In this policy, the investment risk in investment portfolio is borne by the policyholder
Highlights
Guaranteed maturity benefits*
Death benefits of Sum Assured and Fund Value
5% Guaranteed additions*
Inbuilt Accidental death benefit .
* conditions apply
Birla Sun Life Insurance Life Companion - Endowment Plan
You live life only once. Make sure you live it in a worry free way. As your responsibilities increase
with marriage, children and parents, you feel a pressing need to keep your loved ones safe and
secure even when you are not around. The Birla Sun Life Insurance Life Companion Endowment
plans understands your needs. The plan that gives you family protection and helps your savings
over long term. It's a plan that not only fits your budget but also takes care of your varied needs. It
provides for emergency support for education, marriage and medical costs by blending life
insurance protection and long term savings. Giving you complete peace of mind. Now family bhi fit
,budget bhi fit.
About Birla Sun Life Insurance
Birla Sun Life Insurance Company Limited is a joint venture between The Aditya Birla Group, one of
the largest business houses in India and Sun Life Financial Inc., a leading international financial
services organisation. The local knowledge of the Aditya Birla Group combined with the expertise of
Sun Life Financial Inc., offers a formidable protection for your future.
The Aditya Birla Group has a turnover of close to Rs. 119000 crores, with a market capitalisation of
Rs. 133875 crores (as on 31st March 2008). It has over 100,000 employees across all its units
worldwide. It is led by its Chairman - Mr. Kumar Mangalam Birla. Some of its key companies are
Hindalco, Grasim and Aditya Birla Nuvo.
Sun Life Financial Inc. and its partners, have operations in key markets worldwide. These include
Canada, the United States, the United Kingdom, Hong Kong, the Philippines, Japan, Indonesia,
India, China and Bermuda. Sun Life Financial Inc. has assets under management of over US$404.7
billion (as on 31st March, 2008). It is a leading performer in the life insurance market in Canada.
Birla Sun Life Insurance (BSLI) has been operating for 7 years. It has contributed significantly to the
growth and development of the life insurance industry in India. It pioneered the launch of Unit Linked
Life Insurance plans amongst the private players in India. It was the first player in the industry to sell
its policies through the Bancassurance route and through the Internet. It was the first private sector
player to introduce a Pure Term plan in the Indian market. BSLI has covered more than 2 million
lives since it commenced operations. And its customer base is is spread across more than 1500
towns and cities in India. The company has a capital base of Rs. 1274.5 crores as on 31st March
2008.
The Plan
Any person, male or female, in the age group as specified in the table is eligible to apply for the
Birla Sun Life Insurance Life Companion Endowment plan.
Particulars
Endowment Plan
Entry Ages
30 days (3 years for the 15 year term) - 60 yrs age at last
birthday, for all durations except “To age 60” plan where
maximum entry age is 40 yrs.
Maximum Maturity Age
75 years
Minimum Life Insurance Cover
Rs. 75, 000
Maximum Life Insurance Cover
No Limit
Maximum Accidental Death
Benefit
Rs. 10 lacs
Duration of the Plan
15, 20, 25, 30 years or “To age 60”.
Premium Payment Period
20 years in case of “To age 60” and throughout the term of the
policy for other durations
Premium Payment Frequency
Annual, Semi annual, Monthly (through ECS only)
Premium Payment Mode
Cash (upto Rs. 20,000), Cheque, Credit Card, Salary
Deduction, ECS, Direct Debit etc.
Who should buy the plan?
The plan is ideally suited for any person looking for life insurance protection and savings over the
long term. The plan protects those who depend on your earnings, such as your spouse, children
and quite possibly, your parents. If any unfortunate event were to take place prematurely, the plan
can provide emergency support for education, marriage and medical costs.
Benefits
The plan offers excellent benefits, which are as detailed below:
A Maturity Benefits
On completion of the policy duration, you will receive a minimum guaranteed amount equal to the
Sum Assured. In case the Fund Value on maturity is higher, then Fund Value will be paid instead
of Sum Assured.
