SecurePlus Plan

A traditional non participating life insurance plan

Frequently Asked Questions

TRA/5/16-17/9372 UIN: 109N102V01 May, 2016

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 Birla Sun Life Insurance SecurePlus Plan Frequently Asked Questions
Contents
BSLI SecurePlus Plan Summary ................................................................................................................................................................................ 3
1. What is BSLI SecurePlus Plan? ................................................................................................................................................................... 3
2. What are the significant features of BSLI SecurePlus Plan?............................................................................................................... 3
3. Who is eligible for this plan? ...................................................................................................................................................................... 3
Plan Structure.................................................................................................................................................................................................................... 3
4. How does this Plan Work? ........................................................................................................................................................................... 3
5. What is the minimum premium under the plan? .................................................................................................................................. 4
6. What is the term of the policy? ................................................................................................................................................................... 4
7. What is the Payment Period under this plan?......................................................................................................................................... 4
8. What is the minimum Sum Assured under this plan? ......................................................................................................................... 4
9. How is the Sum Assured determined under this plan? ....................................................................................................................... 4
10. What are the various Sum Assured multiples applicable under this Plan? ................................................................................... 5
11. What is the maximum maturity age of the policy? ................................................................................................................................ 5
Premium.............................................................................................................................................................................................................................. 5
12. What is the Premium Paying Term under the plan? ............................................................................................................................. 5
13. Can the premium amount be changed? .................................................................................................................................................... 5
14. How can client pay premiums?................................................................................................................................................................... 5
Benefits ............................................................................................................................................................................................................................... 5
15. What is the Death Benefit during the policy term under this plan?................................................................................................. 5
16. What is the Maturity Sum Assured under this Plan? ........................................................................................................................... 6
17. What is the Death Benefit for a minor life insured during policy term under this plan? .......................................................... 6
18. What is the Death Benefit during payment period under this plan? ............................................................................................... 6
19. Who will receive the Death Benefit if policyholder is different from life insured? .................................................................... 6
20. What is Auto Vesting Age? .......................................................................................................................................................................... 6
21. What is Income Benefit under this plan? ................................................................................................................................................. 6
22. Till when is the Income Benefit payable? ............................................................................................................................................... 7
23. Can Policyholder take Income Benefit payouts as lumpsum? ........................................................................................................... 7
24. Can nominee take Income Benefit payouts as lumpsum?................................................................................................................... 7
25. How will the Income Benefit be paid in case life insured dies during the Payment Period? ................................................... 7
26. What is the Maturity Benefit under this plan? ....................................................................................................................................... 7
27. What is the Surrender Benefit under this plan? ..................................................................................................................................... 8
28. Is there any rider benefit in this plan?...................................................................................................................................................... 8
29. Is loan facility available under this plan?................................................................................................................................................ 8
Premium Discontinuance and Revival ........................................................................................................................................................................ 9
31. What happens if client does not pay premiums on time? ................................................................................................................... 9
32. What happens if client does not pay premium within the grace period? ....................................................................................... 9
33. What happens if policy lapses after paying premiums only for two full policy years?.............................................................. 9
34. What is a Reduced Paid-up policy? ........................................................................................................................................................... 9
35. What would be the death benefit for a Reduced Paid-up policy during the policy term? ......................................................... 9
36. What would be the accidental death benefit for a reduced paid-up policy during the policy term? ...................................... 9
37. What would be the death benefit for a reduced paid-up policy during the payment period? .................................................. 9
38. What would be the maturity benefit for a reduced paid-up policy? ................................................................................................ 9
39. What would happen to Income Benefit payouts for a reduced paid-up policy? ......................................................................... 10
40. How can client revive his / her policy? ................................................................................................................................................... 10
Termination ..................................................................................................................................................................................................................... 10
41. When will this policy terminate? ............................................................................................................................................................. 10
Operational Guidelines................................................................................................................................................................................................. 10
42. What application form is required for BSLI SecurePlus Plan? ........................................................................................................ 10
43. Can Life Insured and Policyholder be different under this plan? .................................................................................................. 10

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 Birla Sun Life Insurance SecurePlus Plan Frequently Asked Questions

BSLI SecurePlus Plan Summary

1. What is BSLI SecurePlus Plan?

BSLI SecurePlus Plan is a traditional non-participating insurance plan that offers second income along with protection
which ensures peace of mind.

