Birla Sun Life Classic Life Plan

Recommendations :No

Name of the policy :
Birla Sun Life Classic Life Plan

A brief desciption :

Birla Sun Life Classic Life Plan is a ULIP providing fund value at maturity and higher of fund value or sum assured as death benefit. Moreover it also provides an opportunity to choose the savings date, this is the date at which the insured wants to receive the maturity benefit. However returns are restricted due to high charges levied. Moreover Sum assured is miniscule which is not sufficient to cover an earning member of the family having dependents. So it is advisable to to go for a simple term plan and invest the extra money elsewhere and earn higher returns.

Started date :
8/11/2010

Type of policy :
Insurance cum Investment

Category :
ULIP

Insurance :
Entry Age below 45- The higher of 10 or the number of years to attain age 70 divided by 2, Entry Age Above 45- The higher of 7 or the number of years to attain age 70 divided by 4

Returns expected :
8%-10% (The performance would be less than a performing equity diversified mutual fund)

Entry age :
18-60 Years

Surrender :
If the policy holder wants to surrender the policy before completing 5 years, then the insurance cover will cease and the fund value net of any discontinuance charge will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will be credited with a minimum interest rate of 3.5% p.a. and the proceeds from this will be payable after the fifth policy anniversary. If the policyholder surrenders the policy after completion of 5 policy years, then the insurance cover will cease and your fund value shall be paid immediately and the policy would be terminated.

Minimum amount :
Min- 25,000 Max- No limit

Mortality Charges :
A mortality charge is deducted for the Basic Premium when received. The charge per 1000 of Basic Sum Assured will depend on the entry age of the life insured. Under the Single-Pay Option For Age 25- 1.546 For Age 35- 1.753 For Age 45- 3.040 For Age 55-7.0

Unique features :
It is a ULIP providng the facility to choose the premium amount, premium paying term and Savings date (Maturity Date). Moreover it also provides the option to increase the sum assured and also provides guaranteed additions plus an flexibility to choose among 10 investment options.


Premium Allocation Charge Year 1 :0.07%
Premium Allocation Charge Year 2 :0.07%
Premium Allocation Charge Year 3 :0.05%
Premium Allocation Charge Year 4 :0.05%
Premium Allocation Charge Year 5 :0.05%
Premium Allocation Charge Year 6 :0.05%
Premium Allocation Charge Year 7 :0.05%
Premium Allocation Charge Year 8 :0.05%
Fund Management Charge :1.00% p.a. for Income Advantage, Assure, Protector and Builder, 1.25% p.a. for Enhancer and Creator, 1.35% p.a. for Magnifier, Maximiser, Multiplier and Super 20
Surrender/ Premium Discontinuance Charge Year 1 :Lower of 6% of AP, 6% of FV, Rs. 6,000
Surrender/ Premium Discontinuance Charge Year 2 :Lower of 4% of AP, 4% of FV, ` 5,000
Surrender/ Premium Discontinuance Charge Year 3 :Lower of 3% of AP, 3% of FV, ` 4,000
Surrender/ Premium Discontinuance Charge Year 4 :Lower of 2% of AP, 2% of FV, ` 2,000
Surrender/ Premium Discontinuance Charge Year 5 and above :Nil

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