BSLI Empower Pension - SP Plan

Type

Single premium unit-linked non-participating pension plan without life cover

Pay Term

Single

Minimum premium

Rs.1,00,000

Maximum premium

No limit

Minimum policy term

Accumulation phase is 5 years should be completed before a policyholder decides to vest

Premium Payment

Under this plan, policyholders can pay premium once at the time of inception. Premium can be paid through cheque/demand draft and credit card.

Top-ups

Not allowed under this plan

Investment Option

The only option available under this policy is smart option.

Smart Option

1. Under this option, the single premium will be allocated between an equity fund known as maximiser guaranteed fund and a debit fund, namely, income advantage guaranteed fund based on the vesting date and risk profile selected by the policyholder.
2. On each anniversary of policy, the fund value will be rebalanced according to prevailing percentages.
3. Customers can choose from any one of the risk profiles such as aggressive, moderate or Conservative. Birla Sun Life insurance will administer the investment portfolio on the behalf of policyholders.
4. The risk profile which is selected at the time of submitting the application form cannot be changed throughout the accumulation period.

Funds

The list of funds available under the policy are listed in the table below:

Investment Fund

Risk Profile

Income Advantage Guaranteed

Very low

Maximiser

Guaranteed

High

Pension Discontinued Policy Fund

Very low

Benefits

1. Vesting BenefitUnder this plan, the end of the accumulation phase is known as the vesting date. In the income phase, policyholders will purchase an annuity and receive the greater of guaranteed vesting benefit or the fund value on vesting.
2. Guaranteed AdditionsOn the sixth policy anniversary, guaranteed addition is 0.25% of the average fund value in the last 12 months plus on the 11th policy anniversary and thereafter, it is 0.35% of the average fund value in the last 12 months plus on the 16th policy anniversary and thereafter, guaranteed addition is 0.35% of the average fund value in the last 12 months.
3. Death BenefitThe nominee, under the plan, will be paid the greater of the guaranteed death benefit or fund value on the intimation of death. Guaranteed rates for aggressive, moderate and conservative risk profiles are 0.5%, 1.5% and 3% p.a. respectively.
4. Surrender BenefitIn case of emergencies, policyholders can surrender their policy at any point of time till vesting.

Loan Policy

Not available

Freelook Period

15 days from the receipt of the policy

Tax benefits

Policyholders are eligible for tax benefits under section 80C and section 10 (10A) of the Income Tax Act,1961.

Smart Option

Under this option, the overall asset allocation becomes conservative (veering towards debt) as and when policyholders approach their retirement. It, therefore, not only balances the proportion of equity-debt but also allows policyholder to zero in on their risk profile at the outset. As a result, the investment is shielded to an extent by market volatilities.