Income Assured Plan

A limited pay traditional plan with guaranteed income

Frequently Asked Questions

TRA/3/13-14/6811 March, 2014

Circulation only
 Birla Sun Life Insurance Income Assured Plan – Frequently Asked Questions

Contents
Section A................................................................................................................................................................................ 3
BSLI Income Assured Plan – Summary ........................................................................................................................................ 3
1. What is BSLI Income Assured Plan? ............................................................................................................................ 3
2. What are the significant features of BSLI Income Assured Plan? .......................................................................... 3
3. Am I eligible for this plan? ............................................................................................................................................ 3
Section B ................................................................................................................................................................................ 3
Plan Structure .................................................................................................................................................................................. 3
4. Can I choose the amount of sum assured? ................................................................................................................... 3
5. How many years do I need to pay my premiums? ..................................................................................................... 4
6. How can I pay my premiums? ....................................................................................................................................... 4
7. Does the plan offer any rebates? ................................................................................................................................... 4
8. Can I increase or reduce my premium amount? ......................................................................................................... 4
9. What is the minimum and maximum sum assured which can be taken under the policy? ............................... 4
Section C ................................................................................................................................................................................ 5
Benefits .............................................................................................................................................................................................. 5
10. What are the benefits offered under this plan? .......................................................................................................... 5
11. What is the Assured Income Benefit in this plan? ..................................................................................................... 5
12. When can you opt to accrue the Assured Income? ..................................................................................................... 5
13. What are the Guaranteed Additions in this plan? ..................................................................................................... 5
14. What is the Death Benefit under the plan? ................................................................................................................. 5
15. What is the Maturity Benefit under this plan? ........................................................................................................... 6
16. What is the Surrender Benefit under this plan? ......................................................................................................... 6
17. Is there any rider benefit in this plan? ......................................................................................................................... 7
18. Do I have a loan facility under this plan? .................................................................................................................... 7
19. Can I avail of tax benefits under this plan? What are the benefits available? ...................................................... 7
Premium Discontinuance and Revival ......................................................................................................................................... 7
20. What happens if I do not pay my premium on time? ................................................................................................ 7
21. What happens if I do not pay my premium within the grace period? ................................................................... 7
22. What is Reduced Paid-up? .............................................................................................................................................. 7
23. Will my benefits be affected if my policy becomes Paid-up?.................................................................................. 8
24. How can I revive my policy? .......................................................................................................................................... 8
Termination ...................................................................................................................................................................................... 8
25. When will my policy terminate? ................................................................................................................................... 8
Section D................................................................................................................................................................................ 9
Operational Guidelines .................................................................................................................................................................. 9
26. What application form is required for BSLI Income Assured Plan? ...................................................................... 9
27. Can life insured and proposer be different under this plan? .................................................................................. 9
28. Can this plan be given to NRI/PIO/FNIO/OCI? ......................................................................................................... 9
29. What are the underwriting guidelines are for this plan? .......................................................................................... 9
30. What is the plan field under policy tab in iChamp? ................................................................................................. 9

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 Birla Sun Life Insurance Income Assured Plan – Frequently Asked Questions

Section A

BSLI Income Assured Plan – Summary

1. What is BSLI Income Assured Plan?

BSLI Income Assured plan is a limited pay traditional non participating savings plan offering assured income from
the end of the premium paying term till the end of policy term.

2. What are the significant features of BSLI Income Assured Plan?

 Assured Income of 8% of the Sum Assured per annum guaranteed after the Premium Paying Term
 Complete financial protection for your family throughout the policy term
 Limited premium paying term
 Secured growth through Guaranteed additions
 Option to take accrued assured income as well
 Facility to surrender or avail policy loans
 Tax benefits under Sections 80C and 10(10D) of the Income Tax Act,1961

3. Am I eligible for this plan?

You are eligible if:
- your age at entry is between ages 8 - 60 years
- you want to choose a sum assured of at least Rs 100,000
- you want to contribute your premiums for 5|7|10 years

Section B

Plan Structure

At inception you choose -

1. Sum Assured
2. Premium Paying Term

4. Can I choose the amount of sum assured?

You can customize your policy to suit your particular insurance and savings needs by choosing the sum assured you
would like to have.

Your chosen sum assured belongs to one of the 3 bands as given below:
Sum Assured Band Band 1 Band 2 Band 3
Sum Assured (Rs.) 100,000 to 199,999 200,000 to 399,999 400,000 +

Based on the chosen sum assured, entry age, pay term, policy term and gender we will derive a premium for your
policy. You are required to pay your premium till the end of the premium paying term.

