BSLI Vision Star Plan FAQ v1.1 Clean

For Internal Circulation Only

Frequently Asked Questions

UIN: 109N096V01 January, 2015

BSLI Vision Star Plan

ADV/1/14-15/7675

Birla Sun Life Insurance Vision Star Plan– Frequently Asked Questions

Prepared by Product Management 2 For Internal Circulation only

Contents

Section A ................................................................................................................................................................ 3

BSLI Vision Star Plan – Summary ................................................................................................................................................ 3 1. What is BSLI Vision Star Plan? ..................................................................................................................................... 3

2. What are the significant features of BSLI Vision Star Plan?.................................................................................... 3

3. Am I eligible for this plan? ............................................................................................................................................ 3

Section B ................................................................................................................................................................ 3

Plan Structure .................................................................................................................................................................................. 3 4. Can I choose the amount of Sum Assured? ................................................................................................................. 4

5. What is the term of the policy? ...................................................................................................................................... 4

Section C ................................................................................................................................................................ 4

Premium ............................................................................................................................................................................................ 4 6. How many years do I need to pay my premium? ....................................................................................................... 4

7. What is the minimum and maximum premium to be paid? .................................................................................... 4

8. Do I have any rebates/discount on the premiums? .................................................................................................... 4

9. How can I pay my premiums? ....................................................................................................................................... 5

10. Can I increase or reduce my premium amount? ......................................................................................................... 5

11. How can I calculate premiums for different sum assured at different ages? ....................................................... 5

Benefits .............................................................................................................................................................................................. 6 12. What are the benefits offered under the plan? ........................................................................................................... 6

13. When shall BSLI declare the bonus under the plan? ................................................................................................ 6

14. What are the bonuses available under BSLI Vision Star Plan? ............................................................................... 6

15. What are the Survival Benefits under the plan? ......................................................................................................... 7

16. What is Assured Payout? ................................................................................................................................................ 7

17. What is the Death Benefit in this plan? ....................................................................................................................... 9

18. What is the Maturity Benefit? ...................................................................................................................................... 10

19. What is the Surrender Benefit in this plan? .............................................................................................................. 10

20. Do I have a loan facility? .............................................................................................................................................. 12

21. Can I avail of tax benefits? ........................................................................................................................................... 12

Premium Discontinuance and Revival ....................................................................................................................................... 13 22. What happens if I do not pay my premium on time? .............................................................................................. 13

23. What happens if I do not pay my premium within the grace period? ................................................................. 13

24. What is a Reduced Paid-up policy? ............................................................................................................................ 13

25. What would be the death benefit for a Reduced Paid-up policy? ........................................................................ 13

26. What would be the Survival Benefit for a Reduced Paid-up policy? ................................................................... 13

27. What would be the Maturity Benefit for a Reduced Paid-up policy? .................................................................. 14

28. How can I reinstate my policy?.................................................................................................................................... 14

29. Will I be eligible for bonuses during the period of two years given for reinstatement? ................................. 14

Termination .................................................................................................................................................................................... 14 30. When will my policy terminate? ................................................................................................................................. 14

Section D .............................................................................................................................................................. 14

Operational Guidelines ................................................................................................................................................................ 14 31. What application form is required for BSLI Vision Star Plan? ............................................................................. 14



Section A

BSLI Vision Star Plan – Summary

1. What is BSLI Vision Star Plan?

BSLI Vision Star Plan is a traditional participating plan, which helps the client to get regular assured payouts for

financing grand/child’s education & securing grand/child’s future even in case of any eventuality.

By way of its unique liquidity feature of assured payouts, bonus accumulation, and a guaranteed life insurance

benefit, this product offers a perfect blend for taking care of all your financial needs.

