Birla Sun Life Pension Plans

Birla Sun Life Pension Plans enable you to save and accumulate a retirement corpus, which will allow you to enjoy your retirement years in luxury and tranquilly. These plans typically include life insurance as well as regular income alternatives to fulfil your financial needs.

Importance of Pension Plan

With workplace pensions becoming increasingly rare, retirement planning becomes a top responsibility for everyone. You cease working and earning at some point, but your costs do not stop. You must save significantly to cover your daily expenses as well as the rising costs of healthcare as you age. In addition, growing inflation threatens to deplete your funds.

In the Following Methods, an Annuity Pension Plan gives Benefits for Pleasant and Tranquil Living.

  1. Daily expenses and utility obligations such as power, water, and telecommunications must be met even after retirement. These are important commitments that you must keep.

  2. Short-term financial commitments – It is possible that you will need to repair specific home appliances or your automobile. When you are in severe need of such charges, you cannot put them off. There are also special occasions, such as festivals or family gatherings, to which you are expected to attend and contribute.

  3. Medical Costs – As you become older, regular medical check-ups and medication bills become more common. Pre-existing conditions may worsen and necessitate prompt medical attention, which will undoubtedly be costly.

Eligibility Criteria

CategoryMinimumMaximum
Entry age25 years70 years
Vesting age80 years
Policy term5 years30 years
ANNUAL PREMIUM AMOUNTRs.18000No Limit
Premium Payment TermEqual to the policy term  
Premium paying frequencyYearly, half-yearly, quarterly or monthly 
   

Features of Birla Sun Life Pension Plans

  1. The plan’s premium is supposed to be paid for the full time.

  2. When purchasing the plan, the buyer must select one of three risk appetites: aggressive, moderate, or conservative. Following that, under the Smart Option of investment, the premium net of charges is invested in two available funds, Maximiser Guaranteed and Income Advantage Guaranteed, in a predetermined proportion.

  3. The function controls the investment based on the risk profile selected, and as the plan approaches maturity, a higher amount of the fund value is transferred to the fund that best fits the customer’s risk profile.

  4. Guaranteed Additions are computed as a percentage of the average fund value over the previous year and are added beginning with the sixth policy year. From the sixth to the tenth years, the rate of addition is 0.25 percent, and from the eleventh year to the vesting date, it is 0.35 percent.

  5. Furthermore, beginning with the 11th year, 102.5 percent of premiums collected are given to the fund.

  6. The larger of the fund value or the Guaranteed Vesting Benefit is paid upon vesting, subject to a minimum of 101 percent of total premiums paid to the vesting date.

  7. Depending on the vesting age and risk profile selected, the Guaranteed Vesting Benefit ranges from 101 percent to 140 percent of total premiums paid.

  8. The policyholder can use the vesting benefit in a variety of ways. If he is under the age of 55, he can withdraw 1/3 of the accumulated fund in cash and receive an annuity from the other two-thirds, receive a pension from the entire fund, purchase a Single Premium Deferred Annuity, or defer the vesting age.

  9. On death, the fund value or 105 percent of premiums paid, or total premiums compounded at 0.5 percent – 3 percent depending on risk profile, whichever is greater, is paid to the nominee in cash or annuity pay-outs.

Different Types of Annuity Plans

There are two types of annuities: immediate annuities and deferred annuities. The annuity phase of an immediate annuity plan begins as soon as the purchase price is paid. In deferred annuity plans (the most prevalent type), payments begin after many years, when the policyholder retires and is no longer receiving a monthly income from his employment.

Sub- Categories of Annuity Plans

There are some sub-categories of annuity programs. They are as follows:

  1. Life annuity – The annuitant receives payments until the end of his life

  2. Guaranteed Period Annuity – In this case, the annuitant receives the annuity for a set number of years, such as 10, 15, or 20. If he dies during this period, the beneficiary will continue to receive income.

  3. Joint Life/Survivor Annuity – In this scenario, the joint annuitants are two people, such as a husband and wife. So, even if one person dies, the other person will continue to get the annuity until he or she dies. The rate of payments may be reduced after the death of one annuitant, although this is subject to the policy’s terms and conditions.

  4. Life Annuity with Return of Purchase Price – If the annuitant dies during the policy period, the purchase price is returned to the nominee.

  5. Increasing Annuity – The terms of this plan may be similar to any of the above-mentioned variants, but the payment would increase at a pre-determined rate, taking inflation into account.

Eligibility

CategoryMinimumMaximum
Entry age30 years90 years
Annual Annuity Amount₹ 12000No Limit
Purchase priceDepends on the policyholder’s age and the annuity amount chosen 

Features

  1. Annuity payments begin immediately with an instantaneous annuity plan.
  2. The customer has five annuity pay-out options to choose from:
  3. Life annuity with a fixed rate of return
  4. Lifetime Annuity and a Full Refund of Purchase Price
  5. Annuity guaranteed for 5 or 10 or 15 or 20 years, then payable for the rest of one’s life
  6. Life annuity that grows at a simple rate of 3% each year
  7. Joint Life Last Survivor, with annuity paid to the first annuitant and his spouse following his death.

