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Name :
Date of Birth :
Address :
Telephone/Mobile :
Occupation :
Marital Status :

Q1- Which two wheeler you own currently?

i) Geared bike ( )
ii) Gearless Motor Bike. ( )
iii) Gearless Moppets (Honda, Scooty, Bike). ( )

Q2- Average Distance Covered in a Month?

i) 0-100 km ( ) ii ) 100-200 km ( )
iii) 200-300 km ( ) iv) 300-400 km ( )
Q3- Which price slot your bike belongs?
i) Less than 30000. ( )
ii) 30000 – 40000. ( )
iii) 40001 – 50000. ( )
iv) 50001 – 60000. ( )
v) I don’t know ( )

Q4- What is engine capacity of your bike?

i) Less than 100cc
ii) 100cc to 125cc
iii) 126cc to 150cc
iv) 151cc to 180cc
v) Above 180cc
I don’t know

Q5- Which was the last bike used by you?

(i) Hero Honda ( ) (ii) Bajaj Discover ( )
(iii) TVS Apache ( ) (iv) Honda Stunner ( )
(v) Others ( )
Q6 - What is the ranking you would give to the following features of
the bike?

Fuel Consumption ( )
Engine Capacity ( )
Average ( )
Mileage ( )

Q7- You have collected information about the particular brand

from which source.
i) Newspaper ( )`
ii) T.V. or Radio ( )
iii) Family, Friends ( )
iv) Others ( )
Q8- Do you have faith on the Brand?
i) Yes ( ) ii) No ( )
Q9- Experience with your bike:-
Worse Not Satisfied Good Satisfied
Very sfied

Q11- Features you want to prefer in the bike?

(1) Tyre - (a) Broad ( ) (b) Narrow ( )
(2) Ignition - (a) Kick Start ( ) (b) Self Start ( )

(3) Breaks - (a) Disk Break ( ) (b)Normal ( )

Q12- For what purpose you want to have bike

(a) Status Symbol ( )
(b) Utility Vehicle ( )
(c) Long Journey Vehicle ( )
(d) Style. ( )
Q13- Which kind of two wheeler would you buy in future?
(a) Motor bike ( )
(b) Scooter ( )
(c) Electric bike ( )
(e) Can’t say ( )
(f) I don’t want to buy one ( )

Q14- Which is the most preferred bike liked by you?

(Ans) _________________________________________

Q15- How often you take your bike for servicing?

(Ans) _________________________________________
Pension Plan: Riders

• FAQs on Life Insurance Basics

Do you need insurance if your not the breadwinner of the family? Not really. ......
• Sudden hospitalization? Solution; Hospital Cash Benefit Rider
This benefit rider coupled with your life insurance will ensure that monetary issues do not bother
you in event of unfortunate hospitalization for an ailment. ......
• Guaranteed Insurability Option Rider; insurance without medical check-up
Get additional whole life insurance at different stages in your life without medical tests. ......

Read More >

Pension Plan: Exculsions

• Insurance is null and void if suicide is committed within a year

Death claims are not payable under certain circumstances in case of life insurance. ......

Read More >

Pension Plan: Claims

• Insurance is null and void if suicide is committed within a year

Death claims are not payable under certain circumstances in case of life insurance. ......
• How to collect maturity amount from insurer?
Getting maturity amount made easy , here's how .The insurer sends a discharge/claims form more
than a month in advance of the policy maturity- here's your maturity claim. ......
• The death claim process is simple and the benefit is tax free
Make life easy after death . Fill in a form to file a death claim . It will be about four months before
you can get the claim amount. ......

Read More >

Pension Plan: Tax Implications

• Money-back Life Insurance Plan

Get back the premiums you have paid for the insurance , Puzzled! The money-back plans provides
life insurance cover for a specified period. The insured gets back fixed, tax-free proportions from
the ......
• The death claim process is simple and the benefit is tax free
Make life easy after death . Fill in a form to file a death claim . It will be about four months before
you can get the claim amount. ......

Read More >

Types of Pension Plans

Pension plans can vary greatly in terms of their structure and the benefits they provide. The two most
common types of pension plans are the defined benefit plan and the defined contribution (or money
purchase) plan. Some employers offer a combination of the two types of plans - known as "hybrid" or
"combination" plans.

Defined Benefit Pension Plans

Defined benefit plans are designed to provide you with a specified amount of pension benefit when you
retire based on a formula. Generally, this formula depends on factors like years of service and earnings
and is described in the pension plan documents provided to members. Members of this type of plan are
advised annually of the amount of pension benefit they have earned or "accrued" up to that point.

