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BSLI Empower Pension - SP Plan is a non-participating unit linked pension plan in which you need to invest premium only once and get the investment returns as a corpus for your retirement. This plan helps you to focus on goals and boost savings for your future. This plan is designed in a manner that provides a regular income for the lifetime after your retirement.
This policy offers following fund investment options.
You can avail ‘Smart Option’, under which your portfolio is structured depending on vesting date and risk profile chosen. Under this option, the company will manage and administer your investment portfolio on your behalf. Over time the allocation is managed in a manner that your investment will automatically switch from riskier to safer assets as the plan approaches to the vesting date.
In the event of death of the life insured while the policy is in force, the higher of the Guaranteed Death Benefit or Fund Value till the date of intimation of death is payable to the nominee.
The Guaranteed Death Benefit is the higher of 105% of the single premium paid or accumulation of the single premium paid at a compounding guaranteed rate. The guaranteed rate varies by the risk profile chosen and is equal to 0.5% p.a, 1.5% p.a and 3.0% p.a. for Aggressive, Moderate and Conservative risk profiles, respectively.
The nominee has the option to utilize the entire proceeds or a part to purchase an annuity or withdraw the death benefit proceeds.
On your vesting date, you will receive the higher of your Guaranteed Vesting Benefit or the Fund Value. The Guaranteed Vesting Benefit varies by your chosen vesting date and risk profile. Guaranteed Vesting Benefit, once assigned at the inception of the policy, will remain the same.
The Guaranteed Vesting Benefit may also be revised on April 1st of every calendar year, subject to a minimum of 101% of the single premium paid and it is applicable for policies issued thereafter.
The vesting benefit can be utilized in the following four ways.
You have the option to take up to 1/3rd of the benefit as tax-free lump sum as per the current income tax regulations and utilize the 2/3rd amount to receive a regular income.
Deferment of Vesting Benefits
There is an option to extend/deferment of accumulation period, provided the life insured is aged below 55 years and maximum vesting age is not more than 80 years.
Guaranteed Additions are available in the form of additional units under the policy.
On 6th policy anniversary and every policy anniversary thereafter, Guaranteed Addition is 0. 25% of the average Fund Value in the last 12 months, plus
On 11th policy anniversary and every policy anniversary thereafter, it is 0.35% of the average Fund Value in the last 12 months, plus
On 16th policy anniversary and every policy anniversary thereafter, it is 0.35% of the average Fund Value in the last 12 months.
Switching & premium redirection is not applicable under this plan.
No bonus is applicable, as it is a non-participating pension plan.
No policy loan is available under this plan.
Upon surrendering the policy with-in the lock-in period of 5 years, the fund value after deducting Policy Discontinuance Charges is transferred to the Pension Discontinued Policy Fund. The Pension Discontinued Policy Fund is credited with the actual return (less fund management charge of 0.50% p.a.) or a minimum guaranteed interest rate of 4% p.a, whichever is higher. The proceeds are payable upon completion of first 5 policy years or death of the life insured, whichever is earlier.
Upon surrendering the policy after the completion of the lock-in period of 5 years, the fund value is payable immediately.
|Age (as on last birthday)||25 Years||70 Years|
|Age at Vesting||-||80 Years|
|Policy Term/Accumulation Period||5 To 30 Years||-|
|Premium Paying Term (PPT)||Single Pay||-|
|Premium Paying Mode||Single||-|
|Single Premium||Rs 1,00,000||No Limit|
|Freelook Period||15 Days/30 Days (for Distance Marketing Channel) From The Receipt Of The Policy||-|
No rider can be opted under this plan.
Premium Allocation Charge: Premium allocation charge is deducted from your single premium and the amount is then invested with the fund options. The Premium Allocation Charge of 3% is levied on the single premium.
Policy Administration Charge: This policy administration charge is levied at the start of every policy month by cancelling appropriate units from the investment funds. The policy administration charge is Rs 20 per month for the first five policy years. It will increase to Rs 25 per month in the sixth year and then increases @5% p.a. thereafter, subject to a maximum of Rs 6,000.
Investment Guarantee Charge: The daily unit price of the investment fund is levied with an investment guarantee charge of 0.25% p.a. This charge may be revised up to a maximum of 0.50% p.a, upon approval from IRDAI.
Fund Management Charges: The fund management charge is 1% p.a for Income Advantage Guaranteed and 1.35% p.a. for Maximiser Guaranteed. The fund management charge may be revised to a maximum of 1.35% p.a, subject to approval from IRDAI.
Miscellaneous Charges: A Miscellaneous charge of Rs 250 per request is levied for any additional servicing request. This charge may be increased up to a maximum of Rs 500 per request for additional servicing requests. Any increase in the miscellaneous charges is subject to approval from IRDAI.
Taxes: The service tax and cess is levied for charges applicable under this plan.
This plan offers tax benefits under Section 80CCC and Section 10(10A) of the Income Tax Act, 1961, subject to prevailing tax laws.
Akash at 30 years of age, wants to accumulate corpus that can ensure a regular income after his retirement, so he can lead a financially independent life. He thus opts for BSLI Empower Pension - SP Plan with the policy term of 30 years with the single premium of Rs 1,00,000.
Scenario A: Akash Survives till Vesting
On your vesting date, the higher of Guaranteed Vesting Benefit or Fund Value is payable. He has the option to extend the accumulation period, enter into a new single pay deferred pension plan, commute to the extent allowed, or enter into an annuity phase.
Scenario B: Akash dies within the Policy Term
In case of demise of Akash while the policy is in-force, the nominee will receive the higher of the Guaranteed Death Benefit or Fund Value as on the date of intimation of death. The nominee also has the choice to withdraw the death benefit proceeds or utilize the entire proceeds or a part to purchase an annuity.