Pension plus t803


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Pension plus t803

  2. 2. LIC’S PENSION PLUS • A unique Unit Linked Pension Plan with guarantee on the minimum rate of interest. • Rate of Interest applied to gross premium. • Being a ULIP plan the fund has immense possibility for growth. • Benefit of Annuity from Maturity Proceeds.
  3. 3. LIC’S PENSION PLUS Benefit on Maturity : • Annuity purchased from Fund Value or Guaranteed Maturity Proceeds whichever is higher. • Option to commute 1/3rd. of the Maturity Proceeds. Benefit on death - Fund Value. Nominee has the option to receive the amount in lump Sum or as Annuity.
  4. 4. Guaranteed Maturity Proceeds: If all due premiums are paid till maturity, a guaranteed interest shall accrue on the gross premium, including Top-up premiums, at the end of each financial year. The guaranteed interest rate shall be 50 basis points above the average of the reverse repo rate prevailing as on the last working day of June, September, December and March of the preceding year. However, the guaranteed interest rate shall be subject to a maximum of 6% and a minimum of 3%. This guaranteed interest rate is not applicable to a discontinued policy. The minimum guaranteed rate of 4.5% p.a. is applicable to all premiums received up to 31st March, 2011, including any Top-up premiums paid.
  5. 5. PENSION PLUS - Fund Type Fund Investment in Short-term Investment in Details and Type Government / investments Listed Equity objective of the Government such as money Shares fund for risk Guaranteed market /return Securities / instruments Corporate Debt Debt Not less than Not more than Nil Low risk Fund 60% 40% Mixed Not less than Not more than Not less than Steady Income – Fund 45% 40% 15% & Lower to Not more than Medium risk 35%
  6. 6. PENSION PLUS : ELIGIBILITY CONDITIONS Age at entry 18 to 75 years Age at vesting 40 to 85 years Minimum 10 years Deferment Term Mode -» RP MLY (ECS) SP Premium Minimum ` 15000 pa ` 1500 pm ` 30000 Maximum 1 lac 1 lac No limit Sum Assured NA
  7. 7. PENSION PLUS : CHARGES Single Premium Regular Premium Year Charge Premium 1st 6.75% Allocation 2nd to 5th 4.50% 3.3% Charge Thereaft 2.50% er Top-up premium: 1.25% ` 30/-pm during the first policy year and Policy Administration ` 30/- pm escalating at the rate of 3% Charge pa. thereafter Fund Management Debt Fund 0.70% p.a. Charge Mixed Fund 0.80% p.a. Switching Charge 2 switches free . ` 100 thereafter Miscellaneous charge ` 50/- for alteration.
  8. 8. Pension Plus – Other features • If premiums are not paid within days of grace life assured has to exercise option to (i) Revive the policy or (ii) Withdraw the policy. • Revival: Payment of Arrears without Interest. • Withdrawal : On Withdrawal, Monetary Value is due. 1/3rd of the Monetary Value can be commuted, Balance is used for Annuity.
  9. 9. Pension Plus – Other features • Withdrawal before 5 years: Monetary Value is calculated on the date of termination. The amount so calculated will earn interest @ 3.5% p.a. from date of withdrawal to completion of 5 years and will be due only on completion of 5 years from the date of commencement. • Withdrawal after 5 years : Fund Value is due.
  10. 10. Pension Plus – Other features • Two free switches per year. • Top-up premiums allowed except during the last 5 years of Maturity. • Partial Withdrawal Not allowed. • Surrender allowed. Discontinuance charges applicable for the first 5 years.
  11. 11. PENSION PLUS: DICONTINUANCE CHARGES Disc Annualized premium up to ` Annualized premium above ` onti 25,000/- 25,000/- nuan Discontinuance charges shall be lower Discontinuance charges shall be ce of lower of Year Annualised Maximum Annualised Maximum Premium or Fund Premium or FV Value 1 10% 2500/- 6% 6000/- 2 7% 1750/- 4% 5000/- 3 5% 1250/- 3% 4000/- 4 3% 750/- 2% 2000/- 5 NIL NIL NIL NIL abo ve
  12. 12. Why Pension Plus • Minimum Interest Guaranteed. This protects against fluctuation of interest due to policies of the government in the distant future. • Since individuals in Private Employment and those engaged in Business do not have pension security, Pension Plus fulfils their need for a secured future. • Being Market Linked, the plan has possibility of getting excellent returns. • Easy Purchase.
  13. 13. Why Pension Plus • Convenient modes of payment , Single Premium mode also available. • Compulsory purchase of Annuity ensures channelisation of funds for specific purpose. • Regular income from the commencement of annuity. Thank You !
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