BSLI Empower Pension Plan

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Introduction/Overview

BSLI Empower Pension Plan is a Unit Linked Pension plan where the premium invested net of charges is allocated to a Fund Account where it enjoys market related returns thereby increasing the annuity payouts post retirement

Key Features

  • It is a non-participating Unit Linked plan with Regular premium payment option
  • Guaranteed Additions are added from the 6th year onwards which increases the fund value
  • Under the Smart Option of investment, the company invests the premiums in a predetermined ratio between the two available funds. The portfolio is so managed that the units are automatically transferred to less riskier funds as the vesting date approaches.
  • The following funds are available for investment:
  1. Maximizer Guaranteed
  2. Income Advantage Guaranteed

Benefits

  • Guaranteed Additions accrue @ 0.25% from the 6th-10th policy year, 0.35% from the 11th-policy year and thereafter.
  • Guaranteed Additions are expressed as a % of the average Fund Value in the last 12 months
  • On Vesting, higher of the accumulated Fund Value or Guaranteed Vesting Benefit subject to a minimum of 101% of premiums paid will be payable. The benefit can be used to:
  1. Purchase a Single Premium Deferred Annuity Plan from the company
  2. Extend the vesting date if ages is lower than 55 years
  3. Commute 1/3rd of the corpus and purchase an Immediate Annuity with the remaining 2/3rd part from the company
  4. Buy an Immediate Annuity Plan with the entire amount form the company
  • The Guaranteed Vesting Benefit depends on the Vesting age and the risk profile chosen as below:

Years to Vesting

Risk Profile

Aggressive

Moderate

Conservative

5

-

-

105%

6-10

101%

106%

112%

11-15

102%

110%

119%

16-20

103%

114%

126%

21-25

104%

118%

133%

26-30

105%

122%

140%

  • On death, higher of the Fund Value or Guaranteed Death Benefit is payable.
  • The Guaranteed Death Benefit is higher of 105% of all premiums paid or accumulated premiums compounded @0.5% or 1.5% or 3% for Aggressive, Moderate and Conservative Risk profiles respectively
  • The nominee can withdraw the entire amount or use it to purchase an annuity from the company
  • Income tax benefit on the premium paid as per Section 80CCC and on the commuted part as per Section 10(10A) of the Income Tax Act. Death Benefit is exempted under Section 10(10D) of the Income Tax Act

Product Specification:

 

Minimum

Maximum

Entry Age (Last Birthday)

25 years

70 years

Vesting Age (Last Birthday)

-

80 years

Policy term (in years)

5

30

Premium Paying Term (in years)

Equal to policy term

Premium Paying Frequency

Yearly, half-yearly, monthly, quarterly

Premium

18,000

No limit


Policy Details

Grace Period: 15 days grace period is allowed in monthly mode and 30 days in other modes.

Policy Termination or Surrender Benefit: Policyholder is allowed to surrender the policy after 5 completed years. If surrendered before 5 years, the fund value net of discontinuation charge will be credited to the Pension Discontinued Policy Fund where it will earn a minimum of 4% p.a. growth. After completion of 5 years, the fund value in the Discontinued Policy fund as on that date will be paid to the policyholder. If surrendered after 5 completed policy years, the entire Fund value on the date of surrender is paid without any charges. The Surrender Value should be used to receive annuity under the same options as on vesting except the value cannot be used to extend the vesting date

Free Look Period: If you would not be pleased with the coverage, and terms and conditions of the policy, you have the option of canceling the policy within 15 days of receipt of the policy documents, provided there has been no claim.

Exclusions

  • The fund value is paid in case of suicide within one year of policy commencement or revival

Additional Features or Riders

  • From the 11th year onwards, premiums paid are allocated @ 102.5% of the amount paid thereby resulting in the extra allocation of premiums

Documents Required

Policyholder has to fill up an ‘Application form/ proposal form’ with accurate medical history along with the address proof and other KYC documents.