Secure 58 Brochure AW 26 08 09.cdr - Birla Sun Life Insurance

Why shouldn't you have the freedom toalter your retirement plan at any time?Secure 58Birla Sun Life InsuranceGuaranteed amount on vesting datewith flexibility to withdraw

Your family comes first for you. As a responsible head of the family you must haveplanned to successfully meet your family's needs, today and tomorrow. While youperform your role as the provider of the family to perfection, have you ignored yourown future? Retirement is a reality and while on retirement your income stops, yourexpenses don't. Do you have a plan?When you retire, you may realize that you are vulnerable to one of the following risks:üYou may have to depend on someone else for your own expenses: While yourfamily is always there to take care of you, they have always looked up to you as theprovider. If you haven't planned for your retirement, you may find that you are nowfinancially dependent on them. This could be a very humiliating experience forsomeone who has always been the source of income for his family.üYou may not have saved enough: With improving life expectancy, today you arelikely to have a retired life upto 15 years. Are your savings good enough to last for45 years? Many times, your savings may not be in the right place or enough.üYouare not able to enjoy the Golden Years fully: Your retired life is when youlive for yourself. The Golden Years are the fruits of your labour. You have doneeverything for your family, executed all your responsibilities honorably and nowdeserve to enjoy every moment with your loved ones to the maximum. Havingnot planned enough could mean worrying about your life and resources evenduring retirement.Birla Sun Life Insurance understands these risks and is happy to introduce BSLISecure 58 Plan, a traditional, non-participating pension plan, that offers uniquebenefits to help you mitigate these risks.

üGuaranteed Vesting Benefit: The Guaranteed Vesting Benefit or GVB is theamount you are guaranteed at the beginning if you pay your annual premiumregularly.üSurvival Benefit: Apart from the above guaranteed amount, BSLI Secure 58 Planoffers you a chance to earn survival benefit – an amount of money which you mayrdearn at the end of every policy year from the 3 year onwards. The survival benefitcan be withdrawn by you or can be use to pay the premium dues. At vesting, youreceive the accumulated survival benefit over and above your GVB. This is theadded advantage of Growth and Liquidity beyond GVB.BSLI Secure 58 Plan is a great choice for your retired life as it has the mix of Security,Growth and Liquidity. Not only does BSLI Secure 58 Plan allow your money to growsafely, if the need arises, it allows you to access your accumulated survival benefitin case of any emergency need.BSLI SECURE 58 IS THE RIGHT PLAN FOR YOU IF YOU ARE:• 18 to 80 years of age• Looking to vest anytime between 10 years - 40 years from the entry age. Maximumvesting age is 90 years• You are looking to invest at least Rs. 9,600 per annum for retirement planning.While there are no limits on the amount you can invest in this plan, you can chooseyour annual base premiums only in multiples of Rs. 1,200 per annum over theminimum premium of Rs. 9,600IMPORTANT: YOUR OBLIGATION ON VESTINGrdsAs per the current Income Tax laws 2/3 of the proceeds at vesting, called theretirement corpus (GVB and Accumulated Survival Benefits) has to be necessarilyinvested in an Annuity Plan while the balance can be withdrawn tax-free in the handof the policyholder.An annuity plan provides you regular monthly income based on the amount of moneyinvested by you in the plan. If you wish to know more about which is the best annuityplan for you, we encourage you to contact our financial advisor or us. We will be happyto be of assistance.PREMIUMS AND SURVIVAL BENEFIT BANDSThe Survival Benefit under BSLI Secure 58 Plan is linked to your annual basepremiums and is categorized in 3 bands, as follows:Annual Premium Annual BaseBandPremium RangeSurvival BenefitBand 1 Rs. 9,600 - Rs. 18,000 Base Survival BenefitBand 2 Rs. 19,200 - Rs. 37,200 5% extra over Base Survival BenefitBand 3 Rs. 38,400 onwards 7% extra over Base Survival Benefit

