Aditya Birla Sun life Insurance Wealth Secure Plan – Review, Features and Benefits

In order to build a better life and realize our dreams, we always need to plan ahead. For this, we will need a savings plan that helps us attain our goals with our changing life stage and can be customized to match our needs while giving us peace of mind.

“Aditya Birla Sun Life Insurance Wealth Secure Plan” helps us combine long term savings and whole life coverage specially designed for you to focus on your goals and maximize savings for our future.

Aditya Birla Sun Life Insurance Wealth Secure Plan

Features of this Policy –

  • Pay premiums for a limited term and get life cover for whole life
  • The flexibility to choose from 3 investment options to suit your investment needs
  • The flexibility to add top-ups whenever you have additional savings
  • The flexibility of partial withdrawals to meet any emergency fund requirements
  • Tax benefits on premiums paid under section 80C and section 10(10D) of the Income Tax Act, 1961

Investment Options in the Policy –

a) Systematic Transfer Option –

  • Safeguards your wealth against the market volatilities.
  • Available only if you have opted for annual mode.
  • Basic premium (net of premium allocation charge) shall be first allocated to the Liquid Plus fund option.
  • Thereafter monthly 1/12th of the allocated amount shall be transferred to up to 4 segregated fund(s) of your choice viz. Enhancer, Creator, Multiplier, Super 20, Income Advantage, Maximiser, MNC, Pure Equity, and Value & Momentum as per the investment proportion for the chosen funds.
  • Transfers to your chosen segregated fund(s) will take place monthly on 1st, 8th, 15th or 22nd of the month as selected by you.
  • It helps to mitigate any risk arising from volatility and averages out the risks associated with the equity market, reducing the overall risk to your portfolio.

b) Self Managed Option –

  • Gives you access to our well-established suite of 16 segregated funds viz Liquid Plus, Income Advantage, Assure, Protector, Builder, Enhancer, Creator, MNC, Magnifier, Maximiser, Multiplier, Super 20, Pure Equity, Value & Momentum, Capped Nifty Index, Asset Allocation.
  • Complete control on how to invest your premiums.
  • Full freedom to switch from one segregated fund to another.
  • Diversify your risk, by allocating your premium in varying proportions amongst the 16 segregated funds.
  • Full flexibility to redirect future premiums by changing your premium allocation percentages at any time.

c) Life Cycle Option –

  • Under these options, the portfolio will be structured as per your age and risk profile. You need to decide on your risk profile – Conservative, Moderate, or Aggressive. Your investments will be automatically shifted from riskier assets to safer assets progressively with your age.
  • Your premiums will be invested between the two segregated funds, Maximiser (Equity Fund) and Income Advantage (Debt Fund) in a predetermined proportion based on the selected risk profile and your age when the premium is invested.
  • Your investment portfolio will be automatically rebalanced 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.
  • The proportion invested in Maximiser (Equity Fund) will be according to the schedule given below – the remaining amount will be invested in Income Advantage (Debt Fund) –

Life Cycle Option of ABSLI Wealth Secure Plan

Benefits of this Policy –

a) Guaranteed Additions –

The company will add the following Guaranteed Additions to your Policy Fund Value while the policy is still in effect –

  • On 10th policy anniversary and on every 5th policy anniversary thereafter, the company shall add a Guaranteed Addition equal to 2.00% of the total basic and top-up premiums paid in the last 5 policy years; plus
  • On 11th policy anniversary and every policy anniversary thereafter, the company shall add a Guaranteed Addition equal to 0.20% of the average Policy Fund Value in the last 12 policy months. The average Policy Fund Value shall be the sum of the Policy Fund Value after each monthly processing date in the last 12 policy months, all divided by 12.

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 effect, the company shall pay to the nominee/legal heir the greater of the following –

  • Basic Fund Value as on date of intimation of death; or
  • Basic Sum AssuredIn addition, the nominee/legal heir shall also receive the greater of
  • Top-up Fund Value as on date of intimation of death; or
  • Top-up Sum Assured

In addition, the nominee/legal heir shall also receive the greater of the following –

  • Top-up Fund Value as on date of intimation of death; or
  • Top-up Sum Assured

Basic Sum Assured shall be reduced to the extent of partial withdrawals made during the two-year period immediately preceding the death of the life assured from the basic fund value. However, the Death benefit after partial withdrawals shall never be less than Annualized Premium multiplied by 10.

If the policy has not been discontinued,Death Benefit shall never be less than 105% of total basic premiums and top-ups premium paid up to the date of death reduced to the extent of partial withdrawals made both from the basic fund and top-up fund values, during two years immediately preceding the death of the life assured. 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.

