Children dream plan SIDDANNA M BALAPGOL

Choose the Guaranteed Maturity Option
Our Children's Dream Plan comes with three Guaranteed Maturity Options designed to allow
you to secure more for your child with three separate maturity amount payout schedules:
As a percentage of the Guaranteed Maturity Benefit.
Don't forget, your plan has further upside potential. Your child will get this upside, if any,
together with the last installment of the Guaranteed Maturity Benefit.
Choose the Investment Fund(s)
We offer three investment funds to suit your particular investment needs Protector, Builder
and Enhancer. Simply tell us in which investment fund(s) you want your premium to be
invested in. You can decide to invest in only one investment fund or in a combination of all
three it's your choice. Also, you can change your mind at any time for future premiums and
can even switch existing investments in one investment fund to another.
Choose the Additional Protection
A Basic Sum Assured is associated with the Guaranteed Maturity Benefit you choose. This
amount is paid in the unfortunate event that you die while your plan is in effect. We give you
the option to increase this protection to suit your particular insurance needs. Simply
specify the amount you want (the Enhanced Sum Assured) in addition to the Basic Sum
Assured and your insurance protection will equal the sum of the Basic and Enhanced Sum
Assured.
Before you continue reading …
All Unit Linked life insurance plans are different from Traditional insurance plans and are
subject to different risk factors. The name of the investment funds and that of this plan do
not in any way indicate the quality of the plan or future returns.
In this plan, the investment risk in the investment funds chosen by you is borne by you.
Investment funds are subject to investment risks associated with the capital markets and
unit prices may go up or down reflecting the market value of the underlying assets. Past
performance is no guarantee of future results.
We do however guarantee the payment of the Guaranteed Maturity Benefit as described in
this document, provided all policy premiums are paid when due.
The policy term in complete years is 18 less the age of your child at entry. The plan will
mature at the end of the policy term.
Your premiums
This is a regular premium plan and policy premiums are due every year until the plan
matures. Your financial advisor will provide you with the annual policy premium specific to
the plan you are considering. The annual policy premium is based on:
• the Guaranteed Maturity Benefit and Option you choose;
• the Enhanced Sum Assured you desire;
Birla Sun Life Insurance Children's Dream Plan
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Child's 100% 200% 300%
Age Option Option Option
18 100% 100% 100%
19 ---- 20% 25%
20 ---- 20% 25%
21 ---- 20% 25%
22 ---- 20% 25%
23 ---- 20% 100%
Total 100% 200% 300%
In this policy, the investment risk in investment portfolio is
borne by the policyholder.
Your Child … Your Dream
When a child is born, a dream is born. And you as parents want to shape that dream and
bring it to reality in the best possible way. Be it by providing your child with the best toy,
sending your child to the best school, giving him/her the best higher education that is
available and giving a great start in life. To make this possible you need the financial
freedom and confidence. That's exactly where Birla Sun Life Insurance Children's
Dream Plan comes in. It is a thoughtfully designed child plan that enables you to help your
child achieve the dreams you have.
It helps you to save today … to Secure Your Child's Future
and yes, it has … Our Commitment.
Our Solution
Our Children's Dream Plan is a long-term Unit Linked insurance plan that is specifically
designed to help you provide financial security to your child when s/he becomes an adult.
With us, your child's future is guaranteed.
Our plan combines a guaranteed return on your savings with upside potential based on the
performance of the investment funds you decide to invest in. No matter what the future
performance of the investment funds is, you are always guaranteed a minimum amount at
maturity for your child.
Our plan also guarantees this minimum amount at maturity even in the unfortunate event
that you die. Should you die before the plan matures, your child will immediately receive
the sum assured and we will continue your savings on your behalf. Your child's future is
therefore always guaranteed.
Eligibility
We have some criteria you should consider.
• You, the Life Insured, must be 18 to 60 of age at entry
• Your child, the Nominee, must be 13 years or younger at entry
• You must be of age 75 or younger when your plan matures
The Guaranteed Maturity Benefit you choose must be at least:
• Rs. 75,000 for the 100% Guaranteed Maturity option
The Enhanced Sum Assured you choose, if any, must be at least Rs. 50,000.