The Sum Assured is guaranteed on maturity only if the following conditions are satisfied:
1) All Coverage Premiums are paid by you; and
2) Each Coverage Premium is paid by you on or before the expiry of a period of 60 days from the
due date.
If these conditions are not satisfied, or in case policy is revived then only the Fund Value will be
paid to you.
B Death Benefits*
The death benefit is the amount payable to your nominees in case of death. The benefit amount
will be equal to the sum of the Sum Assured and the entire Fund Value at the time of death
C Additional Benefits
In case of death as a result of an accident an additional amount equal to the Sum Assured chosen
by you will be payable to your nominee. The maximum amount will be Rs.10 lakh across all Birla
Sun Life Insurance Life Companion Endowment policies owned by you. This benefit is available
only in case of death in an accident between the ages of 18 and 65 years.
D Waiver of Premium Rider
This rider waives payment of future premiums on the happening of any of any of the unforeseen
events as covered under this rider. For further details please refer to detailed brochure on riders.
Please note that the riders are not available if you are an NRI investor.
E Guaranteed Additions
You stand to gain an additional 5% of the Fund Value as Guaranteed Additions in your maturity
benefits, provided of course, that the two conditions for Guaranteed Maturity Benefit mentioned in
the paragraph on maturity benefits above are satisfied
E Tax Benefits$
The premium that you pay and all the benefits payable to you under the plan are eligible for tax
benefits under Section 80 C and Section 10(10D) of the Income Tax Act of 1961.
Policy Benefits
Details
Maturity Benefits
Higher of Sum Assured or Fund Value (subject to conditions)
*
Death Benefits
Sum Assured + Fund Value on the date of death
Additional Benefits in case of
death due to accident
Between the ages 18 and 65 an amount equal to the Sum
Assured upto a maximum of Rs. 10 lakhs across all
LifeCompanion Endowment policies
Rider
Waiver of Premium Rider available.
Free Look Period
15days after receipt of the Policy Document
Tax Benefits
$
Guaranteed Additions
Under Section 80C and Section 10(10D) of the Income Tax
Act of 1961
An additional 5% of the Fund Value as Guaranteed Additions
on maturity.
* Provided that where the death of the policyholder takes place before the date of the Policy
Anniversary, coinciding with or immediately following the date when the policyholder attains the age of
five, only the Fund Value shall be payable to the Policy Owner.
$
As per the current tax provisions
Fund Value
What is Fund Value and how does it accumulate?
The Fund Value is the savings portion of your plan. The Fund Value at any time is equal to the
number of units multiplied by the NAV. Each premium that you pay will be reduced by the
Premium Allocation Charge and converted into units by dividing this amount by the NAV on that
day. The NAV reflects the performance of the underlying investments of the Investment Fund.
The Fund Value is also the amount, which is added to the Sum Assured and paid to your
nominees in case of death.
What are the options available to you if you want to discontinue this plan?
The plan offers you the option to surrender the policy anytime you may need to do so subject to
surrender charges as mentioned in the section on Policy charges. The Surrender charges to be
levied vary based on the duration of the policy. There are no surrender charges after the third
year.
However, if the policy is surrendered anytime before the completion of three policy years,
Surrender Value at the time of surrender will be paid at the end of the third policy year. Once the
policy is surrendered , the policy will terminate and will not be eligible for revival.
What happens to the plan in case of non-payment of premium?
Premium Discontinuance
(a) Non-receipt of Policy Premium within first three Policy Years:
To keep the Coverages in force, you must contribute, within the grace period of 30 days, an
amount equal to due but unpaid Policy Premium. At the end of the grace period if the premium is
not received, then the Policy will lapse and all Coverages will terminate immediately.
