2. LIC’S PENSION PLUS
• A unique Unit Linked Pension Plan with
guarantee on the minimum rate of
interest.
• Rate of Interest applied to gross
premium.
• Being a ULIP plan the fund has
immense possibility for growth.
• Benefit of Annuity from Maturity
Proceeds.
3. LIC’S PENSION PLUS
Benefit on Maturity :
• Annuity purchased from Fund Value or
Guaranteed Maturity Proceeds
whichever is higher.
• Option to commute 1/3rd. of the
Maturity Proceeds.
Benefit on death - Fund Value.
Nominee has the option to receive the
amount in lump Sum or as Annuity.
4. Guaranteed Maturity Proceeds: If all due
premiums are paid till maturity, a guaranteed
interest shall accrue on the gross premium,
including Top-up premiums, at the end of each
financial year. The guaranteed interest rate shall
be 50 basis points above the average of the
reverse repo rate prevailing as on the last
working day of June, September, December and
March of the preceding year.
However, the guaranteed interest rate shall be
subject to a maximum of 6% and a minimum of
3%. This guaranteed interest rate is not applicable
to a discontinued policy.
The minimum guaranteed rate of 4.5% p.a. is
applicable to all premiums received up to 31st
March, 2011, including any Top-up premiums paid.
5. PENSION PLUS - Fund Type
Fund Investment in Short-term Investment in Details and
Type Government / investments Listed Equity objective of the
Government such as money Shares fund for risk
Guaranteed market /return
Securities / instruments
Corporate
Debt
Debt Not less than Not more than Nil Low risk
Fund 60% 40%
Mixed Not less than Not more than Not less than Steady Income –
Fund 45% 40% 15% & Lower to
Not more than Medium risk
35%
6. PENSION PLUS : ELIGIBILITY CONDITIONS
Age at entry 18 to 75 years
Age at vesting 40 to 85 years
Minimum 10 years
Deferment
Term
Mode -» RP MLY (ECS) SP
Premium
Minimum ` 15000 pa ` 1500 pm ` 30000
Maximum 1 lac 1 lac No limit
Sum Assured NA
7. PENSION PLUS : CHARGES
Single Premium
Regular Premium
Year Charge
Premium 1st 6.75%
Allocation 2nd to 5th 4.50% 3.3%
Charge Thereaft 2.50%
er
Top-up premium: 1.25%
` 30/-pm during the first policy year and
Policy Administration
` 30/- pm escalating at the rate of 3%
Charge
pa. thereafter
Fund Management Debt Fund 0.70% p.a.
Charge Mixed Fund 0.80% p.a.
Switching Charge 2 switches free . ` 100 thereafter
Miscellaneous charge ` 50/- for alteration.
8. Pension Plus – Other features
• If premiums are not paid within days of
grace life assured has to exercise option
to (i) Revive the policy or
(ii) Withdraw the policy.
• Revival: Payment of Arrears without
Interest.
• Withdrawal : On Withdrawal, Monetary
Value is due. 1/3rd of the Monetary Value
can be commuted, Balance is used for
Annuity.
9. Pension Plus – Other features
• Withdrawal before 5 years: Monetary Value is
calculated on the date of termination. The
amount so calculated will earn interest @
3.5% p.a. from date of withdrawal to
completion of 5 years and will be due only on
completion of 5 years from the date of
commencement.
• Withdrawal after 5 years : Fund Value is due.
10. Pension Plus – Other features
• Two free switches per year.
• Top-up premiums allowed except
during the last 5 years of Maturity.
• Partial Withdrawal Not allowed.
• Surrender allowed. Discontinuance
charges applicable for the first 5 years.
11. PENSION PLUS: DICONTINUANCE
CHARGES
Disc Annualized premium up to ` Annualized premium above `
onti 25,000/- 25,000/-
nuan Discontinuance charges shall be lower Discontinuance charges shall be
ce of lower of
Year
Annualised Maximum Annualised Maximum
Premium or Fund Premium or FV
Value
1 10% 2500/- 6% 6000/-
2 7% 1750/- 4% 5000/-
3 5% 1250/- 3% 4000/-
4 3% 750/- 2% 2000/-
5 NIL NIL NIL NIL
abo
ve
12. Why Pension Plus
• Minimum Interest Guaranteed. This
protects against fluctuation of interest due
to policies of the government in the distant
future.
• Since individuals in Private Employment
and those engaged in Business do not
have pension security, Pension Plus fulfils
their need for a secured future.
• Being Market Linked, the plan has
possibility of getting excellent returns.
• Easy Purchase.
13. Why Pension Plus
• Convenient modes of payment , Single
Premium mode also available.
• Compulsory purchase of Annuity ensures
channelisation of funds for specific
purpose.
• Regular income from the commencement of
annuity.
Thank You !
