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ABSLI Life Shield Plan
A non-linked non - participating term insurance plan

Every family is different and so are their protection needs. One policy may not match all of them. Be it Joint life protection with your spouse, increasing or decreasing term assurance option, waiver of premium benefit in case of disability or disease or return of premium option, you need a policy that delivers future security for your family in the way you prefer. Introducing Aditya Birla Sun Life Insurance Life Shield Plan that offers you the flexibility to make a combination from amongst 8 different plan options as per your family's needs so they need not compromise on their lifestyle, even in your absence.

Key Features

  • Multiple options to suit your different protection needs
  • Option to enhance coverage at key milestones of your life
  • Option to cover your spouse under the same policy
  • Return of premium option
  • Inbuilt Terminal Illness Benefit
  • Multiple options to receive death benefit
  • Enhance your insurance with appropriate rider options

In case of the unfortunate demise of the life insured during the policy term, Death Benefit will be paid to the nominee. Death Benefit is the Sum Assured on death less any previously paid Terminal Illness Benefit. The policy shall be terminated once the Death Benefit is paid.

Sum Assured on Death for regular | limited pay will be highest of:
  • 10 times of the annualised premium for all ages; or
  • 105% of all the premiums paid as on the date of death; or
  • Maturity Sum Assured; or
  • Absolute amount assured to be paid on death

Sum Assured on Death for single pay will be highest of:
  • 125% of single premium for all ages; or
  • Maturity Sum Assured; or
  • Absolute amount assured to be paid on death

The maturity sum assured is nil under this plan for all options except for Return of Premium Option (Plan Option 7 and 8).

The absolute amount assured to be paid on death is the Effective Sum Assured as on the date of death.

  • Under Plan Option 1 or 2 or 7 or 8 – The Effective Sum Assured is the sum assured at inception and same will remain constant throughout the policy term
  • Under Option 3 or 4 – Effective Sum Assured will increase on every policy anniversary. The amount by which the Effective Sum Assured will increase on every policy anniversary is the sum assured at inception multiplied by 5% / 10% p.a. (simple), as chosen by you at inception
  • Under Option 5 or 6 – The Effective Sum Assured is the sum assured as per the Decreasing Sum Assured Schedule

For Option 1 - Level Term Assurance Option and Option 2 - Level Term Assurance with Waiver of Premium (WOP) benefits, the Effective Sum Assured shall include any change in Sum Assured arising from the exercise of the Enhanced Life Stage Protection option.

The nominee has an option to take the Death Benefit by choosing one of the following options:

1)Lump sum payment
or
2)Staggered payment with fixed annual income. In this option the Death Benefit will be paid as

  • One-time payout of 58% of Death Benefit at the time of claim settlement plus;
  • The remaining Death Benefit is paid as an annual income. An annual income as a fixed percentage of Death Benefit on each death anniversary of the life insured for the chosen payout term (10 or 15 years) will be payable as shown in the table given below:

    Payout term
    % of Death Benefit
    10
    5.77 %
    15
    4.40 %
or

3)Staggered payment with increasing annual income @ 5% p.a. In this option the Death Benefit will be paid as:

  • One-time payout of 58% of Death Benefit at the time of claim settlement plus;
  • The remaining Death Benefit is paid as an annual income. An annual income as a fixed percentage of Death Benefit at the time of claim settlement and then increasing at the rate of 5% per annum simple on each death anniversary of the life insured for the chosen payout term (10 or 15 years) will be payable as shown in the table given below:

    Payout term
    % of Death Benefit
    10
    4.81%
    15
    3.40 %
In case the nominee would like to get a lump sum instead of the staggered payout post exercising this option, a discounted value of the outstanding annual income shall be paid as lump sum subject to a minimum of the Death Benefit payable less annual income already paid. The discounted value currently shall be calculated using an interest rate of 6.25% per annum. This interest rate is subject to change in future with prior IRDAI approval.

In case you are diagnosed with a Terminal Illness, 50% of the applicable Sum Assured on Death, subject to a maximum of Rs.2.5 crore, will be paid immediately and all future due premiums are waived off. On subsequent death of the Life Insured during the policy term, the Sum Assured on Death shall be reduced by the amount of Terminal Illness Benefit already paid. Future due premiums are not liable to be paid on their premium due dates.

Terminal Illness Benefit shall only be payable on the first diagnosis of any Terminal Illness of the Life Insured during the policy term.

Waiver of premium on Total and Permanent Disability (TPD)

In case of the life insured suffering from Total and Permanent Disability during the policy term described later in detail, all future premiums, if any, will be waived off. Death Benefit under the policy will remain unaffected.

