Insurance Plans 162 views May 11, 2020

ABSLI Empower Pension Plan

Most of the individuals are worried about their future and they don’t know how they will manage their life after retirement. In most of the government departments also, the facility of pension plans has been cancelled. So, now the question arises how the individuals will manage their life after retirement. Therefore, here is ABSLI Empower Pension Plan that is a unit-linked plan and it will help you to enhance your savings and enjoy life after retirement. You can relax and pursue your hobbies after retirement. So, let’s move deeper into this policy and see the features and all other benefits that ensure the future after retirement.

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Salient Features of Empower Pension Plan

  1. There are Guaranteed Additions in this Policy.
  2. You can take this Pension Plan at the age of 25 years.
  3. The minimum amount of premium is 18000 if you pay annually.
  4. There are some vesting benefits in this plan.
  5. Enjoy Tax Deduction under Section 80C and 80D of the Income Tax Act.

Benefits of the ABSLI Empower Pension Policy

There are some benefits of this pension plan and it might amaze you with interesting returns after your retirement. So, you must explore all the benefits of this plan and find out how they will prove beneficial to you in the future.

Guaranteed Additions

  1. Get a Guaranteed Addition of 0.25% of the Average Policy fund Value in the last 12 months after 6th policy anniversary years and every year thereafter.
  2. Get a Guaranteed Addition of 0.35% of the Average Policy fund Value in the last 12 months after 11th policy anniversary years and every year thereafter.
  3. Enjoy a Guaranteed Addition of 0.35% of the Average Policy fund Value in the last 12 months after 16th policy anniversary years and every year thereafter.

Vesting Benefits

You will get the highest of the following on the vesting date:-

  1. Guaranteed Vested Benefits
  2. The Policy Fund Value

The date of vesting and the risk profile might fluctuate the amount of the vesting benefits in the ABLSI Empower Pension Plan.

You can see the percentage of the basic premium paid as the Guaranteed vesting benefit in the following table:-

Years to Vesting Guaranteed Vesting Benefits
ConservativeModerateAggressive
5 Years105%--
6 Years to 10 Years112%106%101%
11 Years to 15 Years119%110%102%
16 Years to 20 Years126%114%103%
21 Years to 25 Years133%118%104%
25 Years to 30 Years140%122%105%

You can choose only the conservative profile for the first five years.

On the Date of vesting you will have the following options to choose:-

  1. Purchase Annuity or Deferred Annuity at the prevailing rate from ABSLI.
  2. Commute up to 60% and then Purchase Annuity or Deferred Annuity at the prevailing rate from ABSLI.
  3. Purchase Annuity or Deferred Annuity at the prevailing rate from ABSLI to the extent of the percentage that is currently 50% of the entire amount of the vesting benefits.

Death Benefits

In case of unfortunate death of the policyholder, the nominee will receive the highest of the following:-

  1. Guaranteed Death Benefits
  2. Fund Value of the policy as on the date of the death.

Death benefits will be always equal to 105% of all the basic premiums.

Surrender Benefits

In case of an emergency, you can surrender the policy and take the funds as calculated by the company. Once the policy is surrendered, it will be discontinued.

Investment Options of ABSLI Empower Pension Plan

There are two options available in the ABSLI Empower Pension Plan through which you can manage the funds. The options are as follows:-

Option 1- Assured Option

In this option, the portfolio will depend on the vesting date and the risk profile. The company will invest the amount of your premium in the Maximiser Guaranteed and Income Advantage Guaranteed Funds. The maximizer guaranteed is an equity fund and the income advantage guaranteed is a debt fund. Your funds will be switched regularly as per the risks by the company and it will manage and administer your portfolio.

In the table given below, you can see the proportion that will be invested in Maximiser Funds and the remaining will be invested in the Income Advantage Guaranteed Funds depending upon the risk profile you choose.

Years to Vesting Risk Profiles
ConservativeModerateAggressive
26 Years to 30 Years50%75%100%
21 Years to 25 Years40%60%80%
16 Years to 20 Years30%45%60%
11 Years to 15 Years20%30%40%
6 Years to 10 Years10%15%20%
5 Years0%0%0%

Option 2- Self-Managed Option

In the self-managed option of the ABSLI Empower Pension Plan, you have the full control to make an investment in 16 differed segregated funds. You can switch from one fund to another whenever you want to switch. In the 16 segregated funds, you have a 100% debt option and 100% equity option so you can make an investment in any of them as per your needs and preference.

Details of the Plan

ParticularsDetails
Minimum Age of Entry25 Years
Maximum Age of Entry70 Years
Accumulation Period5 Years to 30 Years up to a maximum vesting age of 80 years
Premium Paying TermRegular Pay
Minimum Basic Premium18000 per annum if you are paying annually.
24000 per annum if you are half-yearly.
20000 per annum if you are paying quarterly.
36000 per annum if you are paying monthly.

Charges of the ABLSI Empower Pension Plan

  1. Investment Guarantee Charge of 0.25% with a maximum of up to 0.50%.
  2. Premium Allocation Charge 4% to 6% of basic premium depending upon the policy year.
  3. Fund management Charge of 1% to 1.35% depending upon the funds.
  4. Policy Administration Charge of 20 per month for the first 5 years and it will increase to 25 from the 6th years and inflate by 5% per annum with a maximum of 6000.
  5. Switching of funds charge of 50 with a maximum of 500.
  6. Partial Withdrawal Charge of 50 with a maximum of 500.

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