Star Union Dai-Ichi Life Guaranteed Pension Plan

Star Union Dai-Ichi Life Guaranteed Pension Plan is a non-linked non-participating deferred type pension plan designed to manage your life after retirement. These plans help you in establishing a any new business, deciding to brush up any hobby, planning an exciting world tour or just enjoying some quality time with your loved ones in the house. This plan ensures to keep you safe and equipped in terms of planned as well as unplanned financial needs by offering an approximate amount after retirement.

Eligibility of the Star Union Dai-Ichi Life Guaranteed Pension Plan

Each and every individual should be and must be interesting in planning a secured retired life for themselves by choosing this plan and for opting this, you all must by heart some basic criteria.

Parameters for Eligibility are mentioned below

1. Plan Type:- It stays as non-linked, non-participating deferred type pension policy plan.

2. Minimum Entry Age:- 35 years – for 20 year policy 40 years – for 15 year policy 45 years – for 10 year policy 50 years – for 5 year policy.

3. Maximum Entry Age:- 65 years

4. Maximum Maturity Age or the Powering Age:- 55 years

5. Maximum Maturity Age or the Powering Age:- 70 years

Sum Assured and Premium Range – What you receive and what is the cost?

The Total Sum Assured – This plan provides a certain amount to the policy owner, which is known as the Assured Vesting or Powering Benefit. This amount is achieved after depositing all the premiums into the account. The premium which you pay is multiplied with a powering benefit factor to decide the amount that the policy owner is allowed to receive. The premium payment term and the policy term are the major and crucial components in deciding the assured vesting or powering benefit.

1. Minimum Sum Assured Total premiums paid x 130%

2. Maximum Sum Assured Total premiums paid x 175%

Premium* – The vesting or the powering benefit is based on the premiums you’ve paid, with higher the premium payment rate higher will the benefit. The premium amount differs at some point based on the policy and premium payment term. A policy owner can choose a premium payment term and rate of regularity of payment based on his or her current finances. The below mentioned highlights shows the various parameters associated with it.

1. Minimum term of the policy:- 5 years

2. Maximum term of the policy:- 20 years

3. Premium Payment Term (PPT):-

     a. Single premium for 5/10 year policy term

      b. 5 years for 10 year policy term

      c. 10 years for 15 year policy term

      d. 15 years for 20 year policy term

4. Premium:-  Payment Mode

       a. Yearly

       b. Half-yearly

       c. Quarterly

       d. Monthly

5. Minimum Single Premium Amount:- Rs.1 lakh

6. Maximum Single Premium Amount:- Rs.5 crore

7. Minimum Yearly Premium Amount:-

      a. For 5-year PPT – Rs.30,000

      b. For 10-year PPT – Rs.20,000

      c. For 15-year PPT – Rs.20,000

8. Maximum Yearly Premium Amount:- Rs.5 crore

Star Union Dai-ichi Life Guaranteed Pension Plan Included Covers

The Guaranteed Pension Plan has layout that deals with everything which happens in the retired phase in an individual’s life. In addition to giving a benefit on retirement, the plan also offers financial support in the event of sudden death of the policy owner. The benefits offered by the policy are listed below:

1. Death Benefit:- If the policy owner passes away in between the policy term, his or her mentioned nominee will be paid a death benefit. This equals to the highest among the following:

    * 1.05 times all premiums are given, or

    * Approximately 6% of interest added to all the paid premiums. This interest is carried ahead till the time of death.

2. Vesting or Powering Benefit:- If the policy owner survives the entire policy term, he or she will be paid a vesting or powering benefit. This is a certain percentage of the premiums given.

*  Add-on plans – Additional Cover Plans offered by the Star Union Dai-ichi Life Guaranteed Pension Plan

1. Guaranteed Pension or Income

This allows you to get a fixed and regular income even after retiring which is the deferred plan or can also get the amount immediately after investing that is the immediate plan, the paybacks are given depending upon how how you are investing. This provides a financially independent life even after retirement. You can use a retirement calculator to get a rough estimate of what is the approximate amount that you require after your retirement.

2. Tax-Efficiency

Some pension plans provide tax immunity which is specified under Section 80C. If you wish to invest in a pension plan, then the Income Tax Act, 1961, provides a significant tax break under Chapter VI-A. For an example, the Atal Pension Yojana and the National Pension Scheme are the plans to tax deductions which falls under Section 80CCD.

