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Resources » Finance/Investments » Banking »
Birla Sun Life Insurance High Networth Term Plan
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Birla Sun Life Insurance has come up with a pure Term Insurance Plan called “High Net Worth Individual” (HNWI) Plan which caters the need of individuals who wanted to have high Sum Assured risk cover with a minimum premium. In this plan the minimum sum assured starts with Rs. 50 Lakhs and premium is calculated based on category as “Smoker” and “Non-Smoker” type. If you fall under Smoker category then you will have to pay higher premium compared to Non Smoker category individual. Medical Examination is compulsory in this plan and during medical examination if it is found based on the family history that there is no member in family is smoking and all family members are of good health then that individual will be placed in a third category called as “Preferred Non Smoker” and he will have to pay less premium then Non Smoker category. In case you are a woman taking this cover then the plan further enhances the benefits in terms of reduced premiums. If you choose a cover of more than Rs. 1 Crore the plan offers additional benefits on the premiums.
HNWI Policy Premium & Discontinuation
You have the option to pay the annual policy premium on an annual, semi-annual, quarterly or monthly premium paying mode. You can request a change in premium paying mode subject to rules. The installment premium will equal the annual policy premium multiplied by a modal factor of 1.000 for annual mode, 0.510 for semi-annual mode, 0.258 for quarterly mode and 0.087 for monthly mode.
If you are unable to pay the installment premium by the due date, you will be given a grace period of 30 days during which time all benefits under the policy will continue. If you can not pay the entire installment premium by the end of the grace period, this policy will be deemed lapsed and all benefits will cease immediately. The lapse date is the date the unpaid premium was due. You will be given two years from the lapse date to reinstate your policy.
To reinstate the policy, you must pay all unpaid installment premiums due till date plus interest thereon. The interest we will charge is at a rate declared by BSLI from time to time at their sole discretion. In addition, you must provide the evidence of insurability satisfactory to with respect to the life insured. The effective date of reinstatement is when these requirements are met and approved.
HNWI Policy Benefits:
Being a Pure Term Insurance, there is only Death Benefit is given in the unfortunate event the life insured dies before the policy maturity date, full Sum Assured will be paid to the nominee. This policy does not grant any maturity benefit. This policy does not grant any surrender benefit. This policy does not grant any Loan benefit.
HNWI Customizing the Policy:
Being a Term Insurance plan, if an individual dies he will get full Sum Assured in the HNWI Plan but if in case by unforeseen one get an accidents and his/her one limb gets out or gets disablement then this plan offers few riders and can be taken along with the normal policy at a nominal premium rate. The different riders are as follows.
Accidental Death & Dismemberment Benefit Rider – This rider is given to get an additional death benefit if person met with accidental death or disablement. It provides 100% cover in case of unfortunate death due to accident along with Sum Assured, loss of more than one limb or sight in both eyes and 50% in case of loss of one limb and sight in one eye. In later case policy rider sum assured will be given and not the sum assured because the insured person is not died.
Critical Illness Plus Rider – This rider covers provides a cover against any of the seventeen illnesses as specified under this rider. If a person caught into illness that is listed under this rider and if his death occurs he will get an additional amount taken as rider and sum assured.
Critical Illness Women Rider – This rider is mainly for woman and provides a cover against several critical illnesses including those specific to women, like pregnancy complications and congenital anomalies in a new born child.
Waiver of Premium Rider – If you take this rider and if something happen to your life than it waives payment of future premium on the occurrence of any of the unforeseen events covered under this rider.
HNWI Policy Termination:
The policy will terminate at the earliest of:
A. the date on which the reinstatement period ends after your policy has lapsed;
B. the policy maturity date;
C. the date of death of the life insured
HNWI Claim Procedure:
In case death occurs to a person then for claiming the sum assured following documents are required to settle the death claim:
•The policy document in original;
•The Death Certificate of the Life Insured; and
•The claimant’s statement.
HNWI Tax Benefit:
The income tax benefits on HNWI policy would be as per the prevailing Income Tax laws in India and any amendment(s) made thereto from time to time. The income tax benefits under the Income Tax Act, 1961 for premium paid for Critical Illness Rider under section 80(D) for individual and HUF upto a maximum of Rs.15000/- and for Senior Citizens age above 65 Years and above is Rs.20000/-. Under Section 80(C), annual premium only to extent of 20% of the sum assured of the policy subject to maximum of 100000 and as per Section 10 (10D) any sum received as maturity benefit is tax free.
The above details are taken as an excerpt from the Birla Sun Life Insurance Brochure, if you want more details you can post your replies below I will reply to your queries.
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Responses
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| Author: Ashish 29 Oct 2009 | Member Level: Bronze Points : 2 | Hi Nilesh,
I am looking for the Term Insurance of 1 crore for 30 years (My Age is ~32). I am under Non-preferred Smoker category and I feel my premium would be ~16K/yearly.
could you please let me know how do you compare it with existing Term Insurance from LIC (Amulya Jeevan), HDFC Life, SBI Life based on premium, risks, advantage, disadvantage, company claim settlement clauses etc.
Appreciate your response. Thanks,
Ashish
| | Author: Nilesh Panchal 29 Oct 2009 | Member Level: Platinum Points : 2 | Dear Ashish,
Let me tell you that this HNWI Plan is the only Term Insurance available in market with lowest premium. Please find the attached illustration for yourself. The premium for 1Cr is Rs 26K per Year for your age.
Regarding comparing this plan with LIC, HDFC, SBI they have high premium as compared to Birla Sunlife HNWI Plan. I will study them and will post update.
Ashish-HNWI-Plan.pdf |
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