Your Options
You are considering this plan to help you provide financial security to your child when s/he
becomes an adult. With us, you are guaranteed to succeed, no matter what happens.
So start today!
Choose the Guaranteed Maturity Benefit
The first step is for you to decide on the amount you want your child to receive at maturity
guaranteed. This is the Guaranteed Maturity Benefit.
This plan combines a guaranteed return on your savings with upside potential based on the
performance of the investment funds you decide to invest in. You are therefore assured that
your child will receive no less than the Guaranteed Maturity Benefit when this plan matures.

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• the plan term and your gender and age at entry; and
• the premium associated with any riders you add.
You can also increase your savings at any time by paying additional amounts over and
above the policy premium this is known as top-up premiums. Each top-up premium must
be Rs. 500 or more provided your total top-up premiums to date does not exceed 25% of
your total policy premiums to date. We do accept top-up premiums in excess of 25% of
your total policy premiums to date, but in this case, the minimum top-up premium is Rs.
5,000 and your Enhanced Sum Assured will be increased by 125% of the excess of your top-
up premiums over 25% of policy premiums to date, subject to evidence of insurability
satisfactory to us.
How to pay your premiums
You can pay the policy premium monthly (through ECS only), quarterly, half-yearly or
annually. The modes of payment we currently offer are cash (up to Rs. 50,000), cheque,
credit card, salary deduction, ECS and direct debit.
Investing your premiums
You decide on the proportion of your policy premium and top-up premium to be invested in
each of the three investment funds we offer Protector, Builder and Enhancer.
Protector
Objective: To generate consistent returns through active management of a fixed income
portfolio and focus on creating a long-term equity portfolio, which will enhance the yield of
the composite portfolio with minimum risk appetite.
Strategy: To invest in fixed income securities with marginal exposure to equity up to 10%
at low level of risk. This Investment Fund is suitable for those who want to preserve their
capital and earn a steady return on investment through higher exposure to debt securities.
Builder
Objective: To build capital and generate better returns at moderate level of risk, over a
medium or long-term period through a balance of investment in equity and debt.
Strategy: To generate better returns with moderate level of risk through active
management of a fixed income portfolio and focus on creating a long-term equity portfolio,
which will enhance the yield of the composite portfolio with low level of risk appetite.
Enhancer
Objective: To grow capital through enhanced returns over a medium to long-term period
through investments in equity and debt instruments, thereby providing a good balance
between risk and return. This Investment Fund is suitable for those who want to earn
higher return on investment through balanced exposure to equity and debt securities.
Strategy: To earn capital appreciation by maintaining a diversified equity portfolio and
seek to earn regular returns on the fixed income portfolio by active management resulting
in wealth creation for policy owners.
See Schedule A below for specifics on each investment fund.
We record your allocation instructions through the Premium Allocation Percentage, and our
only requirement is that the percentage allocated to each investment fund be in increments
of 5%, ranging from 0% to 100%.
You will be allocated investment fund units based on the monetary amount you invest in an
investment fund divided by its then prevailing unit price. Units will be allocated based on:
• 100% of your policy premiums when received; and
• 98% of your top-up premiums when received we retain 2% of your top-up premium as
a Premium Allocation Charge.
For added flexibility, you can at any time:
• use our premium redirection facility and change your Premium Allocation Percentage
applicable to future policy premiums and top-up premiums; and
• switch part or all of your allocated units in one investment fund to another at the then
prevailing unit prices.
Keeping track of your investments
Keeping track of your investment is easy with us:
• we will send you an annual statement detailing the number of units you have in each
investment fund and their respective unit price as of the last policy anniversary; and
• we publish the unit prices of all investment funds on our website www.birlasunlife.com
as well as in the newspapers.
* In each Investment Fund Option, the Money Market & Cash asset allocation will not
exceed 40%.
Money Market Instruments are debt instruments of less than one-year maturity. They
include mutual funds, collateralized borrowing & lending obligation, certificate of deposits,
commercial papers etc. Investment in Money Market Instrument supports better liquidity
management.
Accessing your investments
The total value of your investments in this plan is known as the Fund Value the balance of all
units allocated to your policy multiplied by their respective then prevailing unit price.
