Aditya Birla Sun Life Insurance Wealth Secure Plan

The Wealth Secure Plan is a nonlink, nonparticipating life insurance policy offered by Aditya Birla Sun Life Insurance (ABSLI). It is designed for individuals who wish to combine life cover with disciplined savings, while also receiving a guaranteed return on their contributions. This page provides an overview of the plans key features, benefits, eligibility, premium structure, and the factors you should consider before buying.

Why Choose a Wealth Secure Plan?

• Dual benefit: Life cover plus a guaranteed maturity benefit.
• Tax efficiency: Premiums qualify for deduction under Section 80C; maturity proceeds are taxfree under Section 10(10D) (subject to prevailing tax laws).
• Flexibility: Choose policy term, premium payment term and sum assured that suit your financial goals.
• Riskfree growth: The plan offers a guaranteed, nonmarket linked return, ideal for conservative investors.

Key Features of the Wealth Secure Plan

How the Benefits are Calculated

At maturity, the policyholder receives:

• Basic Sum Assured (BSA) the amount selected at policy inception.
• Reversionary Bonuses declared annually (e.g., Rs. 30 per Rs. 1,000 BSA). These are added to the policy each year and become payable at maturity.
• Final Additional Bonus (if declared) a onetime bonus paid at the end of the policy term.

The plan does **not** participate in the insurers surplus, so the bonus rates are fixed by the company and are typically announced each fiscal year.

Eligibility & Entry Requirements

• Age at entry: 18 to 55 years.
• Medical underwriting may be required for sums assured above 5lakhs.
• Applicants must be Indian residents; nonresidents can purchase through a designated channel.

Premium Payment Options

Premiums can be paid either:

• Annually
• Halfyearly
• Quarterly
• Monthly (subject to a nominal surcharge)

Choosing a longer premium payment term reduces the annual outflow but results in a higher overall premium, as interest is earned on the lower premium over a longer period.

Tax Implications

Under the Income Tax Act, the following benefits apply:

• Premiums up to 1.5lakhs per annum are deductible under Section80C.
• Maturity proceeds are exempt from tax under Section10(10D) if the premium paid does not exceed 10% of the sum assured (the limit is relaxed for policies issued before 1April2012).
• Any death benefit received by the nominee is taxfree under the same section.

Riders and Additional Cover

While the base plan already includes accidental death cover, policyholders can enhance protection with optional riders such as:

• Critical Illness Rider: Provides a lumpsum payout upon diagnosis of a covered critical illness.
• Hospital Cash Rider: Daily cash benefit for each day of hospitalization.
• Family Income Benefit Rider: Guaranteed regular payouts to the family in case of the policyholders premature death.

Pros and Cons

Advantages

• Guaranteed returns no market risk.
• Life cover is builtin; no separate term policy required.
• Tax benefits on both premium payment and maturity.
• Loan facility provides liquidity without surrender.

Disadvantages

• Lower returns compared with equitylinked savings, especially over long horizons.
• Early surrender leads to loss of future bonuses and possible surrender charge.
• Nonparticipating policyholder cannot benefit from any surplus the insurer may generate.

Who Should Consider This Plan?

The Wealth Secure Plan is best suited for:

• Individuals seeking a simple, lowrisk savings vehicle with a life cover component.
• Families looking for a guaranteed inheritance for their children or spouse.
• Taxsavvy investors who want to maximise deductions under Section80C.
• People approaching retirement who desire a predictable lumpsum amount at the end of the policy term.

How to Buy

Prospective policyholders can purchase the plan through:

• ABSLIs official website online application with ekyc.
• Authorized insurance agents or brokers.
• ABSLI branches and partner banks.

After submitting the proposal form, the insurer may request medical documents depending on the sum assured. Once the underwriting is complete, the policy will be issued and the first premium can be paid.

FAQs

1. What happens if I miss a premium?

You are allowed a grace period of 30 days. After this, the policy may lapse, but you can revive it within 60 days by paying the due premium and a revival charge.

2. Can I increase my sum assured later?

Yes, subject to medical underwriting and at the insurers discretion. The increase will be reflected in the subsequent premium calculations.

3. Is the premium amount fixed for the entire policy term?

For the chosen premium payment term, the amount remains constant. If you opt for a paywholelife term, premiums are level for the entire policy duration.

4. How are bonuses declared?

Bonuses are declared annually by the insurer based on its performance and are expressed per 1,000 of sum assured. The declared bonus becomes part of the policys reversionary bonus.

5. What is the surrender value?

Surrender value is the sum assured plus accrued bonuses, less any applicable surrender charge. The value increases with policy duration, typically becoming substantial after 78 years.