BSLI Bachat (Child) Plan | Birla Sun Life | Overview | Advantages | Procedure | Benefits with Illustration

All responsible and loving parent, want only the best for their child. While they save regularly to provide the best of education, shouldn’t they also be able secure the child’s bright future from any unforeseen circumstance? Presenting BSLI Bachat (Child) Plan – a plan that secures the child’s future even in the event of an untimely demise of the life insured.

BSLI Bachat (Child) Plan is a step-by-step savings plan. It secures your child’s future by helping you build funds through regular savings. In the event of an untimely demise of the life insured, BSLI will pay all remaining premiums so that your policy continues. Also, your savings will continue to grow through the term of the policy.

Grow your regular savings
Policy continuance
Safety and liquidity
Tax savings

Plan Summary – Overview

Entry Age – Grand / Parent – Child	18 – 50 years – 17 years
Policy Term	20 years
Premium Pay Term	20 years
Monthly Base Premium	Rs.400 – Rs.3,000
Sum Assured	Up to 180 times Monthly Base Premium (MBP)
Premium Payment Frequency	Annual, Semi-annual, Quarterly and Monthly

Entry Age	13 to 40	41 to 50
Sum Assured	180 x MBP	120 x MBP

With BSLI Bachat (Child) Plan, by saving as little as Rs.400 per month. you can build a corpus through regular systematic savings and secure your child’s future under all circumstances

Advantages in comparison to other investment avenues:

It is very important to choose an investment option suited to your requirements. With so many options available in the market today it could be difficult for you to pick out an investment avenue that’s optimum for you. Here’s presenting a simple comparison and evaluation for your convenience.

	Safety	Small Savings	Liquidity	Life Cover
Bank Fixed Deposits	Yes	Yes	Yes	No
Public Provident Fund	Yes	Yes	No	No
Post Office Time Deposits	Yes	Yes	No	No
National Savings Certificates	Yes	Yes	No	No
BSLI Bachat (Child) Plan	Yes	Yes	Yes	Yes

BSLI Bachat (Child) Plan is a regular savings plan that helps you secure your child’s future under all circumstances

Procedure:

You choose your Monthly Base Premium amount that belongs to one of the following bands:

Band	I	II	III
For policies with MBP (in Rs.)	400 to 599	600 to 899	900 +
Bachat Addition Rate	5.00%	5.25%	5.50%

In addition, you pay a Policy Continuation Premium to ensure continuation of the policy till maturity in case of death of the life insured during the insurance policy term.

Policy Continuation Premium (fixed additional premium)

Entry Age	13 to 40	41 to 50
Sum Assured	180 x MBP	120 x MBP

Once you have chosen your premium amount, you receive a series of benefits as follows:

You will get a life cover for the financial security of your family.
You stand to receive premium rebates for choosing annual and semi-annual mode of payment. You get a rebate of 4% if you choose
to pay annually, and 2% for semi-annually.
Your policy continues till maturity, as you planned to secure your child’s future in case of an untimely demise.
On maturity, you will receive a lump sum which you can use to fulfill your child’s dreams and goals.
You have the advantage of liquidity on your savings to access your money any time you need it after three policy years.
You have the option of double life cover in case of accidental death, for a nominal additional premium, to ensure enhanced financial
security of your family

Benefits

Maturity Benefit – On maturity after 20 years, you will receive

All Monthly Base Premiums paid; plus
All Bachat Additions earned; plus
The Loyalty Addition; less

Death Benefit - In the unfortunate event of death of the life insured, the nominee shall receive

Sum Assured will be paid to the nominee immediately;
Future premiums will be waived and the policy continues until maturity. On maturity, your child will be entitled to maturity benefits. This ensures that even in your absence your child’s future is assured;
All Bachat Additions and Loyalty Addition will continue as if all MBPs are paid when due.

