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Thursday, January 01, 2009

Birla Sun Life Introduces new facility under BSL Tax Relief '96

With effect from 6 January 2009

Birla Sun Life introduces a facility called BSL Life Stage Plan under Birla Sun Life Tax Relief '96 an open ended equity linked saving scheme with a lock-in of 3 years. This facility shall be available as an add-on, optional feature with effect from 6 January 2009. Investor has an option to avail this facility with or without life insurance cover.

Eligibility Criteria For Life Insurance Cover:

Only individual investors, including Non Resident Indians, whose age is 18 years and above but not more than 45 years of age at the time of first SIP installment, will be allowed the benefit of a Life Insurance Cover.

  • Provided:
  • Investor subscribe to BSL Life Stage Plan, in Birla Sun Life Tax Relief '96 - Growth Plan
  • Investors sign genuine 'Good Health Declaration' and also provide their Date of Birth, Gender and Nominee details at the specified places in the application form.
  • Incase of joint holders in the scheme, only the firs unit holder would be eligible for the insurance cover.

    Investment Amount in BSL Life Stage Plan: Minimum Rs 2000 per month. The mode of payment can be through direct debit.

    Maturity Under the BSL Life Stage Plan:

    The investors have an option to choose the maturity year from the following: 2020, 2025, 2030, 2035, and 2040 on which the total amount will be available for the investor to be redeemed. The amount will be available for redemption on the first day of the financial year (1st April) in the maturity year. E.g. the 2025 plan will mature on 1st April 2025.

    Tenure of the BSL Life Stage Plan:

    The monthly SIP would continue until 3 years (36 months) before maturity date. Thus, the tenure of the plan shall be; Maturity year of the plan (less) current year (less) 3 years (as the scheme entails 3 years lock in). Eg. For a maturity date of 1st April 2005, the monthly SIP would continue until March 2022.

    Discontinuation of BSL Life Stage Plan:

    Investors intimates the AMC to discontinue SIP under BSL Life Stage plan, or Investors defaults SIP installments under BSL Life Stage plan for two consecutive months during the tenure of BSL Life Stage Plan, or Investor defaults SIP installments under BSL Life Stage Plan for four separate occasions (months) during the tenure of the BSL Life Stage Plan There shall be no provision to revive the BSL Life Stage Plan, once discontinued

    Load Structure:

    For investors eligible for Life Insurance cover. The entry load of 2.50% will be levied and it will be nil for the direct applications. No exit load will be charged.

    For investors not eligible for Life Insurance cover. The entry load of 2.25% will charged for the purchase of units less than Rs 5 crore and nil for the purchase of units equal to or greater than Rs 5 crore. And no exit load will be charged.

    Group Life Insurance:

    If investment in the BSL Life Stage Plan facility continues, the increasing insurance cover would be as follows

    Year 1: 10 times the Monthly SIP installment Year 2: 50 times the Monthly SIP installment Year 3: 100 times the Monthly SIP installment

    All the above mentioned limits are subject to maximum cover of Rs 20 lakh per investor for all monthly SIP installments under BSL Life Stage Plan.

    If installment under BSL Life Stage Plan discontinues, the insurance cover would be as follows:

    Monthly SIP discontinues before 3 years: insurance cover stops immediately.

    Monthly SIP discontinues after 3 years: Insurance cover equivalent to the value of units allotted under the BSL Life Stage Plan, at the start of the each policy year, subject to a maximum of 100 times the monthly installment, provided there are no full or partial withdrawal of SIP fund units before completion of SIP tenure. Otherwise, cover ceases immediately.

    Commencement of Insurance cover under BSL Life Stage Plan:

    The insurance cover will start from the commencement of first SIP installment under BSL Life Stage Plan. However, only accidental death will be covered for the firs 45 days from the date of the first SIP installment.

    Cessation of Insurance Cover:

    The insurance cover shall cease upon occurrence of any of the following:

    Upon completion of 55 years of age

    Discontinuation of SIP installments under BSL Life Stage Plan within 3 years from the commencement of the same.

    Redemption /switch out (fully or partly) of units purchased under BSL Life Stage Plan before the completion of the BSL Life Stage Plan tenure.

    There shall be no provision to change the SIP installment for availing BSL Life Stage Plan.

    Revival of Insurance Cover:

    There shall be no provision for revival of insurance cover, once the insurance cover ceases as state above.

    Exclusions for Insurance Cover:

    No insurance cover shall be admissible in respect of death of the unit holder (the insured investor) on account of-

    Death due to suicide within the first year of commencement of SIP under BSL Life Stage Plan.

    Death within 45 days from the commencement of SIP installments under BSL Life Stage Plan except for death due to accident.

    Death due to pre-existing illness, disease(s) or accident which has occurred prior to commencement of SIP installments under BSL Life Stage Plan.

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