Waiver of premium on Critical Illness (CI)

In case of the life insured suffering from any of the specified Critical illness during the policy term described later in detail, all future premiums, if any will be waived off. Death Benefit under the policy will remain unaffected.

The premium waiver on TPD or CI is applicable only if you have chosen Plan Option 2, 4, 6 or 8. Premium waiver benefit is applicable on the first occurrence of either TPD or Critical Illness whichever is earlier. This benefit is applicable only once during the entire policy term.

Under this option, two lives, i.e., you (primary life insured) and your spouse (secondary life insured) are covered under the same policy. The sum assured applicable for your spouse shall be equal to 50% of your applicable sum assured. This option shall only be available where the sum assured of primary life insured is greater than or equal to Rs.50,00,000. You can opt for Joint Life Protection for only if Plan Option 1, 2, 3 or 4 is chosen. You can opt for this option at the inception of the policy and the same shall not be changed subsequently. No rider can be opted under this option.

Example: Atul (aged 35) and Nina (aged 30) both non-smokers couple choose Life Shield with joint life cover for 30 years. First life (male) opts for a Sum Assured (SA) of Rs.1 Cr and second life cover applied is Rs.50 lakhs. Then the premium for both of them is:

Atul- For Sum Assured Rs.1 crore, the annual premium Rs.11,510

Nina- For Sum Assured Rs.50 lakhs, the annual premium is = Rs.4,375

So, the joint life premium payable is (Rs.11,510 + 90% x Rs.4,375) = Rs.15,448 (with a 10% discount on the premium for the spouse)

In case of death of the primary life insured prior to the secondary life insured, sum assured on death for primary life insured will be paid to the spouse (secondary life insured) and the life cover for secondary life insured will continue with the future premiums, if any, waived off. Then on the death of secondary life insured, before the policy maturity date, sum assured in respect of secondary life insured will be paid to the nominee and policy will be terminated.

In case of death of secondary life insured prior to primary life insured, sum assured in respect of secondary life insured will be paid to the primary life insured. Future premiums, if any, will be reduced from the next policy anniversary to the premium that would have been charged at inception for only primary life insured at policy inception. Then on the death of the primary life insured, before the policy maturity date, the sum assured on death in respect of primary life insured will be paid to the nominee and the policy will be terminated.

If case of death of both the lives simultaneously the sum assured on death in respect of the primary life insured as well as sum assured in respect of secondary life insured will be paid to the nominee and the policy will be terminated.

Once the Joint Life Protection is opted, you cannot discontinue the coverage of the particular life, unless it is due to the events as mentioned above.

The Terminal Illness Benefit as explained in the Death Benefit section shall be applicable in respect of both, i.e., the primary life insured and the secondary life insured.

Your protection need varies at different lifestages owing to occurrence of joyous events such as marriage and birth of children. You may opt to increase your life cover on occurrence of each of the events without undergoing for any fresh medical examination. This feature is available only for policy under Plan Option 1 and Option 2, standard life at inception of the policy, regular pay policy and the attained age of life insured is less than or equal to 50 years while exercising this option. This option is not available if Joint Life Protection is opted. Future premiums shall be considered at the premium rate as applicable on the age at inception of the policy. Future premiums shall be increased in proportion of the increase in the sum assured to the sum assured at inception of the policy and will be reflected from the subsequent policy anniversary. The details of Enhanced Lifestage Protection are mentioned below:

Event Enhanced Protection
(% of Sum Assured at Inception of the policy)
First Marriage 50% subject to a maximum of Rs.50,00,000
Birth of 1st Child 25% subject to a maximum of Rs.25,00,000
Birth of 2nd Child 25% subject to a maximum of Rs.25,00,000

You can choose to reduce the sum assured in future to the extent of sum assured increased under the Enhanced Lifestage Protection option. The reduction in sum assured will be effective from the policy anniversary falling immediately after the date of notification and the premium will be decreased at the same time. Any increase in sum assured due to your first marriage, birth of first child or second child under this option, may be subsequently reduced subject to the written request. The premium shall be decreased by the same amount as the premium was increased while exercising the Enhanced Lifestage Protection option.

In the event the life insured survives to the end of the policy term, no benefit is payable on maturity except when the Return of Premium Plan Option 7 I 8 is chosen and then the sum of all the premiums (excluding GST, premiums paid towards underwriting extras and/or riders as may be applicable) shall be paid on the policy maturity date and the policy will be terminated thereafter.

