• Star Union Dai-Ichi Life Guaranteed Pension Plan

    Life Insurance
    • Premiums as low as Rs.17/day for sum assured of Rs.1 crore*
    • Claim up to Rs. 1,50,000 deduction under section 80C**
    • Choose between annual and monthly premium payment options

    We all wish for our retired life to be comfortable, providing us an opportunity to fulfil our desires. While retirement offers sufficient time to do what we like, the lack of money could prevent us from completely utilising this time. The Guaranteed Pension Plan from Star Union Dai-ichi (SUD) Life is designed to ensure that money doesn’t play spoilsport during this beautiful phase of life. A deferred pension scheme, it is ideal for those looking to earn an additional income during retirement.

    Eligibility – Who is the Star Union Dai-ichi Life Guaranteed Pension Plan for?

    Individuals keen on securing their retired life through this plan should keep these basic criteria in mind.

    Parameters Criteria for eligibility
    Plan type Non-linked, non-participating deferred pension scheme
    Minimum age at entry 35 years – for 20 year policy 40 years – for 15 year policy 45 years – for 10 year policy 50 years – for 5 year policy
    Maximum age at entry 65 years
    Minimum age at maturity (vesting) 55 years
    Maximum age at maturity (vesting) 70 years

    Sum Assured and Premium Range – What you get and what it costs

    Sum Assured – This plan offers a certain amount to the policyholder, with this called the Assured Vesting Benefit. This amount is computed after taking the premiums into account. The premium paid is multiplied with a vesting benefit factor to determine the amount one is entitled to. The premium payment term and the policy term are critical components in determining the assured vesting benefit.

    Minimum Sum Assured Total premiums paid x 130%
    Maximum Sum Assured Total premiums paid x 175%

    Premium* - The vesting benefit depends on the premium paid, with higher the premium higher the benefit. The premium amount varies based on the policy and premium payment term. A policyholder can choose a premium payment term and frequency of payment based on his/her current finances. The table below highlights the various parameters associated with it.

    Minimum term of the policy 5 years
    Maximum term of the policy 20 years
    Premium Payment Term (PPT)
    • Single premium for 5/10 year policy term
    • 5 years for 10 year policy term
    • 10 years for 15 year policy term
    • 15 years for 20 year policy term
    Premium Payment Mode
    • Yearly
    • Half-yearly
    • Quarterly
    • Monthly
    Minimum Single Premium Amount Rs.1 lakh
    Maximum Single Premium Amount Rs.5 crore
    Minimum Yearly Premium Amount
    • For 5 year PPT – Rs.30,000
    • For 10 year PPT – Rs.20,000
    • For 15 year PPT – Rs.20,000
    Maximum Yearly Premium Amount Rs.5 crore

    Plan Coverage – What the Star Union Dai-ichi Life Guaranteed Pension Plan covers

    The Guaranteed Pension Plan is designed to cater to the retired phase of an individual’s life. In addition to providing a benefit on retirement, the plan also provides financial support in the event of demise of policyholder. The benefits provided by the policy are listed below:

    Death Benefit If the policyholder passes away during the policy term, his/her nominee will be paid a death benefit. This is equivalent to the highest among the following:
    • 1.05 times all premiums paid, or
    • An interest of 6% added to all premiums paid. This interest is compounded till time of death.
    Vesting Benefit If the policyholder survives the entire policy term, he/she will be paid a vesting benefit. This is a certain percentage of the premiums paid.

    Riders/Add-on plans – Additional coverage under the Star Union Dai-ichi Life Guaranteed Pension Plan

    A policyholder cannot enhance the cover accorded by this plan by adding a rider to it.

    Exclusions – What the Star Union Dai-ichi Life Guaranteed Pension Plan does not cover

    There is a suicide exclusion under this plan wherein the insurer will pay the nominee a sum equal to 80% of premiums paid. This exclusion holds true if the suicide is committed within a year of purchasing/renewing the policy.

    Other Key Features

    Grace period Yearly mode – 30 days Half-yearly mode – 30 days Quarterly mode – 30 days Monthly mode – 15 days
    Free look period A policyholder can return the policy if he/she does not agree with the policy terms and conditions. A 30 day period is provided in cases where the policy is purchased through distance marketing. This period is reduced to 15 days if the policy was purchased through a regular mode.
    Revival A policy which has lapsed due to non-payment of premiums can be revived by paying all due premiums. The insurer provides a two year period within which revival can be done. Additionally, an interest of 9% per annum will be charged on the outstanding amount.
    Surrender value A surrender value will be paid if the policyholder chooses to surrender the policy. There is a minimum time period for which the policy should be active in order for it to acquire this value. In case of single premium policy it is possible to surrender the policy at any time after the premium has been paid. In case of 5 year PPT it is possible to surrender the policy if the premium for a minimum of two years is paid. In case of 10/15 year PPT it is possible to surrender the policy if the premiums for a minimum of three years are paid.
    Loan No loan facility provided

    Tax Benefits – How you can save with the Star Union Dai-ichi Life Guaranteed Pension Plan

    A policyholder can claim tax exemption on the premium paid by him/her. This is permitted under Section 80C of the Income Tax Act, with the maximum limit being Rs.1.5 lakh per year (as of FY 2017-18). The vesting benefit received is eligible for benefits under Section 10(10A)(iii) of the same act.

    Why you should buy the Star Union Dai-ichi Life Guaranteed Pension Plan?

    Buying the Guaranteed Pension Plan from Star Union Dai-ichi Life helps one set a foundation for their retired life. Using this, an individual can meet different requirements which might arise in the future. The money received at the end of the tenure can be reinvested in different schemes, ensuring that one can get a retirement income for as long as they live. The life cover offered by the plan helps one continue living normally, without worrying about what would happen to his/her family in case of an unforeseen event.

    One key aspect any individual looks at before buying an insurance policy is the insurer. Choosing a wrong insurer could negate all the investment, leaving the family in turmoil. Star Union Dai-ichi Life has over 64 million customers in India, a testament to their service. A joint venture between Union Bank of India, Bank of India, and Dai-ichi Life, the insurer has a presence across the country, with over 11,000 branches of the two partner banks helping reach remote areas. Additionally, Dai-ichi Life brings in over a century of insurance experience to the entity, incorporating Japanese technology with Indian ingenuity.

    A good way to gauge the insurer is the grievances solved ratio, which was a high 95.42% for this insurer in the year 2015-16. An individual can purchase this plan and be rest assured that there will be no hassles when it comes time to file a claim.

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