What is a Term Insurance Plan?
A Term insurance plan is designed to secure your family’s financial future against uncertainties and unforeseen circumstances.
INTRODUCING ABSLI LIFE SHIELD PLAN
Your endeavour is to provide the best to your family and ensure their happiness and well-being. However, when it comes to planning for unforeseen circumstances, you need a solution that does not make your family compromise on any facet of their lifestyle and protects their dreams.
Aditya Birla Sun Life Insurance has come up with a protection solution for you - ABSLI Life Shield Plan that gives you the flexibility to provide for your family’s well-being even if you are not around.
KEY FEATURES OF THE PLAN
- 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
|Entry Age(age last birthday)||18 to 65 years|
|Maximum Maturity Age||80 years|
|Premium Paying Term||Single Pay | Limited Pay – 6 | 8 Years | Regular Pay|
|Premium Mode||Annual | Semi-annual | Quarterly | Monthly|
|Sum Assured||Minimum Rs. 25,00,000
Maximum: No Limit (subject to underwriting guidelines)
YOUR PLAN OPTIONS
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:
|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% per annum. (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 customer’s protection need owing to any loan or mortgage taken by him/her. The death benefit shall be payable as per the Decreasing Sum Assured Schedule available in Product Brochure.|
|Option 6||Decreasing Term Assurance with Waiver of Premium (WOP) Benefits - In addition to benefits applicable for Option 5, in case a customer is 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 brochure Note: In case of rider benefits, if opted for, shall be payable as per rider sum assured chosen at inception.
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 Total Premiums paid as on the date of death; 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
- Absolute amount assured to be paid on death
Annualized premium shall be the premium amount payable in a year chosen by the policyholder, excluding the taxes, rider premiums, underwriting extra premiums and loadings for modal premiums, if any.
Total Premiums paid means total of all the premiums received, excluding any extra premium, any rider premium and taxes.
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:i.Lump sum payment
or ii.Staggered payment with fixed annual income. In this option the Death Benefit will be paid as:
a)One-time payout of 58% of Death Benefit at the time of claim settlement plus;
b)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|
or iii.Staggered payment with increasing annual income @ 5% p.a. In this option the Death Benefit will be paid as:
a)One-time payout of 58 % of Death Benefit at the time of claim settlement plus;
b)The remaining Death Benefit is paid as an annual income. An annual income as a fxed 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|
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.
Terminal Illness Benefit
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 or 6. 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.
Joint Life Protection
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 5,000,000. 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 lacs. Then the premium for both of them is:
Atul – For Sum Assured 1 crore the annualized premium Rs 11,510
Nina - For Sum Assured 50 lakhs the annualized premium is = Rs 4,375
So, the joint life premium payable is (11,510 +90% x 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.
Enhanced Life stage Protection
Your protection need varies at different life stages owing to occurrence of joyous events such as marriage & 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 & 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 Life stage Protection are mentioned below:
(% of Sum Assured at Inception of the policy)
|First Marriage||50% subject to a maximum of Rs. 5,000,000|
|Birth of 1st Child||25% subject to a maximum of Rs. 2,500,000|
|Birth of 2nd Child||25% subject to a maximum of Rs. 2,500,000|
You can choose to reduce the sum assured in future to the extent of sum assured increased under the Enhanced Life stage 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 Life stage 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.
Reduced Paid Up
Death BenefitIf Plan Option 1 or 2 or 3 or 4 or 5 or 6 is chosen
Not applicableIf Plan Option 7 or 8 is chosen
You may choose to stop paying premiums at any time once all due premiums, for at least two policy years have been paid and continue this policy on a reduced paid-up basis.
Under Reduced Paid-Up, your Sum Assured as on the date of Death shall be reduced in proportion to the premiums actually paid to the total premiums payable during the premium paying term.
The Terminal Illness Benefit payable will be the reduced paid up terminal illness benefit applicable at that time.
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:109B023V02)
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. Please refer to detailed brochures on riders, consult your financial advisor or visit our website for further details.
YOUR SAMPLE PREMIUMS
Below are sample annualized premiums for age 35, non-smoker, Sum Assured of Rs. 50,00,000 for a policy term of 20 years, regular premium payment.
|Plan Option||Option 1||Option 2||Option 3 @5%||Option 4 @5%||Option 5||Option 6||Option 7||Option 8|
*The premium is exclusive of GST. All applicable taxes will be levied as per extant tax laws and collected additionally.
Please visit our website or ask your financial advisor for the customised benefit illustration specific to your policy.
You may choose to pay your premium annually, semi-annually, quarterly or monthly as per your convenience. Modal loadings are given below:
Surrendering your PolicyIf Plan Option 1 or 2 or3 or 4 or 5 or 6 is chosen
There is no surrender benefit or unexpired risk premium payable for regular pay under this plan.
Under Limited Pay option, if a policy is surrendered during the premium payment term, no benefit shall be payable, however, if you surrender the policy after completion of the premium payment term, provided all due premiums have been paid in full, we shall pay you the unexpired risk premium as a surrender benefit upon such surrender, as per the formula approved by the IRDAI.
Under Single Pay option, upon surrender of the policy we shall pay you the unexpired risk premium as a surrender benefit as per the formula approved by the IRDAI.If Plan Option 7 or 8 is chosen
Your policy will acquire a surrender value after all due premiums for at least two years are paid for regular or limited pay and immediately after policy issuance for single pay.
How does one apply for ABSLI’s Term Insurance Plan?
It only takes 3 simple steps to get the plan: Step 1: Enter your basic details such as name, gender, DoB etc. Step 2: Choose your Policy Term, Premium Paying Term, Sum Assured etc. to get your premium details. Step 3: Fill basic personal details and make payment to get an application number. ABSLI’s Term Insurance Plans gives your family the financial independence and security that you desire.
This policy is underwritten by Aditya Birla Sun Life Insurance Company Limited (ABSLI). This is a non-linked non-participating term insurance plan. All terms & 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. For more details on risk factors, terms & conditions, please read the brochure carefully before concluding the sale. For detailed terms & conditions please refer to the policy contract. Tax benefits are subject to changes in the tax laws. For more details and clarification, call your ABSLI Insurance Advisor or visit our website and see how we can help in making your dreams come true.
Trade Logo "Aditya Birla Capital" displayed above is owned by ADITYA BIRLA MANAGEMENT CORPORATION PRIVATE LIMITED (Trademark Owner) and used by ADITYA BIRLA SUN LIFE INSURANCE COMPANY LIMITED (ABSLI) under the license.
Aditya Birla Sun Life Insurance Company Limited, Registered with Insurance Regulatory & Development Authority of India (IRDAI) as Life Insurance Company
Registered Office:One World Center, Tower 1, 16th Floor, Jupiter Mill Compound, 841, Senapati Bapat Marg, Elphinstone Road, Mumbai - 400013.
IRDAI Registration No. 109
UIN: 109N109V04 (ABSLI Lifeshield plan)
- IRDAI is not involved in activities like selling insurance policies, announcing bonus or investment of premiums. Public receiving such phone calls are requested to lodge a police complaint.