2. What are the significant features of BSLI Vision Star Plan?

Key features of BSLI Vision Star Plan are:

� Complete security of your loved ones through life insurance cover � No future premiums required in case of an unfortunate event � Regular payouts starting 5 years after the premium paying term is over throughout the policy term. � 2 Assured Payout options to choose from � Flexibility of premium paying term of 5 to 12 years � Flexibility of policy term of 16 to 23 years for option A and 14 to 21 for option B � Secured growth of your investment through bonus accumulation � Premium discount on high sum assured � Premium rebate on annual and semi-annual mode of payment � Facility to surrender your policy as well as avail policy loans

� Tax benefits under Sections 80C and 10(10D) of the Income Tax Act,1961

3. Am I eligible for this plan?

You are eligible if

- your age at entry is between ages 18 year - 55 years

- you want to choose a sum assured of at least Rs. 100,000

- you want to contribute premiums for 5 to 12 years for the chosen policy term and assured payout option

Section B

Plan Structure

At inception you choose - � Sum Assured – level of protection during the policy term � Assured Payout option � Policy Term

� Premium Paying Term depending on the chosen Policy Term



4. Can I choose the amount of Sum Assured?

BSLI Vision Star is a sum assured based plan, where you can customize your policy to suit your particular insurance

and savings needs by choosing the Sum Assured at policy inception. This is the amount of life insurance cover during

the policy term as chosen by you. The Minimum Sum Assured is Rs.100,000.

Your chosen Sum Assured belongs to one of the 4 bands as given below:

Sum Assured Band Band 1 Band 2 Band 3 Band 4

Sum Assured (Rs.) 100,000 to 199,999 200,000 to 399,999 400,000 to 799,999 800,000 +

There is no maximum limit of sum assured that can be chosen (subject to underwriting). Your plan benefits are based

on the Sum Assured; therefore higher the Sum Assured higher will be the benefits. In addition by choosing a higher

sum assured, you will also be eligible for premium rebate/discount as explained in later sections.

5. What is the term of the policy?

BSLI Vision Star Plan is a limited premium payment plan. It has a policy term of 16 to 23 years for Option A and

policy term of 14 to 21 years for Option B.

Section C

Premium

6. How many years do I need to pay my premium?

This is a limited pay plan, at policy inception you may choose to pay your premiums for a term of 5 to 12 years

depending upon the policy term chosen at inception.

7. What is the minimum and maximum premium to be paid?

This is a Sum Assured based plan; the premium amount payable depends on the amount of the Sum Assured you

select, premium paying term, policy term and intervals for assured payouts.There is no minimum or maximum limit

on the premium.

8. Do I have any rebates/discount on the premiums?

You shall be eligible for premium rebates based on your choice of ‘Sum Assured’ and ‘premium payment mode’.

Sum Assured Rebate

For higher Sum Assured, you will get a premium rebate as explained below.

Sum Assured Band Band 1 Band 2 Band 3 Band 4

Sum Assured (Rs.) 100,000 to 199,999 200,000 to 399,999 400,000 to 799,999 800,000 +

Premium Rebate per 1000 SA nil 1.00 5.00 7.00

Modal Rebate

You will get a modal rebate of 3% and 1.5% if your mode of premium payment is annual or semi-annual.

The premium is calculated based on tabular rate; which is then reduced by Sum Assured rebate, as applicable and

modal rebate, as applicable.



Example: Mr. Atul aged 35 years with a child aged 5 years, chooses sum assured of Rs. 10,00,000, Assured Payout Option B and annual mode of payment with a policy term of 20 years with premium paying term of 11 years: Applicable premium rate for male age 35 is 86.72 per 1000 Sum Assured. The chosen Sum Assured of Rs. 10,00,000 falls in band 4, therefore he is eligible for Sum Assured rebate of 7.00 per 1000 SA

Modal premium = (Base premium rate - High Sum Assured rebate) x Sum Assured /

1000

= 10,00,000 x (86.72 - 7.00) /1000

= Rs. 79,720.00

Less Premium Rebate on account of ‘annual’ mode selected = 3% of Modal premium = Rs. 2391.60 i.e. 79,720– 2391.60 = Rs. Rs. 77,328.40

