Exide Life Golden Years Retirement Plan

Minimum entry age

18 years.

Maximum entry age

65 years.

Minimum vesting age

45 years.

Maximum vesting age

75 years.

Type

A traditional pension plan.

Basis

Single

Coverage

1. Guaranteed death benefit:On the death of the life assured the nominees will be paid the higher of the following:
   1. 105% of the gross premiums including top up premium paid until the date of death, or
   2. Gross premiums including top up premium, compounded at 1% per annum till the company has been intimated of the date of the death of the insured, or
   3. Balance in the IPA plus prorated interest from the last policy anniversary till the date of death.
2. Guaranteed vesting benefit:Upon vesting, higher of the following will be paid as guaranteed vesting benefit:
   1. Balance in the IPA
   2. Gross premium included top-up premiums compounded at 1% p.a.
3. Loyalty benefit:If the total premium payable (excluding top-up premiums) = Rs.4,80,000 or more, the policy is eligible to acquire a loyalty benefit at vesting.Loyalty benefit = 100% of the allocation charges collected at premium through the policy term and collected on premium throughout the policy term and credited in the IPA at vesting (on the condition that all due premiums have paid).

Premium paying term

1. Vesting:

1. 10 – 42 years
2. 10 years
3. 15 – 42 years

1. Premium paying term:

1. Single
2. Limited 5 - 9 years
3. Limited (10 – 41 years) and regular

Premium paying frequency

1. Annual
2. Monthly

Minimum premium

Premium paying term

5 – 9 years

Minimum annual premium

Rs.48,000

Minimum monthly premium

Rs.4,000

Flexibility in premium payment term

The company must be intimated at least two months prior to the policy anniversary in which the premium payment term alteration is to happen.

Premium payment term alteration only on policy anniversaries.

It must be noted that the premium payment term cannot be changed to “Single Premium”.

There are no charges for alteration.

Top-up premiums

The minimum top-up amount is Rs.2,000

The maximum limits of top-up premiums is illustrated below:

1. Unlimited top-up premiums are allowed in the first 15 years.
2. 5 times the annual premium is allowed for remaining policy duration from the 16^th policy year onwards in the case of limited and regular pay policies.
3. No top-up premiums are allowed under single pay policies from 16^th year onwards.
4. Absolutely no top-up premiums are allowed during the last two policy years.

Loan

Loan facility is not allowed under this policy.

Free look period

You need to submit a written reason for objection. The premium will be provided to you if you give a written notice for cancellation along with the policy document.

Grace period

The policyholder will get 30 days of grace period for annual premium paying frequency and 15 days for monthly modes from the premium due date to make the payment.

Tax benefits

You can avail tax benefits that are prevailing in India under the Income Tax Act, 1961.

Revival

The lapsed policy can be revived in 2 years from the first unpaid premium. If the policy is not revived, the discontinued policy pension account proceeds will be payable at the end of the lock-in period/ year revival period (whichever is later).

Surrender

Policies surrendered before the 5 year lock-in period,

1. The policy IPA net of policy discontinuance charges will be credit to the discontinued policy account. An interest rate shall be applicable on this account as stipulated from the IRDAI from time to time. Fund management charge of 0.5% will be levied on the IPA balance.
2. The proceeds of the discontinued policy will be payable on the completion of the 5 year lock-in period.
3. Surrender value is the balance in the discontinued policy account as on the date of payment of surrender value.
4. Discontinued policy account proceeds shall be paid to the nominee in the event the life assured dies during the lock-in period.

Policies surrendered after the 5 year lock-in period,

1. The surrender value will be no less than the balance in the IPA.
2. 1/3^rd of the vesting benefit can be taken as tax free commuted value. The remaining amount can be used to purchase a life annuity from Exide Life Insurance.
3. The policyholder can also purchase a single premium deferred pension plan subject to a minimum single premium of Rs.24,000.

Applicable charges

1. Premium allocation charges: Regular premiums:Policy yearsAllocation charges as % of annual premiumAnnual modeMonthly mode19%6%2 – 52.5%2%6^th onwards2%2%Single premiums:Policy yearAllocation charges as % of single premium13%2^nd onwards0%It must be noted that:
   1. Premium allocations charge for top-up premium is 1.5%.
   2. Premium allocations charges are guaranteed during the contract period of policy.
   3. In case the surrender / vesting benefit has been used to purchase a single premium policy, there will be no allocation charge.
2. Policy administration charge: Regular premiums:Policy yearCharges as a % of annual premium10%2^nd onwards4%Single premiums:Policy yearCharges as a % of annual premium10%2 – 52.2%6^th onwards0%
3. Annual management fees: An annual fee is charged based up on the accumulated balance in the IPA. The fee is charged at the rate 1.35% per annum.
4. Discontinuance / Surrender charges: In the below table, it should be noted that:Policy yearPolicy discontinuance chargesFor annual premium up to Rs.25,000For annual premium more than Rs.25,0001Lower of 20% of the RP or PAV subject to maximum of Rs.3,000Lower of 6% of the RP or PAV subject to maximum of Rs.6,0002Lower of 15% of the RP or PAV subject to maximum of Rs.2,000Lower of 4% of the RP or PAV subject to maximum of Rs.5,0003Lower of 10% of the RP or PAV subject to maximum of Rs.1,500Lower of 3% of the RP or PAV subject to maximum of Rs.4,0004Lower of 5% of the RP or PAV subject to maximum of Rs.1,000Lower of 2% of the RP or PAV subject to maximum of Rs.2,0005 and onwardsNilNil
   1. RP is annual premium.
   2. PAV is balance in individual pension account.
   3. There is no discontinuance charge for single premium policies.
   4. Annual management fee and discontinuance/ surrender charges are not guaranteed and are subject to periodic reviews pending approval of the regulatory authority.