Please note that you may choose to pay any premium in multiples of Rs. 1,200 perannum over a minimum annual base premium of Rs. 9,600. You may also choose topay your premiums annually, half yearly, quarterly or monthly as per your convenience.Your annual premium will be multiplied by 0.510, 0.258 or 0.087 in case you opt forpaying it half yearly, quarterly or monthly respectively.Service Tax & Education Cess and any other applicable taxes will be added to yourpremium and levied as per the extant tax laws.GROWTH AND LIQUIDITY – THE POWER OF SURVIVAL BENEFITSrdAt the end of every policy year starting from 3 year, you will earn a survival benefitcalculated on your base premiums paid till date multiplied by:••6.00% + 60% of any excess of the GSec rate over 7.50%; or6.00% – 75% of any excess of the 7.50% over the GSec rateAt the beginning of each policy year, your policy will be assigned the latest GSec ratedeclared 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.stWe will declare the GSec rate at the beginning of each calendar quarter (the 1 ofJanuary, April, July and October) and it will equal the average of the daily 10-yearConstant Maturity Treasury annual yields, as calculated by Bloomberg, recorded overthe last calendar quarter.Your survival benefit is therefore based on the prevailing 10-year Government of IndiaSecurity rate at the beginning of the policy year. You will enjoy 60% of any upsideinterest movement and be protected on the downside by having your survival benefitreduced by only 75% of the downside interest movement. For example:GSec Rate Downside/Upside Adjustment Survival Benefit Rate7.50% — 6.00%5.50% – 75% x 2.00% = – 1.50% 4.50%9.50% + 60% x 2.00% = + 1.20% 7.20%Your survival benefit will be increased by 5% or 7% at higher premiums as per theSurvival Benefit Bands.The survival benefit will be calculated at the end of every policy year and credited toyour policy's accumulated survival benefits. The accumulated survival benefitsbalance is available for you to:• Make cash withdrawals, subject to a minimum of Rs. 5,000• Offset future premiums provided your accumulated survival benefits are higherthan your annual premiumExtant tax laws will be applicable on exercising any of these options.Any accumulated survival benefits will be payable on vesting, surrender or death.

GuaranteedVestingBenefitYOUR PREMIUMS ASSURED - THE POWEROF GUARANTEED VESTING BENEFITThe vesting date is the date you decide to end the accumulation phase and enterthe income phase. You have the freedom to vest at any time after the completion of10 policy years.On the vesting date, you will receive a retirement corpus equal to the GuaranteedVesting Benefit PLUS your accumulated survival benefits. The Guaranteed VestingBenefit (GVB) is linked to your age at entry and your accumulation phase. Pleaserefer to the table below for sample Guaranteed Vesting Benefit per Rs. 1,200 annualbase premium:Entry AgeAccumulation Phase (years)10 15 20 25 302030354045505560Annual BasePremiums Paid12,173 18,440 24,952 31,707 38,09912,175 18,451 24,983 31,803 38,27012,180 18,467 25,080 31,975 38,54212,189 18,564 25,262 32,160 38,66912,205 18,612 25,373 32,383 39,08612,229 18,686 25,555 32,768 39,79312,268 18,809 25,881 33,442 40,97212,337 19,043 26,472 34,609 42,79612,000 18,000 24,000 30,000 36,000You may refer to our website or contact us for knowing an exact Guaranteed VestingBenefit at other combinations of your age and accumulation phase.On the vesting date, your total savings amount or retirement corpus will be used topurchase a regular income payable for the rest of your lifetime. You have the option to:• Utilize this amount for buying a regular income from us as per our then availableproducts on your vesting date. You are free to choose the same from another lifeinsurer of your choice toord• Receive up to 1/3 of the retirement corpus in a lump-sum and tax free (as perrdthe current Income Tax Act) and utilize the balance 2/3 to receive a stream ofregular incomeThere is a detailed illustration on the last page of the brochure which you may refer forease of understanding.SECURE YOUR FAMILY'S DREAMSIn the case of the unfortunate event of death of the life insured, we will pay yournominee higher of :• 75% of first year base premium and all renewal base premiums paid ; or

• Surrender value (or the Guaranteed Vesting Benefit) at that timePLUS all accumulated survival benefitsWhat are the other benefits of BSLI Secure 58 plan?Apart from the Guaranteed Vesting Benefit, safe growth in savings and the benefit ofcash withdrawal, you have the following benefits too:SURRENDER BENEFITIn the unfortunate situation that you have to surrender your policy before completionof 10 policy years, you will receive all base premiums paid by you multiplied by apercentage as indicated below PLUS accumulated survival benefits.Extant tax laws will be applicable.Policy Year of Surrender1-2 3 4 5 6 7 8 9 100% 40% 45% 50% 60% 70% 80% 90% 100%There is a detailed illustration on the last page of the brochure which you mayrefer for ease of understanding.TAX BENEFITYou will be eligible for tax benefits under Section 80CCC and Section 10 (10A) of theIncome Tax Act, 1961. Presently,• Under Section 80CCC, premiums up to Rs. 100,000 are allowed as a deductionfrom your taxable income each year• Under Section 10 (10A), the tax benefits are on the commuted value of the benefitson the vesting date, subject to mentioned exclusions

