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Aditya Birla Sun Life Insurance Company Limited

Actuarial Cost Method

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Definition:

The actuarial cost method is used by the actuaries to calculate the amount a company has to pay to cover the pension expenses. The amount is used to cover the pension expenditure. This method is used to calculate how much money is required for pension consultation and pension funding.

Description:

The cost approach calculates total benefits based on the assumptions like current salary/wages of the employee, the number of service years left, and the average life expectancy post-retirement.

This method is used by companies to maintain financial solvency by keeping a track record of responsibilities to shoulder in the future.

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Buy ₹1 Crore Term Insurance at Just ₹576/month^*

ABSLI Salaried Term Plan

Exclusively For Salaried Individuals

4 Plan Options

Life Cover upto 70 years

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₹1 crore

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₹576/month^*

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ABSLI Salaried Term Plan (UIN:109N141V04) is a non-linked non-participating individual pure risk premium life insurance plan; upon Policyholder’s selection of Plan Option 2 (Life Cover with ROP) this product shall be a non-linked non-participating individual savings life insurance plan.
*LI Age 21, Male, Non Smoker, Option 1: Life Cover, PPT: Regular Pay, SA: ₹ 1 Cr., PT: 10 years, Annual Premium: ₹ 6400/- ( which is ₹ 576/month) Premium exclusive of GST. On death, 1 Cr SA is paid and the policy terminates.
ADV/4/22-23/120

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Disclaimer : ABSLI Nishchit Aayush Plan (UIN No 109N137V12) is a non-linked non-participating individual savings life insurance plan.
^ Provided 0 year deferment & Annually in Advance payout frequency is chosen at the time of inception of the policy. Annually in Advance payout frequency is only available in "Annual" premium payment mode. ^*Male- 25 yrs invests in ABSLI Nishchit Aayush Plan with Level Income + Lumpsum Benefit. He chooses premium payment term 10 yrs , policy term 40 years, benefit option -Long Term Income, Sum Assured 7 times of Annualized Premium and Deferment Period 0 years. Annualized Premium is ₹1,00,000 (Exclusive of GST.). Annual Income of ₹ 32,750 (32,750*40=  13,10,000) + Maturity Benefit (₹20,00,000)= ₹ 33,10,000 ADV/3/24-25/3076.