BSLI Vision LifeIncome Plan

This plan is meant for wealth protection and achieving an income post retirement and its salient features can be mentioned as follows -

Benefits and Advantages of Vision LifeIncome Policy

This plan from Birla Sun Life is aimed towards making a limited investment through premiums work as an added income source during retirement ages. Life insurance provided by this policy throughout the policy term is an added benefit. The advantages of this plan can be outlined as the following -

• Life cover is present throughout the policy term for the whole life (subject to 100 years of age)
• Whole life policy tenure continually adds to income post the premium payment term
• Limited premium payment options help in case of financial constraints
• Applicable tax benefits can be availed as per Sections 80C, 80D and 10(10D) of the Income Tax Act

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

1. Maturity Benefit - After the policy tenure is over or it reaches the maturity age, this amount can be paid to the policyholder or nominee. The maturity benefit includes the sum assured and the terminal bonus (if any)
2. Death Benefit - In case of the death of the insured life, a Death Benefit will be payable to the nominee. This amount is variable under these two options -
   1. If the life insured passes away during the premium payment term, the nominee will be paid an amount equal to the the sum assured, accrued bonuses till the date of demise and terminal bonus (if any) pooled together
   2. If the life insured passes away post the premium payment term, the nominee will be paid an amount equal to the the sum assured, bonus of the coinciding policy year and terminal bonus (if any) pooled together
3. Survival Benefit - If the insured survives through the end of the payment term, accrued bonuses will be payable and upon his/her survival beyond the payment term, every subsequent year, 5% per annum of the sum assured will be payable as an income benefit along with the per year bonus
4. Policy Loan - Once the policy has attained a surrender value, post premium payment of 3 years), a loan of up to 85% of the surrender value can be availed
5. Surrender Benefit - In case 3 years’ premiums have been paid in full, the policy would acquire a Guaranteed Surrender Value and the same will be paid to the policyholder. If a Special Surrender Value decided by the insurer is higher than the GSV, the policyholder may be entitled to the same
6. Tax Benefit - The contributions made towards the premiums of this policy and the received benefits can be tax deductible as per Sections 80C, 80D and 10(10D). These benefits are dependent on the prevailing tax laws

Birla Sun Life Vision LifeIncome Policy in Action

Shanti, aged 35 years, decides to go for a Vision LifeIncome Policy. Through a limited premium payment term she needs to pay a premium of INR 20,954 for a period of 15 years regularly for a Sum Assured of INR 2,50,000.

At maturity, Shanti would be entitled to receive INR 3,42,532 (guaranteed Survival Benefit including accrued bonuses), provided she has paid all premiums and not availed any loan on the policy. The Total Survival Benefit could be higher than the same, including other bonuses.

In case Shanti passes away in post the premium payment term of the policy, her nominee would be liable to receive INR 3,30,032 (guaranteed Death Benefit) provided no loans have been availed on the policy earlier and all the premiums have been duly paid. Again, the total death benefit might be higher taking into consideration the rates that are announced by the Life Insurance Council.

In this case, the policy ends 65 years from the date of inception, providing a life cover for Shanti till she turns a 100 years old.

Premium Payment for Birla Sun Life Vision LifeIncome Plan

The details of premium payment for this plan can be summarised in the table below -

Riders Under Birla Sun Life Vision LifeIncome

A set of five riders are available under this policy and can be opted for to make the risk cover of the main policy more comprehensive -

• Accidental Death and Disability Rider - If the insured dies due to an accident, the nominee receives an additional rider sum assured (up to Rs. 50,00,000) or in case of disability, the insured will receive a percentage of the rider sum assured depending upon the type of injury
• Critical Illness Rider - If in case any four major illnesses (specified by the insurer) are diagnosed, up to 100% of the rider sum can be availed
• Surgical Care Rider - Pays a lump sum amount to cover expenses if the insured is to undergo a surgery
• Hospital Care Rider - Provides a cash benefit in case of hospitalisation, to take care of expenses
• Waiver of Premium Rider - Waives off all future premiums in case of the death or disability of the insured/policyholder and allows the continuation of policy benefits

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