Insurance Plans 175 views May 5, 2020

ABSLI Savings Plan

Aditya Birla Sun Life Insurance has always impressed their customers with their unique insurance plans. You can check the endowment plans as well offered by the company. ABSLI Savings Plan is an endowment policy that enables you to give protection to your savings. You can save a lot of money for your future either to fulfill the educational needs or planning for a vacation abroad. This plan will help you to save more and more money and gives you a steady income every year. So, before taking this plan you must explore all the features and benefits of this policy. Policy Term, Sum Assured, and the exclusive benefits are the key points that an individual always looks in a policy before buying it.

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Exclusive Features of the Savings Policy

  1. Individuals have the choice to decide the Sum Assured depending upon the needs for protection and savings.
  2. You can also choose the Term of the Policy and the Premium Paying Term.
  3. In case of accidental death the nominee is entitled to receive additional Sum Assured.
  4. After the first 5 policy years, the individual will get Guaranteed Additions.
  5. Enjoy Tax Deductions under Section 80D and 80C of the Income Tax Act.
  6. Enhance your Savings with the Bonuses starting from the 1st policy year.

Benefits of ABSLI Savings Policy

Now you must take a look at the benefits of this plan in detail and see how this plan will help you to boost up your savings and provides protection to it.

Guaranteed Addition Benefits

During the first five years, the company will give you a guaranteed addition of 4% on the amount of the sum assured. The condition is that you will have to pay all the premiums regularly on time for 5 years. In other words, the guaranteed additional benefit is of INR 40 per INR 1000 of the Sum Assured in the ABSLI Savings Plan.

Death Benefits

In the event of the sudden death of the insured, the nominee will get the following death benefits:-

  1. Sum Assured at the time of death.
  2. All the Accrued Guaranteed Additions.
  3. Regular Bonuses Accrued up to the date of the death.
  4. Terminal Bonus.

The nominee will get a minimum of 105% of the total premiums paid up to the date of the death. The amount of all the premiums doesn’t include taxes, rider’s premium, and any extra premium.

Guaranteed Death Benefits will be the higher of:-

  1. Sum Assured
  2. 10 Times of the Annualised Premium payable throughout the Premium Paying Term.

Maturity Benefits

If in case the insured survives the policy term then he is entitled to receive the following Maturity Benefits:-

  1. Sum Assured
  2. Regular Bonuses Accrued
  3. Terminal Bonus
  4. Accrued Guaranteed Additions
  5. After the payment of the maturity benefits, the ABSLI Savings Plan will be terminated.

Reduced Premium Benefits

Most of the Insurance Plan lapse if you discontinue paying the amount of premium. But in the ABSLI Savings Policy, if you have paid the amount of premium for two years regularly and discontinued paying it after two years then your policy will not lapse. The company will reduce the amount of your premium and the Sum Assured and all the related benefits will also be reduced. But your policy will continue on the basis of Reduced Paid-up.

Cover Continuation Benefits

If you have paid the premium of the Savings Plan regularly for two years and then discontinued paying it after 2 years then your death benefit will remain the same for the 2 successive years even if your premiums have been reduced.

Surrender Benefits

In case of an emergency, you can surrender this policy as well and take the surrender value from the company. You will also get the accrued bonuses and guaranteed addition that is accumulated until the date of surrender. But there is a condition for this benefit that you will have to pay all the premiums due for 2 years. You cannot surrender the policy before 2 years.

Policy Loan Benefits

If you go through an emergency of financial needs then you can take a loan against the ABSLI Savings Plan. A minimum loan of INR 5000 can be taken against the policy with a maximum of 85% of the Surrender value as on the current date. The company will charge applicable interest on the loan amount.

Options for the Sum Assured in ABSLI Savings Plan

Before taking the Savings Plan, you will have to decide the Sum Assured for the Policy. There are 3 options for the Sum Assured in this policy divided into 3 bands. The maximum Sum Assured in this policy is of INR 10 lacs.

Option 1- Band 1

In the Band 1 option, you can choose the value of the Sum Assured between INR 30000 to INR 49999.

Option 2- Band 2

In the Band 1 option, you can choose the value of the Sum Assured between INR 50000 to INR 149999.

Option 3- Band 3

In the Band 1 option, you can choose the value of the Sum Assured between INR 150000 to INR 1000000.

Eligibility Criteria of the Savings Plan

ParticularsDetails
Minimum Age of Entry18 Years
Maximum Age of Entry50 Years
Policy Term10 Years, 15 Years, and 20 Years
Policy Paying TermRegular Pay for 10 Years Policy Term.
10 Years Regular Pay for 15 Years Policy Term.
10 Years or 15 Years Regular Pay for 20 Years Policy Term.
Minimum Sum AssuredINR 30000
Maximum Sum AssuredINR 1000000
Premium Paying ModeMonthly, Quarterly, Semi-Annually, and Annually

Things to Decide before Taking a Plan

Policy Term – It is that period of time for which the policy has been taken. So you will have to decide the Policy term whether you want protection for a short period or a long period.

Sum Assured– In the ABSLI Savings Plan the Sum Assured is between the Range of INR 30 Thousand to INR 10 Lacs so you can choose any amount of the Sum Assured depending upon your needs.

Policy Paying Term – Policy Paying Term is the period in which you will have to pay all the premiums of the policy. So the policy paying term depends on the policy term you have chosen.

Premium – Finally, after deciding Policy Term, Policy Paying Term, and the Sum Assured, the company will decide the amount of premium. It can be adjusted by increasing or decreasing the policy term and the Sum Assured.

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