The service tax & cess in the 1st year is 3.09% & from 2nd year onwards is 1.545% therefore

Installment premium in 1st policy year is Rs. 77,328.40 x 1.0309 = Rs. 79,717.85

Installment premium from 2nd policy year is Rs. 77,328.40 x 1.01545 = Rs. 78,523.12

The above calculation of the Modal Premium, Premium Rebate and the Installment Premium Payable is calculated automatically in iChamp. You can also refer to the premium rate table to manually calculate premium for different sum assured at different ages

9. How can I pay my premiums?

You can pay your policy premium annually, semi-annually, quarterly or monthly.

For annual and semi-annual installments - cash (up to Rs. 50,000), cheque, credit card, and direct debit.

Quarterly installments – ECS or credit card offline only

Monthly installments – ECS or salary deduction only (minimum two months premium required)

ECS includes standing instruction, direct debit and other automated payment modes.

10. Can I increase or reduce my premium amount?

No, you cannot increase or reduce your premiums during the policy tenure.

11. How can I calculate premiums for different sum assured at different ages?

The calculations of premiums for different ages and Sum Assured can be accessed from iChamp. We have also

provided the product ready reckoner and the premium rate table for your easy reference. The premium rate table

provides the premium rates per 1000 of sum assured applicable to all the ages, it also explains; using an example; how

to calculate the premium. You can manually calculate the premium for any sum assured by doing the simple

calculation of applying the High Sum Assured Rebate and Modal Rebate as applicable.



Example: Assuming policy is bought on 1st February 2014 and BSLI declares the simple reversionary bonus

of 4.0% on 1stJuly2014.

The bonus vests on the policy only on policy anniversary. As the policy is brought on 1st Feb 2014,

the 1st policy anniversary falls on 1st Feb 2015. The revisionary bonus rate declared in the first year

is 4.0% or 40 per 1000 Sum Assured; therefore,

Bonus attached to policy on 1st policy anniversary is 10,00,000 x 40/1000 = Rs. 40,000.

Assuming on 1st July 2015 i.e. the second year BSLI declares an simple reversionary bonus of 4.5%or 45 per

1000 sum assured

Bonus to be attached on 2nd policy anniversary i.e. on 1st Feb 2016 is 10,00,000 x 45/1000 = Rs.

45,000.

Therefore accrued bonuses at the end of 2nd policy year is Rs. 40,000 + Rs. 45,000 = Rs. 85,000

Example: On 1st July 2014; BSLI declares a bonus of 4.0% or 40 per 1000 sum assured

The annual rate as declared by BSLI shall be added to all policies having policy anniversaries between 1st July 2014 and 30th June 2015. Once this bonus is added to a policy on its policy anniversary it becomes payable under all circumstances in the policy under the policy.

Benefits

12. What are the benefits offered under the plan?

The plan offers you Assured Payout; Maturity Benefit and Death Benefit in addition to the facility of policy surrender.

As this is a participating plan, your policy shall participate in the profits arising out of the BSLI’s with profit business

in the form of bonus. Your benefits shall increase every year with bonuses declared by us from time to time.

13. When shall BSLI declare the bonus under the plan?

BSLI 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 and 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 BSLI will depend on the actual experience regarding various factors and the prevailing

economic conditions hence it may vary from year to year.

14. What are the bonuses available under BSLI Vision Star Plan?

Your policy shall participate in the profits arising out of the BSLI’s participating business in the form of bonus. Bonus

declaration depends on factors like company’s investment performance, expenses incurred and various assumptions

(like future bonuses; anticipated investment returns etc). This product offers the following bonuses:

Simple Reversionary Bonus: BSLI 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.

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

benefit as the case may be.



