Protects your family's future through regular savings

Transcription

1 Protects your family's future through regular savings Birla Sun Life Insurance Bachat (Endowment) Plan

2 You have aspirations and dreams for your family and would like to ensure that you are able to provide for them. For this, you would like an avenue to save your hard earned money regularly so that it grows to fulfil your dreams. Introducing BSLI Bachat (Endowment) Plan, a traditional non-participating endowment plan that helps you build a corpus through regular systematic savings and get your savings augmented through additions every year and at maturity. With BSLI Bachat (Endowment) Plan, you can now start ensuring and protecting your family's dreams and aspirations by saving as little as Rs. 400 per month. THE SALIENT BENEFITS IN THIS PLAN ARE You choose your Monthly Base Premium based on your needs and as little as Rs. 400 You are insured for up to 180 x the Monthly Base Premium You get your Monthly Base Premiums back after 20 years guaranteed plus After 20 Years Band I Band II Band III Bachat Addition 5.00% 5.25% 5.50% With Loyalty Addition 8.34% 8.88% 9.43% Based on current non-guaranteed Bachat Addition Rate and premiums paid annually for 20 years You can double your Sum Assured in case of accidental death for a nominal additional premium of 1.2% x the Monthly Base Premium This plan is meant for you if: You plan to pay and stay invested for 10 years or more. Age at Entry Policy Term Premium Pay Term 30 days - 60 years 20 years 20 years Monthly Base Premium Rs Rs. 5,000 Sum Assured Premium Payment Frequency Up to 180 times Monthly Base Premium Annual, Semi-annual, Quarterly and Monthly CHOOSING YOUR MONTHLY BASE PREMIUM In this plan, you start by choosing the Monthly Base Premium or MBP. You can choose to pay your premiums either Monthly, Quarterly, Semi-Annually or Annually. You stand to benefit from a premium rebate if you choose to pay your premiums Semi-Annually or Annually as illustrated below.

3 Premium Payment Frequency Monthly Quarterly Semi-Annually Annually Premium Rebate 2% 4% Premium payable by you 1 x MBP 3 x MBP 5.88 x MBP x MBP Please note: Your actual premium payable will be higher than your Monthly Base Premium by any applicable rider premium, underwriting extras, service tax, education cess and any other applicable taxes and levies as per the extant tax laws. For premiums paid quarterly or monthly, you will have to choose either ECS or salary deduction as a method of payment. Also, we will require 2 monthly premiums at inception in case of monthly payments. EARN ANNUAL BACHAT ADDITIONS and A LOYALTY ADDITION 1. Bachat Addition We reward you with a Bachat Addition at the end of every policy year. A Bachat Addition Rate is declared by us annually on the first of April each year and this Bachat Addition Rate will be used to determine the Bachat Addition you will earn during the upcoming year. The Bachat Addition Rate as of April 1, 2010 is - Band I II III For policies with MBP (in Rs.) 400 to to Bachat Addition Rate 5.00% 5.25% 5.50% The Bachat Addition you will earn every year is determined as follows: Bachat Addition = Sum of all MBP's paid to date x Bachat Addition Rate Bachat Additions earned to date will be paid when your policy matures or in case the life insured dies prior to maturity. In case of surrender, Bachat Additions will be paid only if the policy is surrendered after the completion of 10 years. 2. Loyalty Addition We also reward you for your loyalty with a Loyalty Addition increasing every year. The Loyalty Addition will be determined as follows: Loyalty Addition = Sum of all Bachat Additions earned to date x Sum of all Bachat Additions earned to date / (240 x MBP) The Loyalty Addition will be paid when your policy matures or in case the life insured dies prior to maturity. In case of surrender, the Loyalty Addition will be paid only if the policy is surrendered after the completion of 15 years.

4 YOUR KEY BENEFITS 1. Maturity Benefit On maturity after 20 years, you will receive All Monthly Base Premiums paid; plus All Bachat Additions earned; plus The Loyalty Addition 2. Death Benefit In the unfortunate event of death of the life insured, the nominee shall receive All Monthly Base Premiums paid (or Sum Assured if higher); plus All Bachat Additions earned; plus The Loyalty Addition

