One of the common traits that is found among people who have financially succeeded is that they take risks. If you are someone who is willing to take some risk to maximise your funds, Birla Sun Life Insurance Wealth Max Plan is the ideal plan for you. Under this non-participating and unit-linked insurance policy, the investment risk will be borne by the policyholder. Although these kind of insurance plans help you maximise your wealth, many do not prefer this as the unit prices may fluctuate according to the market condition. If a particular investment has performed well in the past, it does not mean it will continue to perform well in the future. The policyholder should be willing to take the risk.
Individuals will have to meet the below-mentioned eligibility criteria, to be eligible to purchase the Birla Sun Life Insurance Wealth Max Plan:
|Plan Type||A single premium, non-participating, unit-linked insurance plan|
|Minimum Entry Age||30 days. Please note that risk factor will start only when the insured person turns 1 year old.|
|Maximum Entry Age||70 years. Please note that the insured should be at least 18 years old when the policy matures.|
|Policy Term||5, 10, 15, and 20 years.|
Sum Assured and Premium Range – What You Get and What It Costs
All customers will be given an option to choose the sum assured while purchasing a Birla Sun Life Insurance Wealth Max Plan. However, the sum assured is mostly decided based on the policy term chosen. As mentioned earlier, policyholders can choose 5, 10, 15, or 20 years policy term. The premium that is to be paid also depends on the tenure of the policy.
|Premium Payment Frequency||Single pay|
|Minimum Premium||The minimum premium amount for 5-year and 10-year policy term is Rs.1,00,000. The minimum premium for 15-year and 20-year policy term is Rs.2,00,000.|
|Minimum Sum Assured||Sum assured can be 1.25, 5, or 10 times more than the basic premium paid by the policyholder.|
There are 3 steps that every Birla Sun Life Insurance Wealth Max Plan policyholder should go through. They are as follows:
At the inception of the policy, the policyholder should choose the premium amount and the policy term. This is the first step in buying the Birla Sun Life Insurance Wealth Max Plan.
In step 2, the policyholder will be asked to fix the sum assured. The sum assured depends on the initial premium paid by the policyholder. Based on the kind of protection the insured person is looking for, they can choose the sum assured as 1.25, 5, or 10 times of the basic premium amount. The below table will help you choose the right sum assured:
|Term of the policy||Minimum age of entry||Maximum age of entry|
|5 years||13 years||
|10 years||8 years||
|15 years||3 years||
|20 years||30 days||
Under the Birla Sun Life Insurance Wealth Max Plan, policyholders will have two options to invest their money, namely “Systematic Transfer Option” and “Self-Managed Option”. The funds accumulated will be used to buy units in various investment funds as chosen by the insured person. The units bought will be calculated by calculated by allocating monetary amount against the particular fund purchased divided by the prevailing price of the fund’s unit. There are three fund values under this plan, namely Fund Value, Basic Fund Value, and Top-up Fund Value.
Please note that any top-up premiums that are paid by the policyholder will be invested in the segregated fund directly.
Refer the following table for better understanding on how each investment fund works:
|Name of the investment fund||Asset allocation||Minimum allocation||Maximum Allocation||Risk|
|Liquid Plus||Equities and related securities Cash and money market Debt||0% 0% 10%||0% 90% 100%||Comparatively very Low|
|Value and Momentum||Equities and related securities Cash and money market Debt||80% 0% 0%||100% 20% 20%||Comparatively very high|
|Income Advantage||Equities and related securities Cash and money market Debt||0% 0% 60%||0% 40% 100%||Comparatively very Low|
|Assure||Equities and related securities Cash and money market Debt||80% 0% 10%||100% 90% 100%||Comparatively very low|
|Protector||Equities and related securities Cash and money market Debt||0% 0% 90%||10% 40% 100%||Comparatively very Low|
|Builder||Equities and related securities Cash and money market Debt||10% 0% 80%||20% 40% 90%||Comparatively very Low|
|Enhancer||Equities and related securities Cash and money market Debt||20% 0% 65%||35% 40% 80%||Medium|
|Creator||Equities and related securities Cash and money market Debt||30% 0% 50%||50% 40% 70%||Medium|
|Magnifier||Equities and related securities Cash and money market Debt||80% 0% 0%||100% 20% 20%||Comparatively very high|
|Maximiser||Equities and related securities Cash and money market Debt||80% 0% 10%||100% 20% 20%||Comparatively very high|
|Multiplier||Equities and related securities Cash and money market Debt||80% 0% 0%||100% 20% 20%||Comparatively very high|
|Super 20||Equities and related securities Cash and money market Debt||80% 0% 0%||100% 20% 20%||Comparatively very high|
|Pure Equity||Equities and related securities Cash and money market Debt||80% 0% 0%||100% 20% 20%||Comparatively very high|
Other benefits and features of the Birla Sun Life Insurance Wealth Max Plan are as follows:
