In this policy, the investment risk
in investment portfolio is borne by the policyholder.
Highlights
Unit linked Retirement Plan with the option of with
and without life cover.
Choice of Retirement Age with an option to prepone/postpone
them.
Choice of three investment fund options.
WE’LL TAKE CARE OF THE BIG AND SMALL NEEDS OF YOUR RETIRED
LIFE.
The post retirement years can be the best years of your
life.
No responsibilities. Lots of time for yourself. Time to do things you couldn't
have done whilst you were working. But the best part is the peace of mind and
the security, the kind that comes with the right financial planning. To make
your post retirement years truly golden, we, at Birla Sun Life Insurance, bring
you our Birla Sun Life Insurance Flexi SecureLife Retirement Plan II.
The Birla Sun Life Flexi SecureLife II - Retirement Plan brings you two options
- the Single Premium Plan and the Regular Premium Plan, which offers you,
benefits to meet your specific retirement planning needs.
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
The Birla Sun Life Flexi SecureLife II- Retirement Plan is
a Unit-linked non-participating plan. The plan is designed in two phases; the
build up or the Accumulation phase and the Annuity or the payout phase.
In the Accumulation phase you make regular contributions to build your nest egg
on retirement. You can utilise this amount to buy an annuity (Annuity phase),
which can take care of your needs post retirement.
Entry age
The minimum age at entry should be 18 years and the
maximum age for entry is 65 years
Life Insurance Cover
You can opt for a life insurance cover in your Retirement Plan till the vesting age. The minimum Sum Assured for the life insurance cover will be Rs. 55,000 under the Single Premium Plan and Rs. 50,000 under the Regular Premium Plan. For the Single Premium Plan, the Sum Assured will always be 110 percent of the single premium (rounded off to the nearest thousand rupees). For the Regular Premium Plan, the Sum Assured will always be 10 times of the regular premium paid.
Premium Payment
What are the premiums that you can pay?
Accumulation Phase
In the accumulation phase, the minimum amounts are Rs.
50,000 under the Single Premium Plan and Rs. 5,000 under the Regular Premium
Plan. In both the plans you can top up your fund with additional amounts
whenever you have additional savings. However, the minimum amount of such top
ups is Rs. 10,000.
Only amount paid in excess of the Annual premium in any policy year will be
considered as a top up amount.
Choice of Investment Fund Options
You can choose from three Investment Fund options
depending on your risk profile during the accumulation phase of your plan. The
three investment fund options are: Nourish, Growth, Enrich.
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 into the various Investment Fund Options anytime during the tenure
of the policy.
In a year two switches and two changes in Premium Allocation Percentage (using
Premium Redirection facility) will be free.
Investment Fund Option
Risk Profile
Asset Allocation *
Min.
Max.
Nourish
Low
Debt Instruments, Money Market &
Cash
90%
100%
Equities & Equity Related
Securities
0%
10%
Growth
Low
Debt Instruments, Money Market &
Cash
80%
90%
Equities & Equity Related
Securities
10%
20%
Enrich
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%.
You can select the Investment Fund Options based on your
risk preference and switch between the Investment Funds based on market
performance. See the risk profile of each Asset Class at the end of the
brochure.
Nourish The objective of this 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.
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.
Growth 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 proper balance of investment in equity and debt.
Strategy: To generate better return with moderate level of risk through active
management of fixed income portfolio and focus on creating a long-term equity
portfolio, which will enhance yield of the composite portfolio with low level
of risk.
Enrich 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 Investment Fund Option is suitable for those who want to earn a
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 the fixed income portfolio by
active management resulting in wealth creation for policyholders.
Vesting age
Vesting age is the age at which the policy benefits will be available for
purchase of an annuity. You can choose from any of the vesting ages between 50
years and 70 years subject to the minimum tenure of the plan as under:
5 years for Single Premium Plan; and
10 years for Regular Premium Plan
You have the option to prepone or postpone your vesting age twice during the
Accumulation phase. This change will be subject to the following
conditions:
The revised vesting age will be between 50 years
and 70 years
The revised vesting age is at least 3 months away from
your age at the time of request for the change
In the case of a preponement you will be required to inform the
Company at least three months in advance from the new Vesting Date
In the case of a postponement you will be required to inform
the Company at least one month in advance from the original Vesting Date.
The completion of the minimum tenure as indicated in the two
plan options above.
Benefits
Annuity Phase: Choose your Plan Benefits
On the date of vesting, you can either:
Withdraw one third of the policy fund as a lump sum and utilise
the remaining portion of the fund to purchase any annuity provided by us then
and at the then prevailing rates or buy an annuity from any other Annuity
Provider in the market; or
Utilise the entire policy fund to purchase any annuity
provided by us then and at the then prevailing rates or buy an annuity from any
other Annuity Provider in the market.
