retirement plans

BSLI Empower Pension Plan

Retirement is when the worries of working life end and a life of fun and bliss begins. Each one of us wants to be empowered enough for a retired life where we are able to do all that we could not during our working lives - exotic holidays, time with family and loved ones, pilgrimage, etc. However, to fulfil all this, one needs to plan for retirement so that there is adequate savings that can last through the retired life without any hassles.

BSLI Empower Pension Plan is designed so that you remain in control of your destiny even during your second innings. This plan helps you to focus on your goals and enhance your savings for your future ensuring it is free from worries.

Take one step today to ensure a lifetime without worries …

BSLI Empower Pension Plan is a unit linked, non-participating pension plan. A simple, hassle - free plan, it helps you accumulate your premiums and the investment returns thereof into a corpus for your retirement. We call this period of retirement corpus generation as the ‘accumulation phase’. Once you decide to vest your policy, you will enter into the ‘income phase’ where your corpus will be used to purchase a stream of regular income payable for the rest of your lifetime.

During the accumulation phase we offer our Smart Option - an option where you allow us to manage and administer your investment portfolio on your behalf, based on your chosen vesting date and risk profile to meet your retirement objectives.

Your accumulated retirement corpus is utilised at vesting (retirement) to purchase an annuity option with us prevailing at that time.

plan at a glance
Entry Age (age last birthday) 25 – 70 years
Accumulation Period 5 – 30 years, subject to maximum vesting age of 80 years
Premium Paying Term Regular pay
Basic Premium Minimum Rs. 18,000 p.a. if paid annually
Minimum Rs. 24,000 p.a. if paid semi-annually
Minimum Rs. 30,000 p.a. if paid quarterly; or
Minimum Rs. 36,000 p.a. if paid monthly

before you read any further

BSLI Empower Pension Plan is a non-participating unit linked pension plan. All unit linked life insurance plans are different from traditional insurance plans and are subject to different risk factors. The name of this plan and that of the investment funds do not in any way indicate the quality of the plan or future returns. In this plan, the investment risk in the investment fund chosen by you is borne by you. Investment funds are subject to investment risks and unit prices may go up or down reflecting the market value of the underlying assets. Past performance is no guarantee of future results.

your choices

Step 1

Choose your basic premium

You choose the basic premium amount you wish to pay regularly in each policy year till the vesting date. You can pay the basic premium in monthly, quarterly, semi-annual or annual instalments. Please ask your financial advisor for details about the range of convenient payment methods we offer.

Step 2

Choose your vesting date

You choose a vesting date so as to have an accumulation period between 5 to 30 years.

Step 3

Choose your risk profile

You choose your risk profile – Aggressive | Moderate | Conservative, based on your risk appetite. Once chosen, the risk profile cannot be changed.

Your Guaranteed Vesting Benefit is automatically determined based on the above choices as explained later

The basic premium (net of premium allocation charge) will be used to purchase units in the two investment funds Maximiser Guaranteed (an equity fund) and Income Advantage Guaranteed (a debt fund) in a predetermined proportion based on the selected vesting date and risk profile. The units purchased in the investment fund are the monetary amounts allocated to the investment fund divided by the then prevailing unit price.

Fund Valuerepresents the total value of your investments to date and is the balance of all units allocated to the investment funds multiplied by its then prevailing unit prices.

your benfits
  1. Guaranteed Additions - in the form of additional units will be added to your policy:
    • On 6 policy anniversary and every policy anniversary thereafter, Guaranteed Addition is 0. 25% of the average Fund Value in the last 12 months; plus
    • On 11 policy anniversary and every policy anniversary thereafter, Guaranteed Addition is 0.35% of the average Fund Value in the last 12 months; plus
    • On 16 policy anniversary and every policy anniversary thereafter, Guaranteed Addition is 0.35% of the average Fund Value in the last 12 months

    After completion of 5 policy years, non-negative residual additions, if any, shall be credited to the policy in order to meet the maximum reduction in yield as in Regulation 37 of IRDA (Linked Insurance Products) Regulations, 2013.

  2. Vesting Benefit - On your vesting date, you will receive the greater of (a) your Guaranteed Vesting Benefit or (b) the Fund Value. The Guaranteed Vesting Benefit varies by your chosen vesting date and risk profile. Guaranteed Vesting Benefit, once assigned to your policy at inception, shall remain constant.
  3. Depending on our expectations with regards to future economic conditions, the Guaranteed Vesting Benefit may be revised on April 1st of every calendar year (as approved by IRDA) subject to a minimum Guaranteed Vesting Benefit of 101% of the basic premiums paid and will be applicable for policies issued thereafter.

