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Exide Life Golden Years Retirement Plan

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ING Golden Years Retirement Plan

ING Golden Years Retirement Plan is a Regular Payment Deferred Variable Annuity Plan. It is a Non-linked Plan from ING Life Insurance Company.
 
How it works – In this plan, payment can be made in a lumpsum under Single Premium Paying Option or for a limited tenure under Limited Premium Paying Option or throughout the Policy Tenure under Regular Premium Paying Option.
 
The Vesting Date, from when the Annuity or the Pension would begin needs to be specified at the start of the plan. This date shall be the vesting date of the retirement plan and the period till the vesting date shall be the vesting term chosen.
 
All premiums paid by policyholder, subject to the deduction of all applicable charges, will be transferred to an Individual Pension Account which earns an interest of:
  • Minimum Floor Rate Interest of 1% p.a. compounded for the entire vesting term.
  • Additional Interest Rate of 4% p.a. compounded for the first 5 years and 0.5% p.a. compounded for the remaining years
  • Residual Addition of Interest from the end of the 5th policy year
 
There is Loyalty Benefit also available in this plan for total premiums paid for Rs 4,80,000 or more, including Top Up Premiums such that the Allocation Charges collected throughout the Policy Tenure is credited to the Individual Pension Account, provided all due premiums are paid.
 
On vesting, i.e. on completion of the Policy Tenure, there is an option to policyholder to opt for Annuity from the entire corpus or withdraw 1/3rd of the same tax free and then opt for Annuity from the remaining 2/3rd. The annuity needs to be purchased at the prevailing Annuity Rates from ING Life.
 
However, if the policyholder dies before the Vesting Date, the nominee will get the higher of 105% of gross premiums paid including top-up premiums till the date of death, Total premiums including top-up premiums compounded at 1% p.a. till the date of intimation of death or Balance in the Individual Pension Account + prorated interest from last policy anniversary till the date of intimation of death as Guaranteed Death Benefit and the policy terminates.
 
If the policyholder dies after the vesting date, the Death Benefit would depend on the Annuity Option chosen.
 

Key Features of ING Golden Years Retirement Policy

  • This is a Deferred Annuity Plan without Bonus facility
  • All premiums in this plan including top-up premiums paid, net of charges are transferred to the Individual Pension Account which is then invested in the Capital Guaranteed Fund
  • The Individual Pension Account is guaranteed to grow at minimum 1% compounded per annum
  • There is an additional Interest Guarantee of 4% per annum compounding applicable on the Individual Pension Account during the first 5 policy years and 0.5% thereafter
  • The Individual Pension Account also receives a Residual Addition of interest from the end of the 5th Policy year onwards
  • In this plan, there is a flexibility in choosing retirement date – when the Pension payout will start
  • There is also a flexibility to alter the premium payment term in this plan
  • This plan offers Loyalty Benefit for total premiums of Rs 4,80,000 or more
  • In addition to Regular Premiums, the policyholder can choose to pay Top Up Premiums except in the last 2 policy years
COMPARE THIS PLAN WITH OTHER PENSION PLANS

 

Benefits you get from ING Golden Years Retirement Policy

Death Benefit – if the Life Assured dies within the Policy Tenure, i.e. before Vesting, the nominee will get the higher of the following as Guaranteed Death Benefit:
  • 105% of gross premiums paid including top-up premiums till the date of death
  • Total premiums including top-up premiums compounded at 1% p.a. till the date of intimation of death
  • Balance in the Individual Pension Account + prorated interest from last policy anniversary till the date of intimation of death
 
The nominee has the option to either withdraw the entire amount or purchase annuity at the then prevailing annuity rates.
 
For Death Benefit after Vesting, it depends on the Annuity Options chosen.
 
Guaranteed Vesting Benefit – The higher of Gross Premiums paid, including Top Up Premiums, compounded at 1% p.a. or the Balance in the Individual Pension Account, is the Guaranteed Vesting Benefit which can be utilized for the following Vesting Options:
  • Defer the Vesting date till the maximum Vesting Age of 75 years of age of the policyholder
  • Withdraw 1/3rd of the Guaranteed Vesting Benefit as Tax Free under section 10(10)A and then purchase Immediate Annuity from the remaining 2/3rd at the prevailing Annuity Rates from ING Life
  • Purchase Immediate Annuity from the entire Fund at the prevailing Annuity Rates from ING Life
 
Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,50,000 are allowed as a deduction from the taxable income each year under section 80C and 1/3rd of the Maturity Proceeds are tax free under section 10(10)A subject to fulfilment of terms and conditions.
 
