BSLI Bachat (Child) Plan

BSLI Bachat (Child) Plan - a plan that secures your child's future even in the event of an untimely demise of the life insured.

BSLI Bachat (Child) Plan - A step-by-step savings plan

Bachat (Child) Plan secures your child's future by helping you build funds through regular savings. In the event of an untimely demise of the life insured, BSLI will pay all remaining premiums so that your policy continues. Also, your savings will continue to grow through the term of the policy.

Grow your regular savings Policy continuance Safety and liquidity Tax savings

How BSLI Bachat (Child) Plan secures your child's future vis-à-vis other investment avenues:

It is very important to choose an investment option suited to your requirements. At BSLI, we understand that it could be difficult for you to pick out an investment avenue that's optimum for you. Here's presenting a simple comparison and evaluation for your convenience.

Safety Small Savings Liquidity Life Cover Bank Fixed Deposits Yes Yes Yes No Public Provident Fund Yes Yes No No Post Office Time Deposits Yes Yes No No National Savings Certificates Yes Yes No No BSLI Bachat (Child) Plan Yes Yes Yes Yes

BSLI Bachat (Child) Plan is a regular savings plan that helps you secure your child's future under all circumstances

How BSLI Bachat (Child) Plan works:

You choose your Monthly Base Premium amount that belongs to one of the following bands:

Band I II III For policies with MBP (in Rs.) 400 to 599 600 to 899 900 + Bachat Addition Rate 5.00% 5.25% 5.50%

In addition, you pay a Policy Continuation Premium to ensure continuation of the policy till maturity in case of death of the life insured during the policy term.

Policy Continuation Premium (fixed additional premium)

Entry Age 13 to 40 41 to 50 Sum Assured 180 x MBP 120 x MBP

Once you have chosen your premium amount, you receive a series of benefits as follows:

You will get a life cover for the financial security of your family. You stand to receive premium rebates for choosing annual and semi-annual mode of payment. You get a rebate of 4% if you choose to pay annually, and 2% for semi-annually. Your policy continues till maturity, as you planned to secure your child’s future in case of an untimely demise. On maturity, you will receive a lump sum which you can use to fulfill your child’s dreams and goals. You have the advantage of liquidity on your savings to access your money any time you need it after three policy years. You have the option of double life cover in case of accidental death, for a nominal additional premium, to ensure enhanced financial security of your family

What are the benefits of BSLI Bachat (Child) Plan?

Maturity Benefit - On maturity after 20 years, you will receive

All Monthly Base Premiums paid; plus All Bachat Additions earned; plus The Loyalty Addition; less

Death Benefit - In the unfortunate event of death of the life insured, the nominee shall receive

Sum Assured will be paid to the nominee immediately; Future premiums will be waived and the policy continues until maturity. On maturity, your child will be entitled to maturity benefits. This ensures that even in your absence your child's future is assured; All Bachat Additions and Loyalty Addition will continue as if all MBPs are paid when due.

Surrender Benefit -Once 36 MBPs have been paid, you may surrender your policy and receive

All Monthly Base Premiums paid from the 2nd year onwards x the surrender factor below; plus After the 10th policy year, all Bachat Additions earned; plus After the 15th policy year, the Loyalty Addition earned

The surrender factor is 100% after completing 10 policy years, otherwise it is

Policy Year of Surrender 3 4 5 6 7 8 9 10+ Surrender Factor 30% 40% 50% 60% 70% 80% 90% 100%

Accidental Death Benefit - Optional Rider for Entry Ages 18 to 50

For an extra 1.2% of MBP additional Sum Assured is paid in case of accidental death.

Extra 180 x MBP payable in case death is accidental for entry ages 18 to 40. Extra 120 x MBP payable in case death is accidental for entry ages 41 to 50.

