ABSLI Empower Pension- SP Plan

What is the ABSLI Empower Pension Plan?

ABSLI Empower Pension Plan is a non-participating, Unit-Linked Pension Plan (ULPP) that helps you accumulate a retirement fund by making a single premium payment. You also get a life cover that provides financial security to your family. There are three key phases in the working of this pension plan: 

• One-Time Investment: You make a single lump sum payment into the plan, setting up your retirement savings with a straightforward approach.

• Accumulation Phase: During this phase, your investment grows over time, building up your retirement fund as you continue to work and save.

• Income Phase: Upon retirement, you start receiving a steady income from your accumulated fund, ensuring financial stability and peace of mind for the future.

Features of ABSLI Empower Pension Plan

The key features of ABSLI Empower Pension Plan are as follows: 

• Guaranteed additions are designed to increase your policy's value over time, which helps to boost your final payout.

• You can choose from various investment options tailored to fit your financial goals and risk tolerance.

• You have the flexibility to decide the amount you want to invest in a one-time premium payment, giving you greater control over your investment.

• According to the applicable tax laws, you can benefit from tax savings on both your premium payments and policy benefits under Section 80C and Section 10(10D).

Eligibility Criteria of ABSLI Empower Pension Plan

Benefits of ABSLI Empower Pension Plan

• Guaranteed Additions: Guaranteed Additions of 0.25% or 0.35% of the average Policy Fund Value from the last 12 months will be added to your policy on the 6th, 11th, and 16th anniversaries, respectively.

• Death Benefit: In the event of death, the nominee will receive the higher amount between the Guaranteed Death Benefit (105% of premiums paid minus withdrawals) and the Policy Fund Value as of the death notification date.

• Surrender Benefit: You can surrender the policy at any time for its Surrender Benefit, which will be handled according to the Policy Discontinuance provisions.

• Vesting Benefit:

  • Assured Option: On your vesting date, you will receive either the Guaranteed Vesting Benefit (adjusted for partial withdrawals) or the Policy Fund Value, whichever is higher. The Guaranteed Vesting Benefit is determined by your chosen vesting date and risk profile, and once assigned, it remains constant. However, it may be revised annually based on economic conditions but will not drop below 101% of the single premiums paid minus withdrawals.

  • Self-Managed Option: You will receive the Policy Fund Value on the vesting date.

Portfolio Management Strategies of ABSLI Empower Pension Plan

1. Self-Managed Option

   The Self-Managed Option gives you full control over your investments by allowing you to choose from 16 segregated funds, ranging from 100% debt to 100% equity, and offering the flexibility to switch between these funds at any time, with a minimum switch amount of ₹5,000.

2. Assured Option

   The Assured Option automatically structures your portfolio by investing your premiums between Maximiser Guaranteed (equity) and Income Advantage Guaranteed (debt) funds, adjusting the allocation based on your vesting date and risk profile, and progressively shifting from riskier to safer assets as you approach retirement.

Policy Details of ABSLI Empower Pension Plan

• Policy Discontinuance:

  • Within 5 Years: If you discontinue within the first five years, the Policy Fund Value (minus charges) moves to the Pension Discontinued Policy Fund until the lock-in period ends, with only Fund Management Charges applied.

  • After 5 Years: After five years, you can surrender the policy anytime and use the Policy Fund Value to buy an annuity, commute up to 60%, or purchase an annuity from another insurer for up to 50% of the proceeds.

• Tax Benefits: This plan offers tax benefits under Sections 80CCC and 10(10A) of the Income Tax Act, 1961. Check with a tax advisor for details.

• Free-Look Period: If unsatisfied, return the policy within 15 days (or 30 days if issued under Distance Marketing) for a refund of the Policy Fund Value minus the Fund Management Charge.

• Investment Fund Changes: New funds can be added or existing ones closed with IRDAI approval. You will be notified of additions within 60 days and closures 60 days in advance.

• Unit Transactions: Investment or redemption instructions received by 3:00 p.m. are executed at that day's unit price. Later instructions are processed the next business day.

• Unit Price: The unit price is calculated daily by dividing the fund's net asset value (NAV) by the number of units.

• No Loan Facility: This plan does not offer a loan facility.

• Nomination: You can nominate someone as per Section 39 of the Insurance Act, 1938.

How the Plan Works?

Learn about the workings of the ABSLI Empower Pension Plan from the steps mentioned below: 

• Step 1– Choose Your Single Premium: Decide the amount you want to invest as a lump sum, excluding taxes and additional costs.

• Step 2– Set Your Vesting Date: Select a date between 5 and 20 years from now when you want to start receiving your retirement benefits.

• Step 3– Select Your Plan Option: Choose between:

  • Assured Option: Guaranteed benefit at retirement.

  • Self-Managed Option: Invest in various funds according to your risk preference.

• Step 4– Pick Your Risk Profile: Choose your risk level—Aggressive, Moderate, or Conservative. This choice is permanent.

• Step 5– Receive Retirement Benefits: You receive a regular pension income based on the accumulated fund at retirement.

Suicide Exclusion Criteria

If the insured dies by suicide within 12 months, the nominee receives the Policy Fund Value, with any charges (except FMC and Investment Guarantee Charges) refunded.