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Aditya Birla Sun Life Launches Vision LifeIncome Plus – Get Guaranteed Income for 30 Years or Lifetime

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Aditya Birla Sun Life Launches Vision LifeIncome Plus – Review

Few days back, Aditya Birla Sun Life Insurance (ABSLI) has launched Vision LifeIncome Plus plan. It is an insurance cum investment plan where one can get guaranteed income for 30 years or life and life insurance up to 100 years. What is Aditya Birla Sun Life Insurance Vision LifeIncome Plus Insurance Scheme? should you choose Aditya Birla Sun Life Insurance Vision LifeIncome Plus Insurance? What are the hidden or negative factors in this plan?

What are Guaranteed Income Schemes?

Insurance companies keep temporary insurance cum savings plans where specific payments are made every month every year after the premium paying term. These are called with different captions like Guaranteed Income Scheme or Money Back Policy or Endowment Policy.

few days back, Exide Life Insurance also launched Guaranteed Income for 30 years Where we have reviewed it and pointed to it as the “psychological happiness” created by such policies. Now insurance companies are creating policies with such a “guaranteed income” caption.

Aditya Birla Sun Life Insurance Vision LifeIncome Plus – Key Features

It is a non-linked, participating, individual life savings plan that provides long-term guaranteed returns.

It offers 3 variants. One can choose from short term income plan, long term income plan and whole life income plan (up to 85 years or up to 100 years).

One can get guaranteed income benefits for 10 years, 20 years, 30 years or for life, depending on the type chosen.

The plan offers the flexibility to receive the excess paid in cash or to deposit and pay on maturity.

This insurance cum savings plan offers riders though comes with an additional premium.

The minimum premium is Rs 50,000 and there is no maximum limit.

The minimum sum assured is Rs 2 lakh and there is no maximum limit.

Eligibility Criteria in Aditya Birla Sun Life Insurance Vision LifeIncome Plus

Eligibility to take Aditya Birla Sun Life Vision LifeIncome Plus

What are the premium payment terms in this plan?

Premium Paying Term (PPT) is important in this plan. The insurance premium has to be paid for this period and after that, they will get paid.

The following table provides the premium paying term and how the benefits will be paid.

PPT and Benefit Payout Periods in Aditya Birla Sun Life Vision LifeIncome Plus

Benefits in Aditya Birla Sun Life Insurance Vision LifeIncome Plus Insurance

It will depend on 3 variants.

1) Specific benefits for short term income

death benefit: In case of unfortunate death of the life assured, the nominee will get the sum assured on death.

Policy Continuity Benefits: In case of death, all future premiums will be waived off and the policy will continue to participate in future bonuses etc.

Guaranteed Income: On completion of the premium paying term, a guaranteed income of 1% of the Sum Assured is payable every month till the end of the policy term. Also the flexibility to receive the annual amount.

Maturity Benefit: On maturity, accrued paid-up additions (if any) + terminal bonus (if any) will be paid.

2) Specific benefits for long term income plan

death benefit: In case of unfortunate death of the life assured, the nominee will get the sum assured on death. The policy terminates after the death benefit is paid.

Guaranteed Income: On completion of the premium paying term, a guaranteed income of X% of the Sum Assured is payable every year till the end of the policy term. X% will depend on the plan tenure taken by the policy holder i.e. 20 years or 25 years or 30 years. It is between 5.5% to 8.5%.

Aditya Birla Sun Life Vision LifeIncome Plus Long Term Income Plan Payout Benefit

Maturity Benefit: On maturity, accrued paid-up additions (if any) + terminal bonus (if any) will be paid.

3) Specific Benefits for Whole Jeevan Income Plan

death benefit: In case of unfortunate death of the life assured, the nominee will get the sum assured on death. The policy terminates after the death benefit is paid.