Continuing from the previous example:

Assuming on 1st July 2014 BSLI declares an interim bonus of 4.0% and the simple revisionary bonus of

4.5%

The revisionary bonus will be added to the policy on the policy anniversary i.e. on 1st Feb 2015

(policy issued on 1st Feb 2014), 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 BSLI will form a part of

the death benefit. Hence the nominee will receive an interim bonus of = 10,00,000 x 40/1000 =

40,000 as a part of the death benefit.

Accrued bonus in this case shall be 40,000 (in the previous year) + 40,000(interim bonus in the year

of death) = Rs. 80,000

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 so that the customer does not

loose on the entitled bonus.

Terminal Bonus: At company’s discretion on maturity, surrender or death, if earlier 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.

15. What are the Survival Benefits under the plan?

This plan offers you the regular payouts in the form of assured payout starting 5 years after the premium paying term

is over. The survival benefits comprises

• Assured Payout;

16. What is Assured Payout?

Starting five years after the premium paying term is over, you will start receiving Assured Payouts which are pre

specified percentage of the Sum Assured chosen at inception. You can choose one of the following options at

inception depending on requirement for biannual or annual payout five years after the premium paying term is over

The assured payout is a pre defined percentage of sum assured in the following options:

Option A

X + 5 X + 7 X + 9 X + 11

%age of Sum Assured 20 20 30 30

Option B

X + 5 X + 6 X + 7 X + 8 X + 9

%age of Sum Assured 15 15 20 20 30

Where X denotes the premium paying term

These benefits will continue as scheduled irrespective whether life insured is alive or not provided all due premiums

are paid till date of unfortunate death of life insured.



Example: Continuing with the previous example,

For pay term of 11 years, policy term of 20 years the assured payouts will start from 16th year and there will be a payout each year till 20th year..The Assured payout payable for a Sum Assured of Rs. 10,00,000 is as below

Survival Benefit Year Percentage of Sum

Assured Assured Payout

(Rs.)

16 15% 1,50,000

17 15% 1,50,000

18 20% 2,00,000

19 20% 2,00,000

20 30% 3,00,000

You can choose to defer the due Assured Payout until the time the next Assured Payout is due to be paid. The payout

will happen only when the Assured Payout is due to be paid.

On deferral the percentage of Assured Payout will be enhanced as given below:-

Option A Assured

Payout (%

of SA)

Year till the Assured Payout is deferred/Enhanced

Assured Payout

Year when Assured

Payout is due X + 5 X + 7 X + 9 X + 11

X + 5 20% 20% 22% 25% 28%

X + 7 20% NA 20% 22% 25%

X + 9 30% NA NA 30% 33%

X + 11 30% NA NA NA 30%

Option B Assured

Payout (%

of SA)

Year till the Assured Payout is deferred/Enhanced

Assured Payout

Year when Assured

Payout is due X+ 5 X+ 6

X +

7 X + 8

X +

9

X + 5 15% 15% 16% 17% 18% 19%

X + 6 15% NA 15% 16% 17% 18%

X + 7 20% NA NA 20% 21% 22%

X + 8 20% NA NA NA 20% 21%

X + 9 30% NA NA NA NA 30%

Where X denotes the premium paying term



Example: Continuing with the previous example;

You had chosen 11 pay term with policy term of 20 years. On 16th year you decide to defer the payout

till next payout date. Similarly you decide to defer the 17th year payout on the 18th year and the 18th year

year payout at 19th year. So the Enhanced Assured Payout as per deferred payout years will be as

shown below

Survival Benefit Year

Assured Payout

Enhanced Assured Payout





16 17 18 19 20

16 15% NA 16% NA NA NA

17 15% NA NA 16% NA NA

18 20% NA NA NA 21% NA

19 20% NA NA NA 20% NA

20 30% NA NA NA NA 30%

Now let’s assume that you choose to defer all the payouts to the maturity date i.e. 20th year. So

the Enhanced Assured Payout as per deferred payout years will be as shown below

Survival Benefit Year

Assured Payout






16 17 18 19 20

16 15% NA NA NA NA 19%

17 15% NA NA NA NA 18%

18 20% NA NA NA NA 22%

19 20% NA NA NA NA 21%

20 30% NA NA NA NA 30%

Upon death or surrender, the discounted value of enhanced assured payouts will be paid along with the normal

surrender/ death benefit subject to minimum of the value as payable on the original due date of the assured benefit

payment.