2. What are the significant features of BSLI SecurePlus Plan?

Key features of BSLI SecurePlus Plan are:

Flexibility to choose amount payable every year

Flexibility to choose Income Benefit
- Option A - receive 100% to 600% of annual premium for 6 years
- Option B - receive 200% of annual premium for 12 years

Inbuilt accidental death benefit

Enhance insurance coverage with appropriate rider options

Tax benefits under section 80C, 80D and section 10(10D) of the Income Tax Act, 1961

3. Who is eligible for this plan?

Anyone meeting the following criteria is eligible for BSLI SecurePlus Plan:
- Age at entry is between ages 5 years - 50 years (age last birthday)
- Ready to invest minimum Rs. 50,000 annually
- Contribute premiums for 12 years

Plan Structure

At inception client chooses

 Premium amount he/she wishes to pay
 Income Benefit option

In addition to the above client can also choose at inception

 Riders for additional protection

4. How does this Plan Work?

Example.: Mr. Shetty aged 35 years, chooses premium amount of Rs.1,00,000, he pays for 12 years

Pay Rs. 1,00,000 each year for 12 Years Year 13

= Rs. 12,00,000
Premium Paying Term 12 years NIL

Policy Term 13 Years

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 Birla Sun Life Insurance SecurePlus Plan Frequently Asked Questions

After the completion of policy term, he starts receiving Income Benefit based on his choice as under:
Income Benefit option A

Coverage for entire Policy Term of 13 Years 6 Years Payment Period

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

Income Benefit option B

Coverage for entire Policy Term of 13 Years 12 Years Payment Period

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

Additional Sum Assured of Rs. 16,00,000 in case of accidental death

5. What is the minimum premium under the plan?

The minimum premium is Rs. 50,000. The premium amount chosen will be payable every year for the premium
paying term.

6. What is the term of the policy?

BSLI SecurePlus Plan has a policy term of 13 years.

7. What is the Payment Period under this plan?

In this period, Income Benefit is paid at the end of every year as per the chosen option. Payment Period starts from
the completion of the policy term. The duration of Payment Period under BSLI SecurePlus Plan depends on the
Income Benefit option chosen.
- For Income Benefit Option A 6 years (from the completion of policy term)
- For Income Benefit Option B 12 years (from the completion of policy term)

8. What is the minimum Sum Assured under this plan?

The minimum Sum Assured is Rs. 7,25,000/-

9. How is the Sum Assured determined under this plan?

The Sum Assured under BSLI SecurePlus Plan is determined by annual premium (excluding service tax and cess, any
applicable rider premiums and underwriting extras, if any) multiplied by Sum Assured multiple.
Sum Assured multiple ranges from 14.5 to 19 based on the entry age.

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 Birla Sun Life Insurance SecurePlus Plan Frequently Asked Questions

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

11. What is the maximum maturity age of the policy?

BSLI SecurePlus Plan has a maximum maturity age of 63 years.

Premium

12. What is the Premium Paying Term under the plan?

The premium paying term is 12 years.

13. Can the premium amount be changed?

NO, premium amount cannot be changed.

14. How can client pay premiums?

Client can pay policy premiums only annually.

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.

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 Birla Sun Life Insurance SecurePlus Plan Frequently Asked Questions

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.

16. What is the Maturity Sum Assured under this Plan?

Maturity Sum Assured is the commuted value of outstanding Income Benefits on maturity.

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.

20. What is Auto Vesting Age?

When this policy has been taken for the benefit of life insured who is a minor at the time of policy issuance, the policy
shall automatically vest to the life insured on his attaining age 18 years.

21. What is Income Benefit under this plan?

After the completion of policy term, Income Benefit payouts are paid at the end of the year, during the payment
period. These payouts are pre defined percentage of the annual premium (excluding service tax and cess, any
applicable rider premiums and underwriting extras, if any) paid by client. Depending on perceived need for a
increasing or a level payout, client can choose one of the following options at inception to receive the Income Benefit
payouts:

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%

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 Birla Sun Life Insurance SecurePlus Plan Frequently Asked Questions

Income Benefit Option B Receive 200% of annual premium for 12 years at the end of year as per the table shown
below:

Payment Period Year Income Benefit (% of AP)

1 200%
2 200%
3 200%
4 200%
5 200%
6 200%
7 200%
8 200%
9 200%
10 200%
11 200%
12 200%
In case client would like to get a lump sum instead of the income benefit, a commuted value of the outstanding
Income Benefit shall be paid as lump sum. The same has been built in the iChamp illustration system for your benefit.

