Insurance Plans 345 views May 18, 2020

Nowadays every individual is worried about his future that how he will accumulate the funds for future needs. It is really necessary to plan your retirement and start accumulating funds from today. Savings is not only the option to accumulate funds but you should start making an investment. You can take a look at the ABSLI Monthly Income plan that helps you to accumulate funds for your future and you can receive monthly income after your retirement. You can fulfill the needs of the future using this income and live a joyful life after your retirement. So, before taking this plan, you must explore all the features and benefits of the plan so that it becomes easy for you to understand each and every detail of the plan.

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Key Features of Monthly Income Plan

  1. This plan provides a monthly income in your future to meet the recurring needs.
  2. This plan gives a financial cover to you and to your loved ones.
  3. After the completion of the Premium Paying Term, there is a deferment period of 0 Years, 5 Years, and 10 Years.
  4. You will get an inbuilt accidental death benefit in this plan.
  5. Enjoy Tax Deductions under Section 80C of the Income Tax Act 1961.

Benefits of ABSLI Monthly Income Policy

There are some benefits in this policy that are added to your assured value and cover the risks like death, accidental death during the policy term. So you must look at all the benefits of this policy and see how they work.

Income Benefits

In this benefit, you will receive a certain percentage of the Sum Assured as a monthly income after the completion of the deferment period. You will receive the monthly income until the Income Benefit Period expires and you have to choose any one option of the ABSLI Monthly Income Plan among the two plans.

Option 1- Level Income Benefit

In this plan, the company will pay you 1% of the sum assured as the monthly income benefit and it will remain the same throughout the Income Benefit Period.

Option 2- Increasing Income Benefit

In this option, you will get an income benefit of 1% of the sum assured in the first years and it will increase by 5% p.a. from the next year until the completion of the Income Benefit Period.

In the second, third, and fourth income benefit year you will receive 1.05%, 1.10%, and 1.15% of the sum assured as the monthly income benefit. In this option, your monthly income will not remain the same every year, but it will increase every year.

Death Benefits

If the insured dies before the commencement of the Income Benefit Period then the death benefits paid will be the highest of the following:-

  1. 10 Times of the Annualized Premium
  2. Sum Assured plus Total Income Benefit.
  3. In this case, the Sum Assured is the amount that was assured at the time of death and the Total Income Benefit is an undiscounted total absolute amount of income payable in the income benefit period.
  4. Bonuses will accrue on the Sum Assured till the end of the Income Benefit Period and it will be paid after the completion of the Income Benefit Period.

If the insured dies after the commencement of the Income Benefit Period then the death benefits paid will be the highest of the following:-

  1. 10 Times of the Annualized Premium.
  2. Sum Assured plus Outstanding Income Benefits
  3. In this case of the ABSLI Monthly Income Plan, Sum Assured will be that amount payable at the time of death. The Outstanding Income Benefit is the undiscounted amount of the outstanding income that was left to be paid for the remaining income benefit period.
  4. Bonuses accrued on the Sum Assured until the end of the Income Benefit period and the terminal bonus will be paid once the income benefit period ends.

Accidental Death Benefit

If the insured dies due to accident then an additional benefit equal to the Sum Assured chosen will be payable in a lump sum to the nominee as an Accidental Death Benefit.

Maturity Benefit

The Maturity Benefit will include both of the following amounts if the insured successfully survives the policy term of the ABSLI Monthly Income Plan.

  1. Attached bonus Accrues until the date of the Maturity.
  2. Terminal Bonus if any.

After the payment of the maturity benefits, your policy will be terminated.

Rider Benefits

You can take additional coverage in this policy. It simply means that you can add riders in the Monthly Income Plan.

  1. ABSLI Waiver of Premium Rider.
  2. ABSLI Critical Illness Rider.

Reduced Premiums Benefits

If in case you are unable to pay the premium of the policy after paying the premiums for 2 years regularly, then your policy will not lapse. The company will reduce the amount of your premium as per your convenience and your policy will continue. The income benefits and the sum assured will also be reduced in the proportion with the reduced premiums.

Surrender Benefits

After the full payment of premiums for 2 years, you can surrender the ABSLI Monthly Income Plan. The Company will calculate the surrender value of the policy depending upon the percentage of premiums paid up to date. The surrender value will depend on the premium paying term and the year in which the policy is surrendered.

Loan Against Policy

If your policy has a surrender value then you can take a loan against it. You are eligible to take a policy loan of a minimum of ₹5000 and a maximum of 85% of the surrender value. The company will charge interest on the policy loan and give you a certain time to repay the loan so that your policy remains unaffected.

Options for the Sum Assured

There are basically three options that you can choose for the amount of the Sum Assured.

Option 1- Band 1

In this option, the amount of Sum Assured will be a minimum of ₹4 Lacs and a Maximum of 599999.

Option 2- Band 2

In this option, the amount of Sum Assured will be a minimum of ₹6 Lacs and a Maximum of 799999.

Option 3- Band 3

In this option, the amount of Sum Assured will be a minimum of ₹8 Lacs and there is no limit for the Maximum amount of Sum Assured.

Other Details and Eligibility Criteria for ABSLI Monthly Income Plan

Particulars
Details
Age of Entry18 Years to 55 Years for the Premium Paying Term of 10 Years
18 Years to 55 Years for the Premium Paying Term of 12 Years
Premium Paying Term10 Years and 12 Years
Deferment PeriodDeferment Period Starts after the Completion of the Premium Paying Term and it is 0 Years, 5 Years, and 10 Years.
Income Benefit PeriodIncome Benefit Period Starts after the Completion of the Deferment Period and it is of 10 Years, 15 Years, and 20 Years
Income Benefit OptionsLevel and Increasing
Policy TermMinimum-20 Years
Maximum- 37 Years
Policy Term Includes Premium Paying Term, Deferment Period, and Income Benefit Period.
Minimum Sum Assured4 Lacs
Premium Paying FrequencyMonthly, Quarterly, Half-Yearly, and Yearly

About ABSLI Company

Aditya Birla Sun Life Insurance Company was incorporated on the 14th of August 2000. Then it has started its operation from 17th January 2001. ABSLI is a joint venture of Aditya Birla Group and Sun Life Financial working in Canada on a ratio of 51:49. This company has a wide range of insurances whether health plan, investment plan, or term plan. It deals with all types of insurances.

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