BSLI Bachat Endowment Plan

[mona]

You can make this policy paid-up, only when the policy has acquired a surrender benefit (i.e. after three years).

Thanks Master for this clarification. I was actually confused with this option since I read somewhere that BSLI Bachat Money Back can be made paid-up after 3 years, but I wasn't sure about this. Since I've completed 3 premiums then I feel making it paid-up now & surrender after 10 yrs would be better. But I read in policy papers that if you stop paying premiums, would cease all benefits! What do you say?

[Master]

Thanks Master for this clarification. I was actually confused with this option since I read somewhere that BSLI Bachat Money Back can be made paid-up after 3 years, but I wasn't sure about this. Since I've completed 3 premiums then I feel making it paid-up now & surrender after 10 yrs would be better. But I read in policy papers that if you stop paying premiums, would cease all benefits! What do you say?

Not much info about paid-up in the BSLI website online. If you have any info please post here, then only I can comment.
In general in Paid-up they reduce the sum insured proportionately of the policy for rest of the policy term.

Read More-
How to calculate Paid-up Value of an Insurance Policy?

[mona]

Hi Master, I contacted BSLI for paid up benefits after 3 yrs. This is what they replied:
"we wish to inform you that after the paying premium full 3 years if you unable to pay future premium you can continue you can continue the policy on paid up basis.

On exercise this options:
1) Guaranteed surrender benefit as on paid up date will be kept constant and paid to you if and when you decide to surrender the policy or on maturity date.
2) Guaranteed death benefit will be reduced depending on surrender factor applicable when it becomes paid up.
3) Accidental death benefit rider will cease.
4) Bachat additions and loyalty addition will continue based on the sum of MBPs paid."

Now my confusion is that on 1st point. Even if I surrender say after 10yrs then the surrender factor would remain 30% (as on paid up date). Whereas policy says after 10 yrs it is 100%. What's your opinion? I've again asked them to elaborate with illustration, what will I get. Waiting for next reply.

Regards
Mona