Your benefits are based on the sum assured and the premium paying term/policy term.

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 Birla Sun Life Insurance Income Assured Plan – Frequently Asked Questions

5. How many years do I need to pay my premiums?

You can pay your premium for 5 | 7 | 10 years for a policy term of 15 | 17, 22 | 20, 25 years respectively. Thus the
plan offers premium paying /policy term options as given below –

Policy Term 15 years 17 | 22 years 20 | 25 years

Premium Paying Term 5 years 7 years 10 years

The policy term is structured such that post your premium paying term you get to choose a benefit period of either 10
or 15 years (only 10 years in case of a 5 years premium paying term).

You choose the premium paying/policy term at inception such that your attained age at the end of the premium
paying term is 18 years or more. Given below is the minimum entry age for the premium paying/policy term
options-

Policy Term 15 years 17 | 22 years 20 | 25 years

Premium Paying Term 5 years 7 years 10 years
Minimum Entry Age 13 years 11 years 8 years

Your premium is payable every year during the premium paying term post which your policy will continue till the
end of the policy term without paying any further premiums.

6. How can I pay my premiums?

Your premium is payable in Annual, Semi-annual, Quarterly and Monthly (all modes except Annual allowed through
ECS only) instalments. You can pay your premium by cash (up to Rs 50,000), cheque/demand draft, credit card, ECS
or direct debit.

7. Does the plan offer any rebates?

Yes, the plan offers the following premium rebates i.e. you pay lesser premium than the tabular premium based on
your choice of ‘sum assured’, ‘and ‘premium payment mode’.
Sum Assured Rebate
For higher sum assured, you will get a premium rebate as explained below.

Sum Assured Band Band 1 Band 2 Band 3

Premium Rebate per 1000 SA nil 8.00 12.50

Modal Rebate
You will get a modal rebate of 3% if your mode of premium payment is annual.
The premium is calculated based on tabular rate; which is then reduced by Sum Assured rebate, as applicable and
modal rebate, as applicable.

8. Can I increase or reduce my premium amount?

No, you cannot increase or reduce your premiums during the policy tenure.

9. What is the minimum and maximum sum assured which can be taken under the policy?
The minimum sum assured under this plan is Rs 100,000. Maximum sum assured in this plan is subject to
underwriting

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 Birla Sun Life Insurance Income Assured Plan – Frequently Asked Questions

Section C

Benefits

10. What are the benefits offered under this plan?

The plan offers you Assured Income | Guaranteed Additions | Maturity | Death benefits in addition to the facility of
loans and policy surrender.

11. What is the Assured Income Benefit in this plan?

In the event the life insured survives to the end of premium paying term, for each subsequent month, until policy
maturity date we shall pay to you an Assured Income of 8.0% of Sum Assured per annum. You can choose at
inception to receive this Assured Income as follows:

Option A – Assured Income paid on monthly basis till the end of the policy term; or
Option B – Accrue the Assured Income to be received as a lump sum at the end of the policy term or on earlier death.
The accrued Assured Income till date, payable on death or maturity will be increased by following percentage:-

Policy Term % of Accrued Assured Income

15, 17, 20 137.5%
22,25 175.0%

This will be payable on maturity, surrender or death.

12. When can you opt to accrue the Assured Income?

You can opt to accrue the Assured Income either at the inception of the policy or before the end of premium payment
term. Post premium payment term the option cannot be changed.

13. What are the Guaranteed Additions in this plan?

Guaranteed Additions will be added to your policy at the beginning of each quarter after the completion of the
premium payment term, until policy maturity date. Guaranteed Additions per annum as a percentage of Sum
Assured for the various premium paying terms are given below:

Premium Paying Term Guaranteed Additions

5 7%
7 8.5%
10 10%

Guaranteed Additions though calculated per annum is added on a quarterly basis to offer a better benefit in case of
any untimely exit (death or surrender).

14. What is the Death Benefit under the plan?

In the unfortunate event of death of the life insured during the policy term, the death benefit payable to the nominee
shall be
 Sum Assured on death; plus
 Guaranteed Additions accrued to date of death
In addition we will also pay the increased accrued Assured Income if opted for

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 Birla Sun Life Insurance Income Assured Plan – Frequently Asked Questions

Sum Assured on Death is maximum of Sum Assured or 10 times the annual premium (premiums payable in a year)
throughout the premium paying term or 105% of total premiums paid to date excluding Tax & Cess, any applicable
rider premiums and underwriting extras, if any.
If the life insured is different from the policyholder, we shall pay the above death benefit to the policyholder. The
policy shall be terminated once the death benefit is paid.

