Investment Plans 1788 views May 8, 2020

ABSLI Guaranteed Milestone Plan

Everyone knows that future is unpredictable so one must take all the necessary steps to secure the future. Usually, some of the individuals prefer taking an endowment plan to cover future financial risks. So, if you are also willing to take protection against the future financial risks then you must take a look at ABSLI Guaranteed Milestone Plan. In this plan, you can cover the risk of your spouse as well under the same plan. It has maturity and death benefits that will give a lump sum amount of return in the end. So, you must explore all the details of this policy to find out whether it will be fruitful for you in the long run or not.

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Salient Features of Guaranteed Milestone Plan

  1. Get guaranteed death benefits and maturity benefits.
  2. Get Guaranteed Addition to enhance the returns.
  3. Add Riders to the Policy to take extra protection.
  4. You have the option to give protection to your spouse under the same insurance policy.
  5. Enjoy Tax benefits under Section 80C and 80D of the Income Tax Act 1961.

Benefits of the ABSLI Guaranteed Milestone Policy

Here you can explore all the benefits of this policy including death benefits, maturity benefits, rider options and many others.

Death Benefits

There are two options for the death benefits that you will have to choose at the time of inception of the policy. You can insure a single life and even the life of your spouse. But the benefits of both of these options might differ.

Option 1- Single Life

If the life of only a single person is insured in the policy then after the death of the policy taker the nominee will receive the Sum Assured on Death in 10 equal instalments.

The Nominee can take the Sum Assured on Death as a lump sum amount instead of taking it in 10 instalments. But in this case, a discounted value will be paid to the nominee instead of the full amount. The Discount will be of 8.75% as decided by IRDAI and it might change as per the guidelines.

The Sum Assured would be the highest of the following:-

  1. Sum Assured on the Date of the Death.
  2. 105% of the total premiums paid up to the time of death.
  3. 10 Times of the Annualised Premium.

If the insured dies prior to risk commencement date then only the premiums paid till date will be payable to the nominee.

Option 2- Joint Life

In this option, you can insure the life of yourself and your spouse under the same insurance plan but the premium might be increased. The Sum Assured in this joint policy of the Spouse will be 20% of the Total Sum Assured. You have to choose this option at the time of inception of the ABSLI Guaranteed Milestone Plan and it can’t be chosen in between. The Age of both the life insured must be less than 50 years. You cannot add rider if you have taken this death benefit of the policy.

There are 3 conditions of the death benefits in this option.

Sudden Death of the Primary Insured before Secondary Insured

  1. Death benefits will be paid to the secondary life insured and he either take it in instalments or lump sum.
  2. The Secondary Policyholder will also receive Maturity benefits.
  3. The Life Cover for Secondary Policyholder will continue without the payment of any future premiums.
  4. After the Death of the Secondary insured during the policy term, the applicable death benefits will be given to the nominee as a lump sum. The maturity benefits will also be paid to the nominee.

Sudden Death of the Secondary Insured before Primary Insured

  1. Death benefits will be paid to the Primary life insured as lump sum.
  2. The Primary Policyholder will also receive Maturity benefits.
  3. The Life Cover for Primary Policyholder will continue with the payment of future premiums.
  4. After the Death of the Primary insured during the policy term, the applicable death benefits will be given to the nominee in instalments. The maturity benefits will also be paid to the nominee.

Sudden Death of the Primary Insured Secondary Insured Together

  1. The nominee will receive the death benefits of both the life insured. The Sum Assured on Death will be given in instalments in case of Primary insured’s death and as a lump sum in case of the Secondary Insured’s Death.
  2. Policy will continue without the payment of any future premiums and the nominee will receive the maturity benefits at the time of maturity.

Maturity Benefits

At the time of the maturity, if the insured is alive then he will receive the following sum of money:-

  1. Sum Assured at the time of Maturity.
  2. Accrued Guaranteed Additions.

Guaranteed Additions

The company will make guaranteed additions into the ABSLI Guaranteed Milestone Plan on a monthly basis and it depends on the premium you commit to pay, Sum Assured, policy term, age of entry, and the option you have chosen whether Single life or Joint Life.

Riders Benefits

You can also take additional protection for some of the dangerous rink and add riders to Guaranteed Milestone Plan. But you cannot add riders if you have chosen Joint Life Insurance option.

  1. Accidental Death and Disability Rider.
  2. Surgical Care Rider.
  3. Critical Illness Rider.
  4. Hospital Care Rider.
  5. Accidental Death Benefit Rider Plus.
  6. Waiver of Premium Rider.

Reduced Premium Benefits

If you are unable to pay premiums after the payment of premium for 2 regular years then your policy will not lapse. The company will reduce the amount of the premium and your Sum Assured and other benefits will also be reduced proportionately.

Surrender Benefits

You can even surrender the policy in case of an emergency if you have successfully paid all the amount of premiums for at least two years. The surrender value will be calculated on a certain percentage of total premiums paid plus the percentage of the accrued guaranteed additions.

Loan Benefits

Once your policy has a surrender value, you can take a loan against the ABSLI Guaranteed Milestone Plan. You are eligible for a minimum loan of ₹5000 with a maximum of 85% of the surrender value. The insurance company will charge applicable interest on the outstanding amount.

Premium Options of ABSLI Guaranteed Milestone Plan

There are 3 slabs of the annual premiums that you can choose at the time of taking the insurance plan.

Option 1- Band 1

In this option, the amount of the annual premium will be between ₹15000 to ₹49999.

Option 2- Band 2

In this option, the amount of the annual premium will be between ₹50000 to ₹99999.

Option 3- Band 3

In this option, the amount of the annual premium will be ₹100000 and above.

About the Guaranteed Milestone Policy

ParticularsDetails
Minimum Age of Entry30 Days
Maximum Age of Entry60 Years
Policy Term12 Years, 14 Years, 16 Years, 18 Years, 20 Years, 22 Years, 24 Years, and 26 Years
Premium Paying Term6 Years for Policy Term of 12 Years and 14 Years
8 Years for Policy Term of 16 Years and 18 Years
10 Years for Policy Term of 20 Years and 22 Years
12 Years for Policy Term of 24 Years and 26 Years
Minimum Age of Maturity18 Years
Minimum Amount of Premium15000
Sum Assured15 Times of the Annualized Premium
Minimum Sum Assured225000
Minimum Sum Assured on Maturity90000
Premium Paying FrequencyMonthly, Quarterly, Half Yearly, and Yearly

Advantages of Choosing Aditya Birla Sun Life Insurance

There are two main advantages of choosing Aditya Birla for taking the ABSLI Guaranteed Milestone Policy.

  1. Free-Look Period – The Company gives you the right to return the policy within 15 days from the receipt of the policy. You will get the refund of the premium once your cancellation notice is received by the company. The company will deduct the risk premium and the expenses incurred for medical examination and stamp duty charges.
  2. Grace Period – If you are unable to pay the amount of premium then the company offers you a grace period of 30 days to pay it. Paying the premium within 30 days will continue the policy and the policy coverage will continue.

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