There are three types of benefit formulae commonly used to determine a member's pension:

 final or best average earnings formula:

For each year of service, the formula provides a fixed percentage of your final earnings from employment
or of an average of your earnings over a fixed period of time. In other words your pension adjusts in step
with your wages. For example:

1.6% of your average earnings over the best 5 years of earnings x your total years of service

 career average earnings formula:

Your annual pension benefit is a fixed percentage of your annual earnings while a member of the plan.
For example:

1.2% of your annual earnings

 flat benefit formula:

Your annual pension benefit is a fixed dollar amount per year of service. For example:

$32 per month per year of service

Defined Contribution Pension Plans

In a defined contribution or money purchase pension plan, a specified amount of money is contributed
regularly for you. This money is placed in an investment account in your name. At retirement, these
contributions - plus interest - are used to purchase a pension. You will not know the amount of pension
you will receive until you retire.

Some defined contribution plans permit employees to make their own investment choices, while others
provide that the employer or a board of trustees is responsible for all investment decisions.

Ultimately, the size of your pension depends on the amount of the contributions made by, or on behalf of
you. It will also vary due to the return on the investment of those contributions. Annuity rates (i.e., long-
term interest rates) at the time of retirement also may be a factor.
The traditional form of pension is the life annuity. Typically with a life annuity, your locked-in pension
money is paid to a life insurance company that guarantees the payment of a fixed amount for your
lifetime. Pension legislation has introduced the following alternatives to the life annuity:

• A Registered Retirement Income Fund (RRIF) will allow you to determine your level of income, as
well as manage your pension capital to take advantage of continued capital growth from
investment earnings, and to have more flexibility for tax and income planning purposes.

• A Variable Benefit, which is similar in nature to the above RRIF may be offered by a defined
contribution plan. Check with the administrator of your plan to see if this is a retirement option
under your plan.


Pension plans vary greatly in terms of the benefits that they provide and their structure. The two
most common types of pension plans are the defined contribution or the money purchase plan
and the defined benefit plan. Sometimes these two plans are combined and the combination is
thus known as hybrid plans or combination plans.

Designed Benefit Pension Plans

The designed benefit pension plans are designed to provide a fixed amount of pension benefit
after you retire from your job based on some formula. This formula, which his used to, calculate
the pension benefits, depends upon various factors like the amount that you pay and years of
your service. It is described in the documents of the pension plans that are provided to members.
Members who avail this type of pension plans are advised annually about the pension benefit that
they have earned up to that point.

The company mainly uses three types of formulae to determine the pension benefits of the

Flat benefit formulae- The annual pension benefits that you will get will be a fixed amount per
year of your service. For example 50$ per month per year of service.

Final or best average earning formula- In this formula, the pension will adjust as per your wages.
For each year of your service, this formula provides a specified percentage of your final earnings
or average of your earnings over a specified period. For example, 2% of your average earnings
over the best 6 years of earnings X year of service.

Career average-earning formula- In this, the annual pension benefit, which you will receive, is a
fixed percentage of your annual earnings. For example-1.5% of your annual earnings.

Defined contribution pension plans.

This is also known as money purchase plan. In this, a fixed amount is regularly contributed for
you. The money is placed by your name in an investment account. After you retire, these
investments along with interest are used to buy pension. However, in this you will not have any
idea about the amount of pension until you retire.
Some plans of this category allow employees to make their own investment choices. Whereas
other require that the investments decision should be left with board of trustees or other senior
people in the organization.

Ultimately, the pension benefit that you are going to receive after your retirement will depend
upon the contributions made on your behalf or by you. It will also depend upon the return on the
investments on the contributions made by you and the annuity factor.

Both defined contribution and the defined benefit plan are registered pension plans, but apart
from them there are few pension plans that are not registered, these are Deferred profit sharing
plan (DPSP), Employee stock purchase plan (ESPP), Individual pension plan (IPP). These do not
generally follow the same rule that registered pension plans follows. These plans heavily depend
upon the performance of the company in which you are working. Thus, it will be difficult for you
to estimate the amount that you are going to receive post retirement.

Individual pension plan is mainly designed for people with higher incomes. This plan allows
bigger tax-deductible contributions. Employee stock purchase plan allows an employee to buy
the shares of the company at a lower price, less than what you pay at the stock market. Deferred
profit sharing plan is a plan that the employers use to build retirement fund for its employees.
The company also contributes a portion of its profits to these funds. However, an employee
cannot put his own money in a DPSP.


