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Aditya Birla Sun Life Insurance Company Limited

Policy Premium Component

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Definition

A policy premium is the amount of money paid towards the life insurance policy. The policy premium component comprises pure premium, operating expenses, investment and earning margin.

Description:

The premium is paid by the insured and the life cover is provided by the insurance company. Under insurance the risk is transferred from one party to the other after paying the premium. The policy premium is made of three components to include.

Pure premium: Pure premium is the most important component of the insurance. It is the amount needed to cover expected losses and loss adjustment expenses.
Operating expenses:: Operating expenses is the premium component that include sales commission, claim handling costs, taxes and other marketing costs.
Investment and Earning margin: It includes the allowance for contingencies and underwriting profits.

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Newly Added Terms

Death Benefit

Insurability

Settlement Option

Most Appreciated Terms

Absolute Assignment

Death Benefits

Insurability

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

Optional Accelerated Critical Illness benefit

Inbuilt Terminal Illness Benefit

Life Cover
₹1 crore

Premium:
₹576/month^*

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ADV/8/22-23/1211

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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.