Surrender Benefit -Once 36 MBPs have been paid, you may surrender your policy and receive

All Monthly Base Premiums paid from the 2nd year onwards x the surrender factor below; plus
After the 10th policy year, all Bachat Additions earned; plus
After the 15th policy year, the Loyalty Addition earned

The surrender factor is 100% after completing 10 policy years, otherwise it is

Policy Year of Surrender	3	4	5	6	7	8	9	10+
Surrender Factor	30%	40%	50%	60%	70%	80%	90%	100%

Accidental Death Benefit – Optional Rider for Entry Ages 18 to 50

For an extra 1.2% of MBP additional Sum Assured is paid in case of accidental death.

Extra 180 x MBP payable in case death is accidental for entry ages 18 to 40.
Extra 120 x MBP payable in case death is accidental for entry ages 41 to 50.

Policy	Base Premium		Bachat Addition		Loyalty	Total Addition	Surrender Benefit
Year	Annual	Paid	Earned	Payable	Addition	payable on Surrender	Gtd	Total
						payable on Surrender
	[a]	[b]	[c]	[d]	[e]	[f]	[g]	[h]
1	6,000	6,000	300	—	—	—	—	—
2	6,000	12,000	600	—	—	—	—	—
3	6,000	18,000	900	—	—	—	3,600	3,600
4	6,000	24,000	1,200	—	—	—	7,200	7,200
5	6,000	30,000	1,500	—	—	—	12,000	12,000
6	6,000	36,000	1,800	—	—	—	18,000	18,000
7	6,000	42,000	2,100	—	—	—	25,200	25,200
8	6,000	48,000	2,400	—	—	—	33,600	33,600

9	6,000	54,000	2,700	—	—	—	43,200	43,200
10	6,000	60,000	3,000	16,500	–	16,500	54,000	70,500
11	6,000	66,000	3,300	19,800	—	19,800	60,000	79,800
12	6,000	72,000	3,600	23,400	—	23,400	66,000	89,400
13	6,000	78,000	3,900	27,300	—	27,300	72,000	99,300
14	6,000	84,000	4,200	31,500	—	31,500	78,000	109,500
15	6,000	90,000	4,500	36,000	10,800	46,800	84,000	130,800
16	6,000	96,000	4,800	40,800	13,872	54,672	90,000	144,672
17	6,000	102,000	5,100	45,900	17,557	63,457	96,000	159,457
18	6,000	108,000	5,400	51,300	21,931	73,231	102,000	175,231
19	6,000	114,000	5,700	57,000	27,075	84,075	108,000	192,075
20	6,000	120,000	6,000	63,000	33,075	96,075	120,000	216,075

Notes:

[a] = MBP x 12.
[b] = MBP’s paid to date or sum of [a] to date.
[c] = [b] x Bachat Addition Rate of 5.00%.
[d] = After 10 years, sum of
[c] to date.
[e] = After 15 years, [d] x ratio of [d] over 240 x MBP.
[f] = [d] + [e].
[g] = Surrender Factor x [b] less MBP’s paid in first year. 100% x [b] in 20th policy year.
[h] = [g] + [f]

Surrender Benefit details:

Assuming that premiums are paid annually, and earn 4% rebate, here are the surrender benefits under different premium bands.

Band	I		II		III
MBP Range (in Rs.)	400 to 599		600 to 899		900 +
Bachat Addition Rate	5.00%		5.25%		5.50%
MBP chosen by you	500		750		1,000
MBP x 12	6,000		9,000		12,000
Surrender Benefit
After 10 years	70,500		106,988		144,300
After 15 years	130,800		200,561		273,336
After 20 years	216,075		333,923		458,642
Entry Age (years)	18-40	41-50	18-40	41-50	18-40	41-50
Annual Premium paid by you	5,990	6,336	8986	9,504	11,981	12,672
Surrender Benefit / Total Premiums Paid
After 10 years	118%	111%	119%	113%	120%	114%
After 15 years	146%	138%	149%	141%	152%	144%
After 20 years	180%	171%	186%	176%	191%	181%
Equivalent Bachat Addition Rate
After 10 years	3.22%	2.05%	3.47%	2.29%	3.72%	2.52%
After 15 years	5.70%	4.70%	6.10%	5.09%	6.51%	5.48%
After 20 years	7.65%	6.72%	8.17%	7.21%	8.71%	7.71%

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Tags: Birla Sun Life Insurance, BSLI Bachat (Child) Plan, insurance policy