Pramerica Life Insurance Nextgen Pension Plan

What is the Pramerica Life Insurance Nextgen Pension Plan?

Pramerica Life NextGen Pension Plan is a unit-linked, non-participating, individual savings pension plan designed to help individuals build a retirement fund with market-linked returns. It helps to achieve long-term financial goals and empowers individuals to take control of their financial future to enjoy rewarding retirement planning. The plan provides financial freedom without worry in the golden years. Note that in this policy, the investment risk in the investment portfolio is borne by the policyholder. This product does not offer any liquidity during the first five years of the contract.

Features of Pramerica Life Insurance Nextgen Pension Plan

Here are some key features of the Pramerica Life Insurance NextGen Pension Plan:

• Guaranteed Additions: Up to 5% of the premium paid in the 1st policy year.

• Zero Charges: Avail the advantage of Zero Premium Allocation charge and Zero Policy Administration charge throughout the policy term.

• Return of Mortality Charges (ROMC): Get ROMC on survival at the end of the Policy Term.

• Investment Choices: Choice of two investment strategies and six fund options to suit varied investment needs.

• Flexibility: Enjoy the flexibility of unlimited switches and premium re-directions between fund options for maximizing market movement or minimizing risk at no additional cost.

• Tax Benefits: Avail tax benefits as per prevailing tax laws.

Eligibility Criteria of Pramerica Life Insurance Nextgen Pension Plan

Benefits of Pramerica Life Insurance Nextgen Pension Plan

• Death Benefit: In the event of the life insured's unfortunate demise during the policy term, provided all due premiums have been paid, the death benefit payable will be the higher of the Sum Assured (including Top-Up Sum Assured, if any), the Fund Value (including Top-Up Fund Value, if any), or ₹10,000.

  • The nominee/claimant has options for utilizing the Death Benefit, including withdrawing the entire proceeds, using the proceeds to purchase an annuity, or choosing a settlement option with installments. The settlement period cannot exceed 5 years from the date of death.

• Vesting Benefit: The Fund Value (including Top-Up fund value, if any) as of the vesting date, provided the life assured survives.

  • The policyholder can commute up to 60% of the fund value and utilize the remaining amount to purchase an annuity from Pramerica Life or from another insurer up to 50% of the entire proceeds net of commutation.

  • If the policy proceeds, net of commutation, are insufficient to purchase a minimum annuity of ₹1,000 per month, the proceeds will be paid to the policyholder as a lump sum.

• Guaranteed Additions: Guaranteed additions by way of extra allocation are provided as a percentage of the premium paid for the first policy year only.

• Return of Mortality Charges (ROMC): On survival of the life insured till the end of the policy term, an amount equal to the total of all the mortality charges deducted during the policy term (including mortality charge deducted on Top-up Sum Assured as applicable) will be added to the Total Fund Value at the Vesting Date provided the Policy is in force and all due premiums are paid in full.

• Choice of Investment Strategies: At inception, the Policyholder can choose one of the below investment strategies:

  • Defined Portfolio Strategy

  • Life Stage Portfolio Strategy

• Flexibility:

  • Top-Ups: To boost savings, top-up premiums can be paid over and above the regular premium, provided all due premiums to date have been paid.

  • Switching Option: Within the Defined Portfolio Strategy, investment plans can be switched among available funds depending on financial priorities and investment decisions.

  • Premium Redirection: Defined Portfolio Strategy gives the flexibility to change the proportion of Premium invested in different funds through an advance notice to the Company.

  • Partial Withdrawals: For any unforeseen need or exigency the withdrawals from Fund Value (including any eligible Top-up premium) as permitted below and only after the completion of 5 Policy Years (Lock-in Period).

  • Settlement Option: On death of life insured, nominee/claimant will have the option to receive Death Benefit as a structured payout over a period of up to 5 years by availing settlement option.

Additional Details of Pramerica Life Insurance Nextgen Pension Plan

• Investment Strategies: The plan offers two investment strategies: Defined Portfolio Strategy and Life Stage Portfolio Strategy.

  • The Defined Portfolio Strategy allows investment in various funds, with or without the Systematic Transfer Plan (STP) option.

  • The Life Stage Portfolio Strategy automatically adjusts the allocation between equity and debt funds based on the policyholder's age.

• Funds: Policyholders can choose from several funds with varying risk profiles, including Pension Debt Fund, Pension Dynamic Equity Fund, Pramerica Secure Balanced Pension Fund, Pramerica Pinnacle Growth Pension Fund, Pramerica FlexiEdge Pension Fund, and Pramerica Nifty Midcap 50 Correlation Pension Fund.

• Systematic Transfer Plan (STP): This option allows for investing a specific amount at monthly intervals, providing the advantage of rupee cost averaging.

• Discontinuance Policy: There are different provisions for policies discontinued during the first five policy years (lock-in period) and after the first five policy years.

• Revival: A discontinued policy can be revived within three years from the date of the first unpaid premium, subject to certain conditions.

• Surrender: The policy acquires a surrender value immediately from the first policy year, but no surrender value is payable during the lock-in period of five years.

• Force Majeure Condition: The company specifies that, in the event of certain Force Majeure conditions, the declaration of NAV on a day-to-day basis may be deferred and could include other actions as a part of investment strategy.

Exclusions Under Pramerica Life Insurance Nextgen Pension Plan

• Suicide Exclusion: In case of death due to suicide within 12 months from the commencement or revival of the policy, the nominee will be entitled to the fund value as on the date of intimation of death.

• Partial Withdrawals: Partial withdrawals are not allowed which lead to termination of contract.