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.|
|Premium paying term||
|Premium paying frequency||
|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.
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:
|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).|
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,
Policies surrendered after the 5 year lock-in period,
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.
|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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GST of 18% is applicable on life insurance effective from the 1st of July, 2017