Birla Sun Life Foresight Plan

Recommendations :No

Name of the policy :
Birla Sun Life Foresight Plan

A brief desciption :

Birla Sun Life Foresight Plan is an attractive ULIP plan providng fund value at maturity and Sum assured plus fund value as death benefit. It provides a choice to the customer to manage his own funds or rely completely on the fund manager with a minimum guaranteed return. However we can't ignore the fact that it is equally loaded with charges and insurance component being miniscule, it is strongly advisable to stay away from this fund

Started date :
10/2/2011

Type of policy :
Insurance cum Investment

Category :
ULIP

Insurance :
For Single Pay: Min- For age at entry below 45 years: 1.25 X Basic Premium and For age at entry 45 years and above: 1.1 X Basic Premium, Max- 5 times basic premium; For 5 Year Pay: For age at entry below 45 years: 10 X basic Premium and For age at entry

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

Entry age :
0-60 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 :
For Regular Premium: Min- 1 lakh Max- No limit For Single Premium: Min- 2 lakhs 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 entry age of the life insured. Under the Single-Pay Option For Age 25- 9.831 For Age 35- 13.177 For Age 45- 26.625 For Age 55-65.33

Unique features :
It provides a choice to the customer to manage his own funds or rely completely on the fund manager with a minimum guaranteed return. Thus if the market is favourable, then the Fund Value at the time of maturity would be higher than the Minim Guaranteed amount and the policyholder can get that Fund Value. But if the market is not favourable, and the Fund Value falls below the Minimum Guaranteed Maturity benefit, then also the policyholder would get the minimum Guaranteed Fund Value at maturity.


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, Super 20 and Foresight. In the case of the Foresight fund, the charge shall be increased by 0.25% p.a. u
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, Rs. 5,000
Surrender/ Premium Discontinuance Charge Year 3 :Lower of 3% of AP, 3% of FV, Rs. 4,000
Surrender/ Premium Discontinuance Charge Year 4 :Lower of 2% of AP, 2% of FV, Rs. 2,000
Surrender/ Premium Discontinuance Charge Year 5 and above :Nil

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