    The current Guaranteed Vesting Benefit is displayed in the table below:

    Years to Vesting Guaranteed Vesting Benefit
    Risk Profile
    Aggressive Moderate Conservative
    5 . . 105%
    6 – 10 101% 106% 112%
    11 – 15 102% 110% 119%
    16 - 20 103% 114% 126%
    21 - 25 104% 118% 133%
    26 - 30 105% 122% 140%
    As a percentage of basic premiums paid.
    * For 5 years to vesting, only Conservative risk profile will be available

    On the vesting date, you can utilise the Vesting Benefit to:

    • Extend the accumulation phase, provided you are below the age of 55 years, provided maximum vesting age is not more than 80 years. On extension, you will continue to be invested in Income Advantage Guaranteed Fund for the extended period including the basic premiums paid during the extension period; or
    • Enter into a single pay deferred pension plan with us as per then available products on your vesting date; or
    • Commute up to 1/3 of the Vesting Benefit and receive the amount in a tax-free lump sum (as per the current Income Tax Act) and utilise the balance to receive a stream of regular income from us as per our then available products; or
    • Enter into an income (annuity) phase with us as per our then available products on your vesting date

    Please ask your financial advisor or visit our website to understand the available products at the time of your vesting

  4. Death Benefit - In the unfortunate event the life insured dies while the policy is in effect, we will pay to the nominee the greater of (a) the Guaranteed Death Benefit or (b) Fund Value as on date of intimation of death.
  5. The Guaranteed Death Benefit is the greater of (a) 105% of all basic premiums paid or (b) Accumulation of all basic premiums paid till date at a compounding guaranteed rate. The guaranteed rate varies by the risk profile chosen by the policyholder and is equal to 0.5% p.a., 1.5% p.a. and 3.0% p.a. for Aggressive, Moderate and Conservative risk profiles respectively.

    The nominee then has the choice to withdraw the death benefit proceeds; or utilise the entire proceeds or a part thereof to enter into an income phase with us as per our then available products offered by us.

  6. Surrender Benefit - In case of emergencies, you can surrender your policy to us anytime till vesting During the first five policy years the benefit on surrender will be as explained in the Policy Discontinuance section.
  7. In case you surrender the policy after five years you can avail of the surrender benefit in the following manner:

    1. Enter into a single pay deferred pension plan with us as per then available products on your surrender date; or
    2. Commute to the extent allowed (as per the extant Income Tax Act) and utilise the balance to receive a stream of regular income from us as per our then available products; or
    3. Enter into an income (annuity) phase with us as per our then available products on your surrender date
    your investment option
    Smart Option

    Under this investment option your portfolio will be structured depending on chosen vesting date and risk profile. We will invest your basic premiums between the two investment funds – Maximiser Guaranteed (an equity fund) and Income Advantage Guaranteed (a debt fund) in a predetermined proportion based on the selected vesting date and risk profile. Thereon, we will manage and administer your investment portfolio on your behalf, thus saving you time and effort. Over time the allocation is managed such that it will automatically switch from riskier assets to safer assets progressively as your plan approaches vesting (your anticipated retirement date). The proportion invested in Maximiser Guaranteed (an equity fund) will be according to the schedule given below – the remaining amount will be invested in Income Advantage Guaranteed (a debt fund).

    Years to Vesting Risk Profile
    Aggressive Moderate Conservative
    5 0 0 0%
    6 – 10 20% 15% 10%
    11 – 15 40% 30% 20%
    16 - 20 60% 45% 30%
    21 - 25 80% 60% 40%
    26 - 30 100% 75% 50%


    We will automatically rebalance the asset allocation mix over time such that the equity exposure progressively reduces as the policy approaches vesting (with 0% equity exposure in the last 5 years of the accumulation period).

    your investment funds
    The following investment funds are approved by IRDA

    Income Advantage Guaranteed (ULIF03127/08/13BSLIINADGT109)

    Objective: To provide capital preservation and regular income at a high level of safety over a medium term horizon by investing in high quality debt instruments.
    Strategy: To actively manage the fund by building a portfolio of fixed income instruments with medium term duration. The fund will invest in government securities, high rated corporate bonds, high quality money market instruments and other fixed income securities. The quality of the assets purchased would aim to minimise the credit risk and liquidity risk of the portfolio. The fund will maintain reasonable level of liquidity.

    Maximiser Guaranteed(ULIF03127/08/13BSLIINADGT109)

    Objective: To provide long term capital appreciation by actively managing a well-diversified equity portfolio of fundamentally strong blue chip companies. Further, the fund seeks to provide a cushion against the sudden volatility in the equities through some investments in short-term money market instruments.

