Aditya Birla Salaried Suraksha ULIP Plan

What is Aditya Birla Salaried Suraksha ULIP Plan?

The Aditya Birla Salaried Suraksha ULIP Plan is a Unit Linked Insurance Plan (ULIP) designed for salaried individuals. It combines life insurance protection with investment opportunities, allowing you to grow your wealth over time. The plan provides flexibility in premium payments and fund choices, ensuring both financial security and the potential for long-term returns.

This investment plan is ideal for those looking to secure their family’s future while building a corpus. It also offers tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961.

Features of Aditya Birla Salaried Suraksha ULIP Plan

The key features of the ABSLI Salaried Suraksha ULIP Plan are as follows:

• You can choose a life insurance cover up to 125 times the premium, depending on your age, Premium Payment Term (PPT), and Policy Term (PT) at the time of purchase.

• From the 10th to the 13th year, you will receive 2 times the Premium Allocation Charges to enhance your fund value.

• Starting from the 11th year, 2 times the Mortality Charges will be returned to you until the end of the policy term.

• The Systematic Withdrawal Facility (SWF) allows you to make regular withdrawals from your fund value during the policy term to meet recurring financial needs.

• You have the option to choose from 5 investment strategies and 18 different funds to match your diverse investment goals.

• Tax benefits may apply to the premiums you pay and the benefits you receive, subject to the current tax laws.

Eligibility Criteria of Aditya Birla Salaried Suraksha ULIP Plan

The following criteria should be followed to purchase this ULIP Plan: 

*Maximum Sum Assured depends on the Board Approved Underwriting Policy.

Benefits of Aditya Birla Salaried Suraksha ULIP Plan

The following are the benefits of investing in the ABSLI Salaried Suraksha ULIP Plan:

• Death Benefit: A death benefit is paid to the beneficiaries in case of death of the Life Insured. The amount depends on the following conditions:

• If the Policy is Active: If the life insured passes away during the policy term while the policy is active, the higher of the following will be paid to the nominee/legal heir:

  • Fund Value on the date of death intimation, or

  • Sum Assured (after deducting partial withdrawals made within two years before death), or

  • 105% of total premiums paid (minus partial withdrawals made within two years).

• If the Policy is in Discontinuance: If the policy is discontinued, the fund value (minus charges) will be paid immediately upon the insured's death.

• Maturity Benefit: If the insured survives till policy maturity, the policyholder receives the Fund Value as a lump sum (unless a settlement option is chosen).

• Return of 2X Premium Allocation Charge: 2 times the premium allocation charges (excluding GST) will be added back in extra units at the end of years 10-13.

• Return of 2X Mortality Charges: Starting from policy year 11, 2 times the mortality charges will be returned as extra units monthly until the end of the policy term.

• Investment Options: You can allocate premiums in 5 options: Self-Managed, Smart, Systematic Transfer, Return Optimiser, or Life Cycle. You can change the option once a year.

• Risk Profile Switch (Smart/Life Cycle Options): With automatic fund rebalancing, you can switch risk profiles for free anytime during the policy term.

• Premium Redirection: Redirect future premiums to other funds anytime, with 12 free redirections allowed annually.

• Reduction of Premium: After 5 years, you can reduce premiums by up to 50% (once), with the Sum Assured reduced proportionally.

• Reduction of Sum Assured: After 5 years, you can reduce the Sum Assured by up to 50% (once). The premium remains unchanged.

• Addition/Closure of Funds: With IRDAI approval, new funds may be added or existing ones closed. Units will be switched to a conservative fund if a fund is closed.

• Unit Encashment: Units are encashed based on NAV on the date of the request. Units are redeemed for premium payments, switches, or withdrawals.

• Partial Withdrawal: After 5 years, you can make unlimited partial withdrawals, with a minimum of ₹5,000 and a maximum of 25% of the Fund Value.

• Settlement Option: After maturity, you can opt to receive payments over up to 5 years. During this period, mortality charges continue, and you can switch funds but not make withdrawals.

• Systematic Withdrawal Facility (SWF): SWF allows you to withdraw 5% or 10% of the Fund Value annually (or more frequently) after 5 years. You can opt in or out anytime, except during discontinuance or settlement periods. 

Rider Benefits of Aditya Birla Salaried Suraksha ULIP Plan

You can boost your coverage by adding the following riders during the Policy Term for extra protection at a nominal cost:

1. ABSLI Accidental Death Benefit Rider Plus

   • In case the Life Insured dies due to an accident within 180 days of the accident, 100% of the rider sum assured will be paid to the nominee.

   • Premiums paid after the accident until death will be refunded with interest and the death benefit.

2. ABSLI Waiver of Premium Rider

   • If the policyholder becomes fully disabled due to an illness or accident or is diagnosed with a critical illness, future premiums will be waived.

