ABSLI Nishchit Pension Plan

What is the ABSLI Nishchit Pension Plan?

This is a retirement-focused plan which is free from market linked investment platforms. The policyholder makes regular premium payments over a specified period, with the plan continuing until they reach their chosen vesting age. At retirement, the policyholder receives a guaranteed benefit, which can be taken as a lump sum, regular pension payments, or a combination of both. If the policyholder passes away during the term of the ABSIL pension plan, their nominees will receive a death benefit, which can also be used in different ways. The policy concludes once all benefits have been paid out.

Features of ABSLI Nishchit Pension Plan

Below are the features of ABSLI Nishchit Pension Plan: 

• Guaranteed Corpus: This plan helps build a guaranteed retirement fund so you receive regular income after retirement.

• Loyalty Addition: At the completion of the policy term, a loyalty addition is made to enhance your retirement fund, given all premiums have been paid.

• Customizable Plan: This allows you to choose between various premium payment terms, allowing you to invest for the full duration of the policy term or a specific term based on your needs and potential.

• Life Insurance Cover: The plan also includes life insurance cover to protect your family financially. This cover amount is equal to the sum of premiums paid, accrued at a fixed percentage during the policy term.

• Flexibility to Defer Vesting Benefit: You can delay your vesting benefit by up to 10 years, ensuring your retirement plan stays focused on your life ambitions.

• Guaranteed Additions: Periodic additions are made during the policy term to enhance your retirement benefits.

*Additions are a fixed percentage of Total Premiums Payable accumulated into your policy

Eligibility Criteria for the ABSLI Nishchit Pension Plan

Benefits of ABSLI Nishchit Pension Plan

Below are the benefits of ABSLI Nishchit Pension Plan:

1. Death Benefit

   In case of death of the insured person, the Death Benefit will be paid to the nominee or legal heir. Nomination is only allowed if the policyholder and life insured are the same person. The death benefit is provided by

   Lump Sum Guaranteed Death Benefit

   The Death Benefit will be the greater of:

   • Sum Assured on Death or

   • Amount payable on policyholder's death

   Where Sum Assured on Death means

   The Sum Assured on Death will be the greater of:

   • Sum of Premiums Paid till date accrued at a rate of 6% per annum, compounded yearly.

   • 105% of the Sum of  Premiums Paid to date.

   ‘Sum of Premiums Paid’ means the total of premiums obtained, except taxes, rider premiums, underwriting extra premiums, and loadings for modal premiums, if any.

2. Guaranteed Additions

   Guaranteed Additions are a set percentage of Total Premiums you pay and are added to your  policy as follows:

   • For Limited Pay policies, they are added at the end of each policy year, beginning from the year after your premium payments finish. 

   • For Regular Pay policies, they are added at the end of each policy year beginning from the end of the first policy year until the end of the Policy Term.

3. Loyalty Addition

   If the life insured survives until the end of the policy term and all premiums have been paid, a Loyalty Addition as a fixed percentage of Total Premiums Payable will be added to the vesting benefit and paid on the vesting date.

4. Vesting Benefit

   If the life insured survives until the end of the policy term, the Vesting Benefit will include:

   • Guaranteed Vesting Benefit

   • Accumulated  Guaranteed Additions until the end of the Policy Term

   • Loyalty Addition, if any

   Guaranteed Vesting Benefit

   The Guaranteed Vesting Benefit is the amount decided to be payable on the vesting date according to the policy terms.

5. Deferral of Vesting Benefits

   You can postpone receiving your vesting benefit by 1 to 10 years from the original vesting date as long as your policy is active and all premiums are paid. During the delayed period, your vesting benefit will grow monthly based on the reverse repo rate published by RBI, which is reviewed quarterly.

   During the deferral period, you or your nominee (in case of the Life Insured’s death) can withdraw the Deferred Vesting Benefit, which includes the Vesting Benefit enhanced by the Reverse Repo Rate. Upon withdrawal, this benefit will be utilized according to the provisions in the vesting benefit section.

6. Tax Benefit

   You may be eligible for tax benefits on premiums paid and benefits received under your policy, subject to prevailing tax laws at the time of payment or receipt. It is advised to seek independent tax guidance to avail yourself of maximum tax benefits.

Policy Details of ABSLI Nishchit Pension Plan

• Free Look Period: You can return the policy within 15 days in the free look period (30 days for electronic or distance marketing policies) if you're not satisfied. A refund will be provided after deducting applicable charges.

• Grace Period: You have a 30-day Grace Period (15 days for Monthly mode) to pay your premium without penalties. Coverage remains active during this time.

What’s Not Covered in the Nishchit Pension Plan?

Suicide Exclusion

If the life insured dies by suicide within 12 months from the policy's start date or the date of revival, the nominee, legal heir, or beneficiary will receive the total premiums paid up to the date of death or the surrender value available at the time of death, whichever is higher, provided the policy is active.