For added protection, ABSLI Life Shield Plan can be enhanced by the following riders for a nominal extra cost.

  • ABSLI Accidental Death and Disability Rider (UIN: 109B018V03)
  • ABSLI Critical Illness Rider (UIN : 109B019VO3)
  • ABSLI Surgical Care Rider (UIN: 109B015V03)
  • ABSLI Hospital Care Rider (UIN: 109B016V03)
  • ABSLI Accidental Death Benefit Rider Plus (UIN:109B023V01)

You can opt for either ABSLI Accidental Death and Disability Rider or ABSLI Accidental Death Benefit Rider Plus and not both.

Riders are not available for Joint Life Protection Option and also for Decreasing Term Assurance (Plan Option 5|6).

Please refer to detailed brochures on riders, consult your financial advisor or visit our website for further details.

ABSLI Life Shield Plan offers you the freedom to choose your sum assured, plan options and how long you want to pay at inception. The plan options available are given below:

Plan Options

Option 1 - Level Term Assurance

Sum Assured chosen by you will remain constant for the entire policy term.

Option 2 - Level Term Assurance with Waiver of Premium (WOP) Benefits

In addition to benefit applicable for Option 1, in case you are diagnosed with Critical Illness^ or Total and Permanent Disability^ whichever is earlier, all future premiums, if any, will be waived off and policy will continue till end of policy term.

Option 3 - Increasing Term Assurance

You can choose to enhance your sum assured at inception by 5% / 10% p.a. (simple) as per your needs. Every year, your sum assured will increase by 5% / 10% p.a. (simple) of the original sum assured without any increase in your premium amount.

Option 4 - Increasing Term Assurance with Waiver of Premium (WOP) Benefits

In addition to benefits applicable for Option 3, in case you are diagnosed with Critical Illness^ or Total Permanent Disability^ whichever is earlier, all future premiums, if any, will be waived off and policy will continue till end of policy term.

Option 5 - Decreasing Term Assurance

An option designed to take care of your protection need owing to any loan or mortgage taken by you. The death benefit shall be payable as per the Decreasing Sum Assured Schedule shown below:

Decreasing Sum Assured Schedule (% of Sum Assured at Inception)
Policy Year
Policy Term upto 20 years
Policy Term above 20 years
1 to 5
100%
100%
6 to 10
90%
95%
11 to 15
75%
90%
16 to 20
50%
85%
21 to 25
N.A.
70%
26 to 50
N.A.
50%

Option 6 - Decreasing Term Assurance with Waiver of Premium (WOP) Benefits

In addition to benefits applicable for Option 5, in case you are diagnosed with Critical Illness^ or Total Permanent Disability^ whichever is earlier, all future premiums, if any, will be waived off and policy will continue till end of policy term

Option 7 - Return of Premium

Sum Assured chosen by you will remain constant for the entire policy term. If the life insured survives till maturity date, we shall return all the premiums paid#.

Option 8 - Return of Premium with Waiver of Premium (WOP) Benefit

In addition to benefits applicable for Option 7, in case you are diagnosed with Critical Illness^ or Total Permanent Disability^ whichever is earlier, all future premiums, if any, will be waived off and policy will continue till end of policy term.

The premium will vary depending on the plan option chosen by you. Plan option once selected cannot be changed during the policy term.

#excluding loadings for modal premiums, applicable taxes, any applicable rider premiums and underwriting extras, if any.

^Explained in detail later in the leaflet.

Note: In case of rider benefits, if opted for, shall be payable as per rider sum assured chosen at inception.

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Please click here to download policy contract

Disclaimer

This policy is underwritten by Aditya Birla Sun Life Insurance Company Limited (ABSLI). All terms and conditions are guaranteed throughout the policy term. GST and any other applicable taxes will be added (extra) to your premium and levied as per extant tax laws. An extra premium may be charged as per our then existing underwriting guidelines for substandard lives, smokers or people having hazardous occupations, etc. The insurance cover for the life insured will commence on the policy issue date. For more details on risk factors, terms and conditions please read the sales brochure carefully before concluding the sales. Tax benefits are subject to changes in the tax laws. Aditya Birla Sun Life Insurance Company Limited (Formerly Birla Sun Life Insurance Company Limited) Registered Office: One Indiabulls Centre,Tower 1, 16th Floor, Jupiter Mill Compound, 841, Senapati Bapat Marg, Elphinstone Road, Mumbai - 400 013. IRDAI reg no.109 CIN: U99999MH2000PLC128110 ADV/3/17-18/2035 VER1/MAR/2018


UIN: 109N109V01