In This Policy, The Investment Risk In Investment Portfolio Is Borne By The Policyholder
Highlights
Contribution guarantee
Market related returns
Increasing death benefit
Tax benefits under section 80 C and sec 10(10D)
Your dreams are as special as you are. If only an instrument would take care of both, you and your dreams. Helps you increase your savings and at the same time be a safe investment. Also secure your family's future and ensure their well-being. Our “Birla Sun Life Insurance Simply Life” plan does precisely that and more. It goes a long way in helping you realize your dreams besides being very convenient to buy. It ensures a lifetime of Tax free savings and also offers a life insurance cover that takes care of your near and dear ones.
About BSLI
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 higher of the Fund Value or the aggregate of all the premiums paid subject to following conditions • All Premiums are paid; and • Each premium is paid on or before the expiry of a period of 60 days from the due date
Face Amount
5 times the annual premium amount
Investment Fund
Choice of two investment funds – Balancer and Enhancer
Death Benefit
Upon the death of the Life Insured we will pay to the Nominee or the Policy Owner as the case may be an amount equal to the total of the Sum Assured and the Fund Value
Surrender option
Any time during the tenure of the policy. There are no surrender charges from the 7th policy year onwards. However if the policy is surrendered in the first 3 years the surrender value will be paid out after the third policy year
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.
Tax Benefit
Under Sec 80(C) and Sec 10(10D) of the Income Tax act 1961*(Please consult your tax advisor for specific suitability)
*As per the current Tax legislation. Conditions apply.
How to buy the plan?
The process to buy this plan is very simple and convenient. All you need to do is fill out the application form and submit it to your Insurance advisor along with your age proof and cheque for the first premium. If you are opting for the monthly premium payment mode (compulsorily through ECS or Salary deductions or debit or credit card) then you need to enclose a cheque for the first 2 months premium amount.
Investment Fund Particulars
The plan offers you a choice of two Investment funds to suit your risk profile. You can switch* between the fund options anytime during the tenure of the policy. The Asset allocation of the funds into which your premiums will be invested is as under:
Investment Fund Option
Risk Profile
Asset Allocation *
Min.
Max.
Balancer
Medium
Debt Instruments, Money Market &Cash
75%
90%
Equities & Equity Related Securities
10%
25%
Enhancer
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%.
The funds have a varying amount of debt and equity. You can select the fund based on your risk preference and switch between the funds based on market performance. Please note that this is a Unit Linked plan and the Investment Risk is borne by the policyholder.
Balancer Objective: The objective of this Investment Fund is to achieve value creation of the policyholder at an average risk level over medium to long-term period. Strategy: The strategy is to invest predominantly in debt securities with an additional exposure to equity, maintaining medium term duration profile of the portfolio.
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.
Risk profile of the Investment fund options
The risk profile of the various asset classes is as given under:
Type of Asset Class
Risk Profile
Govt & Govt approved securities
Low
Corporate Bonds
Medium
Infrastructure sector as defined by IRDA
Medium
Money Market and Other Liquid Assets
Very Low
Listed Equities
High
The Valuation of assets under the Investment Fund will be done in accordance to the regulations issued by IRDA in this regard and the internal rules of the Company.
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
1.
The Premium Allocation Charges (PAC) are deducted as a percentage of the premium that you pay in your policy as depicted in the table below:
Policy Year
Premium Allocation Charge
1
27.5%
2
5.0%
3
5.0%
4
5.0%
5
5.0%
Thereafter
2.2%
The Premium Allocation Charge on Underwriting Extra (if any) is 2%. In addition the following charges will be deducted
2
The mortality charges towards 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 Assured for sample ages is as follows:
Sex/Age (Yrs)
20
30
40
50
60
Female
1.075
1.395
1.988
4.835
12.791
Male
1.219
1.405
2.580
6.638
16.478
An Underwriting Extra (if any) is an additional amount charged and it will be deducted on a monthly basis by cancellation of units. The rates of mortality charges are guaranteed for the entire period of the contract.
3
The Fund Management Charge currently is 1 percent per annum and it will be charged by adjustment of the daily NAV. This charge cannot exceed 1.5 percent per annum of the Fund Value
4
Policy Administration Charges of Rs 60 per month will be deducted on a monthly basis by canceling the units at the prevailing NAVs. This charge cannot exceed 150 per month.
5
Surrender Charges As mentioned earlier the policy gives you the option to surrender during the tenure of the plan. The surrender charges that will be applicable in the different years as a percentage of the annual premium are given as under.
Policy Years
1
2
3
4
5
6
7 onwards
Surrender Charges
15%
14%
11%
9%
7%
4%
NIL
The surrender charge are nil from 7th policy year onwards. The surrender charges are guaranteed for the duration of the contract. The Policy Charges (except mortality charges, surrender charges and premium allocation charge) 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.
Other Applicable Charges
Subject to our then current administrative rules, you can switch your funds from one Investment Fund to another at any time. * In a year two switches are free. Every additional switch will be subject to a fee 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/-.
Service tax and other levies
Service Tax and other levies, as applicable, will be levied as per the extant tax laws.
