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BIRLA SUN LIFE |
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The LadyGuard Plan |
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INSURANCE WORLD WELCOMES WOMEN WITH OPEN ARMS ! |
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Consider the Following Scenario |
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Sreenidhi, a 25 year old software professional working for Hewlett Packard is a Systems Analyst. As destiny would have it, due to the unfortunate death of her father in a motor accident Sreenidhi has the responsibility of looking after her mother and her brother who is still in school. Being the main earning member of her family it is necessary to protect her life in the event of any unforeseen calamity. At the same time she also needs frequent inflow of cash to finance her brother's education and requires that money "works" for her so that she will have sufficient cash to meet any future contingencies.
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Sreenidhi wonders whether she could have an "all in one" policy designed exclusively for women. |
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She hires a Personal Finance Advisor from a reputed consultancy firm who recommends an ideal product, which proves to be the key to all the problems in her mind. |
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What was the product recommended by the Personal Finance Advisor? |
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The LadyGuard plan offered by Birla Sunlife insurance company caters to the exclusive needs and lifestyle of the average woman. This plan offers a tripartite benefit of a life cover, a money back benefit and a critical illness cum an accident death disbursement cover as an additional benefit to the policy. This policy is indeed the most ideal solution to Ms. Sreenidhi's case. |
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The salient features of this plan have been mentioned briefly: |
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- This is an all women plan applicable for all women between the age groups of 20 - 35 years.
- This plan offers the triple benefit of a life cover, with adequate liquidity and with investment options.
- The plan offers the customer to withdraw 20% of the Face Amount as periodic payments every 5 years. The customer is also given the option of withdrawing or retaining the money in the fund and allowing it to grow.
- As regards the investment option the plan gives the customer the option of choosing from 3 investment funds depending upon the customer's risk taking profile. They are Protector, Builder and Enhancer.
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The investment pattern in each of the funds is given:
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| % of investment in |
Protector |
Builder |
Enhancer |
Government and government approved securities |
85% |
70% |
55% |
Corporate bonds rate AA by Crisil or higher or any other equivalent rating by any other recognized rating agency |
30% |
30% |
30% |
Money market and other liquid assets |
20% |
20% |
20% |
Infrastructure as defined by IRDA |
25% |
25% |
25% |
Listed Equities |
10% |
20% |
35% |
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- A difference between this policy and other policies is that in the other policies Critical Illness and Accident Benefit are riders which come at an additional cost. But in this policy such benefits are a part of the policy and this is tailor made for the women folk of the country.
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Considering the profile of Ms. Sreenidhi the following points can be noted. |
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- A high exposure to risk is not recommended because she is the only earning member of her family and she has responsibilities to fulfill.
- At the same time a low equity exposure also may not be suitable because she is young, well qualified and is employed at an attractive salary.
- Hence the ideal combination would be a moderate exposure to equities. Thus from the above analysis it is recommended that Ms. Sreenidhi opts for a Builder fund which has a moderate exposure to Listed Equities.
- In addition to the above a Critical Illness and an Accidental death and Disbursement Riders are also embedded with the policy.
- The premia payable on this plan are eligible for deduction under Section 88 and Section 80D. Benefits received under this plan are eligible for tax benefits under Section 10(10D) of the Income Tax Act.
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His policy throws open the door to a large number of opportunities particularly to women who have similar background to that of Ms. Sreenidhi. |
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