Traditional plans, also called Conventional Insurance Plans are plans where money is invested as per the guidelines laid down in the Insurance Act. The whereabouts of the invested premium is not known to the policyholder. The policyholder is simply promised certain benefits payable on death, maturity or as money back. Traditional Investment Plans have some of the basic features which are mentioned below: These plans are issued for a longer term perspective and money cannot be withdrawn from the plans. In case of stopping the premium payment, the plan becomes paid-up if at least three full years premiums have been paid. A paid-up plan has a reduced Sum Assured and the policyholder has a choice to either run the plan at the reduced coverage or surrender the plan. The plans may be offered as participating or non-participating plans. Participating plans are entitled to participate in the companys profits and earn bonuses which are not true for non-participating plans. The plans may be issued either as Endowment Plans or Money Back Plans
Birla Sun Life Insurance Company offers various types of Traditional / Investment Plans to its customers with attractive features and benefits. Here is the detailed list of plans along with their respective features and benefits. BSLI Vision Money Back Plus Plan – It is a traditional participating life Insurance Plan which has the following features: Guaranteed liquidity – Regular payouts at certain percentage of Sum Assured at the end of every 4th or 5th policy year of the policy term. Death Benefit – Benefit payable to the nominee shall be Sum Assured + Accrued regular bonus + Terminal Bonus. Maturity Benefit – if the insured survives till the end of the policy term then he shall receive Accrued Bonus + Terminal Bonus. The policy shall terminate once the maturity amount is paid. Rider Benefit is is provided to enhance the insurance coverage at nominal cost. Tax benefit is available on the premium paid and the claim received. The premiums paid are exempt from taxation under Section 80C of the Income Tax Act and the claim received in exempt under Section 10(10D) of the Income Tax Act.
