Saral Wealth Plan. Birla Sun Life Insurance. A plan with extra protection for you and your savings

Transcription

1 Saral Wealth Plan Birla Sun Life Insurance A plan with extra protection for you and your savings

2 In this policy, the investment risk in the investment portfolio is borne by the policyholder. You have always wanted to give your family the benefit of an insurance plan but may have found the process of choosing and applying for the right plan a cumbersome one. With Birla Sun Life Insurance Saral Solutions choosing and applying for the right wealth solution is now simple and easy. Introducing BSLI Saral Wealth Plan, an insurance plan that provides you the benefits of insurance without any medical tests, offers you extra protection for your loved ones and an option to enjoy Guaranteed Maturity Benefits. THE SALIENT BENEFITS IN THIS PLAN ARE: You choose your saving premium and you are offered a cover of six times of the chosen savings premium. This will ensure financial protection for your loved ones You have the option to choose a guaranteed maturity benefit to receive a guaranteed amount on maturity. For this you require to pay a nominal additional premium and you will receive a guaranteed amount based on the number of premiums you pay and the policy term In case of the unfortunate event of your death, the nominee will receive an amount equal to Sum Assured PLUS the Fund Value. Thus providing your family with enhanced protection Above all, you don't go through the trouble of any medical tests This plan is meant for you if: You are in the age group of 18 to 55 years today You are looking at a Saving Premium of Rs. 10,000 or more annually Your replies to the questions relating to your medical history are favorable However, if you do not find this plan suitable our advisors will be happy to recommend alternate solutions from our wide range of BSLI wealth with protection solutions or you could visit our website to explore all the options on your own. THINGS YOU SHOULD KEEP IN MIND The BSLI Saral Wealth Plan is a non-participating, unit linked savings plan. All unit linked life insurance plans are different from traditional insurance plans and are subject to different risk factors. The name of the investment funds and that of this plan do not in any way indicate the quality of the plan or future returns. In this plan, the investment risk in the investment options chosen by you is borne by you. Investment funds are subject to investment risks and unit prices may go up or down reflecting the market value of the underlying assets. Past performance is no guarantee of future results.

3 THE SARAL PROCESS You can buy this plan in 3 simple and convenient steps 1. Choose your pay term and policy term You have an option to choose from 10 pay / 10 term, 10 pay / 20 term, 20 pay / 20 term. 2. Choose your savings premium You choose your annual savings premium and automatically your sum assured is calculated as 6 times the amount chosen. 3. Choose your investment option You have a choice to invest your money in either the 'LifeCycle' Option or the 'Guaranteed' Option. LifeCycle Option for individuals who would like their investments to alter over time based on their age and risk profile. Guaranteed Option for individuals who would like to receive a minimum amount guaranteed at the end of the policy term. Above all, you don't go through the trouble of any medical test. BENEFITS OF BSLI SARAL WEALTH PLAN Maturity Benefit Maturity benefit is payable only at the end of the policy term and only if the policy is still in effect at that time. You will receive the Fund Value plus Guaranteed Addition at maturity. The Guaranteed Addition is according to the following schedule (per Rs. 1,000 of one Annual Savings Premium), provided all premiums are paid. 10 pay / 10 term 10 pay / 20 term 20 pay / 20 term Guaranteed Addition Rs. 300 Rs. 800 Rs. 1,000 In addition, if you have selected the Guaranteed Option, your Fund Value at maturity is guaranteed to be no less than the Guaranteed Maturity Benefit. The Guaranteed Maturity Benefit is a percentage of the aggregate savings premiums paid by you, as given below: Years Premiums Paid 10 pay / 10 term 10 pay / 20 term 20 pay / 20 term Less than to less than % 100% 100% 10 or more 105% 125% 125% Death Benefit The nominee will receive the Sum Assured PLUS the Fund Value in the unfortunate event of the death of the life insured. Current Tax Benefits The policy offers tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961.