|Death Benefit||In the event of the death of the insured person, the death benefit will be payable to the nominee under the Birla Sun Life Insurance Wealth Max Plan. The death benefit payable will be higher than the basic fund value (as on the date of intimation of death) or the basic sum assured. In addition, top-up fund value or the top-up sum assured (as on the date of intimation of death) will be payable. Please note that death benefit payable under this plan will not be less than 105% of the total premiums paid by the insured person. Also, sum assured will be paid after deducting partial withdrawals, if any.|
|Guaranteed Additions||Under the Birla Sun Life Insurance Wealth Max Plan, guaranteed additions will be added to the policy from time to time in the form of additional units. These guaranteed additions will be accumulated from the 6th year of the policy. From 6th to 10th year of the policy, the guaranteed additions payable will be 0.25% of the last 12 months average fund value. After 11th year of the policy, every year, the guaranteed additions payable will be 0.60% of the last 12 months average fund value.|
|Surrender Value||The policyholders have an option to surrender the plan anytime during the term of the policy. The date the policyholder surrenders the policy is also called as the discontinuance date. If the policy is surrendered within the first five years, the risk factor will be eliminated and the net value of the fund will be transferred to the linked discontinued policy fund. The linked discontinued policy fund will be credited with the actual return or the minimum guaranteed interest rate which is 4% p.a currently, whichever is higher minus fund management charge of 0.50% p.a. However, discontinue charge is not applicable for top-up premiums. If the policy is surrendered after completing 5 policy years, the entire fund value will be payable and the policy will be terminated immediately.|
|Maturity Benefit||If the policyholder survives till the maturity of the benefit, maternity benefit will be payable. The policyholder can decide if they want to receive the maturity benefit as one lump sum amount or through settlement option. If the policyholder chooses settlement option, the maturity benefit payable will be paid in regular instalments over the next 5 years. Policyholders can choose to receive the instalment on an annual, half-yearly, quarterly, and monthly basis. Please note that throughout the settlement period, the fund will continue to be invested in the selected segregated funds.|
Other Key Features
Following are some of the other key features of the Birla Sun Life Insurance Wealth Max Plan:
|Charges under this policy||
|Tracking Your Investment||Birla Sun Life Insurance allows you to track your investments by logging into their website. Policyholders will be able to view the semi-annual statement online which will have the details of the number of units the policyholder has invested and its respective prices.|
|Investment Options||Systematic Transfer Option and Self-Managed Option|
|Loans||Loan facility is not allowed under this plan.|
|Partial withdrawals||Under the Birla Sun Life Insurance Wealth Max Plan, a policyholder will be allowed to make any number of partial withdrawals after completing 5 policy years or attaining 18 years’ of age, whichever is later. The minimum amount that can be partially withdrawn is Rs. 5,000 and there is no maximum limit. To make partial withdrawals, you will have to at all times maintain at least 50% of the basic fund value.|
|Assignment||Assignments are allowed under the Birla Sun Life Insurance Wealth Max Plan. It should comply with provisions of Section 38 of the Insurance Act, 1938.|
|Nomination||Nominations are allowed under the Birla Sun Life Insurance Wealth Max Plan. It should comply with the provisions of Section 39 of the Insurance Act, 1938.|
|Free Look Period||The Birla Sun Life Insurance Wealth Max Plan has a free look period of 15 days within which the policyholder can cancel the policy and get the premiums paid refunded. For policies purchased through distance marketing, the free look period is 30 days from the receipt of the policy document.|
Please note that there are no exclusions under the Birla Sun Life Insurance Wealth Max Plan.
Policyholders who have purchased the Birla Sun Life Insurance Wealth Max Plan will enjoy tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961.
Birla Life Insurance Company Limited is one of the leading international insurance providers who are from Canada. It is a joint venture the Aditya Birla Nuvo Limited and Sun Life Financial Inc. You can go ahead and buy a policy from Birla Life Insurance Company Limited as they are one among the top 5 fund managers in India. Their portfolio includes life insurance, equity management, broking, wealth and asset management, pension fund management, and many other financial services.
Birla Sun Life Insurance is one of the leading insurance providers in India. From unit-linked insurance plans to endowment plans and pension plans, they offer it all. They are also known for the innovative savings and protection plan that they offer at affordable prices. Within few years, they have gained thousands of customers and have financially protected millions of lives. Also, all the insurance products offered by this well-established insurer are carefully designed after sound research. If you are an individual looking for a proven investment plan, Birla Sun Life Insurance Wealth Max Plan is ideal for you.
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