Our plan offers guaranteed maturity benefits and we track your guarantees via the
Guaranteed Fund Value the accumulation at 3% per annum of all your policy premiums and
top-up premiums (net of the 2% Premium Allocation Charge) paid till date less policy
charges deducted monthly.
Both the Fund Value and Guaranteed Fund Value will be reduced at the beginning of every
policy month to cover your policy charges. We will redeem units equal to the monetary
amount of the policy charge divided by the then prevailing unit price from each investment
fund under your policy, in proportion to their value at that time.
Partial Withdrawals
After the completion of three policy years, you are free to make a partial withdrawal at any
time. The partial withdrawal must be at least Rs. 5,000 and cannot exceed the excess, if
any, of the Fund Value over the Guaranteed Fund Value at that time.
The units redeemed will equal the partial withdrawal divided by the then prevailing unit
price of the investment fund from which the partial withdrawal is taken.
Partial withdrawals will not reduce the Guaranteed Fund Value.
Schedule A
Investment Risk Asset Allocation* Min. Max.
Fund Option Profile
Debt Instruments, Money Market & Cash 90% 100%
Protector Low
Equities & Equity Related Securities 0% 10%
Builder Low
Enhancer Medium

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Policy Surrender
After the completion of three policy years, you can surrender your policy to us and receive
the Fund Value at that time.
You can surrender your policy in the first three policy years but:
• we will retain a Surrender Charge; and
• we will defer the payment till the end of the third policy year.
The deferred payment will be for an amount equal to the Fund Value (net of the Surrender
Charge) as of the date of your surrender and remain constant till paid to you.
If the life insured dies before the deferred payment is paid then the Fund Value (net of the
Surrender Charge) as of the date of surrender will be paid immediately.
Your benefits
Policy Loans
We do not offer this facility on this plan.
In the unfortunate event of your demise
In the unfortunate event of your demise, your child (the nominee) will receive the Basic
Sum Assured plus any Enhanced Sum Assured you have selected.
The Basic Sum Assured is associated with the Guaranteed Maturity Benefit you choose.
Your financial advisor will provide you with the Basic Sum Assured specific to the plan you
are considering.
Based on your insurance needs, you can increase the amount of protection via the
Enhanced Sum Assured. You can specify the Enhanced Sum Assured at entry and/or
increase it at any time during your lifetime. The minimum Enhanced Sum Assured
increment is Rs. 50,000 and is subject to evidence of insurability satisfactory to us. Your
annual policy premium will be increased if and when the Enhanced Sum Assured is
increased.
We will continue your savings on your behalf
Rest assured, your savings will continue for the benefit of your child even after your
unfortunate death. Should you die while your policy is in effect, we will continue the policy
and activate the Maturity Continuation Benefit to preserve your savings to date.
At that time, your child will become the life insured. The new policy owner will be the person
appointed by you. At the beginning of the policy month coinciding with or immediately
following your death, we will add the Maturity Continuation Benefit amount in monthly
installments until the policy matures. This ensures your savings will continue until maturity
and your child will be entitled to the guaranteed maturity benefits then payable.
All riders and risk charges cease on the date of your death. Policy premiums are no longer
due and we will no longer accept any top-up premiums.
In the extremely unfortunate event the new life insured dies, we will pay the higher of the
Guaranteed Fund Value or 105% of the Fund Value at that time and end the contract.
So your Guaranteed Maturity Benefit is always secured
The Guaranteed Maturity Benefit is payable on the maturity date of your policy guaranteed
by us whether you are alive or not.
This assumes however that you paid all policy premiums when due. Otherwise, the
Guaranteed Maturity Benefit when due will be equal to the Guaranteed Fund Value at that
time.
By choosing the 100% Guaranteed Maturity Option, we will pay the higher of the Fund Value
or Guaranteed Fund Value on the maturity date of your policy and end the contract.
Double or Triple the Guaranteed Maturity Benefit
By choosing the 200% or 300% Guaranteed Maturity Option, your contract will continue
under a settlement option for a period of 5 years starting on the maturity date of the policy.
During the settlement option period, we will not levy any policy charges except for the Fund
Management Charge. Also, all riders will cease and no life insurance cover is provided.
At any time during the settlement option period, you can cancel the contract and we will pay
the higher of the Fund Value or Guaranteed Fund Value at that time.