Death Benefit
1) Upon the death of the Life Insured under a Single Premium
Policy which provides a Life Insurance Coverage, we will pay to the Claimant
the higher of:
The Policy Fund Value; or
The Life Insurance Coverage Sum Assured (which is always 110 percent of the
Single Premium excluding any Rider or underwriting extra premium or top-up
Premium (rounded off to the nearest thousand rupees).
2) Upon the death of the Life Insured under a Regular
Premium Policy which provides a Life Insurance Coverage and the same being in
effect, we will pay to the Claimant the higher of:
The Policy Fund Value; or
The Life Insurance Coverage Sum Assured (which is always 10 times of the
Regular Premium excluding any Rider or underwriting extra premium or top-up
Premium).
3) Upon the death of the Policy Owner in the case of a
Policy without a Life Insurance Coverage, we will pay the Policy Fund to the
Claimant. This would be applicable to both the Single Premium and Regular
Premium Policies.
Surrender Benefits
You can surrender the policy anytime after three policy
years till the vesting age. The Fund Value less the surrender charges will be
paid to you. In case you surrender the policy before the completion of three
policy years from inception, then the surrender value will be paid to you at
the end of the third policy year.
Addition of Riders
You can further customise your Birla Sun Life Insurance
Plan by adding riders to the base plan at a marginal extra cost. Riders can be
attached only if life cover has been opted under the policy.
Accidental Death & Dismemberment Benefit Rider : It provides 100% of
coverage in case of death due to accident; loss of more than one limb or sight
in both the eyes or in case of loss of one limb and loss of sight in one eye;
50% coverage in case of loss of one limb or sight in one eye.
Term Rider : It provides additional amount of cover in the event of death
of the life insured
Critical Illness Rider: It provides a cover in the event of life insured
being diagnosed as suffering from any of four illnesses specified under the
Critical Illness Rider.
Critical Illness Plus Rider: It provides a cover in the event of life
insured being diagnosed as suffering from any of the seventeen illnesses
specified under the Critical Illness Plus Rider.
Critical Illness Woman Rider: It provides a cover against several critical
illness including woman specific illnesses. Pregnancy complications and
congenital anomalies in a new born child.
For further details please refer to detailed
brochure on riders
Tax Benefits
Tax benefit governed by Section 80 CCC on premiums paid to
a maximum of Rs. 1,00,000 and Section 10(10A) on the commuted value of the
benefits on the vesting age of the Income Tax Act, 1961. In addition the
benefits payable on death will be exempt from tax under Section 10(10D).
Service Tax and other levies
Service Tax and other levies, as applicable, will be levied as per the extant tax laws.
Track Policy
How do I keep track of the performance of my policy?
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.
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)
Policy Charges
The Premium Allocation Charge is recovered as a percentage
of the Policy Premium and varies as per the premium paying mode and the policy
year. The current charges as a percentage of the premium are:
% of Base Premium
Regular Premium
Single Premium
Without Life Cover
Year 1
21.0%
3.5%
Year 2+
2.2%
NA
With Life Cover
Year 1
23.0%
3.7%
Year 2+
3.7%
NA
The premium Allocation Charge on Top-up and underwriting Extra (if Any) is
1%. There is no Premium Allocation Charge on Rider Coverage Premium.
In addition to the above Premium Allocation Charge, the
following Policy Charges will be recovered from the Fund Value.
1.
Fund management charge of 1% per annum of the Fund Value
will be levied in each of the Investment Fund by adjustment of the daily NAV.
This charge will not exceed 1.5% per annum of the Fund Value.
2.
A Policy Administration charge of Rs 35 per month will be
deducted monthly by cancellation of Units. This charge cannot exceed Rs. 150
per month.
3.
Mortality charges towards the life insurance coverage will
be deducted by cancellation of units at the prevailing NAV on a monthly basis.
These charges will not be deducted if no life insurance cover is chosen. The
mortality charges per thousand Sum at Risk (Sum Assured less Fund Value) for
sample ages are as follows:
Sex / Age
20 Yrs
30 Yrs
40 Yrs
50 Yrs
60 Yrs
65 Yrs
Female
0.896
1.163
1.657
4.030
10.660
16.758
Male
1.016
1.171
2.150
5.532
13.732
22.170
These Mortality Charges are guaranteed for the duration of
the contract
4.
If there are attached Riders, a Rider Premium Charge will be
realised by cancellation of units on a monthly basis based on 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.
5.
Fund switching charges
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.
In a year two switches between Investment Fund options are free.
