ABSLI Income Suraksha Plan

In case of unfortunate demise of the Life Insured during the Policy Term, Death Benefit will be paid to the Nominee(s)/legal heir(s)/assignee as per the Plan Option chosen (as explained in the below-mentioned section).

For Plan Option 1:.
In the event of death of the life insured during the term of the policy, provided the policy is in-force, the Death Benefit will be payable in monthly instalments, commencing from the end of the policy month on or after the date of death and continuing for each policy month during the Income Payout Period. The monthly income will be equal to the Monthly Income chosen at inception.
Any excess amount of Sum Assured on Death over “the absolute amount assured to be paid on death”, will be paid in lump-sum immediately on death of life insured.

For Plan Option 2:
Under this option, the Monthly Income chosen at inception will increase at 5% p.a., compounded annually.
On death of Life Insured, the nominee will be paid the then applicable monthly income, and such income will continue to increase at every policy anniversary. The monthly income payable will be capped to 1.5 times the Monthly Income chosen at inception. The monthly income will be payable throughout the Income Payout Period.

For more details, please read the product brochure.

At any time after the death of the life insured, if the nominee would subsequently like to get a lump sum instead of the income payouts, a discounted value of the outstanding income instalments shall be paid as a lump sum. The discounted value shall be calculated using a discount rate of 9.55% p.a., or such other rate as determined by ABSLI (subject to prior approval from IRDAI) from time to time, taking into account the expected future economic environment at the time.

Lumpsum Amount=Commutation Factor x Monthly Income chosen at Inception

The Commutation Factor will depend on the Plan Option, Income Payout Frequency, Policy Term and the outstanding Income Payout Period. The outstanding Income Payout Period is calculated as number of whole months from the date of commutation to the end of the Income Payout Period.

Mode Change for Monthly Income:

The nominee can choose to receive the income payouts annually instead of monthly by providing a written notice on or after the date of death. Such mode change request (monthly to annual and then from annual to monthly) can be opted for at any point during the Income Payout Period subject to the mode change request being made at least 1 day before the policy anniversary and shall be applicable from the next policy anniversary.

Annual income benefit will be determined as below:Annual income payout amount = Monthly income payout amount* Modal Income Factor

The Modal Income Factor is 12.22 and has been computed at an interest rate of 4% p.a. Any change in basis of determination of Modal Income Factor can be done only after prior approval of the Authority.