Income Protection Plan: New insurance plan provides monthly income to family members on policy holder's death; know key details

ABSLI Income Suraksha Plan: Everyone wants to secure their family's future, both financially and emotionally. Imagine a future where your family's financial well-being is guaranteed, no matter what life brings. To turn this vision into reality, it's essential to have a life insurance policy. And one of the policies that can help you achieve this is the Aditya Birla Income Protection Scheme (ABSLI Income Suraksha Plan). ABSL and Policybazaar have introduced this plan.

ABSLI Income Suraksha Plan

It is designed to provide financial security for your loved ones in the event of your untimely demise. This plan offers two unique income options: a fixed and consistent flow of income or an inflation-adjusted increasing income, paid monthly or annually to your family members until the policy matures. The plan ensures that salaried policyholders can provide a comfortable and worry-free life to their loved ones in their absence. 

How does the plan work?

Let's suppose you are 30 years old, earning an annual salary of Rs 10 lakhs, and you purchase the Birla Income Suraksha Plan with a term of 40 years, up to the age of 70. If something happens to you in the first year of the policy, the plan ensures that your family will receive a minimum amount based on your income plan every year till the date your policy matures. For example, if you selected a plan that provides Rs 10 lakhs per year, your family would receive this amount every year until the policy’s maturity. The sum assured in this case would be calculated as:

Minimum amount (based on your income plan) x years to maturity after death  = Sum Assured.

 Here, 10,00,000 x (70-30) = sum assured 
           10,00,000  x 40 = 4,00,00,000

However, in case of the demise of the policyholder, the payout is guaranteed for at least 10 years to the family members.

Minimum amount (based on your income plan) x 10 = Sum Assured 
Here, 10,00,000 x 10 = 1,00,00,000

This feature ensures that even if you die a day before your policy matures, your family will get a minimum for the next 10 years irrespective of the date of maturity. The pay-out is available monthly as well as annually. 

Income Suraksha Plan: Additional Features

The Birla Income Suraksha Plan is tax-free, offering a substantial sum assured at a competitive price similar to a regular term plan. For example, you can secure a sum assured of Rs 4 crores (based on Rs 10 lakhs per year for 40 years) for the premium cost of a plan that typically offers Rs 1.2 crores.

The plan also includes an inflation-adjusted income feature. This ensures that the income your family receives increases by 5 per cent compounded annually until it reaches 1.5 times the original amount. For example, if you choose an initial amount of Rs 10 lakhs, it could increase to Rs 15 lakhs over time.

Furthermore, the plan offers a special first-year discount of 7 per cent for salaried customers and an additional 2 per cent discount for women. An ongoing 4 per cent online discount is also available for the plan's lifetime.