Aditya Birla Sun Life Insurance Income Suraksha Plan

In today's world filled with uncertainties, we all desire to ensure that our loved ones enjoy a comfortable life and have a secure future, even in our absence. That's why it is important to take steps now to protect your family’s financial future from any unforeseen events life might bring. Introducing the ABSLI Income Suraksha Plan, a term insurance plan designed to offer your family the peace of mind and financial stability they deserve. This plan ensures that your loved ones will receive a steady monthly income in your absence, helping them maintain their lifestyle and pursue their dreams without worry.

With the ABSLI Income Suraksha Plan, you can rest easy knowing that your family’s financial well-being is secured, even when you are no longer there to provide for them. It’s not just about financial support, but about ensuring that your family can continue to live the life they envision for themselves without financial burdens.

Key Features Of The Plan

Every individual and family have different needs, and the ABSLI Income Suraksha Plan is designed to cater to those varied needs with a range of customizable features. Below are some of the key features that make this plan a great choice for safeguarding your family’s future:

1. Ensures Financial Protection for Your Family in Your Absence

This plan guarantees that your family will continue to receive a monthly income in case of your unfortunate demise. This financial protection will help them cover day-to-day expenses, handle financial responsibilities, and maintain their lifestyle even when you are not there to provide for them.

2. One-Time Premium Discount of Up to 9%

The ABSLI Income Suraksha Plan offers a one-time premium discount of up to 9% on the first-year premium. This makes it more affordable, giving you significant savings right from the start of your policy.

3. Choose Between Two Plan Options for Maximum Flexibility

Understanding that every family’s financial situation is different, the plan allows you to customize your protection by choosing between two plan options:

• Fixed Income Protection: This option provides a steady, fixed monthly income to your family throughout the policy term.
• Increasing Income Protection: Under this option, the monthly income increases by 5% each year, compounded annually, which helps your family stay ahead of inflation and rising living costs.

4. Inflation Protection with Increasing Income

With the Increasing Income Protection Option, you can shield your family from the effects of inflation. As the cost of living increases, the monthly income provided by this plan will also increase, ensuring that your family’s financial needs are met over time without losing purchasing power.

5. Flexible Premium Payment Options

The plan offers you the flexibility to choose how you want to pay your premiums:

• Limited Pay: You can opt to pay premiums for a limited period (5, 7, 10, 12, 15, or 20 years), while the coverage continues for a longer term.
• Regular Pay: You can choose to pay premiums throughout the entire policy term, which could suit those looking for long-term financial commitment.

This flexibility ensures that you can choose the premium payment option that fits your financial situation best, allowing you to plan ahead without straining your finances.

6. Enhance Coverage with Additional Riders

The ABSLI Income Suraksha Plan also allows you to strengthen your insurance coverage by adding various riders for a nominal additional premium. These riders offer extra protection against specific risks such as:

• Accidental Death or Disability
• Critical Illness
• Surgical and Hospital Care

Adding riders ensures that your plan is comprehensive and caters to a variety of scenarios that could impact your family’s financial security.

Product Eligibility

Your Plan Options

This product offers two plan options to meet your needs:

Option 1: Fixed Income Protection

Option 2: Increasing Income Protection

You need to choose one plan when you start the policy, and once selected, you cannot change it later. The premium amount you pay will depend on which plan you choose.

Let's take a closer look at both options:

Option 1: Fixed Income Protection

Under this option, your nominee (family member) will receive a fixed monthly income in the unfortunate event of your death. This income will be paid in arrears throughout the Income Payout Period.

Example:

• Mr. Tony, a 35-year-old non-smoker, chooses the Fixed Income Protection option. He selects a monthly income of ₹1,00,000 with a policy term and premium payment term of 30 years. Unfortunately, Mr. Tony passes away during the 15th policy year. In this case, his family will receive a fixed monthly income of ₹1,00,000 every month from the date of his death until the end of the policy term. This steady income will allow them to manage household expenses, future goals, and any financial liabilities that arise.

Option 2: Increasing Income Protection

This option provides an added advantage by offering a 5% annual increase in the monthly income, compounded each year. This feature helps protect your family from the effects of inflation, ensuring that their income grows over time.

