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Plan Structure
= Rs. 12,00,000
Premium Paying Term 12 years NIL
After the completion of policy term, he starts receiving Income Benefit based on his choice as under:
Income Benefit option A
1 13 14 15 16 17 18 19
Rs. 1 Rs. 2 Rs. 3 Rs. 4 Rs. 5 Rs. 6
Lakh Lakh Lakh Lakh Lakh Lakh
Sum Assured Rs.16,00,000 in case of death
Paid at the end of year
Additional Sum Assured of Rs. 16,00,000 in case of accidental death
1 13 14 25
Sum Assured Rs.16,00,000 in case of death Rs.2,00,000 Lakh at the end of each year
10. What are the various Sum Assured multiples applicable under this Plan?
The table below gives the multiple applicable to each entry age.
Age Multiple Age Multiple Age Multiple Age Multiple Age Multiple
5 19.0 15 18.0 25 17.0 35 16.0 45 15.0
6 18.9 16 17.9 26 16.9 36 15.9 46 14.9
7 18.8 17 17.8 27 16.8 37 15.8 47 14.8
8 18.7 18 17.7 28 16.7 38 15.7 48 14.7
9 18.6 19 17.6 29 16.6 39 15.6 49 14.6
10 18.5 20 17.5 30 16.5 40 15.5 50 14.5
11 18.4 21 17.4 31 16.4 41 15.4
12 18.3 22 17.3 32 16.3 42 15.3
13 18.2 23 17.2 33 16.2 43 15.2
14 18.1 24 17.1 34 16.1 44 15.1
Example: Mr. Shetty aged 35 years, chooses premium amount of Rs.1,00,000, then his Sum Assured will be:
Age = 35; Multiple applicable = 16; Sum Assured = Multiple Annual Premium
Sum Assured = 16 100000 = Rs. 16,00,000
Premium
Benefits
15. What is the Death Benefit during the policy term under this plan?
The death benefit during the policy term under this plan is higher of the following
10 times of the annual premium (excluding service tax and cess, any applicable rider premiums and underwriting
extras, if any); or
105% of all the premiums paid as on the date of death (excluding service tax and cess, any applicable rider
premiums and underwriting extras, if any); or
Maturity Sum Assured*; or
Sum Assured.
In the event life insured dies due to an accident during the policy term; an additional sum assured will be paid to the
nominee as accidental death benefit, subject to a maximum limit of Rs. 1 crore. This benefit is payable subject to the
life insured having attained age 18 or more when the event occurs.
*Maturity Sum Assured is the commuted value of outstanding Income Benefit on maturity.
Example: Mr Shetty aged 35 years, chooses premium amount of Rs.1,00,000 and Income Benefit Option chosen :
Option A
In case of Mr. Shettys demise in the 8th policy year, his nominee shall receive:
Death Benefit = Higher of 10 x Annual Premium or
105% of all the premiums Paid as on date of death or
Maturity Sum Assured or Sum Assured
10 X Annual premium = Rs. 10,00,000
105% of Total premiums paid = (1,00,000 8) 105% = 8,40,000
Maturity Sum Assured = Rs. 14,47,000
Sum Assured = Rs. 16,00,000 (16 100000)
Death Benefit = Rs. 16,00,000
In case of accidental death an additional sum assured of Rs. 16,00,000 will be paid.
17. What is the Death Benefit for a minor life insured during policy term under this plan?
If death of life insured takes place before he / she attains age of 18 years, 2% of annual premium shall be payable as
an additional benefit on death or on payment of first installment of Income Benefit, whichever is earlier.
18. What is the Death Benefit during payment period under this plan?
In case of unfortunate demise of life insured during Payment Period, nominee would receive Income Benefit as per
benefit option chosen less any Income Benefit already paid.
19. Who will receive the Death Benefit if policyholder is different from life insured?
In case life insured is different from policyholder, the policyholder will receive the death benefit.