Article Source:

Birla SunLife Dream Plan – Review

December 17th, 2009 Amar Ranu Leave a comment Go to comments

Birla SunLife Dream Plan is a unit-linked insurance plan (ULIP) that

provides the double benefit of higher sum assured and guaranteed maturity benefit at a cost
lower than the traditional term plan. In addition, it does not carry any premium allocation
charges (PAC), probably the only plan in the market with a no-load structure, albeit there is a 2
per cent PAC on top-up premium.

Product highlights
• A ULIP with a term ranging from 5 to 25 years for an individual between 18 to
60 years of age at entry; the maximum age at maturity is 75 years.
• Option to choose Guaranteed Maturity Benefit (GMB) with an upside potential
based on the performance of funds chosen. This assures that you will receive
no less than the GMB when the plan matures.

o This is a good alternative

for a traditional term
plan, and also carries
features of a ULIP
o This is one of the
cheapest ULIPs in the

o Though it comes with lots

of benefits, the charges
are a little higher
• Option to choose Guaranteed Maturity Options (GMO), i.e., 100 per cent, 200
per cent and 300 per cent with three separate maturity amount payout
• A minimum guaranteed return of 3 per cent p.a. on the premium paid less
other charges
• Partial withdrawals allowed after 3 policy years; it does not affect the GMB.
• Policy surrender allowed after 3 policy years, with maximum payout up to the
fund value at that time
• The cheapest ULIP product, with no premium allocation charges

Investment fund options

• The investor has an option to choose from three investment funds –

Protector, Builder and Enhancer – as shown in Table 1.

The premium (minus charges) can be invested in any of the fund options or a combination of all
three. The three funds follow a balanced approach to investment, and hence can be an ideal
choice for investors with low to medium risk appetite.

Charges you pay

• Premium allocation charge

No premium allocation charge is deducted from your premium, except for the 2 per cent charge
that is levied on the top-up premium.

• Fund management charge (FMC)

FMC varies from 1 per cent to 1.25 per cent per year with a maximum cap of 1.5 per cent (Table

• Policy administration charge and mortality charge

Policy administration charges are on the higher side. For example, in case of a 20-year policy
with a basic sum assured of Rs. 590, the charges will be Rs. 12.91 for the first three years and
Rs. 13.23 for the remaining years, compared to the normal charge of Rs. 2 to Rs. 3. Mortality
charge is also high as compared to other ULIP plans.

• Surrender and revival charge

Policy revival charge is Rs. 100, which can go up to Rs. 1,000 at the company’s discretion. A
surrender charge will be applicable if the policy is returned in the first 3 policy years.

• Other policy charges

Two fund switches, two partial withdrawals and two premium redirections are allowed free per
year at an additional cost of Rs. 100, with a maximum cap of Rs. 500 per additional request.


1. Maturity benefit

• Guaranteed maturity amount depending upon GMO along with the fund value is paid at the
time of maturity.

• A guaranteed return of 3 per cent per annum on net premium is applicable.

2. Death benefit

The nominee will receive basic sum assured, enhanced sum assured plus the higher of Fund
Value and Guaranteed Fund Value.

3. The plan offers discounts at higher guaranteed maturity benefit amounts based on different

Let us find out how this plan fares from its cost-benefit analysis, which is based on certain
assumptions. For a 26-year-old male individual with the guaranteed maturity benefit (GMB) of
Rs. 75,000, guaranteed maturity option of 300 per cent on GMB and enhanced sum assured of
Rs. 50 lakh for a period of 25 years, the net return (gross of mortality charges) comes to 4.25 per
cent and 8.24 per cent at an assumed growth rate of 6 per cent and 10 per cent, respectively.
These returns are well above the minimum return prescribed by the regulator (i.e., 2.25 per cent
for a policy with maturity period of more than 10 years). However, if we exclude the mortality
charges, the net return will be negative.

• Table 2 sums up the performance of the three funds as on Sept. 30, 2009.

• In Enhancer fund, 28.44 per cent investment is made in equities. Out of this
investment, 25.40 per cent, 13.21 per cent and 11.17 per cent go to banking,
oil & gas and capital goods, respectively as the top 3 sectors.
• All three funds (Protector, Builder and Enhancer) have cash allocation,
including money market instruments, in the ratio of 18.98 per cent to 11.20
per cent to 17.38 per cent, which may prove to be a boon for the funds in
months to come as the market may see some correction in the near term.
• However, the average maturity of debt holdings is 5.14 to 6.72 years which
can be fatal in the near term as the market can see unwinding of the
monetary policies which will shoot up debt yields, leading to devaluation of
the portfolio. Higher the interest rate, lower will be the average duration and
debt value, and vice versa.

