Exide Life Golden Years Retirement Plan is a nonparticipating Variable Insurance Pension plan allowing for accumulation of premiums until the vesting date. This plan provides guaranteed benefits on vesting and death. There is a minimum guarantee applicable on the gross premiums including Top-Up premiums as well as on the Individual Pension Account (IPA).
Key features of the plan
- All premiums including top-up premiums paid are guaranteed to grow at minimum 1% compounded per annum
- Minimum Interest Guarantee of 5% per annum compounding applicable on IPA during the first 5 policy years
- Flexibility to alter the premium payment term
- Loyalty Benefit
Details in Brief:
Minimum / 18 years / 65 years age last birthday
Maximum
Age at Entry
Minimum / 55 Years – 75 years age last birthday
Maximum
Vesting Age
Vesting Term / Vesting term Premium paying
Premium Paying term
Term 10 – 42 years Single
10 years Limited 5 – 9 years
15 – 42 years Limited (10 – 41
Years) & regular
Minimum Single Rs 2,40,000
Premium
Minimum Premium Minimum Minimum
Premium payment annual monthly
term premium premium
5 – 9 years Rs 48,000 Rs 4,000
10-42 years Rs 24,000 Rs 2,000
Premium Annual and monthly modes available
Payment
Frequency
Annuity Options Guaranteed for life
Benefits under the plan
1. Guaranteed death benefit (GDB):
On death of the life assured, the higher of the following will be paid to the nominee/s:
- 105% of gross premiums paid including top-up premiums till the date of death.
- Gross premiums including top-up premiums compounded at 1% p.a. till the date of intimation of death.
- Balance in the IPA plus prorated interest from last policy anniversary till the date of intimation of death.
Guaranteed vesting benefit (GVB):
On vesting, the higher of the following will be the GVB.
- Gross premiums including top-up premiums compounded at 1% p.a.
- Balance in the IPA
GVB can be used in one of the following manners:
1. Portion of the vesting benefit can be taken as tax-free commuted value, as prescribed under section 10(10A) of the IT Act. This portion is currently defined as 1/3rd. The remaining amount (or full amount) can be used to purchase a life annuity from Exide Life Insurance at the then prevailing annuity rates.
2. The policyholder also has the option to use the entire proceeds to buy a Single premium deferred pension plan from Exide Life Insurance.
3. Benefits on vesting for QROPS (Qualifying Recognized Overseas Pension Scheme) customers would be subject to policyholder attaining age 55 years or vesting age whichever is later.
Loyalty benefit:
Policies where total premium payable (excluding top-up premiums) is greater than or equal to Rs 4,80,000 are eligible to receive a Loyalty Benefit at vesting. The Loyalty Benefit is equal to 100% of the allocation charges collected on premium (excluding top-up premiums) throughout the policy term and is credited in the IPA at vesting provided all due premiums are paid.
Premium payment term flexibility:
For Non-single Premium Payment Terms, the policyholder has the flexibility to alter the premium payment term subject to limits allowed under the product. The policyholder has to intimate the Company at least two months prior to policy anniversary from which the alteration in premium payment term is to be effected. The alteration in premium payment term is effected only on policy anniversary.
The premium payment term can’t be reduced to a single premium. After alteration of PPT, the annual premium paid shall be the same as that before alteration of PPT. There is no alteration charge.
Top-up premiums: The policyholder has the flexibility to pay top-up premiums over and above the regular premium in any year two years before the vesting date. In case regular premiums are due in a policy, all subsequent premiums shall be first adjusted against unpaid regular premium due before accepting top-up premiums. The minimum amount of such top-up premium shall be at least Rs 2000.
