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BSLI Empower Pension - SP Plan

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Plan Benefits

Payment Options

Policy Coverage

Customer Service

Overview

Most of us yearn for a relaxed retired life. Retirement is all about reaping the benefits of all the hard work that you put in your most productive years. Retirement should ideally be the most rewarding experience of your life. However, if you don’t plan your future by making the right investments, all your dreams about exotic holidays, pilgrimages and so forth will not turn into reality. One of the ways to ensure financial security in your old age is opting for Empower Pension - SP Plan offered by Birla Sun Life Insurance.

BSLI Empower Pension - SP Plan is a unit linked, non-participating single pay pension plan which entails single premium and retirement corpus. The period of building of retirement corpus is known as ‘accumulation period.’ When customers vest their policy, they will enter the ‘income phase.’ Policyholders can avail of the smart option. The accumulated corpus is utilized to buy an annuity option.

Eligibility Conditions of BSLI Empower Pension - SP Plan

Entry age

Minimum: 25 years

Maximum: 70 years

Planning to vest before 80 years

Key Features of 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

  • 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.
  • On each anniversary of policy, the fund value will be rebalanced according to prevailing percentages.
  • 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.
  • 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

  • Vesting Benefit

    Under 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.

  • Guaranteed Additions

    On 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.

  • Death Benefit

    The 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.

  • Surrender Benefit

    In 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

Advantages of BSLI Empower Pension - SP Plan

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.

How The Plan Works

Sandeep Sharma, a 40-year-old IT employee opts for a single premium of Rs. 1 lakh with an accumulation period of 15 years. Sharma opted for a conservative profile. If Sharma dies after 10 years of commencement of the policy, his nominee will receive greater of 105% of single premium paid or accumulation of single premium at a guaranteed rate of 3.0% p.a. The nominee will, therefore, receive around Rs.134,382.

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GST of 18% is applicable on life insurance effective from the 1st of July, 2017

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