Income Benefit Option A Receive 100% - 600% of annual premium for 6 years at the end of year as per the table
shown below:
Payment Period Year Income Benefit (% of AP)
1 100%
2 200%
3 300%
4 400%
5 500%
6 600%
Income Benefit Option B Receive 200% of annual premium for 12 years at the end of year as per the table shown
below:
Example: Mr Shetty aged 35 years, premium amount Rs.1,00,000 Income Benefit Option Chosen : Option B
The Income Benefit under the plan = 1,00,000 200% = Rs. 2,00,000 paid at the end of the year during
the Payment Period
25. How will the Income Benefit be paid in case life insured dies during the Payment Period?
In case of death of life insured, the nominee will receive the Income Benefit payouts as scheduled.
The Guaranteed Surrender Value shall be a percentage of premiums paid (excluding any premiums paid towards
rider benefit/s, underwriting extras and service tax). It will vary depending on the year the policy is surrendered as
shown below:
Year of Surrender % of Premiums Paid
1 -
2 -
3 30%
4 50%
5 52%
6 54%
7 55%
8 57%
9 63%
10 70%
11 77%
12 83%
13 90%
Policy shall also be eligible for a Special Surrender Value; this Special Surrender Value is not guaranteed and can be
reviewed by BSLI from time to time. The Surrender Value calculation has been built in the iChamp illustration system
for your benefit.
28. Is there any rider benefit in this plan?
YES, client can enhance insurance coverage during the policy term by adding one or more of the following riders:
BSLI Critical Illness Rider (UIN: 109B019V03)
BSLI Surgical Care Rider (UIN: 109B015V03)
BSLI Hospital Care Rider (UIN: 109B016V03)
BSLI Waiver of Premium Rider (UIN: 109B017V02)
Please refer to detailed brochures/FAQs on riders or visit our website for further details.
32. What happens if client does not pay premium within the grace period?
If client does not pay premium within the grace period, the following will be applicable:
(a) In case client has not paid premiums for three full policy years then policy will lapse and all benefits under this
policy will cease immediately.
(b) In case client has paid premiums for at least three full policy years then policy will continue on a Reduced Paid-
Up basis.
33. What happens if policy lapses after paying premiums only for two full policy years?
If the policy is lapsed after paying installment premiums for at least two full policy years, we will pay 10% of the
installment premiums paid on death of the Life Insured or on early termination of the policy by the policyholder or
the end of the revival period of two years; whichever is earlier.
35. What would be the death benefit for a Reduced Paid-up policy during the policy term?
For policy that is continued on a reduced paid-up basis; in the unfortunate event of the death of the life insured
during the policy term, Reduced Sum Assured on Death will be paid to the nominee.
In case where the death of the Life Insured takes place before the Life Insured attains age of 18 years, we shall pay
reduced additional benefit on death.
Example: Continuing from the above example; Mr Shetty aged 35 years, sum assured: Rs. 16 Lakhs
annual premium: Rs. 1,00,000; pay term 12 years; policy term 13 years
If the policy is made reduced paid-up on 5th policy anniversary (premium for 5 years paid in full)
Reduced Sum Assured = 16,00,000 x 5/12 = Rs. 666,666.66
36. What would be the accidental death benefit for a reduced paid-up policy during the policy term?
For policy that is continued on a reduced paid-up basis; in the unfortunate event of the death of the life insured due
to an accident during the policy term, reduced accidental death benefit will be paid to the nominee.
37. What would be the death benefit for a reduced paid-up policy during the payment period?
For policy that is continued on a reduced paid-up basis; in the unfortunate event of the death of the life insured
during the payment period, we shall continue to pay reduced income benefit to the nominee.
38. What would be the maturity benefit for a reduced paid-up policy?
On maturity, client can choose to receive commuted value of Reduced Income Benefit payouts.
39. What would happen to Income Benefit payouts for a reduced paid-up policy?
For policy that is continued on a reduced paid-up basis; Reduced Income Benefit payouts will be paid depending on
the option selected.
Termination
Operational Guidelines
43. Can Life Insured and Policyholder be different under this plan?
YES, the Life Insured and Policyholder can be different under this plan. In case Policyholder and the Life Insured are
different then all the proceeds for the policy will be paid to the Policyholder.