Birla Sun Life Insurance launches a traditional whole-life plan

MUMBAI: In line with the trend of life insurers introducing new products during the tax-saving season, Birla Sun Life has recently come up with Vision LifeIncome Plan, a traditional participating whole life plan. It is aimed at insurance-seekers looking for a life cover as well as regular income post policy paying period.

Life cover is extended till the end of the premium paying term. If the policyholder dies during the premium paying period, sum assured plus accrued bonuses till then and terminal bonus, if any, will be paid to the dependants. It s/he dies after the expiry of this period, the dependants will receive sum assured, along with bonus from the previous policy year and terminal bonus, if any. Survival benefits - 5% of sum assured every year - will be handed out from the end of the premium paying term up to the age of 100 years or till the policyholder's death, whichever is earlier. You have the option of buying rider benefits like surgical, hospital care, waiver of premium, accidental death and so on.

The minimum sum assured under the policy is Rs 2 lakh.

Upside: Those looking for secure investment and regular income post their working years can consider this product.

Downside: If your objective is investing towards a long-term goal, like retirement, equity is the best-suited asset class, according to financial planners. However, traditional plans, like Vision LifeIncome, invest primarily in debt instruments, which means that the return-yielding capacity will be limited.