4 Under Section 80C, premiums up to Rs. 100,000 are allowed as a deduction from your taxable income each year Under Section 10 (10D), the benefits you receive from this plan are exempt from tax, subject to mentioned exclusions SAVINGS PREMIUM AND SUM ASSURED You can choose any annual savings premium starting from Rs. 10,000 in multiples of Rs. 1,000. Your Sum Assured is automatically 6 times the annual savings premium chosen. YOUR INVESTMENT OPTIONS Simplicity being our guiding theme, we offer two simple options for you to choose from for your investments. LifeCycle Option Under the LifeCycle Option, your portfolio will be structured as per your age and risk profile you can decide whether you are conservative, moderate or aggressive in your approach towards investments. Your portfolio will then be monitored and administered by us, saving you the time and effort involved in overseeing it yourself. We automatically shift your investments from riskier assets to safer assets in line with your increasing age and risk profile. We will invest your premiums between the two investment funds, Maximiser (100% equity) and Income Advantage (100% debt) in a predetermined proportion based on the selected risk profile and your age when the premium is invested. Details about these two funds are explained later. The proportion invested in Maximiser (100% equity) will be according to the schedule given below the remaining amount will be invested in Income Advantage (100% debt): For example if person A aged 35 years, opts for a policy term of 20 years with LifeCycle Option and a conservative risk profile, then based on the age and the risk profile the investment portfolio will change with time as below: Age Age Risk Profile Conservative 50% 40% 30% 15% 0% 0% Moderate 70% 60% 50% 35% 20% 5% Aggressive 90% 80% 70% 55% 40% 25% Percentage of investments in Maximiser Income Advantage Age % 60% Age % 70% Age % 85%

5 Switching your Risk Profile You can change your risk profile at any time with no additional cost. All premiums paid from that point onwards will be invested in the Maximiser and Income Advantage according to your new risk profile. Automatic Rebalance of your investments We will automatically rebalance your investment portfolio on each policy anniversary to ensure that it maintains the predetermined proportion in Maximiser and Income Advantage as per the risk profile you have selected at no additional charge. Guaranteed Option Under the Guaranteed Option, your money is solely invested in investment fund Enhancer. Details about this fund are explained later. Under this option, a Guaranteed Maturity Benefit is offered, if you have paid your premiums for at least five full policy years. On maturity, higher of Fund Value or Guaranteed Maturity Benefit is payable. INVESTMENT FUNDS Income Advantage Objective: To provide capital preservation and regular income, in high quality debt instruments. Strategy: To actively manage the fund by building a portfolio of fixed income instruments with a medium term duration. The fund will invest in government securities, high rated corporate bonds, high quality money market instruments and other fixed income securities. The quality of the assets purchased would aim to minimize the credit risk and liquidity risk of the portfolio. The fund will maintain reasonable level of liquidity.

6 Enhancer Objective: To grow capital through enhanced returns over a medium to long-term period through investments in equity and debt instruments, thereby providing a good balance between risk and return. It is suitable for individuals seeking, higher returns with a balanced equity-debt exposure. Strategy: To earn capital appreciation by maintaining a diversified equity portfolio and seek to earn regular returns on the fixed income portfolio by active management resulting in wealth creation for policy owners. Maximiser Objective: To provide long term capital appreciation by actively managing a welldiversified equity portfolio of fundamentally strong blue chip companies. Strategy: To build and actively manage a well-diversified equity portfolio of value and growth driven stocks by following a research focused investment approach. While appreciating the high risk associated with equities, the fund would attempt to maximize the risk-return pay off for the long-term advantage of the policyholders. The fund will also explore the option of having exposure to quality mid cap stocks. The non-equity portion of the fund will be invested in good rated money market instruments and fixed deposits. The portfolio of different investment funds is given below: Investment Fund Risk Profile Asset Allocation * Min. Max. Income Advantage Enhancer Maximiser Very Low Medium High Debt Instruments, Money Market & Cash 100% 100% Equities & Equity Related Securities 0% 0% Debt Instruments, Money Market & Cash 65% 80% Equities & Equity Related Securities 20% 35% Debt Instruments, Money Market & Cash 0% 20% Equities & Equity Related Securities 80% 100% *In each investment fund, the Money Market & Cash asset allocation will not exceed 40%. Money Market Instruments are debt instruments of less than one year maturity. It includes mutual funds, collateralised borrowing & lending obligation, certificate of deposits, commercial papers etc. Investment in Money Market Instrument supports for better liquidity management. This plan does not offer premium redirection or switching between investment options, investment funds, except switching of risk profile under the LifeCycle Option.

