Birla Sunlife Insurance|Retirement Plan|Birla Sunlife Insurance Freedom 58 (retirement plan)

It is a unit linked plan, non participating pension plan. It helps you accumulate your premiums and investment returns in to an amount for your retirement and this phase is called as an “accumulation phase”. Once you decide to vest your policy, you will enter in to an “income phase”, where your amount will be used to purchase a stream of regular income payable for the rest of your life.

During accumulation phase birla sunlife offers two unparalleled investment portfolio.

Self Managed Portfolio: In this you can invest in any of 5 funds (income advantage, protector, builder, enhancer and maximiser) of your choice. If you wish to diversify your risk, you can allocate your premiums in varying proportions among 5 funds option. The percentage allocated to any investment fund must be in increments of 5%, ranging from 5% to 100%.

Life Cycle Managed Portfolio: In this option you allow BSLI to manage and administer your investment portfolio on your behalf and according to your risk profile (conservative, moderate or aggressive). This strategy will automatically switch from riskier assets to safer assets progressively as your retirement date approaches.
They will invest your premiums in maximiser (100% equity) & in income advantage (100% debt) in a predetermined proportion based on selected risk profile & age when the premium is invested.

The proportion invested in maximiser (100% equity) will be acc to below table and rest will be invested in Income advantage (100% debt).

Risk Profile
Age Conservative Moderate Aggressive
18-30 50% 70% 90%
31-40 40% 60% 80%
41-50 30% 50% 70%
51-60 15% 35% 55%
61-70 0% 20% 40%
71+ 0% 5% 25%

This plan also offer
Freedom to change
• Investment portfolio strategy at any time
• Premium allocation at any time
• Risk profile at any time

Freedom to meet
• Your ever changing needs through unlimited top up premiums and funds switches.
• Any cash emergencies after 3 policy years through free of charge partial withdrawals or full surrender.

Your retirement amount accumulated is utilized at retirement to purchase an annuity with BSLI or any other life insurer of your choice. You can vest your policy anytime after 5 yrs completed.

Eligibility
Min Entry age: 18 yrs
Max Entry age: 80 yrs
Policy Premium
Premium payment term- Regular pay
Min Annual policy premium- Rs 10,000

Mode of Payment
It can be paid monthly (2 monthly installment is required at entry), quarterly, half yearly or annually
Premium can also be paid by cash (max up to Rs 50,000/-) cheque, credit card and direct debit or for monthly or quarterly installments through salary deduction or ECS.

Surrender of Policy
Policy can be surrendered any time after three completed policy years without any charge.

If you want to surrender the policy before 3 policy yrs
BSLI will retain a surrender charge
Payment will be deferred till the end of 3rd policy year.

Tracking Your Investments
BSLI will send you an annual investment detailing the no of units you have in each investment fund and their respective unit price as of the last policy anniversary.

Benefits

Death Benefit
Upon unfortunate event of death during the accumulation phase, the fund value will be paid as a death benefit to your nominee & in case if nominee is spouse, the proceeds can be taken in lump sum or used to purchase an annuity.

Vesting benefit
The vesting date is the date you decide to end the accumulation phase and enter in the income phase. You have the freedom to vest any time after completion of 5 policy years.
On vesting date, your fund value will be used to purchase an income stream payable for rest of your life. You have an option to:
• Enter in to income phase with BSLI on your vesting date
• Enter in to income phase with another life insurer of your choice.
• Commute up to 1/3 of your find value on vesting date and receive the amount in lump sum (tax free) and annuities 2/3rd of the fund value to receive a stream of regular income.

Policy charges

Premium Allocation Charge
It is deducted from your premium when received and before invested in the investments of your choice. The charge is

For the 1st policy year
On policy premium: 10%
On top up premium: 2%

For the 2nd & 3rd policy year
On policy premium: 2%
On top up premium: 2%

For the 4th policy year & above
On policy premium: nil
On top up premium: 2%

Fund Management Charge
It is:
1% for Income advantage, protector and builder
1.25% for enhancer
1.50% for maximiser
This charge may increase at anytime to a max o 1.50% per annum.

Policy Administration Charge
It will be deducted monthly by canceling units proportionately from each investment fund.

For 1st, 2nd & 3rd policy year
On first Rs 10,000 – 1.2%
On excess over Rs 10,000 – 0.6%

For 4+ policy year
On first Rs 10,000 – 0.6%
On excess over Rs 10,000 – nil

Surrender Charge
It is applied, if you want to surrender the policy before 3 policy yrs.

For 1st year – 27%
For 2nd year- 20%
For 3rd year- 13%

This charge is guaranteed to never increase.

Revival charge
It is Rs100. it may increase any time in future, maximum up to Rs 1000.

Policy Loan
No loan is offered under this plan.

Free Look Period
You can return the policy within 15 days. The fund value plus all the charges levied till date (excluding fund management charge) will be paid.

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Tags: Birla Sun Life Insurance, Pension Plan