15. What is the Maturity Benefit under this plan?

In the event the life insured survives to the end of the policy term, we shall pay to you
 Sum Assured; plus
 Guaranteed Additions accrued to date
In addition we will also pay the increased accrued Assured Income if opted for
The policy shall be terminated once the maturity benefit is paid.

16. What is the Surrender Benefit under this plan?

Your policy will acquire a surrender value after all due premiums for at least 2 full policy years (3 full policy years for
10 year premium paying term) are paid. The surrender value payable to you will be higher of
Guaranteed Surrender Value
Special Surrender Value
Guaranteed Surrender Value is a percentage of premiums paid (excluding any premiums paid towards rider,
underwriting extras and service tax) plus the percentage of Guaranteed Additions less Assured Income already paid.
The Guaranteed Surrender Value will vary depending on the premium paying term and the year the policy is
surrendered.

The applicable percentages are as per the below table.

Year of Surrender↓ % of Premiums Paid % of Guaranteed Additions
Policy Term→ 15 17 22 20 25 15 17 22 20 25
PPT→ 5 7 7 10 10 5 7 7 10 10
1 - - - - - - - - - -
2 30% 30% 30% - - - - - - -
3 30% 30% 30% 30% 30% - - - - -
4 50% 50% 50% 50% 50% - - - - -
5 50% 50% 50% 50% 50% - - - - -
6 50% 50% 50% 50% 50% 35% - - - -
7 50% 50% 50% 50% 50% 39% - - - -
8 55% 54% 53% 53% 52% 43% 40% 35% - -
9 60% 58% 55% 56% 54% 47% 43% 38% - -
10 65% 62% 58% 59% 57% 51% 47% 40% - -
11 70% 66% 61% 62% 59% 55% 50% 43% 44% 38%
12 75% 70% 63% 65% 61% 58% 53% 45% 46% 40%
13 80% 74% 66% 68% 63% 62% 57% 48% 49% 43%
14 85% 78% 69% 72% 66% 66% 60% 50% 52% 45%
15 90% 82% 71% 75% 68% 70% 63% 53% 55% 47%
16 - 86% 74% 78% 70% - 67% 55% 58% 50%
17 - 90% 77% 81% 72% - 70% 58% 61% 52%
18 - - 79% 84% 74% - - 60% 64% 54%
19 - - 82% 87% 77% - - 63% 67% 56%
20 - - 85% 90% 79% - - 65% 70% 59%
21 - - 87% - 81% - - 68% - 61%
22 - - 90% - 83% - - 70% - 63%
23 - - - - 86% - - - - 65%
24 - - - - 88% - - - - 68%
25 - - - - 90% - - - - 70%
*excluding any premiums paid towards service tax

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 Birla Sun Life Insurance Income Assured Plan – Frequently Asked Questions

Your policy shall also be eligible for a Special Surrender Value. The Special Surrender Value will include any Accrued
Assured Income till date of surrender, increased by 137.5% (for the policy term of 15, 17 and 20 years) and by 175%
(for the policy term of 22 and 25 years). This Special Surrender Value is not guaranteed and can be reviewed by BSLI
from time to time. The Surrender Value calculation has been built in the iChamp illustration system for your benefit

17. Is there any rider benefit in this plan?

You can enhance your insurance coverage during the policy term by adding BSLI Waiver of Premium Rider.
Please refer to detailed brochures on riders or visit our website for further details.

18. Do I have a loan facility under this plan?

Yes. You are allowed to take up a loan against the policy once your plan acquires a surrender value.
 The minimum loan amount is Rs. 5,000 and the maximum is 85% of your surrender value.
 We shall charge interest on the outstanding loan balance at a rate declared by us from time to time based on then
prevailing market conditions.
 The assured income payable, death benefit, maturity benefit or surrender benefit will be reduced by the
outstanding loan balance (if any).
 You are free to repay all or part of your outstanding policy loan balance at any time, subject to our then current
administration guidelines.
 If the policy is in reduced paid-up status; should the outstanding policy loan balance equal or exceed the
surrender value of your policy at any time, then all the benefits in the policy shall cease and it shall be terminated.