Guaranteed Income: On completion of the premium paying term, a guaranteed income of X% of the Sum Assured is payable every year till the end of the policy term. X% will depend on the plan taken by the policy holder and the age. It is between 2.5% to 4%.

Sampoorna Jeevan Income Plan Payout Benefits in Aditya Birla Sun Life Vision LifeIncome Plus

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Maturity Benefit: On Maturity, Sum Assured + Accrued Paid Up Addition (if any) + Terminal Bonus (if any) will be paid.

4) Income Tax Benefit u/s 80C

The insurance premium paid will be eligible for income tax exemption under section 80C up to Rs 1.5 lakh for a financial year.

How does Aditya Birla Sun Life Insurance Vision LifeIncome Plus work?

I explain it with some examples.

1) Illustration for Short Term Income Plan

Mr. Sharma 35 years of age pays a premium of Rs.100,000 per annum for a sum insured of Rs.10.09 lakhs.

Premium paying term is 10 years

Benefit Pay Term 20 Years & Monthly Payment Options

Bonus Usage Option – Paid Up Edition

The total premium for 10 years will be Rs 10 lakh

Here’s how insurance premiums are paid and benefits are received.

Short Term Plan Illustration ABSLI Vision LifeIncome Plus

Mr. Sharma will get Rs.10,098 per month as guaranteed income after the premium paying term of 10 years and up to 20 years.

On maturity, Mr. Sharma will get either Rs.3 lakh or Rs.5.6 lakh as maturity benefit.

2) Example for short term income plan – in case of death

Let me continue the above example and show how the payout will be on the death of the policy holder.

Short Term Plan Example With Death Benefit - ABSLI Vision LifeIncome Plus
Short Term Plan Example With Death Benefit – ABSLI Vision LifeIncome Plus

In case of death of Mr. Sharma during the sixth policy year

Sum Assured on death of Rs.11 lakh is payable.

All future premiums from the sixth year to the tenth year will be waived off.

The nominee will get a guaranteed income of Rs 10,098 per month from the 10th year to the 20th year.

At the end of the policy term, the paid additional and terminal bonuses (if any) will be paid.

Positive Factors in ABSLI Vision LifeIncome Plus

Here are the major positive factors:

1) It is a life insurance cum savings account. One would have life insurance and at the same time, the savings would keep accumulating.

2) This plan comes with 3 variants. Policyholders can opt for a short term income plan, a long term income plan or a whole life income plan, depending on their needs.

3) Short term income plans or long term income options provide guaranteed income for 20 to 30 years. May be one who is earning well now but wants some flow through second income later can opt for such schemes.

4) Like any other insurance plan, it offers Section 80C. Income Tax Benefit under Up to Rs 1.5 lakh

Negatives / Hidden Factors in ABSLI Vision LifeIncome Plus Plan

Here are some negative factors:

1) The company intends to pay paid up additions and terminal bonuses which are not guaranteed.

2) This insurance cum savings policy provides low returns. The return can vary between 5% to 6% p.a. Exact return calculation is not possible as there is paid up addition and terminal bonus which is not guaranteed.

3) This plan offers rider which comes with additional premium.

4) In case of suicide by the policy holder within 1 year, only the surrender value will be paid to the nominee.

Should you choose Aditya Birla Sun Life Insurance Vision LifeIncome Plus Insurance Plan?

This plan comes with a guaranteed income plan and many other key features. However, such insurance-cum-savings plans come with low returns ranging between 5% and 6%. Such low returns cannot beat inflation; Hence the value of your hard earned money may decrease in the long run. If you are okay with such low returns, then you can go ahead and consider such a plan. Alternatively, you can invest in Equity Mutual Fund For such a long period of 20-30 years and get higher returns.

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Suresh KP
Latest post by Suresh KP (see all)

Disclaimer: The opinions expressed within this article are the personal opinions of the author. The facts and opinions appearing in the article do not reflect the views of knews.uk and knews.uk does not assume any responsibility or liability for the same.

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