Skip Ribbon Commands
Skip to main content
 
A plan that helps you benefit from market fluctuations by investing your money when markets are low and locking in your highest gains with life cover
Your investment options
 
Guaranteed Option
In this option your money is invested in the new generation Foresight Fund. You receive a Guaranteed Minimum Maturity Benefit by optimising both your entry and gains from the capital markets.
 
Self-Managed Option  
Gives you complete access to our range of investment funds with the freedom to switch between them. In this investment option, you decide how to invest your premiums. We offer 10 investment funds ranging from 100% debt to 100% equity to suit your particular needs and risk appetite - Income Advantage, Assure, Protector, Builder, Enhancer, Creator, Magnifier, Maximiser, Multiplier and Super 20.
 
How does the Guaranteed Option work?
 
To understand how the Guaranteed Option works, it is important to understand a few key terms:
1.     Net Invested Premium (NIP)
2.     NIP Value
3.     NIP Guaranteed Value
4.     Guaranteed Minimum Maturity Benefit (GMMB)
 
Each of these is explained below.
 
1.     Net Invested Premium (NIP)
Net Invested Premium is the money that is invested in the investment option chosen by you.

From the premium paid by you, we deduct:
Premium allocation charge; and
Mortality charge for the BSA chosen by you
The residual amount is the NIP.

 
2.     NIP Value
We track each NIP in your policy separately and each NIP has its own value (NIP value). NIP value for any given day is calculated as:
 
 
NIP Value =
NIP   X
current unit price
unit price when NIP was paid to purchase units in Foresight fund

For example, a NIP of Rs.1,00,000 is invested using a unit price of Rs.10 to purchase units in the Foresight fund. Now,
If the current unit price is Rs.12, then NIP Value = 1,00,000 x (12/10) = Rs.1,20,000

Your Fund Value is the sum of all NIP Values as on date. If you are in the fourth policy year and have paid all four premiums on time, then your Fund Value is the sum of all four NIP Values associated with each of your premiums.

 
3.     NIP Guaranteed Value
NIP Guaranteed Value is the minimum value that we guarantee on a particular NIP at maturity. NIP Guaranteed Value is:
For 5-Pay option –
Higher of Special NIP Guaranteed Value (explained below)
 
OR
 
 
The highest NIP Value achieved during the first 7 policy years
 
 
 
For Single Pay option –
Highest NIP value achieved during the first 7 policy years

 
4.     Guaranteed Minimum Maturity Benefit
Guaranteed Minimum Maturity Benefit is the sum of all your NIP Guaranteed Values. At maturity and provided you remain invested in the Guaranteed Option, you will receive the Fund Value or the Guaranteed Minimum Maturity Benefit, whichever is higher.
 
The Unique Foresight Advantage – Only for the 5-Pay option
 
Special NIP Guaranteed Value

Special NIP Guaranteed Value is applicable only to 5-Pay option. Special NIP Guaranteed Value is determined at the end of the 5th policy year for each NIP invested in this plan.

Special NIP Guaranteed Value ensures that you enjoy the benefit of market movements for each NIP. It is the sum of two components, as described under (a) and (b) below.
i
This component gives you the advantage of investing on the best day possible during the policy year in which the NIP was invested. This is calculated as:
 
 
 
NIP   X
(the NIP Value as of the end of the 5th policy year)
(the lowest NIP Value recorded during the policy year in which the NIP was invested)
 
 
 
For example,
NIP for year 2 premium (a) = Rs.1,00,000
NIP at the end of 5th year (b) = Rs.1,50,000
Lowest NIP value in the year invested (c) = Rs.80,000
Therefore, the value of the first component = 1,00,000 x (1,50,000/80,000) = 1,87,500
 foresight-plan1.jpg
 
 
 
ii
This component helps you to lock-in the gains made by giving you the highest NIP Value achieved during the first 5 policy years. This is calculated as:
(Highest NIP value achieved during the first 5 policy years) – (NIP value at the end of the 5th policy year)
 
 
 
For example,
NIP for year 2 premium (x) = Rs.1,00,000
NIP Value at the end of 5th year (y) = Rs.1,50,000
Highest NIP Value during the 5 years (z) = Rs.1,62,5000
Therefore , the value of second component = 1,62,500 – 1,50,000 = 12,500
 foresight-plan2.jpg
 
 
 
 
Adding the two components, we get special NIP Guaranteed Value = 187,500 + 12,500 = 200,000.

As mentioned earlier, the NIP Guaranteed Value will be the higher of Special NIP Guaranteed Value, as calculated above, and the highest NIP Value achieved during the first 7 policy years.
 
 
Disclaimer
The investment risk in the investment portfolio is borne by the policyholder. The premium paid in the unit linked insurance policies are subject to investment risk associated with capital markets and the unit price of the units may go up or down based on the performance of investment fund and the factors influencing the capital market and the policyholder is responsible for his/her decisions. This is a non-participating unit linked life insurance plan. Birla Sun Life Insurance and BSLI Foresight Plan are only the names of the Company and Policy respectively and do not in any way indicate their quality, future prospects or returns. The name of the funds offered in this plan does not in any indicate their quality, future prospects or returns. Tax benefits are subject to changes in the tax laws. Insurance is the subject matter of solicitation. For more details on risk factors , terms & conditions , please read sales brochure carefully before concluding the sale’. Regd. Office: One Indiabulls Centre, Tower 1, 16th floor, Jupiter Mill Compound, 841, Senapati Bapat Marg, Elphinstone Road, Mumbai - 400 013. Reg No. 109
Unique No.: 109L069V01