In this policy, the investment risk in investment portfolio is borne by the policyholder
Highlights
Hassle free one time investment with top up option.
Guaranteed additions at regular intervals.
Choice of 8 Investment Fund Options.
For the select few like you, settling for anything short of the best is an unthinkable compromise.
We, at Birla Sun Life Insurance, understand you and hence have created a plan that keeps pace with your ever-growing success.
Birla Sun Life Insurance Prime Life Premier is a plan that not only helps you save for future but also lets you reap rich benefits from the investments of your choice. We realize that when you look at a life insurance policy, you look for something that will act as a protector as well as an enhancer.
The unit linked, investment-oriented single premium insurance plan is as flexible as life and will help you strike the right proportion between protection and savings.
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.
Benefits
The plan is a unit linked non participating plan
It offers a choice of seven Investment Fund Options to choose from depending on your risk profile and the flexibility to allocate the premiums (including top ups) in varying proportions into the different funds.
A one time premium payment with the option to top up your Investment Fund whenever you have additional savings
Guaranteed Addition in the form of additional units added to the Fund Value at the end of 10 years and every 5 years thereafter
High liquidity in the form of partial withdrawals and surrender benefits
Death benefits which are favorable at all times to the customer (higher of Sum Assured or Fund Value)*
* Refer details in the table given below
The Plan
Birla Sun Life Insurance PrimeLife Premier
Entry Ages
30 days - 65yrs
Maturity Age
70yrs
Premium Term
Single premium
Minimum Duration
5yrs
Minimum Premium
Rs. 50,000
Sum Assured
“5” times of the Life Insurance premium. Minimum Sum Assured will be Rs.2,50,000
Top-ups
You can top up the Fund whenever you have additional savings during the tenure of the policy. The minimum amount of top ups will be Rs.10,000. The maximum amount of top up premium in any Policy Year will be the policy premium or Rs.5,00,000 whichever is lower. The life insurance coverage will increase if the cumulative top ups exceed 25% of the single premium amount. The additional Sum Assured will be 125% of the excess top up premium and is subject to the prevailing administrative and underwriting rules of the company.
Any top up premium made during the period of the contract cannot be withdrawn for three years from the date of payment of that top up premium except the top up premiums paid in the last three years of the policy tenure.
Investment Fund Options
Assure, Protector, Builder, Enhancer, Creator, Magnifier, Maximiser and Multiplier.
Amount due to nominee in event of death of life insured
Higher of 'Fund Value' or 'Sum Assured' less all applicable Partial Withdrawals in the 24 months preceding the death of the life insured. In the event of death of the life insured, till the age of five only Fund value is paid. In case of death at the age of 60 or above, the Sum assured will be reduced by the applicable Partial Withdrawals made since the life
insured attained the age of 58.
Surrender benefits
The policy can be surrendered any time during the tenure of the policy. The surrender charges will be zero after the 4th policy year. In case of surrender in the first 3 policy years the benefits will be paid out only after the 3rd policy year.
Maturity benefits
Fund Value
Guaranteed benefits
Guaranteed additions in the form of additional units will be added to the Fund Value at the end of the 10th policy year and every 5yrs thereafter while your policy is in effect.
The additional units will be equivalent to 2% of the average Fund Value at the preceding sixty monthly policy dates.
Partial Withdrawals
Partial Withdrawals can be made after three Policy Years or when the Life Insured attains 18 Years of age whichever is later. You can make two Partial Withdrawals free of charge in every policy year.
The minimum Partial Withdrawal amount is Rs.25,000. The maximum Partial Withdrawal amount in a Policy Year is any amount subject to the Policy having a balance Fund Value of Rs.25,000 and Surrender Charges applicable in the year of Partial Withdrawal or the sum of Top Up premiums made, if any, in the preceding three years, whichever is higher.
Switch between Investment Funds
You can switch between Investment Fund anytime during the Policy term. In a year two switches are free. Any additional switch will be charged at a nominal rate.
Riders available
Accidental Death & Dismemberment, Critical illness, Critical Illness for Women & Term Rider.
Tax Benefits
You can avail of tax benefits under Sec 80C and Sec 10(10D) of the Income Tax Act 1961, and under Sec 80 D on premiums paid towards Critical Illness Rider. For specific suitability consult your tax advisor.
Investment Fund Particulars
Seven investment fund options. One comfortable life.
You can choose from seven 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 proportion amongst the available investment Fund Options and create your own Fund. You can switch* between the Investment Funds and change the Premium Allocation Percentage into the various funds anytime during the policy tenure. In a year two switches and two changes in Premium Allocation Percentage will be free.
The portfolio of the seven Funds are as given below:
Investment Fund Option
Risk Profile
Asset Allocation *
Min.