7 ACCESSING YOUR INVESTMENTS Partial Withdrawal In case you need to withdraw some amount from your investments, you are allowed to make unlimited partial withdrawals after 3 policy years with no additional cost. The minimum amount of partial withdrawal is Rs. 5,000. There is no maximum limit, but you are required to maintain a minimum Fund Value equal to one annual policy premium plus surrender charges, if any. For the Guaranteed Option, in case of partial withdrawals, the Guaranteed Maturity Benefit (as of the withdrawal date) is reduced by 110% of the proportion of the Fund Value withdrawn. For example, if 20% of Fund Value is withdrawn, the Guaranteed Maturity Benefit is reduced by 22%. Policy Surrender The plan offers the flexibility of surrendering the policy if the need arises, anytime during the tenure of the policy. On surrender, you will receive the Fund Value (net of any surrender charge). There is no surrender charge after your policy completes five policy years. However, if the policy is surrendered before completing 3 policy years, we will defer the payment till the end of the third policy year. The deferred payment will be an amount equal to the Fund Value (net of surrender charge) as of the date of surrender and will remain constant till paid to you. MONITORING YOUR INVESTMENTS You can monitor your investments on our website ( with your CPIN and TPIN number; through the annual statement detailing the number of units you have in each investment fund and their respective unit price as of the last policy anniversary; and through the published unit prices of all investment funds on our website as well as in the newspapers POLICY CHARGES Premium Allocation Charge Premium allocation charge is deducted from the savings premium before it is invested in the chosen funds. It is guaranteed never to increase. Percentage of Annual Savings Premium Paid Policy year 10 pay/10 term 10 pay/20 term 20 pay/20 term % 24.00% 30.00% 4 onwards Nil Nil Nil

8 Policy Administration Charge A policy administration charge of 0.25% per month of the annual savings premium is deducted monthly by canceling units from the investment fund/s at that time. This charge is guaranteed to never increase for the first three years, after which it can be increased by no more than by 5% per annum since inception. Fund Management Charge The daily unit price of each investment fund is adjusted to reflect the fund management charge. This may be increased by us in the future subject to IRDA approval. Investment Fund FMC Income Advantage 1.00% Enhancer 1.25% Maximiser 1.35% Mortality Charge Mortality charge is deducted every month for providing you with the insurance cover. It is charged by canceling units from the investment fund/s at that time. It is guaranteed never to increase. Sample rates are provided for your reference. Please visit our website or ask your financial advisor for the rates applicable to you. Charge per 1000 Sum Assured Male Female Entry age 10 pay/ 10 pay/ 20 pay/ 10 pay/ 10 pay/ 20 pay/ 10 term 20 term 20 term 10 term 20 term 20 term Surrender Charge Surrender charge is applicable if policy is surrendered before the completion of 5 policy years. The amount you will receive on surrendering the policy is the Fund Value less the surrender charges. This charge is guaranteed to never increase. Per 1000 of Annual Savings Premium Policy year 10 pay/10 term 10 pay/20 term 20 pay/20 term < to < to < onwards Nil Nil Nil

9 Revival Charge An amount of Rs. 100 is charged for policy revival. This amount may increase in future subject to a maximum of Rs. 1,000. Service Tax Service Tax and other levies, as applicable, will be extra and levied as per the extant tax laws. IRDA Approval Only when specified and within stated limits, we may increase a particular charge at any time in the future. We, however, need to get prior approval from the IRDA before such charge increase is effective. Otherwise, all other charges in this policy are guaranteed to never increase during the tenure of the policy.