Equating with other products

A comparative analysis of BSLI Dream Plan with other investment products (Table 3) throws up
some interesting facts.

• In case of Dream Plan, for a 30-year-old male individual opting for a GMB of
Rs. 75,000 (100 per cent GMO) with an enhanced sum assurance of Rs. 50
lakh, the annual premium comes to Rs. 13,378 for 20 years with a maturity
benefit of Rs. 1.82 lakh. The total premium paid in a span of 20 years
exceeds the maturity benefit at both assumed interest level of 6 per cent and
10 per cent, thus, giving a net negative return. It happens because most of
the premium amount goes in providing insurance cover of Rs 50 lakh. But if
he invests in a combination product of PPF and a normal term plan for the
same insurance cover of Rs. 50 lakh, his annual premium comes to Rs. 5,200
and the return is 3.39 per cent.
• In BSLI Premium Back Term Plan, the same benefits come at an annual
premium of Rs. 42,422 with a maturity benefit of Rs. 8.4 lakh. But the net
return is zero.

Tax benefits

• Premium payable under BSLI Dream Plan up to Rs. 1 lakh is eligible for tax
benefits under Section 80C.
• Maturity or death proceeds are tax free under Sec 10(10D).

Things to look into

• The plan is preferably for an individual looking for an enhanced basic sum
• The policy administration charge and mortality charge are exorbitantly high.
• Opting for riders will further reduce your return as units will be reduced in
proportion to cover the monthly rider premium charge.


• For whom – Conservative investors willing to put money for a longer period
• Risk – Safe capital; maturity benefits linked to market returns
• Investment horizon – 5-25 years
• Returns – More in comparison to customised investment product providing
same benefit
• Beats inflation – No, it won’t be able to beat inflation at an assumed growth
rate of 6 per cent
• Tax bracket – Preferable for all tax brackets
• Alternatives – Term plan with the return of premium option, PPF with term

Summing it up
BSLI Dream Plan is ideal for those who are looking for an enhanced sum assured with moderate
maturity benefits (in case of 100 per cent GMO). The other GMOs, i.e., 200 per cent and 300 per
cent provide increased maturity benefits but come with high policy administration charges and
mortality charges. In our opinion, the overheads are abrupt and the guaranteed 3 per cent return
also does not look exciting enough. Moreover, investors can lose the trivial 3 per cent return if
premiums are not paid in time.

Related posts:

1. ICICI Prudential Pinnacle Guaranteed NAV- Review

2. LIC Jeevan Anand – Review
3. MetLife’s Monthly Income Plan – Review
4. LIC Jeevan Saral – Review
5. Best of 2009 – ULIP Funds

Categories: Banking, Insurance, Life insurance, Money management, Mutual Fund,

Personal Finance, Rupeetalk Tags: Birla Sunlife, Birla Sunlife Dream Plan, Birla
Sunlife Dream Plan Review, BSLI Dream Plan, Dream Plan, GMB, GMO, Guaranteed
Maturity Benefits, Guaranteed Maturity Options, ULIP

Comments (25) Trackbacks (0) Leave a comment Trackback



December 18th, 2009 at 17:43 | #1

Reply | Quote

It is indeed surprising that this is the cheapest ULIP! perhaps you should make a
distinction between small ticket size and cheap.

One wonders who are the people who buy such products and how these products are sold.
Our Country may end up with a generation of under insured and under invested retirees
by the time the regulators do something.



December 19th, 2009 at 13:46 | #2

Reply | Quote

very good policy………………..



December 19th, 2009 at 13:47 | #3

Reply | Quote

good ………………………………..


Rajan m nair

December 22nd, 2009 at 05:28 | #4

Reply | Quote

Interested to know and invest in Birla SunLife Dream Plan


Rajan m nair

December 22nd, 2009 at 05:31 | #5

Reply | Quote

Shorterm investment like 5 yrs are available.



December 22nd, 2009 at 14:32 | #6

Reply | Quote
Rajan m nair :
Shorterm investment like 5 yrs are available.


Sandesh Khanivadekar

December 26th, 2009 at 13:17 | #7

Reply | Quote

Its a very intresting and usefull site for review…….still not reviewed 100% but all is



December 28th, 2009 at 13:17 | #8

Reply | Quote




Prasoon Gupta

December 28th, 2009 at 15:17 | #9

Reply | Quote

Answer: All the things you have to consider first is…
1. what is the need for you about Insurance factor
Insurance in available in Dream Plan..
where is taxsaving in available in both the schemes
2. in case of Market Uncertainity, in Dream Plan – Have option to switch to safer option
without withdrawl during the Policy Term. In TaxSaver Mutual Fund you have only
option to get dividend or redeem after 3 yrs.