At the start of the settlement option period and at the end of each year thereafter, the
Guaranteed Fund Value will be reduced by:
As a percentage of the Guaranteed Maturity Benefit.
The Guaranteed Fund Value will never be reduced below nil.
Partial withdrawals not exceeding the excess of the Fund Value over the Guaranteed Fund
Value can be made at any time during the settlement option period.
You are therefore given the choice to encash the guaranteed maturity benefits when due or
leave them invested in the investment funds until the end of the settlement option period.
At the end of the 5-year settlement option period, we will terminate the contract and pay the
higher of the Fund Value or Guaranteed Fund Value.
Our policy charges
Our Children's Dream Plan offers discounts at higher Guaranteed Maturity Benefit amounts
based on bands provided below:
The charges under this plan are designed to optimize the long-term return on your
investment while providing for the costs of insurance, distribution and administration of
your policy.
Premium Allocation Charge
No premium allocation charge is deducted from your policy premium so all of your policy
premium will be invested in the investment funds of your choice.
For top-up premiums, we will first deduct a 2% premium allocation charge and then invest
the remaining 98% in the investment funds of your choice.
Date 200% 300%
Option Option
at maturity 100% 100%
year-end 1 20% 25%
year-end 2 20% 25%
year-end 3 20% 25%
year-end 4 20% 25%
year-end 5 20% 100%
Total 200% 300%
Band Minimum
Guaranteed Maturity Benefit
Band 100% 200% 300%
Option Option Option
1 75,000 37,500 25,000
2 1,50,000 75,000 50,000
3 3,00,000 1,50,000 1,00,000
4 6,00,000 3,00,000 2,00,000
5 12,00,000 6,00,000 4,00,000

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Fund Management Charge
The daily unit price of each investment fund is adjusted to reflect the fund management
charge of 1.00% per annum of the fund value. Currently the charge is 1.00% per annum for
Protector, Builder and 1.25% per annum for Enhancer, but we may increase this charge in
any time in the future subject to a maximum of 1.50% per annum.
Policy Administration Charge
The policy administration charge will be deducted monthly by canceling units
proportionately from each investment fund you have at that time. The annual rate per 1000
of Basic Sum Assured is shown in Schedule B. We may increase this charge at any time
after the 4th policy year, subject to a maximum increase of 5% per annum since inception.
Surrender Charge
The surrender charge is applied if and when you surrender your policy in the first 3 policy
years. The amount you will receive will be the fund value less this charge. The rate per
1000 of Basic Sum Assured is shown in Schedule B.
Revival Charge
The current charge for policy revival is Rs. 100. We may increase this charge at any time in
the future subject to a maximum of Rs. 1,000.
Other Policy Charges
Your can make two fund switches, two partial withdrawals and two premium redirections
free of charge per policy year. A charge of Rs. 100 will be levied per additional request, and
we may increase this charge at any time in the future subject to a maximum of Rs. 500 per
additional request.
Mortality Charge and Miscellaneous Charge
Every month we will deduct a mortality charge for providing you with the death cover.
Similarly, the Miscellaneous Charge-Maturity Continuation Charge is deducted to provide
the continuation of your policy benefits after your demise. We will take these charges by
canceling units proportionately from each of the investment funds at that time.
The annual rate for each of these charges will depend on the plan term as well as the age
and gender of the life insured. Sample rates are provided in Schedule C for your reference.
Please visit our website or ask your financial advisor for the rates applicable to you.
Rider Premium Charge
A rider premium charge will be recovered monthly by canceling units proportionately from
each of the investment funds you have at that time. The rider premium charge will be
exactly equal to the rider premium payable on a monthly basis. Rider premiums paid less
frequently than monthly will be subject to the market risks associated with the investment
funds you have chosen.
IRDA Approval
Only when specified and within stated limits, we may increase a particular charge at any
time in the future. We, however, need to get prior approval from the IRDA before such
charge increase is effective. Otherwise, all other charges in this policy are guaranteed to
never increase during the tenure of the policy.
Surrender Charge
years 1-3 only
100% Guaranteed Maturity Option
Basic Sum Assured is per 1000 of Guaranteed Maturity Benefit.
