Birla Sun Life Insurance-Empower Pension Plan

 There are no riders under this plan

Top-ups are not allowed under the plan.

A grace period of 30 days is allowed for annual, half-yearly and quarterly payment of premium and 15 days for monthly mode of premium payment.

A cooling off period or a free look period of 15 days (30 days for distance marketing mode) is granted to the policyholder after the policy issuance to review the policy terms and conditions. If found unsatisfactory, the plan can be cancelled within this period and the premium paid would be refunded after deducting the relevant mortality charge, service tax, cess and stamp duty paid

 The date when the plan term ends is called the Vesting date and on that date the Vesting Benefit is paid to the policyholder. The benefit would be higher of the following:

On the vesting date, the policyholder would have to choose any one of the following options of availing the vesting benefit. The options are:

• • Total Fund Value as on that date, or
  • The Guaranteed Vesting Benefit which depends on the risk profile and the vesting date.
    The minimum Guaranteed Vesting Benefit should be 101% of all premiums paid under the plan. The rate of the benefit depending on the vesting date and the risk profile as determined by the company is as follows:
  • 1/3rd of the vesting benefit could be withdrawn as lump sum and the remaining 2/3rd of the benefit could be used to buy an Immediate Annuity plan from the company 
  • The entire benefit can be used to buy an Immediate Annuity plan from the company 
  • The entire amount of vesting benefit can be used to purchase a Single Premium Deferred Annuity Plan from the company
  • If the policyholder is aged less than 55 years on the vesting date, he may choose to extend the vesting date to another available period. Additional premiums might be paid during this period and the Fund Value would be invested in the Advantage Guaranteed Fund for the deferment period.

 If the insured dies before the vesting date, higher of the following would be paid as death benefit:

• • Fund Value as on the date of death, or
  • Guaranteed Death Benefit.
    The Guaranteed Death Benefit would be the higher of the following:
  • 105% of all premiums paid till death
  • The aggregate premiums paid till death compounded at a guaranteed rate which is 0.5% p.a. for Aggressive Risk Profile, 1.5% p.a. for Moderate and 3% for Conservative Risk Profile.
    The nominee can either withdraw the entire death benefit in one lump sum or use it entirely or partially to purchase an annuity plan from the company.

 Being a ULIP plan, bonus is not declared.

Guaranteed Additions are added under the plan three times at specified intervals. Once started, they accrue every year thereafter. The period from which the additions start and the rate of addition are mentioned below:

As per the IRDA regulations, non-negative additions would be added to the Single Premium Fund Value to fulfill the maximum reduction in yield criteria from the end of the 5th policy year.

Loan is not available under the plan.

• Within the first 5 policy years

The policy has a 5 year lock-in period. If the policy is surrendered within the first 5 years, the funds in the Fund Value and any top-up premium Fund Value would be transferred to the Pension Discontinued Policy Fund after deducting the Discontinuation charges. The money would remain in the Pension Discontinued Policy Fund till the completion of 5 years and the Fund Management charges would be deducted as and when applicable. If the policyholder dies during this period, the Fund Value as on the date of death would be paid. Otherwise, after the completion of the lock-in period of 5 years, the Fund Value would be available as the Surrender Value

• After 5 years
  If the plan is surrendered any time after the completion of 5 years, the available Fund Value would be available as Surrender Value.
  The policyholder can use the Surrender Value in any of the following ways:
  • 1/3rd of the surrender value could be withdrawn as lump sum and the remaining 2/3rd of the value could be used to buy an Immediate Annuity plan from the company 
  • The entire amount of surrender value can be used to purchase a Single Premium Deferred Annuity Plan from the company
  • The entire Surrender Value could be utilized to buy an Immediate Annuity Plan from the company.

Paid-up is allowed only if premiums are paid for the first 5 years of the plan. If the policyholder does not want to revive or surrender his policy, the policy would be converted to a paid-up policy and no further premiums would be payable under the plan.

Revival is allowed within 2 years from the date of the first unpaid premium. The policyholder would be required to pay the outstanding premium and any interest charged by the insurer to revive his policy.