17. What is the Death Benefit in this plan?

In the unfortunate event of death of the life insured during the policy term; the beneficiary shall receive

(a) Sum Assured on Death; plus

(b) No premiums are required to be paid in future; plus (c) Assured Payouts on the scheduled dates as explained in the Assured Payout section; plus (d) Bonuses accrued till policy maturity date and terminal bonus, if any, will be payable on the policy maturity date.



Example: Mr. Atul aged 30 years, chooses sum assured: Rs. 10,00,000; pay term 11 years; policy term 20 years; pay frequency: annual:

Assuming a reversionary bonus and interim bonus rate of 40 per 1000 sum assured in all years

Bonus added to the policy for a year = 10,00,000 x 40/1000 = Rs. 40,000

If Mr. Atul dies in the 7th year; the nominee shall receive

Sum Assured on death + No further premiums to be paid + Assured Payout at scheduled dates + Accrued bonuses till maturity + Terminal Bonus (if any)

Accrued bonuses till maturity = 40,000 x 20 = Rs. 8,00,000

The nominee shall receive 10,00,000 + No further premiums paid + Assured payouts as explained in example above + 8,00,000 + Terminal Bonus (if any)

Sum Assured on Death is the maximum of Sum Assured chosen at inception irrespective of any guaranteed payouts

paid or 10 times the annual premium payableor105% of total premiums paid to date excluding service tax & cess, any

applicable underwriting extras.

This plan can also be taken under MWP Act provision to protect your child’s future as planned by you.

The policy shall be terminated once the death benefit is paid.

18. What is the Maturity Benefit?

On policy maturity you shall receive

• Accrued bonuses till date; plus

• Terminal bonus (if any)

19. What is the Surrender Benefit in this plan?

Buying a life insurance policy is a long-term commitment. Early termination/surrender of the policy usually involves

high costs and the surrender value payable to you may be less than total premiums paid. In case of financial

emergencies you can opt for a loan on your policy or you may choose to surrender the policy for its surrender value.

Your policy will acquire a surrender value after all due premiums for at least 3 years (two years for premium paying

term less than 10 years) are paid.

The surrender value payable to you will be higher of

• Guaranteed Surrender Value; or

• Special Surrender Value

The Guaranteed Surrender Value is a percentage of premiums paid (excluding any premiums paid towards

underwriting extra and service tax) plus the surrender value of accrued regular bonuses less any Assured Payout

already paid. The Guaranteed Surrender value will vary depending on the premium paying term and the year the

policy is surrendered.



In addition if the Assured Payout is deferred than the discounted value of that deferred Assured Payout will be paid subject to a minimum of the Assured Payout as was payable on original due date along with the surrender value.

Guaranteed Surrender Value equal to percentage of premiums paid plus surrender value of accrued regular bonuses

