How
does the Plan work?
The Plan is designed to generate funds at your retirement
in the form of lump sum benefit or as lifetime pension.
You may either choose:
The amount of Premium you wish to pay up to retirement Or.
The amount of monthly pension you wish to receive life long
commencing at retirement.
Can I increase or decrease
the amount of premium depending on my ability to pay?
Yes, you may increase
or decrease the amount of premium, subject to the minimum
and maximum determined by the company at that time.
Do
I have to submit any evidence of good health, undergo medical
exams to by this plan?
No. Evidence of good
health or medical exam will be required only if you decide
to attach riders providing life insurance or disability protection.
See later.
How
will my account value build up by the premiums I pay?
The
premiums paid each year (less premium related expenses) will
be credited to your individual account and invested in secured
instruments like Government Securities, Bonds of reputable
public sector corporations an so on. Every month deductions
will be made from your account value for management charges,
cost of insurance (if any) and premium for supplementary contracts
(if any) and your share of investment earnings will be credited.
This
process will continue until the retirement age.
What
percentage of the premiums I pay is allocated to my account
value?
The percentage varies by policy year as follows.
|
Net
Allocation as a
Percentage of Premium |
1 |
50% |
2-5 |
94% |
6 onwards |
100% |
In
addition, there will be a monthly charge of Rs 25.
Will
my account continue to grow even if I stop premium payments?
If you stop premium payment, the monthly
deductions for expenses and cost of insurance in any case
will continue to be made from the account value. Your account
value will also continue to be credited with investment earnings.
Your policy will lapse if the account value becomes insufficient
to cover the monthly deductions. As such it is advisable to
continue premium payment under the policy.
Would
I be able to make withdrawals from my account value or take
loan before reaching the retirement age?
Yes, You may make
withdrawals from your account value after the policy has run
for at least 5 years subject to minimum withdrawal amount
as per Company rules. You may also take loan up to 90% of
the net cash surrender value as provided in the policy provisions.
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