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Birla Sun life Income Assured Plan Review

Birla Sun life Income Assured Plan Review

Birla Sun life Income Assured Plan is an insurance plan which offers guaranteed returns on  limited PPT(Premium payment option). This is a short term plan with only 3 Premium payment options(5,7 and 10).

Type of plan          : Endowment Non participating

Returns                   : Fully Guaranteed

Tenure                    : Long term (Policy term 15,17 and 20)

Premium mode  : Limited PPT 

  • SPECS

  • BENEFITS

    1. Flexibility to choose between three PPT (Premium payment) options
    2. Limited Premium payment option
    3. Need not worry about the market
    4. Guaranteed Returns
    5. Regular income after PPT
    6. Better returns than other endowment plans in the market
    7. Flexibility to choose the survival benefit in annual payout mode or lump sum mode
    8. Premium paid is Eligible for exemption under section 80c
    9. Maturity and the Returns are exempted under section 10(10d)
    10. The policy gives you paid up benefit if 2 years premium paid
    11. Loan against policy benefits available

    1. Lesser Returns than other savings options
    2. Less liquidity before premium payment Term
    3. Surrender charges are High
    4. Returns very less compared to Fixed deposit
    5. Lesser Life cover

  • scoring


Birla Sun life Income Assured Plan Review

Birla Sun life Income Assured Plan ensures a guaranteed maturity benefit at maturity. This is an Traditional Endowment Non participating plan. The returns are guaranteed but it is less. The plan provides regular income after premium payment term and a Lump sum maturity benefit. The product has tax exemptions. This product is better than maximum insurance plans in the market. If you are looking for insurance cum savings plan, you can choose this one. But if you look out for an investment option, then this product doesn’t suits your needs.


What You Pay and What You get

Example  : Arun is 35 year old. He buys Birla Sun life Income Assured Plan with a Regular premium payment term of 10 years and policy term 20 years for a premium of  Rs.72440 with Maturity sum assured of Rs.500000 and Death sum assured of Rs.724400. His policy benefits are:

  1.  Guaranteed Maturity Benefit of 10 Lakh in 20th policy year.
  2. Regular Annual Payout of Rs.40000 from 11th to 20 th policy year.
  3. Guaranteed Death Benefit of Rs.724400 anytime during the policy term.

TOTAL PREMIUM PAID : Rs. 724440*

TOTAL BENEFIT RECEIVABLE : Rs.1400000

(*Excluding taxes)


Bonus History

Since this is an Non participating policy there is no Bonus payable for this plans.


What happens if you discontinue your premiums?

The policy acquires paid up benefits if the following conditions are fulfilled.

  • Minimum 2 Years premium is paid for 5 and 7 years PPT
  • Minimum 3 years premium is paid for 10 years PPT

Liquidity 

Loans : You can Take loans if the policy acquires Paid up Benefit. Loan Eligibility conditions are as follows:

  • Minimum 2 Years premium is paid for 5 and 7 years PPT
  • Minimum 3 years premium is paid for 10 years PPT
  • Minimum Loan amount Rs 5000
  • Maximum 85% of surrender value can be taken as loan

Partial Withdrawal : Not possible

If you want funds before maturity you have to take loan from the policy.


If You want to surrender the policy 

You can surrender the policy from 3rd policy year on wards. The surrender benefit is as follows:

  • Guaranteed Surrender Value or Special surrender value (Whichever is higher)

   Birla Sun life Income Assured Plan is a traditional plan, the surrender benefits of this plan will be mostly lesser than the premium paid.Waytoinsurance.com suggests not to surrender this plan in-between to avoid loss.


For more details on this plan please go through the Product brochure.


**Disclaimer:

This post on Birla Sun life Income Assured Plan is just a review of what the plan offers to the customers. We aim at educating ins and outs of this plan. We are trying to simplify the product and make it easy to understand. The Returns provided in this post are for Illustrative purpose only.  The waytoinsurance score is given by our own metrics of calculation and are no way related to the performance of this plan. All these details are derived from the below link. We are aiming at providing financial literacy for the common man. We are just educating the people about this plan. The final decision to buy this plan is in your hands. We are not responsible for any individual decisions on this plan.We are not in support or against any insurance company or its products. Our main vision is to educate customers in deciding the best option available in the market.

Source: http://insurance.birlasunlife.com/Pages/Individual/Our-Solutions/Savings-with-Protection-PlanDetails.aspx?PlanViewMode=ProductVariation4&PlanID=85

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