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  • Exide Life Golden Years Retirement Plan

    Exide Life Insurance

    A Exide Life Insurance plan to take care of your retirement needs and your family in case something happens to you. As you read this, there are literally two possibilities – you could live, or you could die. If you die, who’s going to take care of your family? And if you live, who’s going to take care of you? The Exide Life Golden Years Retirement Plan is the answer to both these pressing-yet-unaddressed questions. For a small investment every so often, or at one go – you can financially protect your dependants with comprehensive life insurance cover, and save a tidy sum that will be paid back to you when you need it most.

    Eligibility Conditions of 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.

    Key Features of Exide Life Golden Years Retirement Plan

    Type A traditional pension plan.
    Basis Single
    • Guaranteed death benefit:

      On the death of the life assured the nominees will be paid the higher of the following:

      • 105% of the gross premiums including top up premium paid until the date of death, or
      • 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
      • Balance in the IPA plus prorated interest from the last policy anniversary till the date of death.

      The following options are available to the nominee to utilise the death benefit:

      • Withdraw the entire death benefit
      • Use the death benefit (in any part thereof) to purchase annuity at prevailing rates at that date.
    • Guaranteed vesting benefit:

      Upon vesting, higher of the following will be paid as guaranteed vesting benefit:

      • Balance in the IPA
      • Gross premium included top-up premiums compounded at 1% p.a.

      GVB can be used in the following ways:

      • Policyholder can purchase a single premium deferred pension plan from Exide Life.
      • Policyholder has the option to extend the accumulation or deferment period up to the product limits till the age of 55 years.
      • 1/3rd of the vesting benefit can be used as a tax free committed value as per Section 10(10A) of Income Tax Act, 1961. The remaining amount can be used to purchase a life annuity at the prevailing rates.
    • 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
    • Vesting:
    • 10 – 42 years
    • 10 years
    • 15 – 42 years
    • Premium paying term:
    • Single
    • Limited 5 - 9 years
    • Limited (10 – 41 years) and regular
    Premium paying frequency
    • Annual
    • Monthly
    Minimum premium
    Premium paying term 5 – 9 years 10 – 42 years
    Minimum annual premium Rs.48,000 Rs.24,000
    Minimum monthly premium Rs.4,000 Rs.2,000
    Flexibility in premium payment term The policyholder has the flexibility to alter the premium payment term in the case of non-single premium payment terms.

    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 Policyholders have the flexibility to pay top-up premiums at any time two years before the vesting date.

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

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

    • Unlimited top-up premiums are allowed in the first 15 years.
    • 5 times the annual premium is allowed for remaining policy duration from the 16th policy year onwards in the case of limited and regular pay policies.
    • No top-up premiums are allowed under single pay policies from 16th year onwards.
    • 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 get 15 days and 30 days in case the policy was issued under the IRDA guidelines for distance marketing.

    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 This plan has a 5 year lock-in period and no payouts are available during this period except for the death benefits payout.

    Policies surrendered before the 5 year lock-in period,

    • 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.
    • The proceeds of the discontinued policy will be payable on the completion of the 5 year lock-in period.
    • Surrender value is the balance in the discontinued policy account as on the date of payment of surrender value.
    • 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,

    • The surrender value will be no less than the balance in the IPA.
    • 1/3rd 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.
    • The policyholder can also purchase a single premium deferred pension plan subject to a minimum single premium of Rs.24,000.
    Applicable charges
    • Premium allocation charges: Regular premiums:
      Policy years Allocation charges as % of annual premium  
        Annual mode Monthly mode
      1 9% 6%
      2 – 5 2.5% 2%
      6th onwards 2% 2%
      Single premiums:
      Policy year Allocation charges as % of single premium
      1 3%
      2nd onwards 0%
      It must be noted that:
      • Premium allocations charge for top-up premium is 1.5%.
      • Premium allocations charges are guaranteed during the contract period of policy.
      • In case the surrender / vesting benefit has been used to purchase a single premium policy, there will be no allocation charge.
    • Policy administration charge: Regular premiums:
      Policy year Charges as a % of annual premium
      1 0%
      2nd onwards 4%
      Single premiums:
      Policy year Charges as a % of annual premium
      1 0%
      2 – 5 2.2%
      6th onwards 0%
    • 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.
    • Discontinuance / Surrender charges: In the below table, it should be noted that:
      • RP is annual premium.
      • PAV is balance in individual pension account.
      • There is no discontinuance charge for single premium policies.
      • Annual management fee and discontinuance/ surrender charges are not guaranteed and are subject to periodic reviews pending approval of the regulatory authority.
      Policy year Policy discontinuance charges  
        For annual premium up to Rs.25,000 For annual premium more than Rs.25,000
      1 Lower of 20% of the RP or PAV subject to maximum of Rs.3,000 Lower of 6% of the RP or PAV subject to maximum of Rs.6,000
      2 Lower of 15% of the RP or PAV subject to maximum of Rs.2,000 Lower of 4% of the RP or PAV subject to maximum of Rs.5,000
      3 Lower of 10% of the RP or PAV subject to maximum of Rs.1,500 Lower of 3% of the RP or PAV subject to maximum of Rs.4,000
      4 Lower of 5% of the RP or PAV subject to maximum of Rs.1,000 Lower of 2% of the RP or PAV subject to maximum of Rs.2,000
      5 and onwards Nil Nil

    Advantages of Exide Life Golden Years Retirement Plan

    • Attractive returns with capital guarantee.
    • Consistent bonus track record on the existing retirement plans.
    • Flexibility in premium payment term and top-up premiums.
    • 1/3rd of the retirement fund is tax free and balance can be used for life long pension.
    • Tax benefits as per the prevailing tax laws are applicable.
    • Guaranteed death and vesting benefits are offered.
    • Loyalty benefits are applicable on this plan.

    How The Plan Works

    Mr. Babu, 45 year old who works at a call centre invests Rs.2 lakh per annum for 10 years. The coverage continues for 20 years, every two years, he pays a top-up of Rs.40,000. Assuming a growth rate of 8% p.a., his accumulated retirement corpus is Rs.57 lakhs.

    Sample illustration:

    Age 35 years 35 years 35 years 35 years
    Vesting term 25 years 25 years 25 years 25 years
    Premium payment term 20 years 15 years 10 years 1 year
    Monthly / single premium Rs.2,000 per month Rs.3,000 per month Rs.4,000 per month Rs.4,80,000
    Total premium paid Rs.4,80,000 Rs.5,40,000 Rs.4,80,000 Rs.4,80,000
    Guaranteed minimum vesting benefit Rs.5,58,417 Rs.6,43,578 Rs.5,86,176 Rs.6,15,567
    Vesting benefit if fund grows at 4% per annum Rs.6,52,295 Rs.7,63,901 Rs.6,96,740 Rs.8,12,096
    Vesting benefit if fund grows at 8% per annum Rs.12,08,062 Rs.15,27,039 Rs.15,20,503 Rs.20,72,842


    No riders are available with this policy.

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