Policy Base Premium Bachat Addition Loyalty Total Addition Surrender Benefit Year Annual Paid Earned Payable Addition payable on Surrender Gtd Total [a] [b] [c] [d] [e] [f] [g] [h] 1 6,000 6,000 300 --- --- --- --- --- 2 6,000 12,000 600 --- --- --- --- --- 3 6,000 18,000 900 --- --- --- 3,600 3,600 4 6,000 24,000 1,200 --- --- --- 7,200 7,200 5 6,000 30,000 1,500 --- --- --- 12,000 12,000 6 6,000 36,000 1,800 --- --- --- 18,000 18,000 7 6,000 42,000 2,100 --- --- --- 25,200 25,200 8 6,000 48,000 2,400 --- --- --- 33,600 33,600 9 6,000 54,000 2,700 --- --- --- 43,200 43,200 10 6,000 60,000 3,000 16,500 -- 16,500 54,000 70,500 11 6,000 66,000 3,300 19,800 --- 19,800 60,000 79,800 12 6,000 72,000 3,600 23,400 --- 23,400 66,000 89,400 13 6,000 78,000 3,900 27,300 --- 27,300 72,000 99,300 14 6,000 84,000 4,200 31,500 --- 31,500 78,000 109,500 15 6,000 90,000 4,500 36,000 10,800 46,800 84,000 130,800 16 6,000 96,000 4,800 40,800 13,872 54,672 90,000 144,672 17 6,000 102,000 5,100 45,900 17,557 63,457 96,000 159,457 18 6,000 108,000 5,400 51,300 21,931 73,231 102,000 175,231 19 6,000 114,000 5,700 57,000 27,075 84,075 108,000 192,075 20 6,000 120,000 6,000 63,000 33,075 96,075 120,000 216,075

Notes :

[a] = MBP x 12. [b] = MBP's paid to date or sum of [a] to date. [c] = [b] x Bachat Addition Rate of 5.00%. [d] = After 10 years, sum of [c] to date. [e] = After 15 years, [d] x ratio of [d] over 240 x MBP. [f] = [d] + [e]. [g] = Surrender Factor x [b] less MBP's paid in first year. 100% x [b] in 20th policy year. [h] = [g] + [f]

Plan Summary

Entry Age - Grand / Parent - Child 18 - 50 years - 17 years Policy Term 20 years Premium Pay Term 20 years Monthly Base Premium Rs. 400 - Rs. 3,000 Sum Assured Up to 180 times Monthly Base Premium Premium Payment Frequency Annual, Semi-annual, Quarterly and Monthly

Entry Age 13 to 40 41 to 50 Sum Assured 180 x MBP 120 x MBP

With BSLI Bachat (Child) Plan, by saving as little as Rs. 400 per month. you can build a corpus through regular systematic savings and secure your child's future under all circumstances

Surrender Benefit details:

Assuming that premiums are paid annually, and earn 4% rebate, here are the surrender benefits under different premium bands.

Band I II III MBP Range (in Rs.) 400 to 599 600 to 899 900 + Bachat Addition Rate 5.00% 5.25% 5.50% MBP chosen by you 500 750 1,000 MBP x 12 6,000 9,000 12,000 Surrender Benefit After 10 years 70,500 106,988 144,300 After 15 years 130,800 200,561 273,336 After 20 years 216,075 333,923 458,642 Entry Age (years) 18-40 41-50 18-40 41-50 18-40 41-50 Annual Premium paid by you 5,990 6,336 8986 9,504 11,981 12,672 Surrender Benefit / Total Premiums Paid After 10 years 118% 111% 119% 113% 120% 114% After 15 years 146% 138% 149% 141% 152% 144% After 20 years 180% 171% 186% 176% 191% 181% Equivalent Bachat Addition Rate After 10 years 3.22% 2.05% 3.47% 2.29% 3.72% 2.52% After 15 years 5.70% 4.70% 6.10% 5.09% 6.51% 5.48% After 20 years 7.65% 6.72% 8.17% 7.21% 8.71% 7.71%