If the Policy is not revived within two years from the lapse date, the Surrender Value as at lapse
date will be paid out at the end of the third Policy Year or at the end of the revival period
whichever is later. In case, the Policy is surrendered during the Revival Period, then the
Surrender Value as at lapse date will be paid out at the end of the third Policy Year or the date of
Surrender whichever is later. The Surrender Value will be calculated by deducting the Surrender
Charges applicable on the lapse date. The Surrender Value will not be affected by the market
fluctuations and will remain constant till the time it is paid out. There will be no deduction of the
Policy Charges (as set out in the Policy Charges provision) thereafter from the Surrender Value.
(b) Non-receipt of Policy Premium after the first three Policy Years:
To continue the Policy, you must contribute, within the grace period of 30 days, Policy Premium
due but unpaid. At the end of the grace period if the premium is not received, you will be given a
period of two years to pay all due but unpaid Policy Premiums. During these two years all
Coverages will continue to be in force and all applicable charges will continue to be deducted
from the Fund Value till the Surrender Value falls to one Annual Policy Premium. At this time the
Policy will be terminated and the Surrender Value will be paid out.
At the end of the two-year period we will give you an option to continue the Policy. If you do not
opt to continue the Policy, the Policy will be terminated and the Surrender Value will be paid out.
If you decide to continue with the Policy the Company will not accept further Policy Premium
under this Policy. All Coverages will continue to be in force and all applicable charges will
continue to be deducted till the Surrender Value falls to one Annual Policy Premium. At this time
the Policy will be terminated and the Surrender Value will be paid out
What is the process for revival of my policy?
If the policy lapses due to non-receipt of premium within first three Policy Years, you can request
that it be revived within two years from the lapse date. Revival or re-instatement of Life
Insurance Coverage is subject to the following:
• Evidence of insurability satisfactory to us with respect to the Life Insured (if applicable); and
• Contribution in full of an amount equal to all Policy Premiums due but unpaid till the Effective
Date of Revival.
The Effective Date of Revival is the date on which the above requirements are met and
approved by the company. On this date, the Fund Value as on the lapse date will be re-invested
in the Investment Fund at the NAVs applicable on the Effective Date of Revival All outstanding
Policy Charges, if any, for the period between the lapse date and the Effective Date of Revival
shall be deducted from the Fund Value
Portfolio Fund
What will be the portfolio of the fund # in which the premiums are invested?
The indicative portfolio of the Investment Fund where the savings portion of the premiums will be
invested is as under:
Investment
Fund
Option
Balancer
Risk Profile
Medium
Asset Allocation *
Min.
Max.
Debt Instruments, Money Market &Cash
75%
90%
Equities & Equity Related Securities
10%
25%
This Investment Fund has a varying amount of debt and equity.
The investment objective and strategy of the Investment Fund Option offered is as follows:-
Objective: The objective of this Investment Fund is to achieve value creation of the policyholder
at an average risk level over medium to long-term period.
Strategy: The strategy is to invest predominantly in debt securities with an additional exposure to
equity, maintaining medium term duration profile of the portfolio. The Valuation of assets under
the Investment Fund will be done in accordance to the regulations issued by IRDA in this regard
and the internal rules of the Company. Fund valuation will be computed at least once a week.
Policy Charges
What are the Policy Charges?
The Premium Allocation charge is an up-front charge recovered as a percentage of the Life
Insurance Coverage Premium that you pay and varies as per the Policy Year as given under:
Policy Year
% of Life Insurance Coverage Premium
1
65%
2
20%
3
20%
4
15%
5
15%
6+
0%
The Premium Allocation Charge on underwriting extra (if any) is 2%. There is no Premium
Allocation Charge on Rider Coverage Premiums
In addition to the above Premium Allocation Charge the following Charges will be recovered from
the Fund Value.
1) The Mortality Charge of the Life Insurance Cover will be deducted by cancellation of Units
on a monthly basis at the prevailing NAV. The Annual Mortality Charges per thousand of the
Sum Assured for sample ages are as follows:
Age
20
30
40
50
Male
1.016
1.171
2.150
5.532
Female
0.896
1.163
1.657
4.030
The Mortality Charges are guaranteed for the entire period of the contract.
