Investor Education
Birla Sun Life Term Insurance : Plans, Features and Benefits
BIRLA SUN LIFE TERM INSURANCE
Birla Sun Life Term Insurances are protection plans offered by Aditya Birla Sunlife AMC limited which was previously renowned as Birla Sun Life AMC. The most popular plan offered by them is the ABSL Life Shield Insurance plan which comes with an in-built terminal illness benefit. Moreover, insurers can get complete policy details and extended customer service options such as premium due date, policy, fund value, downloading various statements like tax certificate, premium receipt, and account statement. Their plans help you to provide financial security for the unforeseen life’s uncertain incidents that may threaten the financial stability of the family. To cope up with this loss of income due to the untimely demise of the bread earner, ABSL offers a term plan at an economical cost and high sum assured.
In this article, we will gain a deep understanding of term insurance plans offered by them and different important aspects of the same.
WHAT IS TERM INSURANCE?
Term insurance can be called one of the most basic types of insurance policies offered where the insurer ensures that the family members of the insured are given compensation up to the sum assured amount in case of demise of the insured during the selected tenure of the term insurance. These are designed to offer financial support to the family in case of an unfortunate event. Most term insurance plans come with other rider benefits at a slightly higher premium.
LIST OF TERM INSURANCE OFFERED
A. ABSL Protect at Ease Plan
This is an affordable plan that comes with a high sum assured to compensate for the loss of income of the family in the event of the unfortunate demise of the breadwinner. The plan features an in-built terminal illness rider benefit and offers rewards to the insuree for leading a healthy life.
Eligibility:
| Minimum and Maximum Entry Age | Minimum age is 18 years and Maximum is 65 years |
| Policy Term | 5-40 years, subject to a maximum age of 80 years at the end of the policy tenure |
| Minimum and Maximum Sum Assured | Minimum Sum Assured - Rs 30 Lakhs Maximum Sum Assured - No Limit |
Features and Benefits
1. Joint Life Coverage:
The insurers have the option to add their spouse to the plan. 50% of the sum assured will be used to cover the life of the spouse.
2. Death Benefit:
In the event of the unfortunate demise of the policyholder, this plan offers a death benefit that is higher than the minimum guaranteed sum assured on maturity or 10x annualized premium or absolute amount to be paid or total premium paid until demise.
3. Plan Options:
Increasing Term Assurance and Level Term Assurance are the two plan options from which the insuree can opt.
B. ABSL Life Shield Plan
This plan provides 8 different plan options to choose from to suit the family requirements and needs in absence of the bread earner. In addition to it, it also provides inbuilt terminal illness rider benefits for enhanced protection.
Eligibility:
| Minimum and Maximum Entry Age | Minimum age is 18 years and Maximum is 65 years (Depending on the plan option) |
| Maximum Maturity Age | 85 years |
| Minimum and Maximum Sum Assured | Minimum Sum Assured is Rs 25 Lacs, and No limit for Maximum Sum Assured |
Features and Benefits:
1. Joint Life Protection:
This policy allows the policyholders to add their spouse under its coverage. 50% of the sum assured will be used towards the coverage of the spouse. Nevertheless, this is only applicable if the coverage of the primary life insuree exceeds Rs. 50 Lacs.
2. Waiver of Premium on permanent or total disability:
If due to any unfortunate reason, the insuree becomes a victim of permanent or total disability, all future premiums will be waived off, without any impact on the death benefit.
C. ABSL Future Guard Plan
This plan is a traditional term insurance plan with the option of a return of premium. The premium is payable monthly, quarterly, semi-annually, or annually.
Eligibility:
| Minimum and Maximum Entry Age | Minimum age is 18 years and Maximum is 65 years |
| Maximum Maturity Age | 75 years |
| Minimum and Maximum Sum Assured | Minimum Sum Assured is Rs 5 Lacs, and No limit for Maximum Sum Assured |
Features and Benefits
1. Death Benefit:
The death benefit offered to the hier in the event of the untimely demise of the insured during the policy tenure is the higher of sum assure or 10x the premium or 105% of the total premiums or maturity sum assured.
2. Tax benefits:
The insured is eligible to claim tax benefits for the premium paid towards the plan as per section 80C of the Income Tax Act, 1961.
Frequently Asked Questions (FAQs)
1. Can I track the status of the ABSL Term insurance application?
Yes, you can track the application details by filling in the needful details on the policy tracker page of Birla Sun Life.
2. What are riders?
Riders are paid features that assist you to widen the scope of the base term insurance policy at an economical rate of premium.
3. Who should buy term insurance?
Term insurance is an economical life insurance plan. With the help of term insurance, insurees can provide financial protection to the family in case of any unfortunate event.