is as given below

As a percentage of Installment Premiums paid*

Year of Surrender

Policy Term

14 15 16 17 18 19 20 21 22 23

1 - - - - - - - - - -

2 30% 30% 30% 30% 30% 30% 30% - - -

3 30% 30% 30% 30% 30% 30% 30% 30% 30% 30%

4 50% 50% 50% 50% 50% 50% 50% 50% 50% 50%

5 50% 50% 50% 50% 50% 50% 50% 50% 50% 50%

6 50% 50% 50% 50% 50% 50% 50% 50% 50% 50%

7 50% 50% 50% 50% 50% 50% 50% 50% 50% 50%

8 55% 54% 54% 53% 53% 53% 53% 52% 52% 52%

9 60% 59% 58% 57% 56% 55% 55% 55% 54% 54%

10 65% 63% 61% 60% 59% 58% 58% 57% 56% 56%

11 70% 67% 65% 63% 62% 61% 60% 59% 59% 58%

12 75% 71% 69% 67% 65% 64% 63% 62% 61% 60%

13 80% 76% 73% 70% 68% 66% 65% 64% 63% 62%

14 80% 80% 76% 73% 71% 69% 68% 66% 65% 64%

15 - 80% 80% 77% 74% 72% 70% 68% 67% 66%

16 - - 80% 80% 77% 75% 73% 71% 69% 68%

17 - - - 80% 80% 77% 75% 73% 71% 70%

18 - - - - 80% 80% 78% 75% 74% 72%

19 - - - - - 80% 80% 78% 76% 74%

20 - - - - - - 80% 80% 78% 76%

21 - - - - - - - 80% 80% 78%

22 - - - - - - - - 80% 80%

23 - - - - - - - - - 80%

*excluding any premiums paid towards service tax and cess

As a percentage of Accrued Regular Bonuses

Year of Surrender

Policy Term

14 15 16 17 18 19 20 21 22 23

1 - - - - - - - - - -

2 4% 4% 3% 3% 2% 2% 2% - - -

3 5% 4% 4% 3% 3% 2% 2% 2% 2% 2%

4 6% 5% 4% 4% 3% 3% 2% 2% 2% 2%

5 8% 6% 5% 4% 4% 3% 3% 2% 2% 2%

6 9% 8% 6% 5% 4% 4% 3% 3% 2% 2%

7 11% 9% 8% 6% 5% 4% 4% 3% 3% 2%

8 13% 11% 9% 8% 6% 5% 4% 4% 3% 3%

9 16% 13% 11% 9% 8% 6% 5% 4% 4% 3%

10 19% 16% 13% 11% 9% 8% 6% 5% 4% 4%

11 23% 19% 16% 13% 11% 9% 8% 6% 5% 4%



12 28% 23% 19% 16% 13% 11% 9% 8% 6% 5%

13 33% 28% 23% 19% 16% 13% 11% 9% 8% 6%

14 40% 33% 28% 23% 19% 16% 13% 11% 9% 8%

15 - 40% 33% 28% 23% 19% 16% 13% 11% 9%

16 - - 40% 33% 28% 23% 19% 16% 13% 11%

17 - - - 40% 33% 28% 23% 19% 16% 13%

18 - - - - 40% 33% 28% 23% 19% 16%

19 - - - - - 40% 33% 28% 23% 19%

20 - - - - - - 40% 33% 28% 23%

21 - - - - - - - 40% 33% 28%

22 - - - - - - - - 40% 33%

23 - - - - - - - - - 40%

Your policy shall also be eligible for a Special Surrender Value; this Special Surrender Value is not guaranteed and

can be reviewed by BSLI from time to time. The Special Surrender Value as per current administrative guidelines has

been built in the iChamp illustration system for your reference. You can refer to the projected Surrender Benefit

applicable in different years in the current rate illustration report. The policy shall be terminated once the Surrender

Value is paid.

20. Do I have a loan facility?

Yes. You are allowed to take up a loan against the policy once your plan acquires a surrender value.

� 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.

� If all the due Installment Premiums have been paid then the policy shall not be foreclosed.

� The death benefit, maturity benefit, assured payout or surrender benefit will be reduced by the outstanding loan

balance (if any).

� You are free to repay all or part of your outstanding policy loan balance at any time, subject to our then current

administration guidelines.

� If the policy is in reduced paid-up status; should the outstanding policy loan balance equal or exceed the

surrender value of your policy, then all the benefits in the policy shall cease and it shall be terminated.

21. Can I avail of tax benefits?

As per extant tax laws, this plan offers tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961, subject to fulfillment of the other conditions of the respective sections prescribed therein. You are advised to consult your tax advisor for details.



