ABSLI Vision LifeIncome Plan

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 3% can also be defined as 30 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.

Example: On 1st July 2013; ABSLI declares a bonus of 46 per 1000 sum assured

The annual rate as declared by ABSLI shall be added to all policies having policy anniversaries between 1st July 2013 and 30th June 2014. Once this bonus is added to a policy on its policy anniversary it becomes payable under all circumstances in the policy under the policy.

While the interim bonus shall be payable to all policies resulting in claims (death claims) between 1st July 2013 to 30th June 2014.

If all the due premiums have been paid in full you shall be eligible to participate in the profits of the par fund and bonuses (if any) may be added to your policy during the policy term.

This product has following bonuses

** Simple Reversionary Bonus:**

ABSLI may declare a rate of reversionary bonus at the end of every financial year. The Reversionary Bonus declared is expressed either as a percentage or per 1000 of the sum assured of the policy. 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. In case of surrender the surrender value of the attached bonuses will be payable.

This reversionary bonus, once added to the policy shall vest and will be payable as part of the survival, death or maturity benefit as the case may be.

Example: Assuming policy is bought on 1st January 2013 and ABSLI declares the annual reversionary bonus of 46 per 1000 Sum Assured on 1st July 2013.

The bonus vests on the policy only on policy anniversary. As the policy is brought on 1st Jan 2013, the 1st policy anniversary falls on 1st Jan 2014. The revisionary bonus rate declared in the first year is 46 per 1000 Sum Assured; therefore,

Bonus attached to policy on 1st policy anniversary is 10,00,000 x 46/1000 = Rs. 46,000.

Assuming on 1st July 2014 i.e. the second year ABSLI declares an annual reversionary bonus of 48 per 1000 sum assured

Bonus to be attached on 2nd policy anniversary i.e. on 1st Jan 2015 is 10,00,000 x 48/1000 = Rs. 48,000

As this plan offers simple revisionary bonus, the accrued bonuses at the end of 2nd policy year is Rs. 46,000 + Rs 48,000 = Rs. 94,000

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 along with the sum assured.

Continuing from the previous example:

Assuming on 1st July 2014 ABSLI declares an interim bonus of 42 per thousand of Sum Assured and the annual revisionary bonus of 46 per thousand of Sum Assured

The revisionary bonus will be added to the policy on the policy anniversary i.e. on 1st Jan 2015, however in the interim the life insured dies on 15th Oct 2014 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 42/1000 = 42,000 as a part of the death benefit.

Accrued bonus in this case shall be 46,000 (in the previous year) + 42,000 (interim bonus in the year of death) = Rs. 88,000

Terminal Bonus: At company’s discretion on death or maturity based on the actual experience and the prevailing economic conditions a terminal bonus may be paid.

Participating policies usually take time to build up cash values therefore in the initial years terminal bonus may or may not be paid.

On completion of the first Policy Year, You may avail a loan against your policy The minimum loan amount is Rs.5,000 and the maximum is 85% of your surrender value. We shall charge interest on the outstanding loan balance at a rate declared by us from time to time based on then prevailing market conditions. Any outstanding loan balance will be recovered by us from policy proceeds due for payment before any benefit is paid under the policy. Should the outstanding policy loan balance equal or exceed the surrender value of your policy at any time, when your policy is in reduced paid-up status, then the policy shall be terminated without any value. Note that prior to this happening, we shall give you an opportunity to repay all or part of your outstanding loan balance in order for your policy to continue uninterrupted.

Yes, there can be a proposer and s/he can be different from the Life Insured under the plan. In case the proposer and the life insured are different then all the proceeds for the policy will be paid to the proposer. If the policy is taken for the benefit of life insured who is a minor at the time of policy issuance, the policy shall automatically vest to the life insured on his attaining age 18.

Yes, this plan can be offered to NRIs/FNIOs & PIOs, however riders cannot be offered to them.