5 The Sum Assured depends on the Entry Age as follows: Entry Age 0 to to to 60 Sum Assured 180 x MBP 120 x MBP 60 x MBP 3. Accidental Death Benefit Rider You have an option to increase the Sum Assured in case the life insured dies accidentally. Age at Entry Rider Term Rider Premium years 20 years 1.2% x Monthly Base Premium Rider Sum Assured 180 x MBP for Entry Age 18 to x MBP for Entry Age 41 to Surrender Benefit Once 36 MBPs have been paid, you may surrender your policy and receive All Monthly Base Premiums paid from the 2nd year onwards x the surrender factor below; plus After the 10th policy year, all Bachat Additions earned; plus After the 15th policy year, the Loyalty Addition The surrender factor is 100% after completing 10 policy years, otherwise it is - Policy Year of Surrender Surrender Factor 30% 40% 50% 60% 70% 80% 90% 100% ILLUSTRATION of BENEFITS The table below illustrates the benefits of the BSLI Bachat (Endowment) Plan. This has been illustrated assuming premiums are paid annually, and factoring the 4% premium rebate. To understand the Surrender Benefits, you may evaluate them as a percentage of the premiums paid. The illustration shows that the Surrender Benefits are 122%, 151% and 188% of premiums after 10, 15 and 20 years, respectively for Band I. Alternatively, you may determine an 'equivalent' Bachat Addition Rate thereby combining the effect of the Bachat Addition and Loyalty Addition. For Band I, the combined effect of the Bachat Addition and Loyalty Addition amounts to a Surrender Benefit of Rs. 216,075 after 20 years and this is the same as applying an 8.34% 'equivalent' Bachat Addition Rate on the premiums paid to date in each of the 20 years. Using this method, the Surrender Benefits correspond to an 'equivalent' Bachat Addition Rate of 4.07%, 6.42% and 8.34% after 10, 15, 20 years, respectively.

6 Band I II III MBP Range (in Rs.) 400 to to Bachat Addition Rate 5.00% 5.25% 5.50% MBP chosen by you ,000 MBP x 12 6,000 9,000 12,000 Annual Premium paid by you 5,760 8,640 11,520 Surrender Benefit After 10 years 70, , ,300 After 15 years 130, , ,336 After 20 years 216, , ,642 Surrender Benefit / Total Premiums Paid After 10 years 122% 124% 125% After 15 years 151% 155% 158% After 20 years 188% 193% 199% Equivalent Bachat Addition Rate After 10 years 4.07% 4.33% 4.59% After 15 years 6.42% 6.84% 7.27% After 20 years 8.34% 8.88% 9.43%

7 DETAILED ILLUSTRATION OF BACHAT ADDITION and LOYALTY ADDITION Monthly Base Premium Rs. 500 Bachat Addition Rate at 5.00% Policy Base Premium Bachat Addition Loyalty Addition Total Addition Payable on Year Annual Paid Earned Payable Rate Payable Death Surrender [a] [b] [c] [d] [e] [f] [g] [h] 1 6,000 6, % ,000 12, % ,000 18, , % 27 1, ,000 24,000 1,200 3, % 75 3, ,000 30,000 1,500 4, % 169 4, ,000 36,000 1,800 6, % 331 6, ,000 42,000 2,100 8, % 588 8, ,000 48,000 2,400 10, % , ,000 54,000 2,700 13, % 1,519 15, ,000 60,000 3,000 16, % 2,269 18,769 16, ,000 66,000 3,300 19, % 3,267 23,067 19, ,000 72,000 3,600 23, % 4,563 27,963 23, ,000 78,000 3,900 27, % 6,211 33,511 27, ,000 84,000 4,200 31, % 8,269 39,769 31, ,000 90,000 4,500 36, % 10,800 46,800 46, ,000 96,000 4,800 40, % 13,872 54,672 54, , ,000 5,100 45, % 17,557 63,457 63, , ,000 5,400 51, % 21,931 73,231 73, , ,000 5,700 57, % 27,075 84,075 84, , ,000 6,000 63, % 33,075 96,075 96,075 Notes: [a] = MBP x 12 [b] = MBP's paid to date or sum of [a] to date [c] = [b] x Bachat Addition Rate of 5.00% [d] = Bachat Additions earned to date or sum of [c] to date [e] = Ratio of Bachat Additions earned to date [d] over 240 x MBP [f] = [d] x [e] [g] = [d] + [f] [h] = [d] after 10 years + [f] after 15 years