2) Policy Administration Charge which is an Annual charge of Rs 8 per thousand of the Sum
Assured will be deducted in the first 5 years of the Policy. In the next 5 years, an annual
charge of Rs 6 per thousand of the Sum Assured would be deducted and thereafter this
charge would be Rs 3.75 per thousand of the Sum Assured. The charge will be deducted by
canceling units on a monthly basis. The upper limit for this charge is Rs. 10 per thousand of
the Sum Assured.
3) Fund Management charges not exceeding 1.5% per annum of the Fund Value will be
charged by adjustment of the daily Navs. Currently this charge is 1% per annum.
4) The Policy can be surrendered by you anytime during the tenure of the Policy. If the Policy is
surrendered within three years from inception, then the Surrender Value is paid to you after
the completion of the third Policy year. If the Policy is surrendered after three years from
inception, then the Surrender Value is paid to you immediately. The Surrender Value is
calculated after deducting the Surrender Charges from the Fund Value applicable at the time
of surrender. The Surrender Charges to be levied vary based on the duration of the Policy
and are levied as a percentage of the Annual Life Insurance Coverage Premium payable.
The Surrender Charges levied on this policy are as per the table below:
Policy Year
Surrender Charges (As a % of the Annual Life Insurance
Coverage Premium)
Year 1
100
Year 2
25
Year 3
10
Year 4 onwards
Nil
5) If there is an attached Rider, a Coverage Premium for that Rider will be payable by you. A
Rider Premium Charge will be recovered monthly by cancellation of Units. The Rider
Premium Charge will be the equivalent monthly Rider Coverage Premium payable when the
Rider Coverage Payment Period equals the Rider Coverage Benefit Period. Rider Coverage
Premiums may be subject to market risk.
These Policy Charges (except Mortality Charges and Premium Allocation Charges) are
subject to change and a three-month notice will be provided to all Policy Owners prior to the
implementation of the new rates of charges. This will be subject to approval of the IRDA.
NAV
The basis used for calculation of NAV would be the appropriation price and expropriation Price.
The Appropriation price shall apply in a situation when the company is required to purchase the
assets to allocate the units at the valuation date.
The Expropriation price shall apply in a situation when the company is required to sell assets to
redeem the units at the valuation date.
The NAV per unit of each Investment Fund will be calculated as per the prevailing IRDA
guidelines mentioned below
When Appropriation price is applied: The NAV shall be computed as:
(Market Value of Investments held by the fund + The Expenses incurred in Purchase of the
Assets + Value of Any Current Assets + Any Accrued Income Net of Fund Management
Charges - Value of any Current Liabilities - Provisions, if any)
Divided by the number of units existing at valuation date (before any new units are allocated)
When Expropriation price is applied: The NAV shall be computed as:
(Market Value of Investments held by the fund - The Expenses incurred in Sale of the Assets +
Value of Any Current Assets + Any Accrued Income Net of Fund Management Charges - Value
of any Current Liabilities - Provisions, if any)
Divided by the number of units existing at valuation date (before any new units are allocated)
Free Look Period
You will have the right to return your policy to us within 15 days from the date of receipt of the
policy. We will pay the Fund Value plus all charges levied till date (excluding the Fund
Management Charge) once we receive your written notice of cancellation (along with reasons
thereof) together with the original policy documents. Accidental Death Definition
Service Tax and other levies
Service Tax and other levies, as applicable, will be levied as per the extant tax laws.
Accidental Death Definition
Traumatic death caused solely by external, violent, unforeseeable and visible means, occurring
independently of any other causes; and occurs within 6 months of the trauma; but does not
result from any of the causes listed in the Exclusions stated below.
EXCLUSIONS FOR THE BENEFITS DUE TO ACCIDENTAL DEATH
We will not pay the additional accidental death benefit amount referred to in the 'Additional
Benefits' section in case of death due to an accident, which is a direct or indirect result of any of
the following:
Suicide or self inflicted injury, whether the Life Insured is medically sane or insane.