19. Can I avail of tax benefits under this plan? What are the benefits available?
As per extant tax laws, this plan offers tax benefits under Section 80C and Section 10(10D) of the Income Tax Act,
1961, subject to fulfillment of the other conditions of the respective sections prescribed therein. You are advised to
consult your tax advisor for details.

Premium Discontinuance and Revival

20. What happens if I do not pay my premium on time?

If you are unable to pay your premium by the due date, you will be given a grace period of 30 days and during this
grace period all coverage under your policy will continue.

21. What happens if I do not pay my premium within the grace period?
If you do not pay your premium within the grace period, the following will be applicable:
a. In case you have not paid premiums for two full years (three full years for premium paying term of 10 years),
then all benefits under your policy will cease immediately
b. In case you have paid premiums for at least 2 full years (three full years for premium paying term of 10
years), then your policy will be continued on a reduced paid-up basis.
22. What is Reduced Paid-up?
Any time after paying two full year premiums (three full years for premium paying term of 10 years), if you are
unable to pay future premiums, you can continue the policy on reduced paid-up basis.
Under Reduced Paid-Up,
Your Sum Assured and Sum Assured on death shall be reduced in proportion to the premiums actually paid
to the total premiums payable during the policy term

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 Birla Sun Life Insurance Income Assured Plan – Frequently Asked Questions

23. Will my benefits be affected if my policy becomes Paid-up?

Yes you benefits will also be reduced. You benefits under the reduced paid-up policy will be –
Assured Income Benefit
Option A – After the premium paying term, in the event the life insured survives to the end of each subsequent policy
month, we shall pay to you Assured Income (8.0% of Reduced Sum Assured per annum).
Option B - Accrue the Assured Income (8.0% of Reduced Sum Assured per annum) to be received as a lump sum at
the end of the policy term. The lumpsum amount payable will be as follows:-
Policy Term % of Accrued Assured Income
15, 17, 20 137.5%
22,25 175.0%
In case of Option A, if the monthly Assured Income is less than Rs 500, you will be paid the Assured Income on
(1)

annual basis.
Guaranteed Addition
Guaranteed Additions payable shall equal the rate of Guaranteed Additions multiplied by Reduced Sum Assured.
Death Benefit
In the unfortunate event of the death of the life insured during the policy term, we shall pay to the nominee
 Reduced Sum Assured on death; plus
 Guaranteed Additions accrued till the date of death; plus
In addition we will also pay the increased accrued Assured Income as applicable for paid up policy, if opted for
Maturity Benefit
In the event the life insured survives to the end of the policy term, we shall pay to you
 Reduced Sum Assured; plus
 Guaranteed Additions accrued to date; plus
In addition we will also pay the increased accrued Assured Income as applicable for paid up policy, if opted for
24. How can I revive my policy?
You can reinstate your policy for its full coverage within two years from the due date of the first unpaid premium by
paying all outstanding premiums together with interest as declared by us from time to time and by providing
evidence of insurability satisfactory to us.
Upon reinstatement, your benefits shall be restored to their full value.

Termination

25. When will my policy terminate?

Your policy will get terminated on any of the following events:
(a) The date of settlement of death benefit; or
(b) The date of payment of the surrender value; or
(c) The date of payment of the maturity benefit; or
(d) The date on which the reinstatement period ends after the policy has lapsed if fewer than two (three for 10 PPT)
full years of premium have been paid; or
(e) The date on which the outstanding loan amount exceeds the surrender value for the reduced paid-up policies.

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 Birla Sun Life Insurance Income Assured Plan – Frequently Asked Questions

Section D

Operational Guidelines

26. What application form is required for BSLI Income Assured Plan?
The main application form would be used for this plan.

27. Can life insured and proposer be different under this plan?
Yes, there can be a proposer and s/he can be different from the life insured under the plan. In case the proposer and
the life insured are different then all the proceeds for the policy will be paid to the proposer.

28. Can this plan be given to NRI/PIO/FNIO/OCI?

Yes, this plan can be offered to NRIs/FNIOs/OCIs & PIOs, however riders cannot be offered to them.

29. What are the underwriting guidelines are for this plan?
The underwriting guidelines remain unchanged for this product.

30. What is the plan field under policy tab in iChamp?

The plan field under policy tab in iChamp allows you to choose the premium paying term and the corresponding
policy term option. The plan options are as given in table below:-

Plan Premium Paying Term Policy Term

1 5 15
2 7 17
3 10 20
4 7 22
5 10 25

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