December 28th, 2009 at 15:38 | #10

Reply | Quote

I purchased Agone Religare iTerm. This way I get to pay less premium and then can use
it the way I want. Even to fulfill my othr current needs.



December 28th, 2009 at 16:44 | #11

Reply | Quote

guys all of you thinking that its a good as well as great policy only because the allocatin
chrgs are zero and high coverage. but noone is looking at the administration chrgs its very
high. coz it is charging on the sumassured and the sum assure is minimum 12times.
allocation chrgs are charged only once in the year on ur premium but administration
chrged on sum assured and its monthly and its equal to 30% yearly every year



December 28th, 2009 at 18:39 | #12

Reply | Quote

@Rajan m nair

Hi Rajan let me know if u want to invest in Birla… but hope u r in pune:-)

Reply back ASAP coz the dream plan is closing on 31st of dec.09


December 28th, 2009 at 21:03 | #13

Reply | Quote

i dont understand why you compare Birla dream plan with aegon i term + ppf . please
comare as like apple to apple. please compare it with aegon i term + aegon invest
maximiser . waiting for your replay……….


Gopal Agrawal

December 28th, 2009 at 22:37 | #14

Reply | Quote

@Rajan m nair
pl contact me
I will be able to help you about this plan


Amar Ranu

December 29th, 2009 at 10:56 | #15

Reply | Quote

@ Anant
We at Rupeetalk try to provide the best risk-free alternative to the product under analysis.
Since PPF is a risk-free investment avenue, it is an ideal choice for all risk-averse



December 30th, 2009 at 15:37 | #16

Reply | Quote

Need to invest in BSLI. Can u help?


mahesh poddar

December 30th, 2009 at 17:03 | #17

Reply | Quote

Anjali :Need to invest in BSLI. Can u help?

yes pls contact on my mail address



December 30th, 2009 at 23:36 | #18

Reply | Quote

provide me more about term plan



December 31st, 2009 at 17:48 | #19

Reply | Quote

@Rajan m nair
Hi Mr. Nair!
I may surely help you with personal financial plannins.
Do write me on my e-mail i/d as furbished in this mail.



January 1st, 2010 at 10:53 | #20

Reply | Quote



sanjay sharma

January 3rd, 2010 at 19:46 | #21

Reply | Quote

I hv taken a housing loan but it is not insured kindly let me know how can i get it insured
at a minimum premium and from which insurance company


Vivek G

January 17th, 2010 at 19:17 | #22

Reply | Quote

I had opted for GMO – 100%, Guaranteed maturity benefit – 173000, basic sum assured
102000 and Enhanced sum assured – 300000, The term period is 20 years, The premium
is 8000 per year.
I was just looking into the account statement and found that Rs.240 is taken as
administrative charge every month. It’s really very high. When I see the fund value it is
7100 from 8000 in just 6 months.
Could anyone please help me with following questions
- how much I will get at end of maturity (after 20 yrs) if I pay all the premiums.
- Will I get (basic sum assured + enhanced sum assured = 402000) – If yes, it looks
attractive, but, the administrative charges scares me.
- Is there a way to reduce the term to 5 years and decrease the basic sum assured, so that I
will be losing less money on administrative charges. If yes, how much is the charge for
that switching.

Vivek G


January 18th, 2010 at 21:48 | #23

Reply | Quote


Vivek G

Your answers are

1 You will get GMB = 173000 minimum at the end of term else the fund value ok
2 In cae of your death in policy term your nominee will get Total sum assured ie. 402000
plus fund value at that time ok
3 You may surrender policy after three year any time without paying any surrender
charges in DP You can’t change sum assured ok


rishabh parakh

January 18th, 2010 at 22:46 | #24

Reply | Quote


how can thiese all kind of ULIP products are good and specially like this one where you
are saying that there are no allocaton charges but in reality they are charging 100% for
the first year by stating that the amt is set aside to guarntee your frst premium and the
guarntee is like peanuts 3 or 5 times i.e. 300 % over a period Of 25 yrs and also all the
other charges are also very high, when it comes to insurance buying a term plan and
invest the balance in equity or pther options is the only best option rather than buying



January 19th, 2010 at 00:14 | #25

Reply | Quote
yes i can help u out u can contact me on my mail id