Premium Discontinuance and Revival

22. What happens if I do not pay my premium on time?

If you are unable to pay your premium by the due date, you will be given a grace period of 30 days and during this

grace period all coverage under your policy will continue.

23. What happens if I do not pay my premium within the grace period?

If you do not pay your premium within the grace period, the following will be applicable:

a. In case you have not paid premiums for three full years (two years for premium paying term less than 10

years), then the policy will be lapsed and all benefits under your policy will cease immediately.

b. In case you have paid premiums for at least three full years (two years for premium paying term less than 10

years), then your policy will be continued on a Reduced Paid-Up basis.

24. What is a Reduced Paid-up policy?

Any time after paying 3 full year installment premiums (two years for premium paying term less than 10 years), if

you are unable to pay future premiums, you can continue the policy for the rest of the policy term on reduced paid-

up basis.

Under Reduced Paid-Up,

� Sum Assured on Death is reduced to equal the Sum Assured on Death multiplied by the ratio of: o The number of premium installments paid to date; over o The total number of premium installments originally due for the Policy Term

� Sum Assured is reduced to equal the Sum Assured multiplied by the ratio of: o The number of premium installments paid to date; over

o The total number of premium installments originally due for the Policy Term � Accrued Bonuses shall not be reduced and remain attached to the policy, except for the bonus attached in the

policy year of RPU, which will be reduced by the same proportion as the number of unpaid premium installments for that policy year to the total number of due premium installments for that policy year.

� No new bonuses will be declared on a policy that is on RPU. � Assured Payouts and Maturity Benefit will continue and will be paid on their respective dates.

25. What would be the death benefit for a Reduced Paid-up policy?

For policy that are continued on a reduced paid-up basis; the death benefit payable shall be

• Reduced paid-up Sum Assured on death; Assured Payouts and Maturity Benefit will continue and will be paid on their respective dates.

• Accrued regular Bonuses

26. What would be the Survival Benefit for a Reduced Paid-up policy?

RPU Assured Payout

Starting from 5 years after the premium paying term, there will be assured payouts every 2nd year or every year as

per option selected by you as a pre specified percentage of Reduced Sum Assured. These payouts are irrespective of

whether any death benefit has been paid earlier on the policy. There will be no option to defer the Assured Payout

under reduced paid up.



27. What would be the Maturity Benefit for a Reduced Paid-up policy?

The maturity benefit for a Reduced Paid-Up shall be

• Accrued regular Bonuses (till due date of 1st unpaid premium);

28. How can I reinstate my policy?

You can reinstate your policy for its full coverage within two years from the due date of the first unpaid premium by

paying all outstanding premiums together with interest as declared by us from time to time and by providing

evidence of insurability satisfactory to us.

Upon reinstatement, all your benefits (death/survival/maturity) to date of reinstatement shall be restored to their full

value.

29. Will I be eligible for bonuses during the period of two years given for reinstatement?

No. The policy will earn bonus only when it is still in effect and premiums due to dates have been paid in full.

As answered in Q. 28 above, once the policy has been reinstated by payment of all outstanding premiums together

with interest, then your Sum Assured, Assured Payout and accrued bonuses from due date of first unpaid premium

to date of reinstatement shall be restored to their full value.

Termination

30. When will my policy terminate?

Your policy will get terminated on any of the following events:

� The date of payment of the surrender value, if any;

� On policy maturity,

� The date on which the reinstatement period ends after your policy has lapsed as per Premium Discontinuance

provision.

� The date when outstanding loan value exceeds the surrender benefit for reduced paid up policy

Section D

Operational Guidelines

31. What application form is required for BSLI Vision Star Plan?

The “Common Application Form_MAJOR” would be used for this plan. In case of multiple plans being sourced for a

major life, the “SIMPLIFIED APPLICATION FORM” will also have to be used.

BSLI Vision Star Plan FAQ v1.1 Clean

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Transcript of BSLI Vision Star Plan FAQ v1.1 Clean