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. If the life insured and the policyholder is different, the death benefit shall be paid to the policyholder. The Death Benefit shall always be determined as of the date we receive intimation of death of the Life Insured.

c) Top-Up Premium –

You may wish to invest additional amounts as top-up premiums anytime during the policy term as long as all due basic premiums have been paid. The minimum top-up premium is Rs. 5,000 and at any point the total top-up premiums paid cannot exceed the total basic premiums paid to date. Top-up premiums cannot be withdrawn for five years unless in case of complete surrender of the policy. Top-up Sum Assured will be 125% of the top-up premium being paid

d) Rider Benefit –

For added protection, ABSLI Wealth Secure Plan 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 policyholder becomes completely disabled due to an illness or accident
  • The policyholder is diagnosed with any of the specified critical illnesses
  • The death of the policyholder (only if other than the Life Insured)

We will waive off all the due future premiums and all the other benefits will remain unaffected. This benefit is applicable only once during the entire premium paying term.

Eligibility Conditions of the Policy –

Eligibility Conditions of ABSLI Wealth Secure Plan

Policy Charges –

i) Premium Allocation Charge –

A premium allocation charge is levied on the basic and top-up premiums when received as follows –

  • 6.00% of the basic premium payable in the policy years 1-2
  • 5.50% of the basic premium payable in the policy years 3-6
  • 5.00% of the basic premium payable from the 7th policy year onwards
  • A premium allocation charge of 2% is levied on any top-up premium when paid.

ii) Fund Management Charge –

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

  • 1.00% p.a. for Liquid Plus, Income Advantage, Assure, Protector, and Builder.
  • 1.25% p.a. for Enhancer, Creator, Capped Nifty Index, Asset Allocation.
  • 1.35% p.a. for Magnifier, MNC, Maximiser, Multiplier, Super 20, Pure Equity, and Value & Momentum.

iii) Policy Administration Charge –

The policy administration charge is Rs. 20 per month for the first five policy years. It shall increase to Rs. 25 per month in the sixth year and inflate at 5% p.a. thereafter, subject to a maximum of Rs. 6,000 p.a. This charge is deducted at the start of every month by canceling units proportionately from each segregated fund you have at that time.

iv) Miscellaneous Charges –

Rs. 50 per request is charged for a change in investment option, premium re-direction, fund switch partial withdrawal or any additional servicing request.  We do however reserve the right to charge up to Rs. 500 per request in the future.

v) Discontinuance Charge –

The discontinuance charge is guaranteed to never increase and is levied against the Policy Fund Value upon discontinuance. The charge on discontinuance or surrender of the policy is as follows –

Discontinuance Charges in the Policy

Am I allowed to do partial withdrawals in the policy?

You are allowed to make unlimited partial withdrawals any time after the following –

  • Five complete policy years or
  • Life insured attaining the age of 18; whichever is later.

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 top-up sum assured will remain unchanged after any withdrawal from the top-up fund value.

The minimum amount of partial withdrawal is Rs. 5,000. You are required to maintain a minimum Basic Fund Value of three times the basic premiums 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

Can I surrender the 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, 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?

There is no loan facility available for the policyholder against this policy under any circumstances.

Can I switch funds to this policy?

You also have full flexibility to switch money from one segregated fund to another at any time provided the switched amount is for at least Rs. 5,000. .

What is the 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 reduction of premium payment term in the policy?

You 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 the basic premiums have been paid in full for the first five policy years.

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

You will have the right to return your policy to us within 15 days (30 days in case the policy issued under 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 company 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 further reduce the amount of the refund by the proportionate risk premium and the expenses incurred by the company on medical examination of the proposer and stamp duty charges

When can I revive my policy?

You can revive your policy within a 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 us. On the effective date of the revival, the company shall follow the approach as mentioned in the Policy Discontinuance Section.

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 –

  • Basic Sum Assured shall be reduced in proportion to the installment premiums actually paid to the total installment premiums payable during the premium paying term.
  • Mortality charges will be deducted for the reduced sum at risk and other policy charges will remain unchanged.
  • 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 terminate at the earliest of the following –

  • The dates on which the lock-in period or revival period if applicable, whichever is later after your policy is discontinued and not been revived as per Policy Discontinuance Provision; or
  • The date the Policy Fund Value becomes zero; or
  • The date settlement of the death benefit; or
  • The date of payment of the surrender value, if any.

Is there any grace period in the policy?

If you are unable to pay the installment premium by the due date, you will be given a grace period of 30 days (15 days in case the premium is paid monthly) to make the payment of due installment premium without incurring any penalty, during which time all the benefits will continue inclusive of the risk cover and deduction of charges.

Exclusion under the policy –

Suicide Exclusion –

In case of death of insured 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.

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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