BSLI - Bachat Endowment Plan- Return on Investment

[Rahul Barman]

Hi

Can anyone suggest me what is the return on investment on Bachat Endowment policy.

Regards
Rahul

[Expert]

BSLI Bachat Endowment Plan (http://insurance.birlasunlife.com/Pages/Individual/Our-Solutions/Wealth-Protection-PlanDetails.aspx?PlanViewMode=ProductVariation3&PlanID=40)

What is the Returns expected? Less than Fixed Deposit

KEY BENEFITS of BSLI Bachat Endowment Plan
A. Maturity Benefit: On maturity after 20 years, you will receive
1- All Monthly Base Premiums paid; plus
2- All Bachat Additions earned; plus
3- The Loyalty Addition

B. Death Benefit: In the unfortunate event of death of the life insured, the nominee shall receive
1- All Monthly Base Premiums paid (or Sum Assured if higher); plus
2- All Bachat Additions earned; plus
3- The Loyalty Addition

For details - how to calulate the Bachat Additions and Loyalty Addition? read here - Link (http://insurance.birlasunlife.com/LIUSPlan/Bachat-Endowment-Plan-Brochure-140510.pdf)

Add all the above and get the final figure.

[Master]

Example -
Annual Premium = Rs. 6,000
Policy Term = 20 years
Bachat Addition Rate = 5%

After 20 Years: Assumption Only
Total Premium Paid = 120,000
Bachat Addition Payable @5% = 63,000
Laoyalty Additions = 33,075

Total Benefit payable to policyholder = 2,16,075
Return - 5.073%

Please note that-
1- Bachat Addition: These are added at the end of every policy year.
2- Loyalty Addition: These will be added on maturity or death of life insured.

Some Good Readings -
1- ET (http://articles.economictimes.indiatimes.com/2010-05-04/news/27624963_1_premium-unit-linked-insurance-plans-customer)
2- LM (http://www.livemint.com/Money/ZvqqihPhM1UoZjcBl2M0gI/Put-Ulips-on-hold-but-be-wary-of-lowreturn-traditional-pla.html)

[Rahul Barman]

Thanks for all information, are you an Financial Advisor. Reason i am aksing, i need advise here,

I have taken this policy 3 years back, and finding no use. Better to invest some other option instead paying for 20 years.

i have already made 3 installments of Rs 25K. Now if i surrender now after 3 years will loose lots of money.

REgards
RB

[Expert]

If you are asking me then I am not Financial Advisor. See my sign for info :EmoticonCool:

Surrendering this plan is not good financialy and keeping also not good because you are not earning equal to Fixed Deposit. See this thread - Link (http://www.policywala.com/forum/showthread.php/3444-BSLI-Bachat-Endowment-Plan)

It's a hard call but you have to take.