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Aditya Birla Sun Life Insurance Wealth Assure Plus Plan – Review, Features and Benefits

Anuradha Singh

Aditya Birla Sun Life Insurance Wealth Assure Plus enables your wealth to grow over the long-term while protecting it against death, Critical Illness, or Total Permanent Disability. With the benefits of MNC fund in your portfolio, it helps in generating good returns. Also, you get up to 2.4 times in the form of guaranteed additions. Thus, this plan provides a secure financial future to achieve your life goals at different stages.

Features of this Policy –

Plan Options of the Policy –

The Insured can choose between the 2 plan options at inception. The benefit to be paid to the nominee/policyholder in case of unfortunate death of the life insured during the policy term.

Investment Options of the Policy –

i) Smart Investment Option –

ii) Systematic Transfer Investment Option –

iii) Self Managed Investment Option –

iv) Return Optimizer Investment Option –

Benefits of the Policy –

a) Guaranteed Benefits –

b) Death Benefit –

Your Policy Schedule shows the Basic Sum Assured applicable to your policy. Your Sum Assured is the total of Basic Sum Assured and Top-up Sum Assured, if any. If the Life Insured dies while the policy is in force, the company shall pay to the Nominee the following –

In addition, if any top-up premium is paid, the nominee shall also receive the following –

If the policy has not been discontinued, the Death Benefit shall never be less than 105% of total basic premiums and top-up premiums paid up to the date of death. Provided that where the death of the Life Insured takes place prior to the Risk Commencement Date, only the Basic Premium paid shall be payable as the Death Benefit.

The policy will terminate once the Death Benefit is paid to the nominee. The Death Benefit shall always be determined as on the date we receive intimation of death of the Life Insured.

Further any charges other than Fund Management Charges (FMC) recovered subsequent to the date of death shall be added back to the Policy fund value as available on the date of intimation of death. Where this policy has been taken for the benefit of the life insured who is a minor, the policy shall automatically vest in the life insured on his attaining age 18.

c) Waiver of Premium on Critical Illness and Total Permanent Disability Benefit –

If the policyholder has chosen the Assured Options per the policy schedule and the life insured is diagnosed with the first occurrence of any one or more of the specified Critical Illnesses or Total Permanent Disability during the policy term as defined below in detail, all future premiums, if any, shall be paid by the Company when due to be paid.

All the other benefits will remain unaffected till the Policy Maturity Date or date of death whichever is earlier as shown in the Policy Schedule. All policy charges shall be deducted as and when due, except Waiver of Premium (CI / TPD), charges.

Premium waiver benefit is applicable to the first occurrence of either Total Permanent Disability or specified Critical Illness, whichever is earlier. For a paid-up policy no future installment premiums shall be paid by the Company on the diagnosis of any one or more of the specified Critical Illnesses or Total Permanent Disability during the policy term.

d) Maturity Benefit –

On the Policy Maturity Date and provided your policy is in force, the company shall pay you the Maturity Benefit. The Maturity Benefit shall be the Basic Fund Value and the Top-up Fund Value as of that date.

e) Rider Benefit –

For added protection, ABSLI Wealth Assure Plus can be enhanced by the following riders for a nominal extra cost:

i) ABSLI Accidental Death Benefit Rider Plus –

In the unfortunate event of the death of the life insured due to an accident within 180 days of the occurrence of the accident, we will pay 100% of the rider sum assured to the nominee. Also, we will refund the premiums collected after the date of Accident till the date of death, with interest as declared by us from time to time, along with death benefit payable.

ii) ABSLI Waiver of Premium Rider –

In case of the following conditions –

The company will fund all the future due to premiums and all the other benefits will remain unaffected. This benefit is applicable only once during the entire premium paying term. The rider can be taken only if you have chosen Classic Option.

Eligibility Criteria of the Policy –

Is Partial Withdrawal allowed in the policy?

The insured is allowed to make unlimited partial withdrawals any time after the following –

The partial withdrawals shall first be adjusted from Top-up Fund Value (except any top-up premiums paid in the previous five years immediately preceding the date of withdrawal); if any. Once the Top-up Fund Value is exhausted, partial withdrawals would be adjusted from Basic Fund Value.

The minimum amount of partial withdrawal is Rs. 5,000. The insured is required to maintain a minimum Basic Fund Value of one basic premium payable in a year plus any top-up premiums paid in the previous five years immediately preceding the date of withdrawal. The total amount of partial withdrawal during a policy year shall not exceed 25% of the total Policy fund value at the beginning of the policy year.

When can I surrender my policy?

In case of emergencies, the policy can be surrendered anytime during the policy term. If the policy is surrendered after completion of five policy years, the Policy Fund Value will be paid immediately. If it is surrendered before lock In period, the proceeds of the discontinued policy shall be payable at the end of the lock-in period.

Can I take a loan against this policy?

The insured is not allowed to take any loan against the policy under any circumstances.

Am I allowed to switch in between funds?

The insured can change from one investment option to another investment option anytime after the first policy year. They can switch to Self-Managed Investment Option, Smart Investment Option, or Systematic Transfer Investment Option during the policy term, however, switching to the Return Optimiser Investment Option is not allowed. Switching to Systematic Transfer Investment Option is allowed only at the policy anniversary.

What is Premium Redirection in the policy?

To meet your ever-changing investment needs, you have full flexibility to redirect future premiums by changing your premium allocation percentages at any time.

What is the Reduction of Premium Payment Term?