10 POLICY PREMIUM You can choose to pay your premiums monthly, quarterly, semi-annually or annually, as per your convenience. Your premium payable is the annual savings premium chosen by you plus insurance premium that goes towards providing the insurance cover. Insurance premium per Rs. 1,000 Annual Savings Premium (or Rs. 6,000 Sum Assured) is: Entry Age 10 pay/ 10 pay/ 20 pay/ Male Female 10 term 20 term 20 term Entry Age 10 pay/ 10 pay/ 20 pay/ Male Female 10 term 20 term 20 term Inclusive of service tax and education cess Insurance premium will be entirely invested in the investment funds and mortality charges will be deducted from the same every month.

11 In case you opt for the Guaranteed Option, you must also pay an additional investment guarantee premium which goes towards providing the investment guarantee on your policy. This additional investment guarantee premium is not invested in any fund and is as per the schedule below (per Rs. 1,000 of Annual Savings Premium). Entry Age 10 pay/ 10 pay/ 20 pay/ Male Female 10 term 20 term 20 term Now your premium payable is a total of savings premium plus insurance premium towards insurance cover plus investment guarantee premium towards Guaranteed Option, if selected. If you are unable to pay the policy premium by the due date, you will be given a grace period of 30 days during which time the insurance cover under your policy will continue. If you do not pay your premium within the said grace period of 30 days, the following will be applicable: During the first three policy years Your policy will lapse if we do not receive the entire policy premium by the end of the grace period. The insurance under your policy will cease and your fund value will be held in suspense after deduction of surrender charges. This net fund value will be paid out to you only at the end of the third policy year or the end of the two-year revival period, whichever is later. All All Inclusive of service tax and education cess TERMS & CONDITIONS Premium Discontinuance You can revive your policy within two-years from its lapse date by paying all outstanding policy premiums and providing us with evidence of insurability satisfactory to us. If the life insured dies while the policy is not yet revived, we will pay the fund value as of the lapse date immediately and terminate the contract. After three completed policy years If we do not receive the entire policy premium by the end of the grace period, then you will be given a period of two years to pay all outstanding premiums till date. Your policy will continue during these two years, as well as all insurance cover and charges. At the end of this two-year period, we will give you the choice to either surrender your policy or continue it without the payment of additional policy premiums. Your policy will, however, be deemed as surrendered should your fund value equal one annual policy premium. Free-look Period You will have the right to return your policy to us within 15 days from the date of receipt of the policy. We will pay the fund value plus all charges levied till date (excluding the fund management charge) once we receive your written notice of cancellation (along with reasons thereof) together with the original policy documents. Depending on our

12 then current administration rules, we may reduce the amount of the refund by expenditures incurred by us in issuing your policy and as permitted by the IRDA and in accordance to IRDA (Protection of Policyholders Interest) Regulations, Unit Price On each business day and for each investment fund, we determine the unit price by dividing the net asset value (NAV) of the investment fund at the valuation time by the number of units in existence for the investment fund in question. We publish the unit price of all investment funds on our website as well as in the newspapers. The NAV is determined based on whether we are purchasing (appropriation price) or selling (expropriation price) assets in order to meet the daily transactions of unit allocation or redemption associated with the investment fund. When appropriation (expropriation) price is applied, the NAV of the investment fund is the market value of investments held by the fund; plus (less) the expenses incurred in purchasing (selling) assets; plus the value of current assets; plus any accrued income net of fund management charges; less the value of any current liabilities or provisions. This NAV divided by the number of units existing on the valuation date, before units are allocated (redeemed), gives the amount of money we put in to (take out of) the investment fund per unit allocated (redeemed). Suicide We will refund higher of the fund value or premiums paid to date in the event the life insured dies by suicide, whether medically sane or insane, within one year after the issue or revival date, whichever is later. Section 41 of the Insurance Act, 1938 No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer. Section 45 of the Insurance Act, 1938 No policy of life insurance effected after the coming into force of this Act shall, after the expiry of two years from the date on which it was effected be called in question by an insurer on the ground that statement made in the proposal or in any report of a medical officer, or referee, or friend of the life insured, or in any other document leading to the issue of the policy, was inaccurate or false, unless the insurer shows that such statement was on a material matter or suppressed facts which it was material to disclose and that it was fraudulently made by the policyholder and that the policyholder knew at the time of making it that the statement was false or that it suppressed facts which it was material to disclose. Provided that nothing in this section shall prevent the insurer from calling for proof of age at any time if he is entitled to do so, and no policy shall be deemed to be called in

