Aditya Birla Sun Life Insurance Vision Endowment Plus Plan – Review, Features and Benefits

In life, when we face so much uncertainty around us, there’s nothing more reassuring than knowing that not only is our money safe but also that we will receive more than what you have invested. With the return of premium along with accrued bonuses on maturity and protecting our family’s financial security, we can be assured of our future.

So we need not worry anymore because Aditya Birla has launched the “Aditya Birla Sun Life Insurance Vision Endowment Plus Plan” so that our investment can go a long way in building a safe and financially sound future for your family, today as well as in the years to come.

Aditya Birla Sun Life Insurance Vision Endowment Plus Plan

Features of this policy –

  • Flexibility – Comprehensive financial protection of your family which can be enhanced by choosing death benefit Option A or B.
  • Growth in your savings – Augment your savings by accrued regular bonuses starting from the first policy year.
  • Choice of terms – Allows you to plan your premiums based on your revenue projections
  • Tax Benefits – On premium paid as per sec 80 C | 10 (10) D and 80 D of Income Tax Act, 1961.

Benefits of this Policy –

a) Death Benefit –

In the unfortunate event of the death of the life insured during the policy term, the death benefit payable to the nominee shall be –

  • Sum Assured on Death; plus
  • Accrued regular bonuses as of the date of death; plus
  • Terminal bonus (if any)
  1. Option A – Sum Assured on Death is the maximum of Sum Assured or 10 times the Annualized premium payable.
  2. Option B – Sum Assured on Death is a maximum of 150% of Sum Assured or 10 times the Annualized premium payable.

The death benefit will be subject to minimum of 105% of Total Premiums Paid up to date of death. Where,
Annualized premium shall be the premium amount payable in a year chosen by the policyholder, excluding the taxes, rider premiums, underwriting extra premiums and loadings for modal premiums, if any.

Total Premiums paid means total of all the premiums received, excluding any extra premium, any rider premium and taxes.

In case where the death of the Life Insured takes place prior to the risk commencement date, only the basic premiums paid to date (excluding taxes, if any ) shall be payable as the Death Benefit. In case of death of the life insured, if the life insured is different from the policyholder, the policyholder will receive the death benefit. The policy shall be terminated once the death benefit is paid.

b) Maturity Benefit –

In the event the life insured survives to the end of the policy term, the company shall pay to the insured the following-

  • Sum Assured on maturity*; plus
  • Accrued bonuses till date; plus
  • Terminal bonus (if any)

* where Sum Assured on maturity is equal to total premiums paid. The policy shall be terminated once the maturity benefit is paid.

c) Rider Protection –

For added protection, the insured can enhance their insurance coverage during the policy term by adding the following riders for a nominal extra cost.

  1. ABSLI Accidental Death and Disability Rider
  2. ABSLI Critical Illness Rider
  3. ABSLI Surgical Care Rider
  4. AABSLI Hospital Care Rider
  5. ABSLI Waiver of Premium
  6. ABSLI Accidental Death Benefit Rider Plus

d) Regular Bonus –

ABSLI will declare simple reversionary bonuses regularly at the end of each financial year and that will be added to the policy on its policy anniversary. Bonuses once attached to the policy are payable along with the interim bonuses, as applicable on maturity or surrender or death, if earlier.

In case of surrender, the surrender value of the attached bonuses will be payable. The regular bonus rate declared by ABSLI may vary from year to year and will depend on the actual experience regarding various factors and the prevailing economic conditions. Future bonuses are however not guaranteed and will depend upon the future profits of the participating business.

e) Terminal Bonus

ABSLI may also pay a terminal bonus on, maturity, surrender, or death, if earlier, based on the actual experience and the prevailing economic conditions.

Eligibility Conditions of this Policy –

  • *risk commences from the first policy anniversary

Eligibility conditions of ABSLI vision endowment plus plan

Can I cancel the policy if I didn’t like its terms and conditions?

The policyholder will have the right to return their policy to the company within 15 days (30 days in case the policy issued under  Distance Marketing) from the date of receipt of the policy. This period is known as the “Free Look Period”.

The company will refund the premium paid once they receive a written notice of cancellation (along with reasons thereof) together with the original policy documents. They will deduct proportionate risk premium for the period of cover and expenses incurred by us on medical examination and stamp duty charges while issuing your policy.

Can I take a loan against this policy?

The insured can take a loan against their policy once it has acquired a surrender value. The minimum loan amount is Rs.5,000 and the maximum is 85% of your surrender value. The company shall charge interest on the outstanding loan balance at a rate declared by the company. Any outstanding loan balance will be recovered from policy proceeds due for payment and will be deducted before any benefit is paid under the policy.

Can I surrender my policy if I want to?

One can surrender the policy at any time while their policy is in effect and after all due Installment Premiums for at least two Policy Years have been paid in full. The Guaranteed Surrender Value is a percentage of Total Premiums paid plus the surrender value of accrued regular bonuses.

The Guaranteed Surrender Value percentages for –

  • Total Premiums paid and
  • Accrued Bonuses

Your policy also acquires a Special Surrender Value. Your surrender benefit is the higher of –

  • Guaranteed Surrender Value, or
  • Special Surrender Value

Is there any Grace Period & Revival Period in this policy?

If premiums are not paid by the due date, the policyholder will be given a grace period of 30 days. During this grace period, all coverage under their policy will continue. If they do not pay their premium within the grace period, the following will be applicable –

  • In case premiums are not paid for two full years, then all benefits under the policy will cease immediately.
  • In case premiums have paid for at least two full years, then your policy will continue on a Reduced Paid-Up basis.

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.

What is Reduced Paid-up benefit?

In case of discontinuance of premiums after having paid premiums for at least two full years, the policy will not lapse but continue on a Reduced Paid-Up basis. Under Reduced Paid-Up, your sum assured and sum assured on maturity shall be reduced in proportion to the number of premiums actually paid to the total premiums payable during the premium paying term.

Your accrued regular bonuses to the date of premium discontinuance will not be reduced; however, any bonus payable in the year of premium discontinuance shall be reduced proportionately to the unpaid premiums in that policy year. There will be no further accrual of bonuses in the policy.

When can my policy discontinue?

If you are unable to pay the Installment Premium by the due date, you will be given a grace period of 30 days to make the payment of due installment premium during which time all benefits under the policy will continue.

a) Until two (2) full years Installment Premium are paid –

If we do not receive the entire Installment Premium by the end of the grace period, this policy shall be deemed lapsed and all benefits will cease immediately. The lapse date is the date the first unpaid premium was due. You will be given a period of five years from the lapse date to revive your policy.

b) Once two (2) full years Installment Premium has been paid –

If we do not receive the entire Installment Premium by the end of the grace period, this policy will be deemed paid-up, and benefits will continue as per the Policy Paid-Up provision. The paid-up date is the date the first unpaid premium was due. You will be given a period of five years from the paid-up date to revive the policy for its full benefits

When can my policy terminate?

Your policy will terminate at the earliest of the following –

  1. The date of settlement of the Death Benefit; or
  2. The date of payment of the surrender value, if any; or
  3. The date of payment of the policy maturity benefit; or
  4. The date on which the revival Period ends after your policy has lapsed as per Premium Discontinuance provision
  5. The date when outstanding loan value exceeds the surrender benefit for the reduced paid-up policy.

Exclusion under this policy –

  • 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.

Conclusion –

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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