ABSLI Vision Endowment Plus Plan

You shall be eligible for premium rebate based on your choice of ‘Sum Assured’ and ‘premium payment mode’. Sum Assured Rebate For higher sum assured, you will get a premium rebate as explained below

ABSLI shall declare a bonus on 1st of July every year and this bonus rate shall be applicable to all the policies having policy anniversary between 1st July to 30th June of the following year. Bonus is either represented as a percentage or can also be expressed as per 1000 of sum assured. For e.g. a bonus rate of 4% can also be defined as 40 per 1000 sum assured.

The bonus rate declared by ABSLI will depend on the actual experience regarding various factors and the prevailing economic conditions hence it may vary from year to year.

Your policy shall participate in the profits arising out of the ABSLI’s participating business in the form of bonus. The regular bonus rate declared by ABSLI may vary from year to year and will depend on the actual experience regarding various factors and the prevailing economic conditions. Future bonuses are however not guaranteed and will depend upon the future profits of the participating business. The plan offers following bonuses.

Simple Reversionary Bonus:

ABSLI may declare a rate of reversionary bonus at the end of every financial year during the policy term. Provided the policy is in effect for the full sum assured, the declared reversionary bonus shall be added to the policy on its policy anniversary date immediately following the date of bonus declaration. Bonuses once attached to the policy are payable along with the interim bonuses, as applicable on maturity or surrender or death, if earlier.

In case of surrender the surrender value of the attached bonuses will be payable.

Example: Assuming policy is bought on 1st October 2015 and ABSLI declares the annual reversionary bonus of 42 per 1000 Sum Assured on 1st July 2016.

The bonus vests on the policy only on policy anniversary. As the policy is brought on 1st Oct 2015, the 1st policy anniversary falls on 1st Oct 2016. The revisionary bonus rate declared in the first year is 42 per 1000 Sum Assured; therefore,

Bonus attached to policy on 1st policy anniversary is 10,00,000 x 42/1000 = Rs. 42,000.

Assuming on 1st July 2017 i.e. the second year ABSLI declares an annual reversionary bonus of 44 per 1000 sum assured

Bonus to be attached on 2nd policy anniversary i.e. on 1st Oct 2017 is 10,00,000 x 44/1000 = Rs. 44,000

As this plan offers simple revisionary bonus, the accrued bonuses at the end of 2nd policy year is Rs. 42,000 + Rs 44,000 = Rs. 86,000

Interim Bonus:

The interim bonus is declared annually along with the reversionary bonus. This is a temporary or provisional bonus which is declared and paid for policies where the declared reversionary bonus is yet to be vested but the policy is due for a death claim. In such scenarios the interim bonus will be paid so that the customer does not loose on the entitled bonus.

Continuing from the previous example: Assuming on 1st July 2016 ABSLI declares an interim bonus of 4.0% and the simple revisionary bonus of 4.4%

The revisionary bonus will be added to the policy on the policy anniversary i.e. on 1st Oct 2016 (policy issued on 1st Oct 2015), however in the interim the life insured dies on 15th Aug 2016 i.e. before the policy anniversary. In this case, the interim bonus declared by ABSLI will form a part of the death benefit. Hence the nominee will receive an interim bonus of = 10,00,000 x 40/1000 = 40,000 as a part of the death benefit.

Accrued bonus in this case shall be 42,000 (in the previous year) + 40,000(interim bonus in the year of death) = Rs. 82,000

Terminal Bonus: Participating policies usually take time to build up cash values therefore in the initial years terminal bonus may or may not be paid. ABSLI may also pay a terminal bonus on, maturity, surrender or death, if earlier, based on the actual experience and the prevailing economic conditions.

Your policy shall acquire a surrender value provided One Full Year Premium for the first Policy Year =has been received by us. The Policyholder can Surrender the Policy any time before the end of Policy Term. The Policy will terminate after payment of the Surrender Value and thereafter no other benefits under this Policy shall be payable.

Where One Full Year Premium for the first Policy Year has been received by Us and the Policyholder opts to surrender the Policy at any time during the Policy Term, the Surrender Value payable will be equal to the Special Surrender Value. Where the Policyholder opts to surrender the policy in the first policy year, the Surrender Value will be payable only at the end of the first Policy Year.

However, where all the due Instalment Premiums for the first two Policy Years have been received by Us, the Surrender Value payable will be equal to the higher of Guaranteed Surrender Value and Special Surrender Value.

The Guaranteed Surrender Value is a percentage of Total premiums paid plus the surrender value of accrued regular bonuses. The Guaranteed Surrender Value will vary depending on the premium paying term and the year the policy is surrendered.

Your Policy also acquires a Special Surrender Value (SSV) which is calculated in accordance with applicable IRDAI regulation. Special Surrender Value is not guaranteed and may be revised by the Company from time to time. Any change in method/ formula for calculating the SSV is subject to prior approval from IRDAI.

The policy shall be terminated once the Surrender Value is paid. Please ask your financial advisor for an illustration of the Special Surrender Values applicable to your policy or refer to your policy contract for further details. Kindly refer to the policy contract on the website for the surrender value table.