Example:

Mr. Paul, also a 35-year-old non-smoker, opts for the Increasing Income Protection option. He selects a starting monthly income of ₹1,00,000 with a policy term and premium payment term of 30 years. Unfortunately, he passes away in the 5th policy year. At the time of his death, the monthly income would have increased to ₹1,21,550, and this amount will continue to rise at 5% annually until it reaches 1.5 times the original monthly income. This means his family will ultimately receive up to ₹1,50,000 every month by the end of the policy term.

Sample Premium Rate

Below are the sample premiums (excl taxes) applicable for a non-smoker Male life opting for 1 lakh Monthly income with coverage till age 70 years and Premium Payment Term is same as Policy Term.

*Premium Payment Term is equal to Policy Term

Your Policy Benefits

Death Benefit

If the insured person passes away during the policy period, the nominee(s) or legal heir(s) will receive the Death Benefit as per the chosen plan. Here's how it works for two plan options:

For Plan Option 1

If the insured person dies while the policy is active, the Death Benefit will be paid in monthly installments. These payments will start at the end of the policy month following the death and will continue for the chosen period, called the Income Payout Period. The monthly income paid will match the amount selected when the policy began.

If the total Sum Assured at death is more than the guaranteed death payout, the excess will be paid immediately in a lump sum to the nominee.

For Plan Option 2

If the insured person dies during the policy term, the Death Benefit will also be paid in monthly instalments. These payments will begin at the end of the policy month after the death and continue throughout the Income Payout Period. However, in this option, the monthly income will increase by 5% every year.

After the insured person’s death, the nominee will receive the current monthly income, which will continue to increase at each policy anniversary. The monthly income can go up to a maximum of 1.5 times the initial amount chosen at the start. Payments will last for the full Income Payout Period.

The total Sum Assured upon death will be the highest of the following:

1. 11 times the yearly premium,
2. 105% of the total premiums paid as of the date of death,
3. The Sum Assured,
4. The guaranteed amount promised at the time of death.

Important Definitions:

• Annualized Premium: This is the total yearly premium selected by the policyholder, excluding taxes, any additional charges, or discounts on the first-year premium.
• Total Premiums Paid: This refers to all premiums paid so far, excluding taxes, rider premiums, and any other extra charges.
• Sum Assured: This is 120 times the monthly income chosen at the beginning of the policy.
• Absolute Amount on Death: This is the total monthly income payable over the entire Income Payout Period.
• Income Payout Period: This is either 120 months or the time from the date of death to the end of the policy term, whichever is longer.

Survival Benefit: No Survival Benefit is offered in this plan.

Maturity Benefit: No Maturity Benefit is available under this plan.

Commutation Benefit: If the nominee wishes to receive a lump sum instead of the monthly income after the insured person’s death, they can opt for a lump sum payout. The amount will be a discounted value of the remaining monthly payments, calculated using a discount rate of 9.55% per year, or as updated by the company, depending on the economic conditions.

The formula for the lump sum is:

Lump Sum Amount = Commutation Factor x Monthly Income chosen at the start of the policy.

The Commutation Factor depends on the plan chosen, the policy term, the date of death, and the remaining Income Payout Period (which is the difference between the full Income Payout Period and the number of months already paid).

Customizable Benefits (Riders): For extra protection, you can add riders to your policy at a small extra cost:

1. Accidental Death and Disability Rider: This rider gives 100% of the rider sum assured in case of accidental death or disability.
2. Critical Illness Rider: Provides a lump sum if the insured survives 30 days after being diagnosed with a covered critical illness.
3. Surgical Care Rider: Provides a lump sum if the insured is hospitalized for at least 24 hours for a medically necessary surgery.
4. Hospital Care Rider: Provides a lump sum if the insured is hospitalized for at least 24 hours for surgery.
5. Accidental Death Benefit Rider Plus: Provides 100% of the rider sum assured in case of accidental death. It also refunds the premiums paid after the accident up to the date of death, along with the death benefit.
6. Waiver of Premium Rider: Waives off all future premiums if the insured is diagnosed with a critical illness or becomes disabled.

Important Note: You can choose only one of the two riders: Accidental Death and Disability Rider or Accidental Death Benefit Rider Plus.

The coverage for each rider is limited to the remaining policy term or premium payment period, based on the rider’s terms. If multiple riders are triggered by the same event, you will receive the benefit under each applicable rider.

For detailed information, please speak with one of our financial advisors at PolicyBachat.