Policy Administration Charge - annual rate per 1000 of Basic Sum Assured
Surrender Charge - rate per 1000 of Basic Sum Assured
More Information
Accidental Death & Dismemberment Benefit Rider
You have the option to add this rider to your plan. It provides 100% of cover in case of death
due to accident; loss of more than one limb; loss of sight in both eyes; or loss of one limb

and loss of sight in one eye. It provides 50% of cover in case of loss of one limb; or loss of
sight in one eye.
Current Tax Benefits
You will be eligible for tax benefits under Section 80C and Section 10(10D) of the Income
Tax Act, 1961.
• Under Section 80C, premiums up to Rs. 100,000 are allowed as a deduction from your
taxable income each year.
• Under Section 10 (10D), the benefits you receive from this plan are exempt from tax,
subject to mentioned exclusions.
Service Tax and other levies
Service Tax and other levies, as applicable, will be levied as per the
extant tax laws.
30-Day Grace Period
Should you be unable to pay the policy premium by the due date, you will be given a grace
period of 30 days during which time all insurance under your policy will continue.
• During the first three policy years - Your policy will lapse if we do not receive the entire
policy premium by the end of the grace period. The insurance under your policy will
cease and your Fund Value will be held in suspense after deduction of Surrender
Charges. This net Fund Value will be paid out to you only at the end of the third policy
year or the end of the two-year revival period, whichever is later.
You can revive your policy within two-years from its lapse date (due date of unpaid policy
premium) by paying all outstanding policy premiums and providing us with evidence of
insurability satisfactory to us.
If the life insured dies while the policy is not yet revived, we will pay the Fund Value as of
the lapse date immediately and terminate the contract.
• After three completed policy years - If we do not receive the entire policy premium by the
end of the grace period, then you will be given a period of two years (starting on the due
date of the unpaid policy premium) to pay all outstanding premiums till date. Your policy
will continue during these two years, as well as all insurance benefits and charges. At
the end of this two-year period, we will give you the choice to either surrender your
policy or continue it without the payment of any additional policy premiums
Your policy will, however, be deemed as surrendered should your Fund Value fall below one
annual policy premium.
Terms & Conditions
Unit Price
On each business day and for each investment fund, we determine the unit price by dividing
the net asset value of the investment fund at the valuation time by the number of units in
existence for the investment fund in question. The net asset value of an investment fund is
the market value of the investments held by the fund plus current assets (including accrued
income net of Fund Management Charges) less current liabilities (including accrued
expenses) and provisions. We publish the unit prices of all investment funds on our website
www.birlasunlife.com as well as in the newspapers.
Suicide
We will refund higher of the Fund Value or policy premiums paid to date in the event the life
insured dies by suicide, whether medically sane or insane, within one year after the issue or
revival date, whichever is later.
Free-Look Period
You will have the right to return your policy to us within 15 days from the date of receipt of
the policy. We will pay the Fund Value plus all charges levied till date (excluding the Fund
Management Charge) once we receive your written notice of cancellation (along with
reasons thereof) together with the original policy documents.
Prohibition of Rebates Section 41 of the Insurance Act, 1938
No person shall allow or offer to allow, either directly or indirectly, as an inducement to any
person to take or renew or continue an insurance in respect of any kind of risk relating to
lives or property in India, any rebate of the whole or part of the commission payable or any
rebate of the premium shown on the policy, nor shall any person taking out or renewing or
continuing a policy accept any rebate, except such rebate as may be allowed in accordance
with the published prospectuses or tables of the insurer.
Non-Disclosure Section 45 of the Insurance Act, 1938
No policy of life insurance effected after the coming into force of this act shall, after the
expiry of two years from the date on which it was effected be called in question by an insurer
on the ground that statement made in the proposal or in any report of a medical officer, or
referee, or friend of the life insured, or in any other document leading to the issue of the
policy, was inaccurate or false, unless the insurer shows that such statement was on a
material matter or suppressed facts which it was material to disclose and that it was
fraudulently made by the policyholder and that the policyholder knew at the time of making
it that the statement was false or that it suppressed facts which it was material to disclose.
Provided that nothing in this section shall prevent the insurer from calling for proof of age at
any time if he is entitled to do so, and no policy shall be deemed to be called in question
merely because the terms of the policy are adjusted on subsequent proof that the age of the
life insured was incorrectly stated in the application.