Premium Discontinuance
(a) In case the premium is discontinued 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 section) 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.
(b) In case the premium is discontinued 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. 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 Premium. At this time the Policy will be terminated and the Surrender Value will be paid out.
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 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 Premium. At this time the Policy will be terminated and the Surrender Value will be paid out
Policy Revival
If the policy lapses 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. 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 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 Fund Value as on the lapse date will be reinvested in the Investment Fund Options at the NAV 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 Fund Value.
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.
In case of non-receipt of premium after the first three Policy Years, you can request that it be continued within two years from the end of grace period after non-receipt of premium by contributing all Premiums due but unpaid from the date of premium discontinuance.
The following table gives the benefit period for a particular entry age. The benefit figures for all entry ages will be similar within a maximum variation of 7%. The proportionate Fund Values at maturity, for sum assured other than Rs 100,000 will be within a maximum variation of 4.25%.
Age of the Life Insured - 35 yrs
Gender - Male
Annual Premium - Rs. 20000/-
Term - 10 yrs
Policy year
Age
Annual premium
Sum Assured
Death Benefit
Fund Value
Surrender Value
6.00%
10.00%
6.00%
10.00%
6.00%
10.00%
1
35
20,000
1,00,000
114,287
114,848
14,287
14,848
11,287
11,848
2
36
20,000
1,00,000
134,000
135,923
34,000
35,923
31,200
33,123
3
37
20,000
1,00,000
154,681
158,877
54,681
58,877
52,481
56,677
4
38
20,000
1,00,000
176,378
183,878
76,378
83,878
74,578
82,078
5
39
20,000
1,00,000
199,136
211,106
99,136
111,106
97,736
109,706
6
40
20,000
1,00,000
223,594
241,368
123,594
141,368
122,794
140,568
7
41
20,000
1,00,000
249,250
274,327
149,250
174,327
149,250
174,327
8
42
20,000
1,00,000
276,164
310,228
176,164
210,228
176,164
210,228
9
43
20,000
1,00,000
304,395
349,331
204,395
249,331
204,395
249,331
10
44
20,000
1,00,000
334,003
391,917
234,003
291,917
234,003
291,917
Policy Term
Age
Death Benefit
Fund Value/Maturity Fund Value
Male
Female
6%
10%
6%
10%
10
18
335,865
394,128
235,865
294,128
10
19
335,802
394,049
235,802
294,049
10
20
335,747
393,978
235,747
293,978
10
18
21
335,698
393,915
235,698
293,915
10
19
22
335,655
393,860
235,655
293,860
10
20
23
335,620
393,814
235,620
293,814
10
21
24
335,590
393,775
235,590
293,775
10
22
25
335,564
393,741
235,564
293,741
10
23
26
335,538
393,709
235,538
293,709
10
24
27
335,509
393,675
235,509
293,675
10
25
28
335,474
393,634
235,474
293,634
10
26
29
335,429
393,583
235,429
293,583
10
27
30
335,370
393,518
235,370
293,518
10
28
31
335,294
393,433
235,294
293,433
10
29
32
335,196
393,323
235,196
293,323
10
30
33
335,071
393,180
235,071
293,180
10
31
34
334,914
392,998
234,914
292,998
10
32
35
334,726
392,778
234,726
292,778
10
33
36
334,514
392,527
234,514
292,527
10
34
37
334,274
392,241
234,274
292,241
10
35
38
334,003
391,917
234,003
291,917
10
36
39
333,696
391,551
233,696
291,551
10
37
40
333,348
391,136
233,348
291,136
10
38
41
332,954
390,667
232,954
290,667
10
39
42
332,509
390,137
232,509
290,137
10
40
43
332,009
389,545
232,009
289,545
10
41
44
331,451
388,885
231,451
288,885
10
42
45
330,824
388,143
230,824
288,143
10
43
46
330,116
387,301
230,116
287,301
10
44
47
329,322
386,354
229,322
286,354
10
45
48
328,442
385,302
228,442
285,302
10
46
49
327,477
384,143
227,477
284,143
10
47
50
326,426
382,880
226,426
282,880
10
48
325,303
381,525
225,303
281,525
10
49
324,112
380,081
224,112
280,081
10
50
322,832
378,531
222,832
278,531
The illustrated Yield to Maturity (calculated gross of mortality charge) for the above-illustrated combinations is 3.1% for 6% scenario and 7.0% for the 10% scenario.
Suicide Clause
"If the life insured dies by suicide within one year of the issue or re-instatement of the coverage, 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 Effective Date of any reinstatement of this Policy, whichever is later or the Policy Fund Value".
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 Insurance Act 1938:
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, SimplyLife, Balancer and Enhancer are only the names of the Company, Policy and Investment Fund 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 the Investment Fund Option offered at present.
All the policy Charges (except Premium Allocation, Surrender Charges 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 Option 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 Option 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 Funds except for the guarantee on return of premiums paid on maturity subject to fulfillment of conditions mentioned in maturity benefit.
BSLI reserves the right to recover levies such as the Service Tax levied by the authorities on insurance transactions
If there be 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