War, terrorism, invasion, act of foreign enemy, hostilities, civil war, martial law, rebellion,
revolution, insurrection, military or usurper power, riot or civil commotion. War means any
war whether declared or not.
Service in the armed forces, or any police organization, of any country at war or service in
any force of an international body.
War means any war whether declared or not.
Committing an assault, a criminal offence, an illegal activity or any breach of law.
Taking or absorbing, any intoxicating liquor, drug, narcotic, medicine, sedative or poison,
except as prescribed by a licensed doctor other than the Policy Owner or the Life Insured.
Inhaling any gas or fumes, accidentally or otherwise, except accidentally in the course of
duty.
Bodily or mental infirmity or any disease.
Participation in aviation other than as a fare-paying passenger in an aircraft, which is
authorised by the relevant regulations to carry such passengers, between established
aerodromes.
Suicide
" If the life insured dies by suicide within one year of the issue or re-instatement of the Life Insurance
Coverage, we will not pay the Life insurance cover. In such a case, we will refund the higher of the
premiums paid towards the policy since the issue date or the Fund Value at the time of death.”
Section 41 of the Insurance Act
No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to
take or renew or continue an insurance in respect of any kind of risk relating to lives or property in
India, any rebate of the whole or part of the commission payable or any rebate of the premium shown
on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate,
except such rebate as may be allowed in accordance with the published prospectuses or tables of the
insurer.
Section 45 of the Insurance Act
No Policy of Life Insurance effected before the commencement of this Act shall after the expiry of two
years from the date of commencement of this Act and no Policy of Life Insurance effected after the
coming into force of this Act shall, after the expiry of two years from the date on which it was effected
be called in question by an Insurer on the ground that statement made in the proposal or in any report
of a medical officer, or referee, or friend of the Life Insured, or in any other document leading to the
issue of the Policy, was inaccurate or false, unless the Insurer shows that such statement was on a
material matter or suppressed facts which it was material to disclose and that it was fraudulently made
by the Life Insured and that the Life Insured knew at the time of making it that the statement was false
or that it suppressed facts which it was material to disclose.
Provided that nothing in this section shall prevent the Insurer from calling for proof of age at any time if
he is entitled to do so, and no Policy shall be deemed to be called in question merely because the
terms of the Policy are adjusted on subsequent proof that the age of the Life insured was incorrectly
stated in the application.
Risk Factors/Disclaimers:
This is non-participating unit linked plan.
This policy is underwritten by Birla Sun Life Insurance Company Limited (BSLI).
The above- mentioned charges are applicable to base coverage only.
Birla Sun Life Insurance, LifeCompanion-Endowment, Balancer are only the names of the
company, Policy and the Investment Funds respectively and do not in any way indicate the
quality of the Policy, Investment Funds or their future prospects or returns.
The charges mentioned above are applicable to the Investment Fund Option offered at present.
All the policy charges (except Mortality & Premium Allocation Charges) can be modified by the
Company subject to approval of the IRDA.
The value of the investment fund reflects the value of the underlying investment. These
investments are subject to market risks and change in fundamentals such as tax rates etc
affecting the investment portfolio.
The premium paid in Unit Linked Life Insurance policies are subject to investment risk
associated with capital markets and the NAV of the units may go up or down based on the
performance of Investment Fund and factors influencing the capital market and the insured is
responsible for his/her decisions. There is no guarantee or assurance of returns above the
guaranteed returns from the Funds.
BSLI reserves the right to recover levies such as the Service Tax levied by the authorities on
insurance transactions. If there be any additional levies, they too will be recovered from you.
This brochure contains the salient features of the plan. For further details please refer to the
policy contract.
Insurance is the subject matter of solicitation.
For more details and clarification call your Birla Sun Life Insurance Advisor or visit our website
and see how we can help make your dreams come true.