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  • Birla Sun Life Group Unit Linked Plan

    Birla Sun Life Insurance

    A group unit linked plan offering life cover and options to invest in different funds based on the risk appetite of the master policyholder. In addition to the life cover provided to every member under the group policy, the choice of funds in this plan can help manage gratuity schemes very effectively. This policy utilizes contributions from trustees and the master policyholder as investments to build on the gratuity fund value.

    Eligibility Conditions for Birla Sun Life Group Unit Linked Plan

    This group insurance plan that allows employers to provide for gratuity benefits has got the following the eligibility conditions -

    Parameter

    Minimum

    Maximum

    Group size

    Depends on insurer’s discretion

    N/A

    Policy Term (Years)

    1 year

    Indefinite

    Entry Age

    Upon the discretion of the insurer

     

    Maturity/Vesting Age

    Upon the resignation/retirement/early retirement due to health concerns/death of the employee

     

    Key Features of Birla Sun Life Group Unit Linked Plan

    This group plan has the following salient features -

    Parameters

    Details

       

    Plan Type

    Unit-linked non-participating plan

       

    Basis

    Group policy

       

    Policy Term

    Indefinite

       

    Policy Validity

    Annually renewed automatically until surrendered

       

    Sum Assured

    Being a group plan, the sum assured per member depends on the salary paid, annuity rates and the initial contribution made

       

    Coverage

    Maturity/Vesting Benefit

    Gratuity amount as per employees’ last drawn salary

     
     

    Death of a member

    Gratuity paid to the nominee

     
     

    Surrender Benefit

    Existing fund value less the surrender charges (as decided by the insurer)

     

    Fund Choice Selection

    Can be done manually, option provided to preserve capital

       

    Benefits and Advantages of Group Unit Linked Plan

    This plan from Birla Sun Life utilizes different investment funds in order to aid in the growth of wealth and can be opted for by employers to aid in the management of gratuity benefits of employees. Life cover provided by this policy for the group members throughout the policy term is an added benefit. The key advantages in opting for this plan can be mentioned in the following points -

    1. Life cover is present throughout the policy term
    2. Indefinite policy term through an annual automatic renewing cycle
    3. Applicable tax benefits can be availed as per the prevailing tax laws
    4. Multiple fund options and switches allowed

    The key benefits under this policy can be explained as below -

    1. Maturity/Vesting Benefit - This amount is made available to the group member upon retirement or resignation
    2. Death Benefit - In case of the death of the group member, Death Benefit will be payable to the nominee
    3. Surrender Benefit - As a group policy, this plan’s surrender benefits are only applicable for the master policyholder and will be equal to the fund value at the time of the surrender less the surrender charges as decided by the insurer
    4. Tax Benefit - As per the prevalent tax rules, tax benefits might be applicable for this plan with reference to the master policyholder

    Investment of Funds under Birla Sun Life Group Unit Linked Plan

    This unit-linked plan from Birla Sun Life comes with four fund options that offer a variable mix of risk and return. The premiums for the fund options are through employer and trustee contributions, and continue throughout the term of the policy. The details about such funds have been mentioned in the table below -

    Fund Name

    Asset Categories

       

    Risk and Return Rating

     

    Debt Instruments, Money Markets and Cash

     

    Equity and Equity Related Securities

     
     

    Fund Ratios

         

    Group Fixed Interest

    100%

     

    0%

    Low

    Group Bond

    100%

     

    0%

    Medium

    Group Gilt

    100%

     

    0%

    Low

    Group Secure

    80%-90%

     

    10%-20%

    Medium

    Group Stable

    65%-80%

     

    20-35%

    High

    Group Growth

    50%-70%

     

    30%-50%

    High

    Group Floating Rate

    100%

     

    0%

    Low

    Group Protection

    100%

     

    0%

    High

    Group Money Market

    100%

     

    0%

    Very Low

    Group Short Term Debt Fund

    100%

     

    0%

    Very Low

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