    Strategy: To build and actively manage a well-diversified equity portfolio of value and growth driven stocks by following a research focused investment approach. While appreciating the high risk associated with equities, the fund would attempt to maximise the risk-return pay off for the long-term advantage of the policyholders. The fund will also explore the option of having exposure to quality mid-cap stocks. The non-equity portion of the fund will be invested in good rated (P1/A1 & above) money market instruments and fixed deposits. The fund will also maintain a reasonable level of liquidity.

    The portfolio of different investment funds is given below:

    Investment Fund Segregated Fund Identification No. Risk Profile Asset Allocation* Min. Max.
    Income Advantage Guaranteed ULIF03127/08/13BSLIINADGT109 Very Low Debt and Debt related instruments
    Money Market and Cash
    Equities and Equity Related Securities
    60%
    0%
    0%
    100%
    40%
    0%
    Maximiser Guaranteed ULIF03027/08/13BSLIMAXGT109 High Debt and Debt related instruments
    Money Market and Cash
    Equities and Equity Related Securities
    0%
    0%
    80%
    20%
    20%
    100%
    *Money Market Instruments are debt instruments of less than one year maturity. It includes collateralised borrowing and lending obligation, certificate of deposits, commercial papers, etc. Investment in Money Market Instrument supports for better liquidity management.
    tracking and accessing your investments

    You can monitor your investments

    1. on our website (www.birlasunlife.com)
    2. through the semi-annual statement detailing the number of units you have in each investment fund and their respective unit price as of the last policy anniversary; and
    3. through the published unit prices of all investment funds on our website as well as in the newspapers
    our policy charges
    Investment Guarantee Charge

    The daily unit price of the investment fund is adjusted to reflect an investment guarantee charge of 0.25% p.a. We may change the investment guarantee charge in the future up to a maximum of 0.50% p.a., subject to IRDA approval.

    Premium Allocation Charge

    Premium allocation charge is deducted from your basic premium when received and before invested in the investment funds. The premium allocation charge as a percentage of basic premium is:

    Policy Year 1 2 - 3 4 - 10 11+
    % of basic premium 6.00% 5.50% 5.00% 4.00%

    Fund Management Charge

    The daily unit price of the investment fund is adjusted to reflect the fund management charge.

    • 1.00% p.a. for Income Advantage Guaranteed
    • 1.35% p.a. for Maximiser Guaranteed

    We may change the fund management charge under any investment fund at any time subject to a maximum of 1.35% p.a. in the future and subject to IRDA approval.

    Policy Administration Charge

    The policy administration charge is Rs. 20 per month for the first five policy years. It shall increase to Rs. 25 per month in the sixth year and inflate at 5% p.a. thereafter, subject to a maximum of Rs. 6,000. This charge is levied at the start of every policy month by cancelling units proportionately from the investment funds you have at that time.

    Miscellaneous Charge

    We currently charge Rs. 50 per request for any additional servicing request. We reserve the right to charge up to a maximum of Rs. 500 per request for additional servicing requests. Any increase in the miscellaneous charges will be subject to IRDA approval.

    Service Tax

    Service Tax and other levies, as applicable, will be extra and levied as per the extant tax laws.

    IRDA Approval

    Only when specified and within stated limits, we may increase a particular charge at any time in, the future. We, however, need to get prior approval from the IRDA before such charge increase is effective. Otherwise, all other charges in this policy are guaranteed to never increase during the tenure of the policy.

    TERMS AND CONDITIONS
    Policy Discontinuance

    Throughout the accumulation period, you are given a grace period of 30 days (15 days in case your basic premium is paid on a monthly basis) to pay the due premium, during which all the benefits will continue with the deduction of charges. If we do not receive your full due premium by the end of the grace period, we shall send you a reminder notice within 15 days to continue the policy by paying your due and unpaid premium or to choose to withdraw from the policy completely. If we do not receive any intimation within 30 days from the receipt of the notice, you shall be deemed to have chosen the option to completely withdraw from the policy. The discontinuance date is the date when you decide to completely withdraw from the policy or the date you are deemed to have completely withdrawn, whichever is earlier.

    During the first five policy years – On the discontinuance date, the risk cover will cease and your fund value net of any discontinuance charge will be transferred to the Pension Discontinued Policy Fund. The Pension Discontinued Policy Fund will be credited with the actual return (less a fund management charge of 0.50% p.a.) or a minimum guaranteed interest rate (which is currently 4% p.a.) whichever is higher. The proceeds from this will be due to you on the date corresponding to your fifth policy anniversary or at the end of the revival period, if later. If the life insured dies while the policy is not yet revived, we will make the policy proceeds available immediately and terminate the contract. The nominee then has the choice to withdraw the Death Benefit proceeds; or utilise the entire policy proceeds or a part thereof to enter into an income phase as per our then available products offered by us.

