Future Generali Pension Guarantee Plan

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Introduction/Overview

The Future Generali Pension Guarantee Plan helps policyholders maintain a comfortable life through their retirement years. It also helps provide for their loved ones in the unfortunate event of their early demise, as the nominees receive a guaranteed death benefit, which they may utilize as they wish. With its choice of policy terms and premium payment terms, this policy is a viable option for almost everyone who is looking to ensure a comfortable and secure post-retirement life.

Key Features

  • The policy is suitable for many as there is flexibility in policy term and premium payment term. Policyholders can choose to pay a regular premium or a single premium or pay for a limited time.
  • There is a high minimum guaranteed Maturity benefit of 101% of the total premiums paid.
  • With a reasonably affordable minimum premium and no limit on the maximum on the premium or maximum Sum Assured, the policyholder can opt for a high insurance cover for him or herself.
  • The policyholder ensures the financial security of his or her loved ones, even in the unfortunate event of their demise, as their nominees receive the Death Benefit.

Benefits

  • When the policy matures, the policyholder receives the Maturity Sum Assured plus the accrued bonuses as Maturity Benefit. The policyholder may opt to do the following
  1. Utilize the Maturity Benefit to purchase a single premium deferred pension plan.
  2. Commute the maturity proceeds as a lump sum amount to the limit that is allowed under the Income Tax act. The balance amount  can be utilized to purchase an immediate annuity from the Company (Future Generali India Life Insurance Co Ltd), which shall be guaranteed for life, at the then prevailing annuity rate.
  3. The policyholder may extend the term under the same policy if he or she is below 55 years old. In this way, the policyholder would later receive the entitlement of the maturity proceeds.
  • The vesting amount that is paid by the policyholder is used to purchase an immediate annuity plan.
  • In the unfortunate event of the demise of the person insured, the nominee receives the Death Benefit, which is the sum of all premiums received plus the accrued bonuses. The total amount that is paid is subject to a minimum of 105% of the total premiums paid. In case the Surrender Value is higher than the Death Benefit, then the Surrender Value is paid to the nominee.
  • A discount is available on large Sum Assured amounts.
  • Tax benefits are available on the premium paid and Death and Maturity Benefits as per sections 80(C) and 10 (10D) of the Income Tax Act.

Product Specification:

 

Minimum

Maximum

Entry Age of the Life Assured(Last Birthday)

20 years

70 years

Vesting Age (Last Birthday) of the Life Assured

40 years

80 years

Policy Term (PT) in years

For Regular Premium Payment: 10 to 20 years

For Limited Premium Payment: For PPT of 10 yrs: 11 to 20 years

                                                   For PPT of 15 years: 16 to 20 years

For Single Premium Payment:   10 / 15 /20 years

Premium Paying Term (PPT) in years

10 years

20 years

Premium Paying Frequency

Regular, Limited , Single

Annual Premium

Rs. 90000 for Single Premium Payment

Rs. 11000 for Regular and Limited premium payment

No limit

Sum Assured

Based on the minimum premium

No limit

       

 

Details About Premium

Age

Policy Term

Premium Payment Term

Annual Premium

Sum Assured

20 years

20 years

20 years (Regular)

Rs. 40,544

Rs. 8,00,000

30 years

20 years

15 years (Limited)

Rs. 4,79,760

Rs. 80,00,000

50 years

20 years

Single Premium

Rs. 94,42,950

Rs.1,50,00,000

 

Policy Details

Grace Period: There is a limited timeframe of 30 days from the due date of the unpaid premium to pay all dues, without interest. For premium payments through monthly mode, the Grace Period is 15 days. If premiums for the first two years are not paid within the Grace Period, the policy will lapse.

Policy Termination or Surrender Benefit: Surrender Value of the policy is acquired when the policyholder pays all due premiums for the first three policy years for the Regular and Limited premium payment policies. Termination of the policy occurs on payment of the Surrender Value or the Death Benefit.

Free Look Period: Policyholders have a limited free look period of 15 days from the date of receiving policy documents to review the policy. This timeframe is extended to thirty days if the policy was sold via distance marketing. If the policyholder does not wish to continue with the policy, then he or she has to return the policy stating their objections. The customer will receive the policy premium minus a proportionate premium for the risk borne by the company, including as any extra expenses, such as towards a medical examination or stamp duty charges.

Inclusions

  • The nominee on receiving the Death Benefit may withdraw the entire proceeds in a lump sum; or they may utilize the amount (partly or wholly) to purchase an annuity at the then prevailing rate from the Company.
  • Provided all due premiums have been paid, Future Generali will declare a compound reversionary bonus starting from the first year. Reversionary Bonus applied on the Maturity Sum Assured.
  • After paying at least two full years of premiums if the policyholder does not pay any more premiums even within the Grace Period, the policy will be converted to a Paid-up policy.

Additional Features or Riders

  • The revival of a lapsed policy is possible if the policyholder submits a written request for reinstatement within a timeframe of two years from the date of the first unpaid premium.
  • If premiums are not paid within the Grace Period and if the policy has acquired Surrender Value, then the policy acquires Paid-up Value.

Documents Required

The policyholder has to fill up an ‘Application form’ with identity proof, bank account proof, address proof and a recent photograph. Select cases may require income proof and a medical examination.