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Lifetime Super Pension: Benefits in Detail

The document describes a Lifetime Super Pension plan that allows individuals to save and invest regularly during their working years and receive a regular pension payout post retirement. The plan offers choice of investment funds, death benefit, tax benefits, flexible retirement and annuity options. Charges include premium allocation charges, policy administration charges and fund management charges.

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Sathish Kumar
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57 views

Lifetime Super Pension: Benefits in Detail

The document describes a Lifetime Super Pension plan that allows individuals to save and invest regularly during their working years and receive a regular pension payout post retirement. The plan offers choice of investment funds, death benefit, tax benefits, flexible retirement and annuity options. Charges include premium allocation charges, policy administration charges and fund management charges.

Uploaded by

Sathish Kumar
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Lifetime Super Pension

Lifetime Super Pension is a unit linked plan that provides you with a regular pension post-retirement, with the best options in investment and insurance. During the policy term, you pay regular premiums and accumulate savings for your retirement. The premiums you pay are invested in the market after deducting charges, depending upon the fund(s) you choose. Accordingly, units are allocated to your policy at the applicable Net Asset Value (NAV). The returns in this policy will depend upon the performance of the funds chosen by you. In this policy, the investment risk in investment portfolio is borne by the policyholder. Benefit Illustration It is recommended that you read the enclosed customized Electronic Benefit Illustration (EBI) in detail. It will help you track the growth of your fund(s) and other benefits at regular intervals. For your convenience we have highlighted every 5th year of your policy term.

Benefits in detail:
I. Benefits during accumulation phase (premium payment phase) Choice of investment funds The policy gives you an option to invest your premium amount in any of the 8 funds* available. You can choose to invest fully in any one fund or allocate your premiums into several funds, in a proportion that suits your investment needs. Please refer to the product brochure / policy document, for a detailed understanding of these funds or log on to www.iciciprulife.com Death Benefit At the inception of the policy, you have 2 options of Sum Assured: l You can opt for a Zero Sum Assured and make it a pure accumulation plan, or l Opt for a Sum Assured which can be chosen between a minimum of Rs.1,00,000 and a maximum of annual premium multiplied by the policy term

Key Features Document - Contd.


In the unfortunate event of death, the nominee receives the higher of Sum Assured or the Fund Value. Where the spouse is the nominee, this may be used to purchase an annuity. (For details please refer to the policy document). Riders (Optional) You can further customize your LifeTime Super Pension policy with optional riders, to enjoy additional protection. This plan offers Accident and Disability Benefit Rider (ADBR) and Waiver of Premium Rider (WOPR). The riders, if opted by you, are described in the first page of the Policy Certificate. For a detailed understanding of the riders and their charges, please refer to the Policy Document (Annexure: Supplementary Benefits). Tax benefit Tax benefits under the policy are subject to conditions under Section 80 CCC, 10(10 A) of the Income Tax Act, 1961. Tax laws are subject to amendments from time to time. II. Benefits during annuity (pension) phase Flexible retirement date You can start receiving pension any time after you reach 45 years of age. However, you have the option of deferring this date till the age of 75 years. Maturity benefit The accumulated value of your investment will start paying you a regular income in the form of a pension, at a frequency chosen by you. The annuity can be received monthly, quarterly, half-yearly or yearly. The annuity options and the annuity rates are not guaranteed in advance but would be determined at the time of vesting. For conditions related to annuity, please refer to the details provided in the policy document. Choice of annuity option Choose among 5 different ways of receiving your pension. For details, please refer the product brochure, policy document or visit www.iciciprulife.com. Commutation of pension fund You have the option to receive a lump sum amount up to 1/3rd of the total fund value, tax-free, on the vesting (retirement) date, subject to the then prevailing tax laws, and invest the remaining fund value in purchasing an annuity. Choose your pension provider (open market option) At the time of retirement, this option enables you to buy a pension from any other life insurer of your choice.