BSLI Empower Pension -SP Plan

BSLI Empower Pension – SP Plan- a unit linked, non-participating single pay pension policy that allows you to accumulate your corpus over time with a single premium and makes you eligible for regular returns upon vesting.

Eligibility

 CategoryMinimumMaximum
Entry Age25 years70 years
Vesting age80 years
Policy term5 years30 years
Annual premium amount₹. 1 lakhNo Limit
Premium payment termSingle Pay 

Features

Similar to the previous plan, the premium is paid only once at the start of the plan under the Single Premium payment option. The following are the plan’s other features:

  1. When purchasing the plan, the buyer must select one of three risk appetites: aggressive, moderate, or conservative. Following that, under the Smart Option of investment, the premium net of charges is invested in two available funds, Maximiser Guaranteed and Income Advantage Guaranteed, in a predetermined proportion. The function controls the investment based on the risk profile selected, and as the plan approaches maturity, a higher amount of the fund value is transferred to the fund that best fits the customer’s risk profile.

  2. Guaranteed Additions are computed as a percentage of the average fund value over the previous year and are added beginning with the sixth policy year. From the sixth to the tenth years, the rate of addition is 0.25 percent, and from the eleventh year to the vesting date, it is 0.35 percent.

  3. The greater of the available fund value or the Guaranteed Vesting Benefit is paid upon vesting, subject to a minimum of 101 percent of all premiums paid up to the date of vesting.

  4. Depending on the vesting age and risk profile selected, the Guaranteed Vesting Benefit ranges from 103 percent to 160 percent of total premiums paid.

  5. The policyholder can use the vesting benefit in a variety of ways. He can commute a third of the corpus and receive an annuity from the remainder, receive a pension from the entire corpus, use the profits to purchase a Single Premium Deferred Annuity plan from the company, or even defer the vesting age if he is under the age of 55.

  6. On the insured’s death, the higher of the fund value or 105 percent of all premiums paid, or total premiums compounded at 0.5 percent – 3 percent depending on the risk profile selected, is payable to the nominee, who can withdraw the entire amount or use the amount to obtain an annuity from the company, is payable to the nominee.

  7. Income tax benefits are available for premiums paid under Section 80CCC and commuted portions under Section 10(10A) of the Income Tax Act. Section 10 exempts death benefits (10D).

When Should an Annuity Plan be Taken?

An annuity plan should be implemented as soon as possible. The individual should not wait for his retirement to begin before being left without financial support. To avoid this, an annuity plan should be purchased far in advance, so that when the policyholder retires and his regular wage ceases, the annuity will kick in and provide him with a substitute salary to cover his costs. Because an annuity plan helps you develop your own retirement fund, it would be beneficial to build the money over time. This will ensure that your yearly premiums are reasonable and that you are not financially strained. You can also choose to pay a single premium. So, if you ever receive a large sum of money, you can instantly put it in your annuity plan.

Does an Annuity Plan Provide a Life Cover?

No, an annuity plan does not provide life insurance, despite the fact that these products are sold by life insurance firms in India. The only way a nominee can benefit is if the annuitant dies without receiving the purchase price, in which case the nominee will get the amount in a lump sum or over time.

How to pay premium? What are the modes of payment available?

You can pay with three different modes:

1. Online Payment (Debit/Credit or NEFT)

2. Cheque Payment

3. ECS System

How can I Check Policy Status for Birla Sun Life Pension Plans?

There is a option of policy status in Birla sum life website.

What is the Policy Renewal Process for Birla Sun Life Pension Plans?

The procedure for using the Online Policy Renewal feature is as follows:

Step 1: Enter your valid credentials into the e-Portal.

Step 2: Use the payment method to renew your policy.

Step 3: Print the payment confirmation.

What is the Company’s Process to the settle claim for Birla Sun life Pension Plans?

Claims must be submitted within 30 days of the expiration of a medical diagnostic or treatment. The beneficiaries must submit a formal notification to the claims department, which must be signed by the Municipal Authority/Magistrate. Upon receipt of the application, the Claims Department sends the claimant a required collection of papers, including claim forms, which must be completed and returned for processing.

What is the Policy Cancellation Process for Birla Sun Life Insurance?

Birla Sun Life Insurance policyholders must bring all applicable policy paperwork, as well as a completed surrender form, to any of the branch locations in their city. If the form is filed before 3:00 PM, the surrender value will be computed using the current market rates; otherwise, the next day’s value will be used.