Investment Plans April 19, 2021

If you are looking to protect your finances during your retirement years, Aditya Birla Sun life Empower Pension Plan could be the one to go with. This plan from Aditya Birla Sun Life helps people accumulate premiums and investment returns as a corpus for their retirement years. When policyholders choose to vest their policy, they will enter into the ‘Income Phase’ where this corpus will be used to purchase an annuity offering regular income throughout your lifetime. 

Investment

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You can grow your savings with this plan to meet your future goals. Let’s have a look at the key features of Aditya Birla Sun life Empower Pension Plan.  

  1. Two plan options – Assured and Self-managed Option
  2. 16 segregated funds under the Self-managed option
  3. Guaranteed additions to enhance your retirement corpus
  4. Vesting benefit according to the chosen plan option
  5. Death benefit
  6. Surrender benefit
  7. Tax benefits under Section 80C and Section 10(10D) of Income Tax Act, 1961
  8. 15 or 30 days of Free Look period

Want to know about these features in detail? Well, you can know it as we will be discussing the same along with its important aspects such as premium payment terms, basic premium, etc. Keep reading to know more!

Let’s Discuss the Benefits of Aditya Birla Sun life Empower Pension Plan in Detail

Before understanding the benefits, you should know that Aditya Birla Sun life Empower Pension Plan is a non-participating, Unit Linked individuals insurance plan. Do remember that you will need to bear the investment risk in this plan. Now, let’s get to its crucial features mentioned below.

Plan Option

One of the best things about Aditya Birla Sun life Empower Pension Plan is that you can choose between the two plan options at the time of entering into the policy. These two options are Assured Option and Self-managed Option. With the assured option, you can enjoy a guaranteed benefit on vesting, while with the latter option, you will be able to choose from 16 fund options as per your risk appetite (you will get the fund value on vesting). 

Guaranteed Additions Benefit

With this pension plan from Aditya Birla Sun Life, you will get guaranteed additions in the form of additional units to your policy at different policy anniversary years. Check the below table to know more about it!

On the 6th Policy Anniversary Year and every policy anniversary year thereafter,0.25% of the average policy fund value in the last 12 months, plus
On the 11th Policy Anniversary Year and every policy anniversary year thereafter,0.35% of the average policy fund value in the last 12 months, plus
On 16th Policy Anniversary Year and every policy anniversary year thereafter,0.35% of the average policy fund value in the last 12 months, plus

Vesting Benefit

Individuals will also get a vesting benefit from ABSL Empower Pension Plan according to the plan option chosen at the inception of the policy. This benefit will vary according to the plan option chosen by you.

For Assured Option, policyholders will receive vesting benefits that will be higher between the Guaranteed Vesting Benefit net of partial withdrawals since the inception of your policy or the Policy Fund value. To know more about guaranteed vesting benefits, you can check the below table.

Years to VestingGuaranteed Vesting Benefit
Aggressive Risk ProfileModerate Risk ProfileConservative Risk Profile
5--105%
6 - 10101%106%112%
11 -15102%110%119%
16 - 20103%114%126%
21 - 25104%118%133%
26 - 30105%122%140%

For the Self-managed Option, policyholders will receive the policy fund value on the vesting date. Individuals can choose from the following options on the vesting date. 

  1. Utilize the overall proceeds to buy an immediate annuity or deferred annuity from Aditya Birla Sun Life at the then prevailing annuity rate 
  2. Commute up to 60% and utilize the remaining amount to purchase an immediate annuity or deferred annuity from Aditya Birla Sun Life at then prevailing annuity rate
  3. To purchase an immediate or deferred annuity from another insurer at the then prevailing annuity rate of up to 50% of the overall proceeds of vesting benefits 

Death Benefit

In case the policyholder dies during the policy term (while the policy is in effect), ABSL Empower Pension Plan will pay a death benefit to the nominee. It will be greater of the following amounts. 

  1. Guaranteed Death Benefit
  2. Policy fund value as on the date of policyholder’s death

Here, the guaranteed death benefit will be equal to 105% of all the basic premiums paid up to date of death minus partial withdrawals made during a two-year period immediately after the death of the life assured.

Investment Options

As we told you earlier, you can choose the investment options according to your investment goals. With the assured option, your basic premiums will be invested in two funds – Maximiser Guaranteed (equity fund) and Income Advantage Guaranteed (Debt fund). 

On the other hand, with the self-managed option, you can get access to 16 segregated funds that range from 100% debt to 100% equity according to your risk appetite. These funds are  Liquid Plus, Income Advantage, Assure, Protector, Builder, Enhancer, Creator, Magnifier, Maximiser, Multiplier, Super 20, Pure Equity, Value & Momentum, Capped Niy Index, Asset Allocation, MNC Fund. 

Partial Withdrawal Facility

ABSL Empower Pension Plan also provides the partial withdrawal facility at any time after five completed policy years. Also, an individual should attain 18 years of age to enjoy this facility. Do remember that partial withdrawal shall not exceed 25% of the policy fund value at the time of withdrawal. The minimum amount stands at INR 5,000. During the policy term, you can use this facility only three times. 

Minimum Premium Amount for Aditya Birla Sun life Empower Pension Plan

The premium payment method will be ‘Regular Payment’ for individuals choosing the ABSL Empower Pension Plan. To know the minimum premium amount, check the below table.

Premium Payment IntervalsAmount (In INR)
Annually18,000
Half-yearly24,000
Quarterly30,000
Monthly36,000

Aditya Birla Sun life Empower Pension Plan Eligibility Criteria

The below table can help you know important aspects related to ABSL Empower Pension Plan eligibility criteria. Have a look!

Entry Age25 to 70 years
Accumulation period5 to 30 years
Maximum Vesting Age80 years

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