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  • BSLI Group Value Plus Plan (GVPP)

    Birla Sun Life Insurance

    Gratuity is a statutory benefit paid to employees who work in a company for at least five years. Gratuity is a lump sum paid to an employee on the basis of the total service he or she renders to a company. An employee gets gratuity based on his last drawn salary at the time of leaving his or her company (resignation), retirement, termination or death. Gratuity is considered one of the ways to boost employees’ loyalty towards a company. The Government of India made it mandatory for employers with over 10 employees to offer gratuity to their employees after introduction of the Payment of Gratuity Act in 1972. The gratuity liability increases annually with an increase in the salary and tenure of employees.

    Customers can opt for Birla Sun Life Insurance (BSLI) which offers an attractive gratuity solution known as the Group Value Plus Plan or GVPP which helps an organization minimize its business costs in addition to corporate tax.

    Eligibility Conditions of BSLI Group Value Plus Plan

    An employee receives gratuity upon resignation, total retirement, early retirement arising from ill-health and death.

    Employees who complete five years of service without a break are eligible to receive gratuity (except in the event of the death of an employee, following which gratuity is paid to the nominee or heir).

    An employer’s annual contribution should not exceed 8.33% of an employee's remuneration.

    Companies which employ 10 or more employees should pay gratuity.

    Key Features of BSLI Group Value Plus Plan


    Customers can choose from multiple plan options as listed in the table below:

    Investment Fund

    Risk Factor

    Group Money Market

    Very low

    Group Short Term Debt

    Very low

    Group Fixed Interest


    Group Gilt


    Group Income Advantage


    Group Fixed Interest


    Group Secure


    Group Bond


    Group Stable


    Group Growth Advantage


    Group Growth


    Group Growth Maximiser



    Flexible. Customers can pay their premiums in one or more installments at any time.


    Customers can specify the number of accounts they want, following which, their premium will be invested. The fund value is separately tracked for each account.

    This plan can, therefore, be operated with multiple accounts and different fund allocation suitable for each account. Customers can open new accounts at any point of time by paying fresh premium.


    • Death Benefit

      Death benefit is the sum assured plus the amount specified which should not be more than the prevailing policy fund value in the account.

    • Non-death benefit

      It is the amount specified by the policyholder, not more than the prevailing fund value in the account of the member.

    Investment Portfolio

    This plan allows customers to opt for a market cycle of their choice or even self-managed options for management of investment portfolio.

    If customers choose the self-managed option, they have the leeway to decide how to invest their premiums. Birla Sun Insurance under the group value plus plan, offers eleven investment fund options for various requirements.

    If customers choose the MarketCycle Option, their portfolio will be built according to their risk profile - moderate, aggressive, assure or conservative. Customers can change their risk profile at any point of time. The rebalancing of the MarketCycle Option is also free. Customers can also switch from self-managed option to MarketCycle option or vice versa as well.

    Policy Fund Value

    Equal to the sum of the number of units under each fund multiplied by unit price.

    Freelook Period

    15 days from the day of policy receipt

    Policy Loan

    Not available

    Policy Surrender

    Customers can surrender their policy at any point of time. The plan will terminate on the date of acceptance of surrender request. The surrender value is the policy fund value.


    The plan will stand terminated if the policy is surrendered, the policy fund value falls below Rs.1 lakh and payment of premium is discontinued for five years.

    Advantages of BSLI Group Value Plus Plan

    Tax Benefits

    • Employers

      Annual contribution (subject to a maximum of 8.33% of the annual wage bill) is deductible as per section 36 (i) v of the IT Act. The income from investment is tax exempt as per section 10(25) (iv) of the Income Tax Act, 1961.

    • Employees

      Under the Payment of Gratuity Act 1972, gratuity received by an employee should not be taxed subject to 15 days’ salary (on the basis of the last drawn salary for every year of service), Rs.10 lakh or gratuity received. Also, death benefit which nominees receive is taxable.


    Gratuity payable to an employee is 15 days wages (basic plus dearness allowance) for year that he/she completes or part of a year in excess of 6 months. This is subject to a maximum of Rs 3.5 lakh. Death benefits in the form of future service gratuity, which is paid for the anticipated salary based on the last drawn salary of the employee.

    How The Plan Works?

    According to the Payment of Gratuity Act, 1972, an employer makes annual contributions towards gratuity of an employee on the basis of the latter’s remuneration for each year of (completed) service in an organisation. The lumpsum amount accumulated for each year an employee has been in service is paid upon his or her death during service or retirement and resignation after completion of at least 5 years of uninterrupted service in an organisation.

    Gratuity is, therefore, calculated as the last drawn salary (basic combined with dearness) multiplied by 15, the number of years in service and divided by 26. The number of years is, however, rounded off once in six months i.e. if an employee has worked in an organisation continuously for 8 years and 5 months, the employer will consider first eight years only for gratuity.

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