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

22. Till when is the Income Benefit payable?

Income Benefit is paid every year till the end of the payment period.

23. Can Policyholder take Income Benefit payouts as lumpsum?

YES, Policyholder can choose to receive the commuted value of the outstanding Income Benefit as lump sum. Once
lump sum is paid, the policy shall be terminated. No Income Benefit shall be payable thereafter.

24. Can nominee take Income Benefit payouts as lumpsum?

NO, Nominee will continue to receive the Income Benefit payouts as scheduled.

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.

26. What is the Maturity Benefit under this plan?

On the policy maturity date, the client has an option to receive commuted value of the Income Benefit as a lump sum.
Once the maturity benefit is paid, the policy shall be terminated. The commuted value currently shall be calculated
using a discounting rate of 9.00% per annum. This discounting rate is not guaranteed and is subject to change in future with
prior IRDAI approval. No Income Benefit shall be payable thereafter.

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 Birla Sun Life Insurance SecurePlus Plan Frequently Asked Questions

27. What is the Surrender Benefit under this plan?

Policy acquires a Surrender Value once premiums for at least 3 full policy years have been paid.
The surrender value payable to client will be higher of
Guaranteed Surrender Value or
Special Surrender Value

The policy shall be terminated once the Surrender Value is paid.

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.

29. Is loan facility available under this plan?

YES., policy loan is allowed once the policy acquires a surrender value. The minimum loan amount is Rs.5,000 and
the maximum is up to 85% of surrender value. The interest will be declared by us on June 1st of each calendar year
determined as (x+2%), where x is the base rate of the State Bank of India.

30. Can client avail of tax benefits under this plan?

As per extant tax laws, this plan offers tax benefits under Section 80C, 80D and Section 10(10D) of the Income Tax Act,
1961, subject to fulfillment of the other conditions of the respective sections prescribed therein. As per the current
provision of Section 194DA of the Act; the policy proceeds are subject to TDS if conditions prescribed under Section
10(10D) are not met. Client is advised to consult his / her tax advisor for more details.

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 Birla Sun Life Insurance SecurePlus Plan Frequently Asked Questions

Premium Discontinuance and Revival

31. What happens if client does not pay premiums on time?

If client is unable to pay premium by the due date, he / she will be given a grace period of 30 days and during this
grace period all coverage under this policy will continue.

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.

34. What is a Reduced Paid-up policy?

If client discontinues paying premiums, after having paid premiums for at least three full years, policy will not lapse
but continue on a Reduced Paid-Up basis. Under Reduced Paid-Up, Sum Assured on Death, Maturity Sum Assured,
Accidental Death Benefit, Income Benefit and additional benefit on death (applicable on minor lives) shall be reduced
in proportion to the premiums actually paid to the total premiums payable during the policy term. Rider Benefit, if
any will cease.

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.

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 Birla Sun Life Insurance SecurePlus Plan Frequently Asked Questions

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.

40. How can client revive his / her policy?

Client can revive policy for its full coverage within two years from the due date of the first unpaid premium by
paying all outstanding premiums together with interest as declared by us from time to time and by providing
evidence of insurability satisfactory to us.

Termination

41. When will this policy terminate?

Policy will get terminated on any of the following events:
(a) The date of settlement of death benefit; or
(b) The date of payment of the surrender value; or
(c) The date of payment of the last Income Benefit during the payment period; or
(d) The date on which the revival period ends after the policy has lapsed as per premium discontinuance provision; or
(e) The date of early termination of the policy by the policyholder before the end of the two year revival period if the
policy has lapsed; or
(f) The date on which the outstanding loan amount exceeds the surrender value

Operational Guidelines

42. What application form is required for BSLI SecurePlus Plan?

The Common Application Form_MAJOR & Common Application Form_MINOR would be used for this plan. In
case of multiple plans being sourced for a major life, the SIMPLIFIED APPLICATION FORM will also have to be
used.

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.

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