Nothing is more important than the happiness of our family members. We all work very hard so that we earn and strive to fulfill everything our loved ones wish for. In today’s unpredictable times, having our family’s future and dreams secured is very essential.
Now it is time to build the future of our family members. Aditya Birla Sun Life Insurance Company has come up with “The Aditya Birla Sun Life Insurance Guaranteed Milestone Plan” that recognizes the value of our family’s happiness. Now, protection for your family is guaranteed, even in your absence.
a) Death Benefit –
In case of the unfortunate demise of the life insured during the policy term, the Sum Assured on Death will be paid to the nominee in 10 equal annual installments.
Sum Assured on Death will be highest of –
“Total Premiums Paid” means a total of all the premiums received, excluding any extra premium, any rider premium, and taxes.
On acceptance of the death claim, the company shall pay immediately the first annual installment of the Sum Assured on Death along with the excess amount, if any, of Sum Assured on maturity plus accrued Guaranteed Additions over the Sum Assured.
If the date of acceptance of the death claim is one year or more after the date of death, the first payment made shall include all installments due up to the date of acceptance. In case, the nominee would like to get a lump sum payment instead of the annual installments, the company will pay the discounted value of the outstanding annual installments as a lump sum. The discounted value currently shall be calculated using an interest rate of 8.75% per annum.
In the case where the death of the Life Insured takes place prior to the risk commencement date, only the premiums paid to date (excluding applicable taxes) shall be payable as the Death Benefit. The insured can only opt for either ABSLI Accidental Death and Disability Rider or ABSLI Accidental Death Benefit Rider Plus.
Under this option, two lives i.e. you (primary life insured) and your spouse (secondary life insured) are covered under the same policy and also jointly own the policy. The sum assured applicable for your spouse shall be equal to 20% of your applicable sum assured. The insured can opt for this option at the inception of the policy subject to the attained age of primary life insured & secondary life insured is less than or equal to 50 years.
No rider can be chosen under this option and this option cannot be discontinued except due to the unfortunate demise of either of the lives who are insured.
i) The unfortunate death of the primary life insured prior to the secondary life insured –
ii) The unfortunate death of the secondary life insured prior to the primary life insured –
iii) The unfortunate death of both the prima and secondary life insured together –
b) Maturity Benefit –
In the event the life insured survives to the end of the policy term, the company shall pay to you the following –
Sum Assured on maturity is the amount which is guaranteed to become payable on maturity of the policy, in accordance with the terms and conditions of the policy and is equal to Total Premiums Paid.
c) Guaranteed Additions –
Guaranteed Additions will accrue on monthly basis to the policy on each policy month till maturity; provided all due premiums have been paid and shall be payable in event of the death of the life insured or policy maturity whichever is earlier.
Guaranteed Additions per annum shall be determined based on the premium amount the insured commits to pay, premium band, the sum assured, the entry age of the life insured, Joint Life Protection option, and policy term chosen.
In the case of the Joint Life Protection option, the Guaranteed Additions shall accrue on the sum assured applicable for the prima life insured and shall be payable on policy maturity.
d) Rider Benefit –
For added protection, the insured can enhance their insurance coverage during the policy term by adding following riders for a nominal extra cost –
Note – Riders are not available for Joint Life Protection Option. They can only opt for either ABSLI Accidental Death and Disability Rider or ABSLI Accidental Death Benefit Rider Plus.
e) Reduced Paid-Up Benefit –
If the insured discontinues paying premiums after having paid premiums for at least two full years, then their policy will not lapse but continue on a Reduced Paid-Up basis.
Under Reduced Paid-Up, Sum Assured, Sum Assured on Death, on maturity shall be reduced in proportion to the premiums actually paid to the total premiums payable during the policy term. Guaranteed Additions shall not be reduced and remain attached to the policy. No new guaranteed additions will accrue to the policy.
Am I allowed to surrender my policy?
Yes, the policy can surrender the policy only when the policy acquires a surrender value after all due premiums for at least two full years have been paid.
The Guaranteed Surrender Value shall be a percentage of Total Premiums Paid plus the percentage of accrued Guaranteed Additions. The Guaranteed Surrender Value will vary depending on the year the policy is surrendered.
Your policy will also be eligible for a Special Surrender Value. The surrender value payable will be the higher of Guaranteed Surrender Value or Special Surrender Value. The policy shall be terminated once the Surrender Value is paid.
Can I take a loan against this policy?
Yes, the policyholder can take a loan against their policy once the policy has acquired a surrender value. The minimum loan amount is Rs 5,000 and the maximum up to 85% of your Surrender Value.
The company shall charge interest on the outstanding loan balance at a rate declared by the company which is equal to the base rate of the State Bank of India. The current loan interest rate is 9.30% per annum. Any outstanding loan balance will be recovered by the company from policy proceeds due for payment and will be deducted before any benefit is paid under the policy.
If the outstanding policy loan balance equals or exceeds the surrender value of your policy at any time, then the policy shall be terminated without value.
Can I return the policy if I didn’t like its terms and conditions?
Yes, the policyholder can return the policy within 15 days (30 days in case of Distance Marketing) from the date of receipt of the policy.
The company will refund the premium paid once they receive in writing, a notice of cancellation (along with reasons thereof) together with the original policy documents. The company will deduct the proportionate risk premium for the period of cover and expenses incurred by the company on medical examination and stamp duty charges while issuing the policy.
Is there any grace period and revival of the policy possible?
If the insured is unable to pay their premium by the due date, then they will be given a grace period of 30 days. During this grace period, all coverage under your policy will continue. If the insured does not pay their premium within the grace period, the following will be applicable –
The insured can also revive their policy for its full coverage within five years from the due date of the first unpaid premium by paying all outstanding premiums together with interest as declared by the company from time to time and by providing evidence of insurability satisfactory to us. Upon revival, your benefits shall be restored to their full value.
When can my policy terminate?
Your policy will terminate at the earliest of the following –
Suicide Exclusion –
The company will pay the total premiums paid till date or surrender value available on the date of death, if higher in the event the life insured dies due to suicide, within 12 months from the date of commencement of risk under the policy or from the date of revival of the policy, as may be applicable provided the policy is in force or active.
For Joint Life Protection, the suicide exclusion described above applies in the event of an earlier death of either the Primary Life Insured or the Secondary Life Insured and the policy is terminated.
So, by now you know each and every important detail about this policy. Do let me know if I have missed any important points in the comment section. Please feel free to ask any doubts regarding this policy.
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6 replies on this article “Aditya Birla Sun Life Insurance Guaranteed Milestone Plan – Review features and Benefits”
My ABSLI Guaranteed Milestone plan Policy No. 007563414 , I have entered in this policy on May 2018. Yearly premium amount is Rs.3,13,500/- I have paid the premium for two years I.e. 2018 & 2019 I did not pay the premium during 2020. Now I want to surrender the policy due to emergency. If I surrender the policy during May 2021 How much amount will I receive as surrender value .
After 2 yrs of payments, the policy acquires the surrender value, which is in your case. So just talk to the customer care of the company, they will share the surrender value to you!
You have missed the IRR point in this plan which is important as per return on investment ROI.
Else the information shared is really excellent.
The IRR works to around 4.51%, it does not take into consideration the underwriting charges and any other charges levied.
The amount which we will get on maturity/death will be taxable??
No, it will not be ..