For every additional switch, a charge not exceeding Rs. 100 and maximum of Rs.
500 of the amount transferred will be levied.
6.
Charges for change in Premium Allocation
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/-.
7.
Surrender Charges
The applicable Surrender Charges will depend on the year in
which the policy is surrendered. The Surrender Charges are levied as a
percentage of the Annual Base Coverage Premium payable as given in the table
below:
Policy Year
Single Premium
Regular Premium
1
25%
75%
2
NIL
50%
3
NIL
25%
4 Onwards
NIL
NIL
These Surrender Charges are guaranteed for the duration of
the contract
These Policy Charges (except Mortality Charges, Surrender
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 Charges. This will be subject to approval of the IRDA.
Closure of Policy
The policy will be terminated if the Surrender Value equals
to one Annual Policy Premium for regular premium policy or Rs. 10,000 for
Single Premium Policy
Terms & Conditions
What are the other terms and conditions in the policy?
Grace Period
You can pay your premiums within 30 days after the premium due date.
Premium Discontinuance
a) For Regular Premium Policies without Life Insurance
Coverage:
i) Non-receipt of Policy Premium within first
three Policy Years:
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.
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.
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.
ii)Non-receipt of Policy
Premium after the first three Policy Years:
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 premium is not
received, you will be given a period of two years to pay any due and unpaid
Policy Premiums.
During these two years all applicable charges will continue
to be deducted from the policy 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. The policy will 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.
b) For Regular Premium Policies with Life Insurance
Coverage
i) Non-receipt of Policy Premium within first
three Policy Years:
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 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.
In case of death of the Life Insured during this two-year Revival Period the
Fund Value as at the lapse date will be paid out. The contract will be
terminated when the Surrender Value is paid out.
ii)Non-receipt of Policy
Premium after the first three Policy Years:
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 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.
This clause will not be applicable if you have opted for
Single Pay option.
Policy Revival
a) For Policies without Life Insurance
Coverage:
Should your Policy Lapse in case of non-receipt of premium
in the first three Policy Years, you can request that it be revived within two
years from the Lapse Date. Revival of your policy is subject to the
following:
• 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 Policy Fund
Value as on the lapse date will be re-invested in the Investment Funds at the
NAV/s 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 Policy Fund Value.
In case of non-receipt of premium after the first three policy years, you can
continue the Policy by contributing any Policy Premium due but unpaid from the
date of premium discontinuance, within two years from the end of the grace
period after non-receipt of premium.
b) For Policies with Life Insurance
Coverage:
Should your Policy lapse in case of non-receipt of premium
within first three Policy Years, you can request that it be revived within two
years from the lapse date. However, the Policy can only be revived before the
expiry of the Vesting Date. Revival or Reinstatement of the policy is subject
to the following:
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 Policy Fund
Value as on the lapse date will be re-invested in the Investment Funds at the
NAV/s 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 Policy Fund Value.
We reserve the right to charge a fee 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. This charge is not applicable for policies without life
cover.
In case of non-receipt of premium after the first three Policy Years, you can
continue the policy by contributing any Policy Premium due but unpaid from the
date of premium discontinuance, within two years from the end of grace period
after non-receipt of premium.
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.
Suicide
"If the life insured dies by suicide within one year of
the issue of the policy or reinstatement of Life Insurance Coverage (if
applicable), whichever is later, we will not pay the Life insurance
cover.
In such a case, we will pay the Policy Fund Value in case of a without life
cover policy and refund the higher of all premiums paid or the Policy Fund
Value in case of a with-life cover Policy".
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 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 a non-participating unit linked plan.
This policy is underwritten by Birla Sun Life Insurance
Company Limited (BSLI).
Birla Sun Life Insurance, Flexi SecureLife Retirement Plan
II, Nourish, Growth and Enrich are only the names of the Company, Policy and
the Investment Fund Options 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 all the three
Investment Fund Options offered at present.
All the policy charges (except Premium Allocation Charge,
Mortality Charge and Surrender Charges) can be modified by the company subject
to approval of the IRDA.
The company reserves the right to introduce new Investment
Funds with different charges subject to approval of the IRDA.
The value of the Investment Fund Options 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 Options and
factors influencing the capital market and the insured is responsible for
his/her decisions.
There is no guarantee or assurance of returns from the
Investment Fund Options.
BSLI reserves the right to recover levies such as the
Service Tax levied by the authorities on insurance transactions.
If there are 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 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.
Insurance is the subject
matter of solicitation. Birla Sun Life Insurance. Registration no. 109
Birla Sun Life Insurance Company Limited, 6th Floor, Vaman Centre,
Makhwana Road, Off Andheri-Kurla Road,
Andheri (East), Mumbai 400059