OTHER QUESTIONS THAT YOU MAY HAVEWhat will happen if, due to some reason, I am unable to pay my premiumon time?If you are unable to pay the premium by the due date, you will be given a grace periodof 30 days during which time your policy will continue. If you do not pay your premiumwithin the grace period, the following will be applicable:(a) In case your policy has not acquired a surrender benefit, then all benefits underyour policy will cease immediately(b) In case your policy has acquired a surrender benefit, then your policy will becontinued on a paid-up basisYou can reinstate your policy for its full coverage within two-years from the due dateof the unpaid premium by paying all outstanding premiums together with interest asdeclared by us from time to time.What is the option that I have if in case I change my mind after buyingthe policy?You will have the right to return your policy to us within 15 days from the date of receiptof the policy. We will refund all premiums paid till date once we receive your writtennotice of cancellation (along with reasons thereof) together with the original policydocuments. Depending on our then current administration rules, we may reduce theamount of the refund by expenditures incurred by us in issuing your policy and aspermitted by the IRDA and in accordance to IRDA (Protection of Policyholders'Interest) Regulations, 2002.

TERMS AND CONDITIONS• Prohibition of Rebates – Section 41 of the Insurance Act, 1938No person shall allow or offer to allow, either directly or indirectly, as an inducementto any person to take or renew or continue an insurance in respect of any kind of riskrelating to lives or property in India, any rebate of the whole or part of thecommission payable or any rebate of the premium shown on the policy, nor shallany person taking out or renewing or continuing a policy accept any rebate, exceptsuch rebate as may be allowed in accordance with the published prospectuses ortables of the insurer.• Non-Disclosure – Section 45 of the Insurance Act, 1938No policy of life insurance effected after the coming into force of this act shall, afterthe expiry of two years from the date on which it was effected be called in questionby an insurer on the ground that statement made in the proposal or in any report of amedical officer, or referee, or friend of the life insured, or in any other documentleading to the issue of the policy, was inaccurate or false, unless the insurer showsthat such statement was on a material matter or suppressed facts which it wasmaterial to disclose and that it was fraudulently made by the policyholder and thatthe policyholder knew at the time of making it that the statement was false or thatit suppressed facts which it was material to disclose.Provided that nothing in this section shall prevent the insurer from calling for proof ofage at any time if he is entitled to do so, and no policy shall be deemed to be called inquestion merely because the terms of the policy are adjusted on subsequent proofthat the age of the life insured was incorrectly stated in the application.

BIRLA SUN LIFE INSURANCEA COMING TOGETHER OF VALUESBirla Sun Life Insurance Company Limited is a joint venture between The AdityaBirla Group, one of the largest business houses in India and Sun Life Financial Inc.,a leading international financial services organization. The local knowledge of theAditya Birla Group combined with the expertise of Sun Life Financial Inc., offers aformidable protection for your future.The Aditya Birla Group has a turnover of close to Rs. 119000 crores, with a marketstcapitalization of Rs. 133875 crores (as on 31 March 2008). It has over 100,000employees across all its units worldwide. It is led by its Chairman - Mr. KumarMangalam Birla. Some of its key companies are Hindalco, Grasim and Aditya BirlaNuvo.Sun Life Financial Inc. and its partners, have operations in key markets worldwide.These include Canada, the United States, the United Kingdom, Hong Kong, thePhilippines, Japan, Indonesia, India, China and Bermuda. Sun Life Financial Inc. hasstassets under management of over US $ 404.7 billion (as on 31 March, 2008). It is aleading performer in the life insurance market in Canada.Birla Sun Life Insurance (BSLI) has been operating for 9 years. It has contributedsignificantly to the growth and development of the life insurance industry in India.It pioneered the launch of Unit Linked Life Insurance plans amongst the privateplayers in India. It was the first player in the industry to sell its policies through theBancassurance route and through the Internet. It was the first private sector player tointroduce a Pure Term plan in the Indian market. BSLI has covered more than 2 millionlives since it commenced operations and its customer base is spread across morethan 1500 towns and cities in India. The company has a capital base of Rs. 1274.5stcrores as on 31 March 2008.

