BSLI Bima Kavach Yojana Plan

Birla Sun Life Insurance Company Company is working closely with Aditya Birla Group and other NGOs across the country to provide rural insurance plans to the rural population. Birla Sun Life Insurance has developed a specialised insurance plan for the economically weaker sections of society. The Bima Kavach Yojana scheme has been developed keeping in mind the limited financial spending capacity and unstable financial security of the rural population.

Eligibility Conditions of BSLI Bima Kavach Yojana

Entry Age

Minimum – 18 years

Maximum – 50 years

Location

All applicants for this plan must be from IRDA approved villages.

The IRDA guidelines defining a village are:

  • Total population must be less than 5,000 people.
  • Only 400 people per square kilometre population density.
  • Minimum of 25% of the male population must be employed and dependant on the agricultural sector for income.

Key Features of BSLI Bima Kavach Yojana

Type

A traditional participating life insurance plan.

Basis

Single

Coverage

  • Death Benefit: In the event the life insured dies, the sum assured of 100 times the premium is paid to the nominee.

  • Maturity Benefit: On maturity, BSLI pays back the policyholders premium plus 10% of the premium.

  • Surrender Benefit: On surrendering the policy, policyholders will be entitled to the following benefits:

On surrendering the policy in:

Benefit

1st year

Only premium amount

2nd year

1.04 times the premium amount

3rd year

1.08 times the premium amount

Minimum premium

Rs.50

Maximum premium

Rs.200

Premium paying term

One-time premium payment.

Premium paying frequency

One-time payment of Rs.50, Rs.100, or Rs.200, as per the capacity of the potential policyholder.

Bonuses

On maturity, the policyholder will be paid back his premium with a bonus of 10%.

Surrender Benefit

On surrendering the policy, policyholders will be entitled to the following benefits:

On surrendering the policy in:

Benefit

1st year

Only premium amount

2nd year

1.04 times the premium amount

3rd year

1.08 times the premium amount

Loan

Not available.

Nomination

You can nominate a person to avail the benefit of the policy at an event of your death. This nomination has to be done before the policy matures. You will not be charged if you wish to change the nomination.

In the event, there is no living nominee to take claim for the benefit, then the life insured’s estate shall be deemed to be the nominee under Section 39 of the Insurance Act, 1938.

Advantages of BSLI Bima Kavach Yojana

  • No medical tests required.
  • Death, Maturity and Surrender benefits.
  • 3 year policy period.
  • Premiums are based on the paying capacity of the potential policyholder.
  • You can also take the Accidental Death Rider. It provides a base sum assured that is equal to or greater than Rs.10,000 if the insured dies in an accident.

How The Plan Works

This is a very straightforward plan which is applicable only to the rural population, which resides in IRDA designated villages that have a population of less than 5,000 and a population density of less than 400 people per square kilometres, and where at least 25% of the male population depend on agriculture for income.

Once a person in this specific demographic purchases this plan, for Rs.50, Rs.100, or Rs.200, his or her nominee is eligible for 100 times that amount as a death benefit.

There is also a benefit on maturity wherein the initial premium paid will be returned after the 3 year policy term with an additional 10% bonus.

Surrendering the policy also gives the policyholder a small advantage in terms of a surrender benefit, depending on when the policy has been surrendered – in the 1st year, the policyholder will receive only the premium amount back, in the 2nd year 1.04 times the policy amount will be paid back, and in the 3rd year, the policyholder is entitled to receive 1.08 times the premium amount initially paid.

Premium Payment

The premium of Rs.50, Rs.100 or Rs.200 depends on the paying capacity of the applicant. Since this plan is specifically designed at targeting the rural population, the premiums are low and the benefits are high. There are benefits on maturity and surrender in addition to the death benefit, and the term of the plan is 3 years.

Riders

There are no additional riders available with this plan.

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GST of 18% is applicable on life insurance effective from the 1st of July, 2017

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