   • All policy benefits will continue unaffected, and they apply once during the premium payment term.

3. ABSLI Comprehensive Critical Illness Rider

   • A lump sum payment is made if the Life Insured is diagnosed with one of the critical illnesses covered. The rider offers three variants:

     • Silver: Covers 10 critical illnesses.

     • Gold: Covers 25 critical illnesses.

     • Platinum: Covers 64 critical illnesses.

NOTE:

• Riders work independently, so if multiple riders are applicable, the policyholder can claim under each.

• The Premium Payment Term and Policy Term of the riders align with the base policy.

• Health or critical illness rider premiums cannot exceed 100% of the base product premium, and other riders are capped at 30%.

• Rider benefits will not exceed the base product’s sum assured.

Portfolio Management Strategies of Aditya Birla Salaried Suraksha ULIP Plan

• Systematic Transfer Investment Option: Your annual premium (after charges) is first allocated to the Liquid Plus fund, and a portion is automatically transferred monthly to up to four chosen funds, helping to reduce market risk by averaging out fluctuations.

• Return Optimiser Investment Option: This option allows you to benefit from equity market growth while protecting gains from future volatility, ensuring more stable investment returns.

• Self-Managed Investment Option: You have full control to invest your premiums in any of the 18 available funds, allocate across multiple funds totalling 100%, and switch funds or adjust allocations freely, with a minimum switch amount of ₹5,000.

• Smart Investment Option: Your premium is invested between equity and debt funds based on your risk profile (Conservative, Moderate, or Aggressive) and maturity date, with automatic shifts to safer assets as maturity approaches.

• Life Cycle Investment Option: Investments are structured according to your age and risk profile (Conservative, Moderate, or Aggressive), with automatic adjustments shifting from riskier assets to safer ones as you age.

Policy Terms and Conditions of ABSLI Salaried Suraksha ULIP Plan

• Grace Period: A grace period of 30 days (15 days for monthly payments) is provided to pay the due premium, during which benefits and risk cover continue, with charges being deducted.

  • Policy Discontinuance: If you don’t pay the due premium during the grace period, your policy discontinues as per the following conditions:

  • Policy Discontinuance during the First Five Years: If you fail to pay the premium within the grace period, the fund value, after applicable charges, will be transferred to the Linked Discontinued Policy Fund. You have a three-year revival period to revive the policy.

• Policy Discontinuance after the First Five Years: If you miss premium payments after the lock-in period, the policy becomes a reduced paid-up policy with a reduced sum assured. You have a three-year revival period to either revive the policy or surrender it for the fund value.

• Force Majeure: In case of events outside the company's control (e.g., natural disasters, cyber-attacks), policy services may be temporarily suspended, and the company is not liable for any damages due to these delays.

• Policy Loans: The Aditya Birla Salaried Suraksha ULIP Plan does not allow policy loans.

• Tax Benefits: You may be eligible for tax benefits on premiums, maturity amount and death benefits as per the following:

  • The premiums you pay towards the policy are eligible for tax deductions under Section 80C of the Income Tax Act. You can claim a deduction of up to ₹1.5 lakh in a financial year.

  • The maturity benefits you receive are tax-free under Section 10(10D), provided the premiums do not exceed 10% of the sum assured or ₹2.5 lakhs in any year.

  • The death benefit paid to the nominee is fully tax-exempt under Section 10(10D).

• Free-Look Cancellation: You can return the policy within 30 days if you disagree with its terms. A refund will be processed, after deducting risk premiums, medical exam costs (if any), and stamp duty.

How the Plan Works?

You can understand the workings of the ABSLI Salaried Suraksha Plan from the steps mentioned below:

• Customise your plan: You select the premium amount or sum assured and choose your PPT, Policy Tern, and investment options from a range of funds that match your financial goals and risk appetite.

• Premium allocation: Your premium is divided between life cover and investments. A part of it is allocated to the fund options you choose as per your selected fund strategy, which then grow over time based on market performance.

• Fund growth and flexibility: You can monitor your fund's performance and switch between different fund options as per your needs or market trends. This flexibility helps you maximize returns.

• Maturity or withdrawal benefits: At the policy’s maturity, you receive the total value of your fund, which can be used for your financial goals. Alternatively, partial withdrawals are allowed after a certain period, giving you access to funds in times of need.

Suicide Exclusion Criteria of Aditya Birla Salaried Suraksha ULIP Plan

In the event of death due to suicide within 12 months of either the policy commencement or revival date, the nominee or beneficiary will receive the fund value as on the date of death notification. Additionally, any charges other than Fund Management Charges (FMC) deducted after the date of death will be refunded and added to the fund value.