SUD Life Guaranteed Pension Plan

• Vesting benefit at retirement
• Generate lifelong income
• Option to avail commutation benefit
• Assured payout on death
• Additional assured vesting factor for high premium
• Hassle-free buying
• Flexible Policy term and premium paying term
• Avail tax benefits

Death Benefit

In the event of the demise of the life insured within the policy term, Assured death benefit is payable to the nominee/beneficiary. Assured death benefit is higher of total premiums paid accumulated @6% compounded annually or 105% of the total premiums paid till the date of death.

The nominee has the option to use the death benefit through the following two ways:

• Utilize the entire proceeds of the policy or part thereof for purchasing an immediate annuity at the prevailing annuity rate.
• Withdraw the entire death benefit.

Vesting Benefit

In case of survival of the life insured till vesting/maturity of the policy, Assured vesting benefit which is equal to total premiums paid * vesting benefit factor is payable. Vesting benefit factor varies from 130% to 175%, depending on the premium payment term chosen.

The vesting benefit can be utilized in the following two ways:

• Commute to the extent allowed under Income Tax Act and utilize the balance amount to purchase an immediate annuity product at the then prevailing annuity rate.
• Utilize the entire proceeds to purchase a single premium deferred pension/immediate annuity plan.

Commutation Benefit

You have the option to take up to 1/3^rd of the benefit as tax-free lump sum as per the current income tax regulations.

Bonus

No bonuses are payable, as it is a non-participating pension plan.

Loan Benefit

No loan can be availed under this policy.

Surrender Value

For single premium, Surrender Value can be acquired from the date of commencement of the policy. For 5 years limited pay policies, you can acquire the Surrender Value after payment of at least first two full policy years. For 10/15 years limited pay policies, you can acquire the Surrender Value after payment of at least first three full policy years.

Surrender Value payable is higher of Guaranteed Surrender Value or Special Surrender Value.

No rider can be opted under this plan.

Premium paid under this policy is eligible for tax benefits under section 80C & vesting benefit as applicable under section 10(10A)(iii) of the Income Tax Act, 1961. Tax benefits applicable are subject to prevailing tax laws.

Rajesh at 45 years looking to buy a plan that accumulates a retirement corpus, which enables him to receive income for lifetime. He thus buys SUD Life Guaranteed Pension Plan with a policy term of 10 years and premium paying term of 5 years with the annualized premium of Rs 50,000.

Scenario 1: On Survival of Rajesh till Maturity

In case of survival of Rajesh, Assured vesting benefit i.e., Rs 3,80,000 is payable. This payout can be utilized as Commutation to the extent allowed and use the remaining amount for buying an immediate annuity product or Utilize the entire proceeds to purchase a single premium deferred pension/immediate annuity plan.

Scenario 2: On demise of Rajesh within the policy term

In case of demise of Rajesh at age 52 years, Assured death benefit i.e., Rs 3,55,835 is payable to the nominee/beneficiary.

Benefit Illustration: