BSLI Foresight Plan

BSLI Foresight Plan, which through its new generation Foresight fund helps you do just that by optimizing your investment in capital markets when they are low and locking in your gains when they are high.

How BSLI Foresight Plan works

Choose your Basic Premium a. For Single-Pay option, you pay the premium only once. The minimum Basic Premium payable is Rs.2,00,000. b. For 5-Pay option, you pay the premium annually for 5 years. The minimum Basic Premium payable is Rs.1,00,000 annually. Choose your Life Cover You can choose your Basic Sum Assured (BSA) i.e. Life Cover, as per the matrix given below. Single Pay Option Less than 45 yrs of age 45 yrs of age or more Min 1.25 x Basic Premium 1.10 x Basic Premium Max 5 x Basic Premium 5 x Basic Premium 5-Pay Option Less than 45 yrs of age 45 yrs of age or more Min 10 x Basic Premium 7 x Basic Premium Max 300% of BSA 300% of BSA Choose the Investment Option between Guaranteed Option and Self-Managed Option

Your investment options

Guaranteed Option In this option your money is invested in the new generation Foresight Fund. You receive a Guaranteed Minimum Maturity Benefit by optimising both your entry and gains from the capital markets. Self-Managed Option gives you complete access to our range of investment funds with the freedom to switch between them. In this investment option, you decide how to invest your premiums. We offer 10 investment funds ranging from 100% debt to 100% equity to suit your particular needs and risk appetite - Income Advantage, Assure, Protector, Builder, Enhancer, Creator, Magnifier, Maximiser, Multiplier and Super 20.

How does the Guaranteed Option work?

To understand how the Guaranteed Option works, it is important to understand a few key terms:

Net Invested Premium (NIP) NIP Value NIP Guaranteed Value Guaranteed Minimum Maturity Benefit (GMMB) Each of these is explained below. Net Invested Premium (NIP) Net Invested Premium is the money that is invested in the investment option chosen by you. From the premium paid by you, we deduct: • Premium allocation charge; and • Mortality charge for the BSA chosen by you The residual amount is the NIP. NIP Value We track each NIP in your policy separately and each NIP has its own value (NIP value). NIP value for any given day is calculated as: NIP Value = NIP X current unit price unit price when NIP was paid to purchase units in Foresight fund For example, a NIP of Rs.1,00,000 is invested using a unit price of Rs.10 to purchase units in the Foresight fund. Now, • If the current unit price is Rs.12, then NIP Value = 1,00,000 x (12/10) = Rs.1,20,000 Your Fund Value is the sum of all NIP Values as on date. If you are in the fourth policy year and have paid all four premiums on time, then your Fund Value is the sum of all four NIP Values associated with each of your premiums. NIP Guaranteed Value NIP Guaranteed Value is the minimum value that we guarantee on a particular NIP at maturity. NIP Guaranteed Value is: • For 5-Pay option – Higher of Special NIP Guaranteed Value (explained below) OR The highest NIP Value achieved during the first 7 policy years • For Single Pay option – Highest NIP value achieved during the first 7 policy years Guaranteed Minimum Maturity Benefit Guaranteed Minimum Maturity Benefit is the sum of all your NIP Guaranteed Values. At maturity and provided you remain invested in the Guaranteed Option, you will receive the Fund Value or the Guaranteed Minimum Maturity Benefit, whichever is higher.

The Unique Foresight Advantage – Only for the 5-Pay option

Special NIP Guaranteed Value Special NIP Guaranteed Value is applicable only to 5-Pay option. Special NIP Guaranteed Value is determined at the end of the 5th policy year for each NIP invested in this plan. Special NIP Guaranteed Value ensures that you enjoy the benefit of market movements for each NIP. It is the sum of two components, as described under (a) and (b) below. i This component gives you the advantage of investing on the best day possible during the policy year in which the NIP was invested. This is calculated as: NIP X (the NIP Value as of the end of the 5th policy year) (the lowest NIP Value recorded during the policy year in which the NIP was invested) For example, NIP for year 2 premium (a) = Rs.1,00,000 NIP at the end of 5th year (b) = Rs.1,50,000 Lowest NIP value in the year invested (c) = Rs.80,000 Therefore, the value of the first component = 1,00,000 x (1,50,000/80,000) = 1,87,500 ii This component helps you to lock-in the gains made by giving you the highest NIP Value achieved during the first 5 policy years. This is calculated as: (Highest NIP value achieved during the first 5 policy years) – (NIP value at the end of the 5th policy year) For example, NIP for year 2 premium (x) = Rs.1,00,000 NIP Value at the end of 5th year (y) = Rs.1,50,000 Highest NIP Value during the 5 years (z) = Rs.1,62,5000 Therefore , the value of second component = 1,62,500 – 1,50,000 = 12,500 Adding the two components, we get special NIP Guaranteed Value = 187,500 + 12,500 = 200,000. As mentioned earlier, the NIP Guaranteed Value will be the higher of Special NIP Guaranteed Value, as calculated above, and the highest NIP Value achieved during the first 7 policy years.

Benefits of BSLI Foresight Plan

1 Maturity Benefit You will receive no less than the Guaranteed Minimum Maturity Benefit, as described earlier, if you opt for the Guaranteed Option. You will receive the Fund Value at maturity, if you are invested in the Self-Managed Option at that time. 2 Death Benefit In case of the unfortunate death of the life insured prior to maturity, the nominee will receive the Basic Sum Assured plus the Fund Value as of the date of intimation of death. The Death Benefit shall never be less than 105% of total premiums paid to date (excluding any applicable underwriting extras). Any partial withdrawals made will reduce the Death Benefit by the amount of withdrawal. 3 Surrender Benefit In case you require funds to meet any exigency, you can surrender your policy after the completion of five policy years, and receive the Fund Value at that time, plus refund of mortality charges for the remaining term to maturity. 4 Partial Withdrawals You can make unlimited partial withdrawals to meet any financial emergencies 5 Policy Loans You can meet your financial needs by availing of a loan on your policy.