Flexibility options:
Automatic Transfer Strategy (ATS) With this strategy, you can invest your entire premium amount in our money market fund (Pension Preserver) and transfer a chosen amount every month into any one of the funds, namely Pension Multiplier II/ Pension Flexi Growth II and Pension R.I.C.H II funds either on the 1st or 15th of every month. This facility will be available free of charge Top-up You can decide to increase your investment by investing surplus money over and above your premiums, at your convenience. The minimum amount of top-up is Rs.2,000. Top Up premiums can be paid anytime during the term of the contract till the original vesting date provided all the due regular premiums have been paid by you. Switch This facility enables you to make the most of the current market scenario by transferring your investments from one fund to another. You are entitled to make upto 4 free switches in a given policy year where the minimum switch amount has to be Rs.2,000. You can switch your funds online by using your E-PIN. To know the procedure for generating your E-PIN, please refer to the enclosed guide.

Key Features Document - Contd.


Cover continuance option To avail of this feature, you need to opt for this option. It ensures that your life insurance cover continues in case you would be unable to pay premiums anytime after payment of first three years' premium. All applicable charges will be automatically deducted from the units available in your fund. In case you do not opt for this feature (after paying premium for three consecutive years') and the premium payment is not resumed within 2 years of last premium paid, your policy would be foreclosed and applicable Surrender value will be paid out. Surrender value The policy acquires a surrender value after payment of full premium for the first policy year. This would be payable after applying certain surrender charges, and only after completion of three policy years. For details, please refer to the product brochure, policy document or simply log on to www.iciciprulife.com

Charges under the policy


Premium Allocation Charge This will be deducted from the premium amount at the time of premium payment and the balance amount would be used for allocation of units in the fund(s), as follows:
Annual Premium Rs 12,000 - 19,999 20,000 - 49,999 50,000 and above Year 1 20% 17% 14% Year 2 9% 9% 9% Year 3- 10 1% 1% 1% Year 11 onwards 0% 0% 0%

Policy Administration Charge There would be a fixed Policy Administration Charge of Rs. 40 per month, which will be recovered by cancellation of units. Mortality Charge (applicable if Sum Assured is chosen) Mortality charge will be deducted on a monthly basis on the life cover. Life cover is the difference between the Sum Assured and the Fund Value at the time of deduction of charges. Indicative charges per thousand of life cover for sample ages (in years) for healthy male life are as under:
Age (Yrs) Rs. 20 1.33 30 1.46 40 2.48 50 5.91

Fund Management Charge (FMC) The annual fund management charge which will be adjusted from the Net Asset Values (NAV) of various Funds, are as follows:
Fund Pension Flexi Growth II Pension Multiplier II/ Pension R.I.C.H. II 1.50% p.a. 1.50% p.a. Pension Flexi Balanced II 1.00% p.a. Pension Pension Balancer II Protector II Pension Preserver Pension Return Guarantee Fund* 0.75% p.a. 1.50% p.a.

FMC
l

1.00% p.a. 0.75% p.a.

These charges will be deducted by cancellation of units.

Switch Charge: You are allowed 4 free switches every policy year. Switches beyond this will be charged at Rs.100 per switch, by cancellation of units. Service Tax and Education Cess: Levied in respect of service provided to a policyholder by a life insurer in relation to the risk cover in life insurance [Section 65(105)(zx) of Finance Act, 1994, as amended by Finance Act (No 2) 2004].

Key Features Document - Contd.


Note: The above information must be read in conjunction with the policy document l l In case of any conflict between this document and policy document, the terms mentioned in policy document shall be final and shall prevail l If the fund value falls below 110% of annual premium, the policy shall be terminated by paying the surrender value i.e. Fund Value after applying surrender charges l The Net Asset Value (NAV) of the units may fluctuate based on the performance of fund and factors influencing the capital market and the policy holder are responsible for his / her decisions. l Insurance is the subject matter of the solicitation *Kindly contact your nearest branch or our call centre regarding availability of the PRGF and the applicable guaranteed NAV.

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