8 DETAILED ILLUSTRATION of POLICY BENEFITS Monthly Base Premium Rs. 500 Bachat Addition Rate at 5.00% All Entry Ages Entry Age 0 to 40 Entry Age 41 to 50 Entry Age 51 to 60 Policy Surrender Benefit Death Benefit Death Benefit Death Benefit Year Gtd Total Gtd Total Gtd Total Gtd Total [i] [j] [k] [l] [k] [l] [k] [l] ,000 90,301 60,000 60,301 30,000 30, ,000 90,907 60,000 60,907 30,000 30, ,600 3,600 90,000 91,827 60,000 61,827 30,000 31, ,200 7,200 90,000 93,075 60,000 63,075 30,000 33, ,000 12,000 90,000 94,669 60,000 64,669 30,000 34, ,000 18,000 90,000 96,631 60,000 66,631 36,000 42, ,200 25,200 90,000 98,988 60,000 68,988 42,000 50, ,600 33,600 90, ,772 60,000 71,772 48,000 59, ,200 43,200 90, ,019 60,000 75,019 54,000 69, ,000 70,500 90, ,769 60,000 78,769 60,000 78, ,000 79,800 90, ,067 66,000 89,067 66,000 89, ,000 89,400 90, ,963 72,000 99,963 72,000 99, ,000 99,300 90, ,511 78, ,511 78, , , ,500 90, ,769 84, ,769 84, , , ,800 90, ,800 90, ,800 90, , , ,672 96, ,672 96, ,672 96, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,075 Notes: [i] = Surrender Factor x [b] less MBP's paid in first year. 100% x [b] after 20 years [j] = [i] + [h] [k] = [b] or 180 x MBP for entry ages 0 to 40 = [b] or 120 x MBP for entry ages 41 to 50 = [b] or 60 x MBP for entry ages 51 to 60 [l] = [k] + [g] Accidental Death Benefit Optional Rider for Entry Ages 18 to 50 For an extra 1.2% of MBP additional Sum Assured is paid in case of accidental death. Extra 180 x MBP payable in case death is accidental for entry ages 18 to 40 Extra 120 x MBP payable in case death is accidental for entry ages 41 to 50

9 OTHER BENEFITS 1. Tax Benefits You will be eligible for tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, Currently, Under Section 80C, premiums up to Rs. 1,00,000 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 2. Policy Loans Starting from the 3rd policy year you can get a loan on your policy. The minimum loan amount is Rs. 5,000 and the maximum loan amount is 90% of the Surrender Benefit. The interest we charge on such loans will be fixed by us from time to time. 3. Grace Period and Revival If you are unable to pay your premium by the due date, you will be given a grace period of 30 days and during this grace period all coverage under your policy will continue. If you do not pay your premium within the grace period, the following will be applicable: a) In case your policy has not acquired a surrender benefit, then all benefits under your policy will cease immediately. b) In case your policy has acquired a surrender benefit, then your policy will be continued on a paid-up basis. You can reinstate your policy for its full coverage within two-years from the due date of the first unpaid premium by paying all outstanding premiums together with interest as declared by us from time to time and by providing evidence of insurability satisfactory to us. 4. 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 refund all premiums paid till date once we receive your written notice of cancellation (along with reasons thereof) together with the original policy documents. Depending on our 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, TERMS AND CONDITIONS Refund of Premiums upon Death We will refund only the premiums paid to date, excluding rider premium, if any in the event the life insured dies by suicide, whether medically sane or insane, within one year after the issue or reinstatement date, whichever is later. We will refund only the premiums paid to date in the event the life insured dies before the policy anniversary coinciding with or immediately following the 5th birthday of the life insured. Guaranteed Minimum Bachat Addition Rate We guarantee that the Bachat Addition Rate declared by us will be no less than 4.50%; plus 75% of any excess of the Benchmark Rate over 7.00%; less 80% of any excess of 7.00% over the Benchmark Rate; all rounded down to the nearest 0.25%. For Band II and Band III, the resulting Bachat Addition Rate is increased by 0.25% and 0.50% respectively. The Benchmark Rate is the

10 average of the daily 10-year Constant Maturity Treasury (10-Year CMT) yields recorded over the last 3 years. Currently, the source of the 10-Year CMT yield is that published by Bloomberg. Prohibition of Rebates 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. Non-Disclosure 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 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.

11 BIRLA SUN LIFE INSURANCE A coming together of values 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 1,70,603 empanelled advisors. This is well supported by the sound financial that the Company has. The AUM of Birla Sun Life Insurance reached the Rs. 15,000 crs and it has a robust capital base of over Rs crs as on Feb 28, 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. DISCLAIMERS This policy is underwritten by Birla Sun Life Insurance Company Limited (BSLI). This is a nonparticipating traditional insurance plan. All terms & conditions are guaranteed throughout the policy term except for the Bachat Addition which will vary from year to year and be declared by BSLI on April 1st of every calendar year. BSLI reserves the right to recover levies such as the Service Tax and Education Cess levied by the authorities on insurance transactions. If there be any additional levies, they too will be recovered from you. This brochure contains only 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.

12 Call Toll-free: sms BUILD to Regd. Office: One Indiabulls Centre, Tower 1, 15th & 16th Floor, Jupiter Mill Compound, 841, Senapati Bapat Marg, Elphinstone Road, Mumbai Reg. No. 109 Unique No.: 109N056V01 ADV / 04 / / 3936 VER1 / APR / 2010