The Birla Sun Life Insurance Empower Pension Plan is a non-participating, unit linked pension policy. It is a simple plan that allows the policyholder to accumulate the premiums and all the investment returns for his/her golden days after retirement. After the policyholder has decided to vest the policy, he/she shall enter the income phase where the accumulated amount will be utilised to buy a regular income stream that is paid for the rest of the policyholder’s life. During the phase of accumulation, the Birla Sun Life Insurance Empower Pension Plan offers the Smart Option that allows the policyholder to administer and manage the investment portfolio on his/her behalf.
Under Smart Option investment, the policyholder’s portfolio is structured based on the risk profile and selected vesting date. The basic premiums are invested in two different funds. These are as follows:
In order to purchase the Birla Sun Life Insurance Empower Pension Plan, a customer has to fulfil certain eligibility criteria with respect to his/her age and the amount of insurance he/she seeks. These conditions are as shown below:
|Parameters||Criteria for Eligibility|
|Minimum age at entry||25 years|
|Maximum age at entry||70 years|
|Accumulation period||5 years to 30 years (subject to a maximum of 80 years of vesting age)|
Sum Assured – It is the amount that is paid out at the end of the policy term. In case of the Birla Sun Life Insurance Empower Pension Plan, the sum assured will be paid out as pension benefits.
Premium – The premium is the amount paid by the policyholder at regular intervals for keeping the policy active and alive. The basic premium in case of Birla Sun Life Insurance Empower Pension Plan can be paid monthly, quarterly, semi-annually and annually.
|Premium Payment Term||Regular Pay|
|Basic premium, if paid monthly||Rs.36,000 per annum|
|Basic premium, if paid quarterly||Rs.30,000 per annum|
|Basic premium, if paid semi-annually||Rs.24,000 per annum|
|Basic premium, if paid annually||Rs.18,000 per annum|
Disclaimer – Premiums may vary depending upon factors like location, term of plan, age, etc.
Plan Coverage – What the Birla Sun Life Insurance Empower Pension Plan covers
|Vesting Benefit||On the vesting date, the policyholder will get the fund value or the vesting benefit, whichever is greater. Guaranteed vesting benefit varies depending upon the risk profile and selected vesting date. Once the guaranteed vesting benefit is assigned to the policy at the beginning, it stays constant.|
|Death Benefit||In case the insured person encounters death caused by an unfortunate event while the policy is still active, the nominee will receive the fund value or the guaranteed death benefit, whichever is greater.|
|Surrender Benefit||The policy can be surrendered by the policyholder anytime till vesting.|
Suicide Exclusion - In case the life assured commits suicide, whether insane or sane, within a period of one year from the date of commencement of the policy or date of reinstatement of the policy, no benefit is paid out.
Other Key Features
|Free look period||Free look period of 15 days can be availed under the Birla Sun Life Insurance Empower Pension Plan. In case the policyholder purchases the policy via Digital Marketing, a free look period of 30 days can be availed. If the policyholder does not like a policy’s terms and conditions, he/she can return the policy within the free look period. However, the policyholder must provide reasons for not accepting the policy.|
|Grace period||Grace period of 30 days can be enjoyed by the insured for premium payment for quarterly, half yearly and yearly modes. For monthly premium payment mode, a grace period of 15 days can be availed by the insured individual.|
|Revival||The policy can be revived within a period of two years from the date of policy discontinuance.|
Tax benefits can be availed by the policyholder under the prevailing tax laws. It is advisable to consult a tax advisor if you wish to know more about the tax benefits that you can enjoy.
Birla Sun Life is one of the leading insurance providers in India. The insurance solutions offered by this company come with immense flexibility and customisation. The Birla Sun Life Insurance Empower Pension Plan is a simple plan that allows the policyholder to accumulate the premiums and all the investment returns for his/her golden days after retirement. After the policyholder has decided to vest the policy, he/she shall enter the income phase where the accumulated amount will be utilised to buy a regular income stream that is paid for the rest of the policyholder’s life.
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