and change in risk profile is currently free of charge. We may however charge up to Rs. 500 per request at any time in the future. |
|
IRDA Approval |
| |
Only when specified and within stated limits, we may increase/levy 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 A |
Investment
Fund
Option |
Risk Profile |
Asset Allocation * |
Min. |
Max. |
Income
Advantage |
Very
Low |
Debt Instruments, Money Market & Cash |
100% |
100% |
| Equities & Equity Related Securities |
0% |
0% |
| 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% |
| Maximiser |
High |
Debt Instruments, Money Market & Cash |
0% |
20% |
| Equities & Equity Related Securities |
80% |
100% |
|
| |
*In each Investment Fund Option, the Money Market & Cash asset allocation will not exceed 40%. |
| |
Money Market Instruments are debt instruments of less than one-year maturity. They include mutual funds, collateralized borrowing & lending obligation, certificate of deposits, commercial papers etc. Investment in Money Market Instrument supports better liquidity management. |
|
|
| |
|
| |
|
| |
|
Investment Fund Options
|
| |
| |
Income Advantage |
| |
Objective: To provide capital preservation and regular income, at a high level of safety over a medium term horizon by investing in high quality debt instruments.
Strategy: To actively manage the fund by building a portfolio of fixed income instruments with medium term duration. The fund will invest in government securities, high rated corporate bonds, high quality money market instruments and other fixed income securities. The quality of the assets purchased would aim to minimize the credit risk and liquidity risk of the portfolio. The fund will maintain reasonable level of liquidity. |
| |
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. |
| |
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. |
|
|
| |
|
| |
|
| |
|
More Information |
| |
|
Current Tax Benefits |
| |
You will be eligible for tax benefits under Section 80CCC and Section 10 (10A) of the Income Tax Act, 1961. |
| |
|
Under Section 80CCC, premiums up to Rs. 100,000 are allowed as a deduction from your taxable income each year. |
|
Under Section 10 (10A), the tax benefits are on the commuted value of the benefits on the vesting date, subject to mentioned exclusions. |
|
|
Service Tax and other levies |
| |
Service Tax and other levies, as applicable, will be levied as per the extant tax laws. |
|
Premium Discontinuance |
| |
If you are unable to pay the policy premium by the due date, you will be given a grace period of 30 days during which time your policy will continue. If you do not pay your premium within the grace period, the following will be applicable: |
| |
| | | | | | |