Example
You can choose the Guaranteed Maturity Benefit and Option required to secure your child's
future based on your financial requirements. For example, you may require an amount of
Rs. 6 lacs for your son/daughter's admission/education in the desired medical college at the
age of 18 years. Therefore, the guaranteed amount at maturity would be Rs. 6 lacs. The
Children's Dream Plan will make this possible for you by letting you know the premiums and
the tenure for which you have to pay the premiums to achieve your dream amount.
Birla Sun Life Insurance - A coming together of values
Birla Sun Life Insurance Company Limited is a joint venture between The Aditya Birla Group,
one of the largest business houses in India and Sun Life Financial Inc., a leading
international financial services organization. The local knowledge of the Aditya Birla Group
combined with the expertise of Sun Life Financial Inc., offers a formidable protection for
your future.
The Aditya Birla Group has a turnover of close to Rs. 119000 crores, with a market
capitalization of Rs. 133875 crores (as on 31st March 2008). It has over 100,000 employees
across all its units worldwide. It is led by its Chairman - Mr. Kumar Mangalam Birla. Some of
its key companies are Hindalco, Grasim and Aditya Birla Nuvo.
Sun Life Financial Inc. and its partners, have operations in key markets worldwide. These
include Canada, the United States, the United Kingdom, Hong Kong, the Philippines, Japan,
Indonesia, India, China and Bermuda. Sun Life Financial Inc. has assets under
management of over US$404.7 billion (as on 31st March, 2008). It is a leading performer in
the life insurance market in Canada.
Birla Sun Life Insurance (BSLI) has been operating for 9 years. It has contributed
significantly to the growth and development of the life insurance industry in India. It
9 10

pioneered the launch of Unit Linked Life Insurance plans amongst the private players in
India. It was the first player in the industry to sell its policies through the Bancassurance
route and through the Internet. It was the first private sector player to introduce a Pure
Term plan in the Indian market. BSLI has covered more than 2 million lives since it
commenced operations. And its customer base is spread across more than 1500 towns and
cities in India. The company has a capital base of Rs. 1274.5 crores as on 31st March 2008
Risk Factors & Disclaimers
This policy is underwritten by Birla Sun Life Insurance Company Limited (BSLI). This is a
non-participating unit linked child plan. Birla Sun Life Insurance, Children's Dream Plan,
Protector, Builder and Enhancer are only the names of the Company, Policy and the
Investment Funds respectively and do not in any way indicate the quality of the Policy,
Investment Funds or their future prospects or returns. The charges mentioned above are
applicable to the base policy only and do not include riders. The charges mentioned above
are applicable to all the three Investment Funds offered at present. Only the Policy
Administration Charge and Fund Management Charge can be modified by the company
subject to specified limits and approval of the IRDA. The value of the Investment Fund
reflects the value of the underlying investments. These investments are subject to market
risks and change in fundamentals such as tax rates etc affecting the investment portfolio.
The premium paid in Unit Linked Life Insurance policies are subject to investment risk
associated with capital markets and the unit price of the units may go up or down based on
the performance of Investment Fund and factors influencing the capital market and the
policy owner is responsible for his/her decisions. There is no guarantee or assurance of
returns above the guaranteed returns from the Investment Funds. BSLI reserves the right
to recover levies such as the Service Tax levied by the authorities on insurance transactions.
If there be any additional levies, they too will be recovered from you. This brochure contains
the salient features of the plan. For further details please refer to the policy contract. Tax
benefits are subject to changes in the tax laws. Insurance is the subject matter of the
solicitation. For more details and clarification call your BSLI Insurance Advisor or visit our
website and see how we can help in making your dreams come true.
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www.birlasunlife.com Call Toll Free: 1-800-270-7000 SMS: 'CHILD' to 56161
Birla Sun Life Insurance Company Limited
Registered Office: 6th Floor, Vaman Centre, Makhwana Road, Off Andheri- Kurla Road,
Near Marol Naka, Andheri(E), Mumbai- 400 059. Reg. No. 109 UIN: 109L026V01

Children dream plan SIDDANNA M BALAPGOL

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