The insured shall have an option to reduce the premium payment term provided the policy is in force for full sum assured and provided that such reduction is subject to boundary conditions of the product. This option shall be available only after basic premiums have been paid in full for the first five policy years.

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

The insured will have the right to return their policy to the company within 15 days (30 days in case the policy issued under the Distance Marketing) from the date of receipt of the policy, in case you are not satisfied with the terms & conditions of your policy. This period is known as the Free Look Period.

The will pay the Policy fund value plus non allocated premiums plus charges levied by cancellation of units once they receive a written notice of cancellation (along with reasons thereof) together with the original policy documents. The company may reduce the amount of the refund by the proportionate risk premium and the expenses incurred by us on medical examination of the proposer and stamp duty charges

Various Policy Charges –

a) Premium Allocation Charge –

A Premium Allocation Charge is levied on the basic and top-up premiums when received –

b) Fund Management Charge –

The daily unit price of the segregated fund is adjusted to reflect the fund management charge –

c) Policy Administration Charge –

The Policy Administration Charge is deducted at the start of eve policy month by canceling units proportionately from each Segregated Fund you have at that time. The charge is as shown below, subject to a maximum of Rs 6,000 per annum.

d) Waiver of Premium (CI/TPD) Charge –

For Assured Option, a waiver of premium (CI/TPD) charge is deducted at the start of eve month. It is charged by canceling units proportionately from each segregated fund you have at that time. The charge per 1000 of Sum at Risk under the policy will depend on the gender and attained the age of the life insured. The sum at Risk is the discounted value (determined using a discount rate of 6.25% p.a.) of future installment premiums.

e) Miscellaneous Charges –

The company currently charges Rs 50 per request for a change in investment option, premium re-direction, fund switch partial withdrawal, or any additional servicing request. The company reserves the right to charge up to Rs 500 per request in the future. Any increase in the miscellaneous charges will be subject to IRDAI approval.

f) Switching Charges –

This charge is deducted from your Basic Fund Value in case you request for switching between investment options or Segregated Fund Switch. The current charges are Rs. 50 per request and reserve the right to increase this charge at any time in the future, subject to a maximum of Rs. 500 per request and prior IRDAI approval.

g) Mortality Charges –

This is deducted from your policy on each monthly processing date by the redemption of units from the segregated fund/s. This charge is guaranteed to never increase. The charge depends on the gender of the Life Insured, premium band and varies by policy year based on the then attained age of the Life Insured.

When can I revive my policy?

You can revive your policy within the revival period of three years from the discontinuance date. To revive the policy, you must pay all due and unpaid basic premiums till date and provide us with evidence of insurability satisfactory to us with respect to the Life Insured.

The effective date of the revival is when these requirements are met and approved by the company. On the effective date of the revival, the company shall follow the approach as mentioned in the Policy Discontinuance Section.

Can I make a partial withdrawal in the policy?

Yes, you can make a partial withdrawal at any time after five complete policy years and provided Life Insured is alive and has attained age 18 or older. The partial withdrawals shall first be adjusted from the Top-up Fund Value (except any top-up premiums paid in the previous five years immediately preceding the date of withdrawal); if any.

Once the Top-up Fund Value is exhausted, partial withdrawals would be adjusted from Basic Fund Value. The top-up sum assured will remain unchanged after any withdrawal from the top-up fund value.

The partial withdrawal you can make is subject to a minimum of Rs. 5,000 and a maximum equal to any excess of the Policy Fund Value over one years’ Basic Premiums payable in a year plus top-up premiums paid during the five years immediately preceding the date of partial withdrawal. The total amount of partial withdrawal in a policy year shall not exceed 25% of the total PolicyFund Value at the beginning of the policy year.

What is Policy Paid-Up?

Under the paid-up status, the policy will continue until the end of the revival period with the following modifications –

Also, no charge will be deducted for Critical Illness and TPD benefits. If the policy is not revived before the end of the revival period, the policy shall terminate as per the Policy Discontinuance Provision.

When can my policy terminate?

Your policy will be terminated at the earliest of the following –

Exclusion under the Policy –

a) Suicide Exclusion

In case of death due to suicide within 12 months from the date of commencement of the policy or from the date of revival of the policy, as applicable, the nominee or the beneficiary of the policyholder shall be entitled to the Policy fund value, as available on the date of intimation of death.

Further any charges other than Fund Management Charges (FMC) recovered subsequent to the date of death shall be added back to the Policy fund value as available on the date of intimation of death.

b) Total Permanent Disability and Critical Illness Benefit Exclusion –

The Life Insured shall not be entitled to any benefits if Total Permanent disability or covered Critical Illness results either directly or indirectly from any of the following –

i) That is/are diagnosed by a physician within 48 months prior to the effective date of the policy issued by the insurer or its latest revival date; OR

ii) For which medical advice or treatment was recommended by, or received from, a physician within 48 months prior to the effective date of the policy or its latest revival date, whichever is later; OR

iii) A condition for which any symptoms and or signs if presented and have resulted within three months of the issuance of the policy or its latest revival date in a diagnostic illness or medical condition.

This exclusion will not be applicable to conditions, ailments or injuries or related condition(s) which are underwritten and accepted by insurer inception.

c) Additional Total Permanent Disability Benefit Exclusion –

In addition to the common exclusions above, the Life Insured shall not be entitled to any benefits if Total & Permanent Disability results either directly or indirectly from –

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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