ABSLI Vision LifeIncome Plan

This is a Sum Assured based plan; the premium amount payable depends on the gender, entry age of the life insured, the sum assured, the premium paying mode and the method of payment (ECS). The minimum premium payable is Rs. 1,00,000 p.a. for PPT 8 | 10 | 12 years and Rs. 3,880 p.a. for PPT 15 to 40 years. There is no maximum limit on the premium subject to underwriting.

Yes, you are eligible for premium rebates i.e. you pay lesser than the premium based on your choice of ‘Sum Assured’ ‘premium payment mode’ and ‘premium payment method’.

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
Sum Assured (Rs.)	200,000 to 399,999	400,000 to 799,999	800,000 +
Premium Rebate per 1000 SA	nil	2.50	3.50

 

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. Refer below example for clarity.

 

ECS Rebate

ECS rebate is 3.0% irrespective of the payment mode. This rebate cannot be clubbed with the Modal rebate, i.e. In case of ECS opted on yearly and half yearly mode the total rebate offered will be 3.0%

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

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.

ABSLI shall declare a bonus on 1^st of July every year and this bonus rate shall be applicable to all the policies having policy anniversary between 1^st July to 30^th 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 ABSLI will depend on the actual experience regarding various factors and the prevailing economic conditions hence it may vary from year to year.
Example: On 1^st July 2013; ABSLI declares a bonus of  46 per 1000 sum assured
The annual rate as declared by ABSLI shall be added to all policies having policy anniversaries between 1^st July 2013 and 30^th June 2014. Once this bonus is added to a policy on its policy anniversary it becomes payable under all circumstances in the policy under the policy.
While the interim bonus shall be payable to all policies resulting in claims (death claims) between 1^st July 2013 to 30^th June 2014.

If all the due premiums have been paid in full you shall be eligible to participate in the profits of the par fund and bonuses (if any) may be added to your policy during the policy term.

 This product has following bonuses

Simple Reversionary Bonus:

ABSLI 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. In case of surrender the surrender value of the attached bonuses will be payable.

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

 

Example: Assuming policy is bought on 1^st January 2013 and ABSLI declares the annual reversionary bonus of 46 per 1000 Sum Assured on 1^st July 2013.

The bonus vests on the policy only on policy anniversary. As the policy is brought on 1^st Jan 2013, the 1^st policy anniversary falls on 1^st Jan 2014. The revisionary bonus rate declared in the first year is 46 per 1000 Sum Assured; therefore,

Bonus attached to policy on 1^st policy anniversary is 10,00,000 x 46/1000 = Rs. 46,000.

Assuming on 1^st July 2014 i.e. the second year ABSLI declares an annual reversionary bonus of 48 per 1000 sum assured

Bonus to be attached on 2^nd policy anniversary i.e. on 1^st Jan 2015 is 10,00,000 x 48/1000 = Rs. 48,000

As this plan offers simple revisionary bonus, the accrued bonuses at the end of 2^nd policy year is Rs. 46,000 + Rs 48,000 = Rs. 94,000

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 along with the sum assured.

 

Continuing from the previous example:

Assuming on 1^st July 2014 ABSLI declares an interim bonus of 42 per thousand of Sum Assured and the annual revisionary bonus of 46 per thousand of Sum Assured

The revisionary bonus will be added to the policy on the policy anniversary i.e. on 1^st Jan 2015, however in the interim the life insured dies on 15^th Oct 2014 i.e. before the policy anniversary. In this case, the interim bonus declared by ABSLI will form a part of the death benefit. Hence the nominee will receive an interim bonus of = 10,00,000 x 42/1000 = 42,000 as a part of the death benefit.

Accrued bonus in this case shall be 46,000 (in the previous year) + 42,000 (interim bonus in the year of death) = Rs. 88,000

Terminal Bonus:  At company’s discretion on death or maturity 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.

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.
• Should the outstanding policy loan balance equal or exceed the surrender value of your policy at any time, when your policy is in reduced paid-up status, then the policy shall be terminated without any value.
• The death benefit, maturity benefit, survival benefit 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.

Yes, there can be a proposer and s/he can be different from the Life Insured under the plan. In case the proposer and the life insured are different then all the proceeds for the policy will be paid to the proposer. If the policy is taken for the benefit of life insured who is a minor at the time of policy issuance, the policy shall automatically vest to the life insured on his attaining age 18.

Yes, this plan can be offered to NRIs/FNIOs & PIOs, however riders cannot be offered to them.