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BSLI Savings Plan

Birla Sun Life Insurance offers this traditional participating life insurance plan to customers who wish provide security for their family’s future. At the same time, customers benefit from saving money regularly and growing it over time. This helps in planning financially for the future to meet expenses and needs that might arise later on in life. This is a savings-cum-insurance plan that provides comprehensive financial protection to the life insured and their family. Customers get to choose their sum assured based on their needs for savings and protection. The plan also has flexible provisions for policy terms, premium payment terms and premium frequencies.

Eligibility -Who is the BSLI Savings Plan for?

For any insurance plan, the insurance provider sets certain eligibility requirements that the customer must fulfill in order to be able to avail the plan. In order to avail this plan, customers must meet certain criteria set out by Birla Sun Life Insurance.

Eligibility Criteria Details
Minimum entry age 18 years (last birthday)
Maximum entry age 50 years (last birthday)

Sum Assured and Premium Range - What you get and what it costs

There a flexible options available with the Savings Plan from Birla Sun Life Insurance. Customers can choose to pay premiums monthly, quarterly, bi-annually or annually according to their convenience. The plan provides for a minimum sum assured of Rs.30,000. Customers can also choose to be protected for 10, 15 or 20 years according to their needs. Paying premiums are also made easy with a number of modes available. If you opt for the annual mode, however, premiums must be paid through ECS. Given below are the details of the sums assured and premium details:

Particulars Details
Minimum sum assured Rs.30,000
Maximum sum assured Rs.10 lakh
Policy term 10, 15, 20 years
Premium payment terms 10-year term - Regular pay 15-year term - 10 years and regular pay 20-year term - 10 years, 15 years, and regular pay
Premium payment frequency Monthly, quarterly, semi-annually or annually

*Premiums vary based on age, location, plan term and other factors

Plan coverage - What the BSLI Savings Plan covers

Availing this plan comes with a number of benefits that the customer or their beneficiaries can enjoy. The Savings Plan provides death benefits, maturity benefits, surrender benefits along with bonuses that add value to the policy. Birla Sun Life also offers Guaranteed Additions at the end of each policy year that will enhance the value of the benefits. Given below are some of the important benefits associated with the Savings Plan.

Benefits Details
Death benefit Upon the death of the life insured, provided the policy is in force, the nominee will be paid the Guaranteed Death Benefit. Any accrued bonuses, accrued guaranteed additions, and terminal bonus will also be payable. (This is subject to a minimum of 105% of total premiums paid till date of date, excluding tax and rider premiums).
  • If the life insured dies due to an accident, an additional sum assured will be paid.
  • If the life insured is different from the policyholder, the benefits will be paid to the policyholder.
The Guaranteed Death Benefit is equal to the maximum sum assured OR 10 times the annual premium OR 105% of total premiums paid (not including taxes and rider premiums), whichever is higher.
Maturity benefit If the life insured survives till the end of the policy term, then they will be entitled to receive the following: Maturity Sum Assured + accrued guaranteed additions + accrued bonuses + terminal bonus, if any.
Guaranteed Additions At the end of each policy year, guaranteed additions of Rs.40 per thousand of the sum assured will be added to the policy, if all premiums have been paid.
Simple reversionary bonus The plan is eligible to accrue simple reversionary bonuses if declared at the end of every financial policy. The bonus will be attached to the policy every policy anniversary. The bonus is payable upon death, surrender, or maturity.
Terminal bonus The insurer might may a terminal bonus at the time of death, maturity or surrender.
Reduced paid-up benefits If you are unable to pay premiums, you can convert your policy and receive reduced paid-up benefits.
Tax benefits Available under Section 80C and Section 10(10D) of the Income Tax Act, 1961.
Loan facility Available once the policy has acquired a surrender value and the life insured is alive. The minimum amount that can be availed is Rs.5,000. The maximum loan amount is capped at 85% of the surrender value.

Riders / Add-On Plans – H3> Additional coverage under the BSLI Savings Plan

There are no riders available with this plan.