Max.
Assure
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%
Creator
Medium
Debt Instruments, Money Market &Cash
50%
70%
Equities & Equity Related Securities
30%
50%
Magnifier
High
Debt Instruments, Money Market &Cash
10%
50%
Equities & Equity Related Securities
50%
90%
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%.
The Funds have a varying amount of debt and equity. You can select the Funds based on your risk preference and switch between the Funds based on your needs.
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 Capital 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 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.
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 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 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 this Investment 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 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 this 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 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.
Riders
You can further customise your Birla Sun Life Insurance Plan by adding riders to the base plan at a marginal extra cost.
Accidental Death and 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 Women Rider: It provides a cover against several critical illness including woman specific illnesses. Pregnancy complications and congenital anomalies in a new born child.
Please note that the riders are not available if you are an NRI investor.
Keep track of your Fund Value
BSLI will send you an annual statement giving details of the number of units and the NAV of the units, held by you under the various Investment Fund Options as of the last policy anniversary. The NAVs of the various Investment Funds will be available on our website www.birlasunlife.com, as well as in the newspapers.
NAVs
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)
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.
Service Tax and other levies
Service Tax and other levies, as applicable, will be levied as per the extant tax laws.
Policy Charges
The Premium Allocation Charge is recovered as a percentage of the Life Insurance Coverage Premium and will be equal to 3.5% of the life insurance coverage premium. The premium allocation charge on Top up and any underwriting extra is 2 percent. There is no Premium Allocation Charge on Rider Coverage Premiums.
In addition to the above, following Policy Charges will be recovered from the Fund Value:
1
The Mortality Charges of the Life Insurance Coverage will be deducted by cancellation of units on a monthly basis at the prevailing NAV. The Annual Mortality Charges per thousand of the Sum at Risk (Sum Assured less Fund Value) for sample ages are as follows:
Sex / Age (in Yrs)
25
35
45
55
65
Female
1.023
1.162
2.385
6.441
15.920
Male
1.083
1.363
3.110
8.571
21.061
These Mortality Charges will be guaranteed for the contract period. Service tax as applicable will be levied on the Mortality Charges.
An Underwriting Extra (if any) is an additional amount that will be recovered from the Fund Value by cancellation of units on a monthly basis.
2
Fund Management Charge not exceeding 1.75% per annum of the Investment Fund will be charged by adjustment of the daily NAV. Currently this Charge is 1% per annum for Assure, Protector, Builder and Enhancer Funds 1.25% for the Creator Magnifier and Maximiser Funds and 1.50 percent for Multiplier Fund.
3
Policy Administration Charge for the Life Insurance Coverage will be deducted by canceling Units of Rs 30 per month. This Charge cannot exceed Rs.100 per month.
4
The Policy can be surrendered anytime during the tenure of the Policy. Applicable Surrender Charges at the time of surrender will be deducted from the Fund Value. The Surrender Charges payable will be a percentage of the single premium payable for the Policy as enumerated in the table below:
Policy year
1
2
3
4
5 onwards
% of Single Premium
2%
1.5%
1.25%
1%
Nil
5
If there are attached Riders, a Coverage Premium for that rider will be payable by you. 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.
These Policy Charges (except Mortality 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
BSLI will terminate and pay the Surrender Value to you in the event of the Fund Value reducing to a Surrender Value of Rs.10000 after three Policy Years
Fund Switching Charges
1.
In a year, two switches between Investment Fund Options are free.
2.
For every additional switch, a charge of Rs.100 will be levied. This charge shall not exceed Rs.500 per switch.
Any switch request, whether for single or multiple transfers would be treated as a single switch.
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 Charge shall not exceed 1% of the amount withdrawn.
Premium Redirection
You can change the Premium Allocation Percentage (using premium redirection facility) free of Charge twice every year. Every additional change is subject to a Charge of Rs. 100/-. The Charge shall not exceed Rs.500/-.
Suicide
“If the Life Insured dies by suicide within one year of the issue of the Policy, we will not pay the Life Insurance Coverage amount. In such a case, we will refund the higher of the premiums paid towards the policy since the issue date or Fund Value as on the date of death”.
Section 41 of the 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, PrimeLife Premier, Assure, Protector, Builder, Enhancer, Creator, Magnifier, Maximiser and Multiplier fund are only the names of the Company, Policy and the Investment Funds 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 seven Investment Fund Options offered at present.
All the policy charges (except Premium Allocation Charge and Mortality Charge) 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 effecting 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 Funds and factors influencing the capital market and the insured is responsible for his/her decisions.
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.
There is no guarantee or assurance of returns from the Investment Funds .
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
