Aditya Birla Sun Life Insurance has launched Nishchit pension plan, a non-linked, non-participating individual pension plan, aimed at individuals looking to build a retirement nest over the long term.
It will offer guaranteed additions - in other words, returns on premiums invested - through the policy term. These along with loyalty additions at the end of the term will translate into a pre-defined retirement corpus for the policyholders, depending on the premiums you pay, premium paying term, policy tenure, sum assured and so on.
In the case of the policyholder’s death during the tenure, the life insurance company will hand out the lump-sum death benefits to her nominees or heirs. The product does not come with any rider benefits such as accidental death and disability or critical illness rider benefits.
It offers premium paying terms ranging from five, six, eight, 10 and 12 years and regular pay options. If you choose limited pay terms, policy tenure will be premium paying term plus five years, with the maximum tenure being 35 years. In case you were to choose the regular pay option, the tenure will be 10 years.
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The minimum age at entry is 30 years, and those over the age of 70 years cannot buy the pension plan.
The maximum age to access the vesting benefits – that is, maturity proceeds at retirement - is 75 years, while the minimum age is 45 years. The plan also provides the flexibility to defer vesting by up to 10 years.
The maximum age at entry to invest in the pension plan is 65 years, while the minimum entry age is 30 years. The minimum annual premium that you need to pay to buy the policy is Rs 20,000. There is no limit on the maximum premium that you can pay, though Aditya Birla Sun Life Insurance will take the final call on approving higher coverage applications.
However, if your annual aggregate premiums across endowment policies that you hold exceed Rs 5 lakh, the maturity proceeds will not be tax-free under section 10(10D).
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