 

Eligibility conditions & other restrictions in ING Golden Years Retirement Policy

 
Minimum
Maximum
Single Premium (in Rs.)
2,40,000
No Limit
Regular Premium (in Rs.)
For PPT=5-9 years, 48,000
For PPT=10-42 years, 24,000
No Limit
Policy Term (in years)
Whole Life
Vesting Term/ Premium Paying Term (in years)
For Vesting Term 10-42 years: PPT=Single
For Vesting Term 10 years: PPT=Limited tenure of 5-9 years
For Vesting Term 10-42 years: PPT=Limited tenure of 10-41 years or till the end under Regular Option
Premium Payment Term (in years)
Single
42
Entry Age of Policyholder (in years)
18
65
Age at Vesting (in years)
45
75
Payment modes
Yearly & monthly
 
 

Additional Features and Benefits of ING Golden Years Retirement Plan

Riders – There is no additional rider in this plan
 
Top Up Premiums – are allowed in this plan for an unlimited amount in the first 15 policy years and upto 5 times the Annualized Premium from the 16th year onwards. Top Up Premiums are not allowed in the last 2 policy years. Also, there is no flexibility of Top Up Premiums for Single Premium Plans.
 

Charges in ING Golden Years Retirement Plan 

Premium Allocation Charge – This charge is deducted from the Premium Paid by you
 
Policy Year
Premium Allocation Charge for Annual Mode
Premium Allocation Charge for Monthly Mode
1st
9%
6%
2nd to 4th 
2.5%
2%
6th onwards
2%
2%
Single Premium
3% in Year 1 only
 
 
Policy Administration Charge— This is the charge for the administrative working of the policy

 

Policy Year
Premium Allocation Charge
1st
0%
2nd to 5th
4% for Regular and 2.2% for Single
6th year onwards
4% for Regular and 0% for Single
 
 
Annual Management Charge– This charge is deducted annually of 1.35% p.a. on the balance in the Individual Pension Account.
 
 
Discontinuation/ Surrender Charge— This charge is for discontinuing the plan before the end of the Policy Tenure.

 

Year of Discontinuation
Annual Premium <= Rs 25,000 p.a.
Annual Premium > Rs 25,000 p.a.
1st
Lower of 20% of (Regular Premium or Balance in Individual Pension Account) subject to a maximum of Rs 3,000
Lower of 6% of (Regular Premium or Balance in Individual Pension Account) subject to a maximum of Rs 6,000
2nd
Lower of 15% of (Regular Premium or Balance in Individual Pension Account) subject to a maximum of Rs 2,000
Lower of 4% of (Regular Premium or Balance in Individual Pension Account) subject to a maximum of Rs 5,000
3rd
Lower of 10% of (Regular Premium or Balance in Individual Pension Account) subject to a maximum of Rs 1,500
Lower of 3% of (Regular Premium or Balance in Individual Pension Account) subject to a maximum of Rs 4,000
4th
Lower of 5% of (Regular Premium or Balance in Individual Pension Account) subject to a maximum of Rs 1,000
Lower of 2% of (Regular Premium or Balance in Individual Pension Account) subject to a maximum of Rs 2,000
5th onwards
NIL
 
 
Mortality Charge — This charge is paid for the Life Coverage provided according to the Sum At Risk. This is based on the mortality rates which are specified for all ages and amount of cover being provided.
 
Service Tax would be applicable on the charges depending on the applicable rates.
 

What happens if?

You stop paying the premium before 5 years - If the policy holder stops paying the premium, the insurance cover will cease and the Individual Pension Account net of any discontinuance charge will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will earn a minimum guaranteed interest rate as applicable to Discounted Pension Policy Account and the proceeds from this will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated Individual Pension Account will be payable to the nominee.
The policy can be revived as well but within a period of 2 years from the Date of Discontinuance of the Policy or before completion of the Lock-in period of 5 policy years, whichever is earlier.
 
You stop paying the premium after 5 years - If the policy holder stops paying the premium after 5 years, then there are 3 options:
  • To revive the Policy within 2 years from the due date of the first unpaid premium
  • Convert the policy to Paid Up
  • Take the proceeds from Surrender Value and terminate the plan
 
You want to surrender the policy – If the policy holder wants to surrender the policy before completing 5 years, then the insurance cover will cease and the Individual Pension Account net of any discontinuance charge, if at least 5 years’ premiums have not been paid, will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will earn a minimum guaranteed interest rate as applicable to the Discounted Pension Policy Account and the proceeds from this will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated Individual Pension Account will be payable to the nominee.
 
If the policyholder surrenders the policy after completion of 5 policy years, then there is no Surrender/Discontinuance Charges and the Surrender Value is paid to the policy holder and the policy will terminate immediately.
 
You want a loan against your policy - There is no loan available under this plan.




 
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