Exclusions - What the BSLI Savings Plan doesn’t cover

If the life insured commits suicide within one year from the date of issue of the policy or reinstatement of the policy, whether sane or insane, then Birla Sun Life will refund the premiums paid till date or the surrender value, whichever is higher.

Apart from this, Birla Sun Life will not pay the additional Accidental Death Benefit under the following circumstances:

  • War, invasion, terrorism, hostilities, etc.
  • Self-inflicted injuries, self destruction, whether sane or insane.
  • Death under the influence of alcohol and non-prescribed drugs.
  • Death arising out of a breach of law with criminal intentions.
  • Transport via an aerial device, except on a commercial passenger airline. This includes entering, exiting, operating, and servicing of the device.
  • Accidents due to professional sports or dangerous activities
  • Injuries sustained before the effective date of protection.
  • Nuclear contamination, accidents arising out of radioactive, hazardous, explosive nature.
  • Service in the armed forces during war, declared or undeclared, or while restoring public order or serving under orders for warlike operations.
  • Death or disability caused due to an infection or disease.

Other Key Features – Freelook Period, Surrender Values, Grace Period etc.

It is important to read your policy document to be completely informed about your plan. Some of the key features of this plan have been mentioned below.

Features Details
Grace Period 30 days (15 days for monthly mode)
Free-look Period 15 days (30 days for distance marketing)
Premium Rebates Annual - 3%
Surrender Value The policy will acquire a surrender value, if you have paid premiums for at least 3 full years (2 years for 7-year policy term). The higher of the following will be paid:
  • Guaranteed Surrender Value - percentage of the premiums paid (not including rider premiums and taxes) + surrender value of accrued bonuses.
  • Special Surrender Value.
Reduced Paid-up Policy If you have paid premiums for at least 3 full years (2 years for 7-year policy term), the policy will be converted to a Reduced Paid-Up policy.
Termination If you have not paid premiums for at least 3 full years (2 years for 7-year policy term), then all benefits will lapse after the grace period ends. The policy will be terminated.
Reinstatement From the due date of the first unpaid premium, you can reinstate your policy within 2 years. You need to pay all outstanding premiums plus interest.
Assignment Available under Section 38 of the Insurance Act, 1938
Nomination Available under Section 39 of the Insurance Act, 1938
Service tax Service tax, cess and other levies will be charged as per the prevailing tax laws at rates specified by the government from time to time.

Tax benefits – How you can save with the BSLI Savings Plan

As per the prevailing tax laws in India, you can claim for tax benefits under Section 80C and Section 10(10 D) of the Income Tax Act, 1961. Tax laws are subject to amendments from time to time. You are advised to consult a tax advisor to maximise your benefits.

Other benefits – How you can save with the BSLI Savings Plan

When you choose Birla Sun Life as your insurance provider, you can stand to benefit from the following:

  • Download forms and brochures online
  • Pay premiums online through multiple payment modes
  • Calculate your premium online
  • Manage your policy online with facilities such as changing the premium payment frequency, updating your contact details and so on
  • Customer service dedicated to insurance
  • Easy claims procedure
  • Subscribe to e-statements to be updated on the status of your policy

Why you should buy the BSLI Savings Plan from Birla Sun Life Insurance

The Birla Sun Life Insurance Savings Plan is designed to cater to those who want to save along with their insurance protection. With this plan, customers can make the best of both worlds. This plan gives you peace of mind knowing that your family is protected in the event of your unfortunate demise. At the same time, you can enjoy secured savings and reap profits from the premiums you pay.

Birla Sun Life Insurance was born out of a joint venture between Aditya Birla and Sun Life Financial Inc. The insurer provides a host of insurance products and services. The insurer has maintained a claims settlement ratio of 95% in 2014-15 and 88% in 2015-16, as per the information published by the IRDA. The company deals with a complete range of protection solutions that include health and wellness, retirement, savings, investment, protection, and children’s future.