13 question merely because the terms of the policy are adjusted on subsequent proof that the age of the life insured was incorrectly stated in the application. Risk Factors & Disclaimers This policy is underwritten by Birla Sun Life Insurance Company Limited (BSLI). This is a non-participating unit linked savings plan. Birla Sun Life Insurance, Saral Wealth Plan, Guaranteed Option, LifeCycle Option, Income Advantage, Enhancer and Maximiser are only the names of the Company, Policy, Investment Options and the Investment Funds respectively and do not in any way indicate the quality of the Policy, Investment Funds or their future prospects or returns. The charges mentioned above are applicable to all the three Investment Funds offered at present. Only the Policy Administration Charge, Fund Management Charge and Revival Charge can be modified by the Company subject to specified limits and approval of the IRDA. The value of the Investment Fund reflects the value of the underlying investments. These investments are subject to market risks and change in fundamentals such as tax rates etc affecting the investment portfolio. The premium paid in Unit Linked Life Insurance policies are subject to investment risk associated with capital markets and the unit price of the units may go up or down based on the performance of Investment Fund and factors influencing the capital market and the policy owner is responsible for his/her decisions. There is no guarantee or assurance of returns from the Investment Funds. BSLI reserves the right to recover levies such as the Service Tax levied by the authorities on insurance transactions. If there be any additional levies, they too will be recovered from you. This brochure contains the salient features of the plan. For further details please refer to the policy contract. Tax benefits are subject to changes in the tax laws. Insurance is the subject matter of the solicitation. For more details and clarification call your BSLI Insurance Advisor or visit our website and see how we can help in making your dreams come true.

14 About Birla Sun Life Insurance Birla Sun Life Insurance Company Limited (BSLI) is a joint venture between the Aditya Birla Group, a well known Indian conglomerates and Sun Life Financial Inc, leading international financial services organization from Canada. With an experience of over 9 years, BSLI has contributed significantly to the growth and development of the Indian Life Insurance industry and currently is one of the leading life insurance companies in the country. Enjoying trust of its over 2 Million customers, BSLI is known for innovation. BSLI offers a complete range of pension, health and life insurance products and has an extensive reach in over 1500 markets through its network of 600 branches and 1,64,423 empanelled advisors. This is well supported by the sound financial that the Company has. The AUM of Birla Sun Life Insurance surpassed Rs. 9,168 crs and it has a robust capital base of over Rs. 1,999.5 crs as on March 31, For more information, please visit About Aditya Birla Group A US $28 billion corporation, the Aditya Birla Group is in the league of Fortune 500 worldwide. It is anchored by an extraordinary force of 100,000 employees, belonging to 25 different nationalities. The group operates in 25 countries across six continents truly India's first multinational corporation. Aditya Birla Group through Aditya Birla Financial Services Group (ABFSG), has a strong presence across various financial services verticals that include life insurance, fund management, distribution & wealth management, security based lending, insurance broking, private equity and retail broking. In FY , the consolidated revenues of ABFSG from these businesses crossed Rs crs registering a growth rate of 36%. For more information, please visit About Sun Life Financial Inc. Sun Life Financial is a leading international financial services organization providing a diverse range of protection and wealth accumulation products and services to individuals and corporate customers. Chartered in 1865, Sun Life Financial and its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. As of March 31, 2009, the Sun Life Financial group of companies had total assets under management of $375 billion. For more information, please visit

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