3. Flexibility

The flexibility or the liquidity offered by the retirement plans are usually low and less than other plans. However, there are some plans designed in a maaner that allows withdrawal even during the fund collection phase of the plan. This will ensure amount to fall back on the running and use during the emergencies without having to stay dependent on the bank loans or others for financial requirements.

4. The Powering Age

The powering age is the beginning time frame when you initially start receiving your saved pension amount that too on a monthly basis. For instance, most of the pension plans put their minimum powering age at 45 years or 50 years. The powering age can be ammended up to the age of 70 years, though there are a few companies that offers 90 years of vesting age as well.

5. Duration of Fund Collection

An investor have the option to choose either choose to pay the premium in the periodic intervals or at once as a lump sum investment. The wealth will gather  accordingly over the time to build up a wholesome amount which is the some of the investment and the gains. For instance, if you start investing at the age of 30 and take it forward in investing until you turn 60, the collection period will be 30 years. The amount of pension that you receive monthly comes primarily from this collection.

6. Payment Period

Investors tend to confuse the payment period with the duration of fund collection. This is the time frame where in you get eligible to receive the post-retirement pension amount. Just for an example, if a person receives his pension from the age group between 60 years to 75 years, then the payment tenure will be exact 15 years. Most plans keep this period distinct from the duration of fund collection, though some plans allow either partial or full withdrawals during the duration of fund collection as well.

7. Surrender Value

Surrendering one’s pension plan before maturity is not a wise move even after paying the required minimum premium. The opting to surrender the plan the owner of the plan will be no longer eligible to enjoy the benefit offered by the plan, which includes the approximate amount and life insurance coverage.

Other Key Features

1. Grace Period:-  
A- Yearly mode – 30 days
B – Half-yearly mode – 30 days
C – Quarterly mode – 30 days
D – Monthly mode – 15 days

2. Free Look Period:- A policy owner can return the policy if he or she does not agree with the policy terms and conditions. A 30-day period is served in cases where the policy is purchased through distance marketing. This period is decreased to 15 days if the policy was acquired through a regular mode.

3. Revival:- A policy that has ended due to zero payment of premiums can be revived by paying all due premiums. The insurer just provides two years of time within which revival can be done. Additionally, an interest of 9% per annum will be added in the outstanding  premium amount.

4. Surrender Value:- A surrender value will be paid if the policy owner chooses to surrender the policy. There is a small time period for which the policy should be active in order to attain this amount value. In case you are having a single premium policy then it is possible to surrender the policy at any time you wish after completing the premium payments. In case of 5 year PPT, then it is possible to surrender the policy only if the premium for at least of two years is paid. In case of 10 or 15 year PPT, then you are eligible surrender the policy only if the premiums for approximately of three years are paid.

5. Loan:- No loan facility is provided.

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

A policy owner can maintain the exclusions of the premium paid by him or her. This is allowed under the Section 80C of the Income Tax Act of India, with the maximum limit being Rs.1.5 lakh per year (as of FY 2017-18). The vesting or powering benefit received is eligible for benefits under Section 10(10A)(iii) of the same act.

Why one should opt for the Star Union Dai-ichi Life Guaranteed Pension Plan?

Purchasing the Guaranteed Pension Plan from Star Union Dai-ichi Life helps one set a base for their retired life. Using this, an individual can fulfill all the different kinds of requirements which might pop up in the future. The money received at the end of the policy period can be reinvested in different plans and policies, ensuring that one can get a retirement income for as long as they live.

The life coverage provided with the plan helps one to start living normally, without worrying about the future and the question that what would happen to his or her family in case of any sudden and unexpected event. One major highlight that any individual keeps an eye at before purchasing any insurance policy is the brand or the  insurer. Clicking right for a wrong insurer could drain all the investment, leaving the family in trauma and loss.

The Star Union Dai-ichi Life has a family of over 64 million customers in India, a testament to their service. It is a joint venture between Union Bank of India, Bank of India, and Dai-ichi Life, the insurer or the company has established its name across the country, with approximately 11,000 branches of the two partner banks helping reach remote areas. Moreover, the Dai-ichi Life brings in over a century of insurance experience to the entity, adding up the Japanese technology with Indian touch of intelligence.

A good way to measure the insurer is the grievances solved ratio, which was a high 95.42% for this insurer in the year 2015-16. An individual can bring home this plan and be all secured without any hassles when it comes to file a claim as well at the time of any emergency.