BSLI Guaranteed Bachat Plan - Citibank India

GROWTH & LIQUIDITY – THE POWER OF SURVIVAL BENEFITS
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At the end of every policy year, starting from the 3 year, you will earn a survival benefit
calculated as your total base premiums paid till date multiplied by:
• 4.25% + 60% of any excess of the GSec rate over 7.50%; or
• 4.25% – 75% of any excess of the 7.50% over the GSec rate
At the beginning of each policy year, your policy will be assigned the latest GSec rate
declared by us and your year-end survival benefit will be based on this GSec rate,
irrespective of any change in interest rates during the policy year.
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We will declare the GSec rate at the beginning of each calendar quarter (the 1 of
January, April, July and October) and it will equal the average of the daily 10-year
Constant Maturity Treasury annual yields, as calculated by Bloomberg, recorded over
the last calendar quarter.
Your survival benefit is therefore based on the prevailing 10-year Government of India
Security at the beginning of the policy year. You will enjoy 60% of any upside interest
movement and be protected on the downside by having your survival benefit reduced
by only 75% of the downside interest movement. For example:
GSec Rate Downside/Upside Adjustment Survival Benefit Rate
7.50% --- 4.25%
5.50% – 75% x 2.00% = – 1.50% 2.75%
9.50% + 60% x 2.00% = + 1.20% 5.45%
Your survival benefit will be increased by 15% at higher premiums for annual premium
band 2.
The survival benefit will be calculated at the end of every policy year and credited to
your policy's accumulated survival benefits. The accumulated survival benefits
balance is available for you to:
• Make cash withdrawals, subject to a minimum of Rs. 2,500
• Offset future premiums, provided your accumulated survival benefits are higher
than your annual premium
Any accumulated survival benefits will be payable on maturity, surrender or death.