For better understanding and clarity, you may refer to the details inthe following illustration:For example, your annual base premium is Rs. 1200 for a 25 years accumulationphase and your entry age is 35 years. Following Accumulated Survival Benefits willemerge in different scenarios:Illustration Down Scenario Base Up ScenarioAverage 10-Year GSec Rate 5.50% 7.50% 9.50%Survival Benefit Payout Rate 4.50% 6.00% 7.20%Survival Benefit Accumulation Rate 4.68% 6.38% 8.08%In RupeesRatio to Base Premiums paid to dateNon-GuaranteedTotal &Policy Guaranteed Accumulated Survival Guaranteed Non-GuaranteedYear Surrender Benefits Surrender Surrender BenefitBenefitat 5.5% at 7.5% at 9.5%Benefitat 5.5% at 7.5% at 9.5%1 & 2 — — — — — — — —3 1,440 162 216 259 40% 45% 46% 47%4 2,160 386 518 626 45% 53% 56% 58%5 3,000 674 911 1,108 50% 61% 65% 68%6 4,320 1,029 1,401 1,716 60% 74% 79% 84%7 5,880 1,455 1,994 2,460 70% 87% 94% 99%8 7,680 1,955 2,697 3,349 80% 100% 108% 115%9 9,720 2,533 3,517 4,397 90% 113% 123% 131%10 12,180 3,191 4,461 5,616 102% 128% 139% 148%15 18,467 7,837 11,342 14,802 102% 146% 166% 185%20 25,080 15,157 22,759 30,883 105% 168% 199% 233%25 31,975 25,839 40,354 57,132 107% 193% 241% 297%If the Annual Base Premium is:• Band 2 – at least Rs. 19,200, then the Accumulated Survival Benefits are5% higher than shown above• Band 3 – at least Rs. 38,400, then the Accumulated Survival Benefits are7% higher than shown aboveAt the end of 25 years (at maturity), the following amounts would be payablefor three Annual Base Premium levels:• Annual Base Premium of Rs. 12,000 is 10 times above illustration• Annual Base Premium of Rs. 24,000 is 20 times above illustration withAccumulated Survival Benefits are 5% higher• Annual Base Premium of Rs. 48,000 is 40 times above illustration withAccumulated Survival Benefits are 7% higherIllustration continued on the next page

In RupeesRatio to Base Premiums paid to dateNon-GuaranteedTotal &Annual Guaranteed Accumulated Survival Guaranteed Non-GuaranteedBase Surrender Benefits Surrender Surrender BenefitPremium Benefit Benefitat 5.5% at 7.5% at 9.5% at 5.5% at 7.5% at 9.5%12,000 3,19,750 2,58,388 4,03,540 5,71,320 107% 193% 241% 297%24,000 6,39,500 5,42,614 8,47,434 11,99,771 107% 197% 248% 307%48,000 12,79,000 11,05,899 17,27,152 24,45,248 107% 199% 251% 310%DISCLAIMERSThis policy is underwritten by Birla Sun Life Insurance Company Limited (BSLI). This isa non-participating traditional pension plan. All terms & conditions are guaranteedthroughout the policy term except for the Survival Benefit which will vary based on theprevailing yield on 10-year Government of India Securities. BSLI reserves the right torecover levies such as the Service Tax and Education Cess levied by the authoritieson insurance transactions. If there be any additional levies, they too will be recoveredfrom you. This brochure contains only the salient features of the plan. For furtherdetails please refer to the policy contract. Tax benefits are subject to changes in thetax laws. Insurance is the subject matter of the solicitation. For more details andclarification call your BSLI Insurance Advisor or visit our website and see how we canhelp in making your dreams come true.

Call Toll-free: 1-800-270-7000 www.birlasunlife.com sms ‘ASSURE’ to 56161Regd. Office: One Indiabulls Centre, Tower 1, 15th & 16th Floor, Jupiter Mill Compound,841, Senapati Bapat Marg, Elphinston Road, Mumbai 400 013. Reg. No. 109 Unique No.:109N043V01 ADV/04/08-09/3291 VER 2/SEPT/2009