Shriram Life Pension Plus Plan

• Annuity guaranteed for life
• Commutation benefit available
• 4 investment funds to choose from
• Enjoy loyalty additions
• Top-up premium allowed
• Rebates in allocation charges for higher premium
• Fund Switching/Premium Redirection allowed
• Avail tax benefits

This policy offers following fund options.

• Pension Protector
• Pension Balancer
• Pension Maximiser
• Pension Multi Cap Aggressive Fund

Death Benefit

Upon the unfortunate event of death within the term of the policy, the higher of Total Fund Value or Assured death benefit is payable to the nominee and the policy gets terminated.

Here, Total fund value is the base premium fund value plus top-up fund value. Assured death benefit is 105% of the total premiums paid.

The nominee can utilize the death benefit through the following two options:

• Withdraw the entire death benefit.
• Utilize the entire death benefit or a part of it for purchasing an annuity at the then prevailing annuity rate.

Vesting/Maturity Benefit

In case of survival of the policyholder till maturity of the policy term, the higher of Total Fund Value or Assured Vesting Benefit is payable. Here, Assured Benefit is 101% of the total premiums paid.

The vesting benefit can be utilized through the following three options:

• Commute to the extent allowed under Income Tax Act and utilize the balance amount to purchase an immediate annuity at the then prevailing annuity rate.
• Utilize the entire proceeds to purchase a single premium deferred pension product/single premium immediate annuity plan.
• Extend the deferment period within the same policy.

Commutation Benefit

The policyholder has the option to take up to one-third of the vesting benefit as tax-free lump sum as per the current income tax regulations. The remaining vesting benefit can then be utilized to purchase an immediate annuity.

Deferment of Vesting Benefits

There is an option to extend the deferment of vesting date, up to a maximum vesting age of 80 years.

Loyalty Additions

This policy provides Loyalty additions, which will be credited to the base premium fund value as additional units throughout the term of the policy.

Loyalty addition is a percentage of the average value of the daily base premium fund values of the previous two years. It starts from the end of 5^th policy year and credited at the end of every 5 policy years.

Top-up Premium

A Top-up Premium is paid at irregular intervals in addition to the basic regular premium payments. After payment, top-up premiums cannot be withdrawn. It can be invested under the policy any time during the policy term, except the last policy year. The minimum top-up premium is Rs 5,000.

Top-up premiums are allowed for any number of times, subject to providing the assured benefit for each of the top-up premiums paid.

Non-zero Positive Claw-Back Additions

In order to comply with the reduction in yield, non-zero positive additions are added to the unit fund at various durations during the policy term after the first five policy years.

Switching

The policyholder has the flexibility to switch money from among 4 available fund options to suit your investment objectives. There are an unlimited number of switches available during a policy year.

Premium Redirection

Premium Re-direction facility is available to alter future premium allocation and it will apply to your subsequent premiums.

Bonus

No bonus is applicable, as it is a non-participating pension plan.

Loan Benefit

No policy loan is available under this plan.

Surrender Value

In case, you surrender the policy before completion of the lock-in period of 5 years, the policyholder’s fund value after deducting discontinuance charge is transferred to discontinued policy fund. There is an option to revive the policy within 2 years or get the complete withdrawal from the policy (as applicable).

If you surrender the policy after the lock-in period, the fund value as on the date of surrender is payable.

No rider can be opted under this plan.

Premium Allocation Charge: For Limited/Regular Premium pay policies, the Premium Allocation Charge is 6%/4.25%/4%/1%/4%/1.5% for 1^st policy year/2^nd to 3^rd policy year/4^th to 10^th policy year/11^th policy year onwards, respectively.

For Single Premium pay policies, it is 4% of the single premium. For top-up premiums, it is 1.5% of top-up premium.

Policy Administration Charge: For Limited/Regular Premium pay policies, the policy administration charge is 0.2% of annualized premium and for Single Premium pay policies, it is 0.09% of single premium for the first 5 years and 0.03% of single premium from 6 year onwards.

The policy administration charge will increase @ 5% on every anniversary, subject to maximum of Rs 6,000 per annum.

Mortality Charge: Mortality charge is levied on Sum at Risk and it is deducted on a monthly basis, by cancellation of appropriate number of units.

Fund Management Charges: The fund management charge of 1.35% per annum is levied on the daily basis. The fund management charge for Pension Discontinued Policy Fund is 0.50% per annum.

Fund Switching/Premium Redirection: No such charges are levied under this plan.

Discontinuance Charge: This charge is levied, in case the policy is discontinued during the first 4 policy years. This charge is levied as applicable under the policy terms & conditions. For more details, please refer the policy brochure.

Service Tax Charge: The service tax as applicable, is levied for charges applicable under this plan.

This policy provides tax benefits for the premiums paid under section 80CCC of the Income Tax Act. Up to 1/3^rd of the vesting benefit as a lump sum is also eligible to avail tax benefit as applicable under the Income Tax Act, 1961.

Divansh Pandey at 30 years of age decides to buy Shriram Life Pension Plus with the policy term and premium payment term of 35 years with the annual premium of Rs 1,00,000.

Scenario A: Divansh Survives till Vesting

At vesting, Divansh will receive the higher of Total Fund Value or Assured Vesting Benefit is payable. Loyalty additions as applicable also add-up to the fund value. You can utilize the commutation benefit to receive one-third of the vesting benefit as a lump sum and the balance amount can then be utilized to purchase an immediate annuity.

Scenario B: Divansh dies within the Policy Term

In case of demise of Divansh with-in the policy term, the nominee will receive the higher of Total Fund Value or Assured death benefit.