    After five completed policy years – On the discontinuance date of the policy, fund value shall be due to you immediately, unless you had chosen to continue the policy in the following manner:

    • By paying all outstanding due installment premiums within the revival period during which the Guaranteed Vesting Benefit will be as per paid-up status. In case of unfortunate death of the life insured during the revival period the Guaranteed Death Benefit shall be payable to the nominee; or
    • Without paying any further premiums on a paid-up basis

    At the end of the revival period, if all the due and unpaid premiums are not received by us then the policy will automatically continue on a paid-up basis. Under paid-up status the Guaranteed Vesting Benefit shall be determined according to the basic premiums actually paid as shown in the Guaranteed Vesting Benefit table.

    Revival – You will have two years from the discontinuance date to revive your policy. To revive your policy, you must pay all due and unpaid premiums till date. On the effective date of the revival, we will restore the Guaranteed Vesting Benefit to its original value as applicable, add back the discontinuance charges deducted on the discontinuance date and deduct the outstanding applicable Premium Allocation Charge and Policy Administration Charge due since the discontinuance date from the Fund Value and then reinvested at the then prevailing Unit Price(s). On end of revival period when the fund value is due to you, then you need to choose one of the following options:

    • Enter into a single pay deferred pension plan with us as per then available products at the time of your discontinuance; or
    • Commute to the extent allowed (as per the extant Income Tax Act) and utilise the balance to receive a stream of regular income from us as per our then available products; or
    • Enter into an income (annuity) phase with us as per our then available products

    The discontinuance charge applicable on policy discontinuance or surrender is as follows –

    Policy Discontinued For BP up to Rs. 25,000 For BP of more than Rs. 25,000
    In Policy Year 1 Lower of 20% of BP, 20% of FV, Rs. 3,000 Lower of 6% of BP, 6% of FV, Rs. 6,000
    In Policy Year 2 Lower of 15% of BP, 15% of FV, Rs. 2,000 Lower of 4% of BP, 4% of FV, Rs. 5,000
    In Policy Year 3 Lower of 10% of BP, 10% of FV, Rs. 1,500 Lower of 3% of BP, 3% of FV, Rs. 4,000
    In Policy Year 4 Lower of 5% of BP, 5% of FV, Rs. 1,000 Lower of 2% of BP, 2% of FV, Rs. 2,000
    In Policy Year 5 Nil Nil
    where BP is Basic Premium payable in a policy year and FV is Fund Value
    Current Tax Benefits

    As per extant tax laws, this plan offers tax benefits under Section 80CCC and Section 10(10A) of the Income Tax Act, 1961, subject to fulfilment of the other conditions of the respective sections prescribed therein. You are advised to consult your tax advisor for details.

    Free-Look Period

    You will have the right to return your policy to us within 15 days (30 days in case the policy is (1) issued under the provisions of IRDA Guidelines on Distance Marketing of Insurance products) from the date of receipt of the policy, in case you are not satisfied with the terms and conditions of your policy. We will pay the fund value plus all charges levied till date (excluding the fund management charge) once we receive your written notice of cancellation (along with reasons thereof) together with the original policy documents. Depending on our then current administration rules, we may reduce the amount of the refund by expenditures incurred by us in issuing your policy in accordance to IRDA (Protection of Policyholders Interest) Regulations, 2002. (1) Distance Marketing includes every activity of solicitation (including lead generation) and sale of insurance products through voice mode, SMS electronic mode, physical mode (like postal mail) or any other means of communication other than in person

    Addition/Closure of Investment Fund

    With the approval from the IRDA, we may from time to time add new investment funds under your policy. We will inform you of such additions no later than 60 days after it is made available under your policy. With the approval from the IRDA, we may at any time close an investment fund available in your policy. We will inform you in writing of such closures no later than 60 days before we actually close the investment fund.

    Allocation/Redemption of Units

    On each business day, the instructions for investing in or encashing units from an investment fund must be received and accepted by 3.00 p.m. Instructions accepted by us up to the cut-off time are executed using the unit price determined at the end of that business day. Instructions accepted by us after the cut-off time will be executed using the unit price determined by us at the end of the next business day. Instruction to invest is deemed accepted by us when we receive cash, demand draft or local cheque at any of our offices by duly authorised officials. For outstation cheque, instruction to invest is deemed accepted by us only on the day we receive credit in any of our bank accounts. The number of units allocated equals the monetary amount invested in an investment fund divided by its unit price at that time. Units are allocated when we receive a premium or when guaranteed additions are added to the fund value. The number of units redeemed equals the monetary amount encashed from an investment fund divided by its unit price at that time. On each monthly processing date, policy charges will be covered by redeeming units from all investment funds under your policy in proportion to their value at that time.

    Unit Price

    On each business day and for each investment fund, we determine the unit price by dividing the Net Asset Value (NAV) of the investment fund at the valuation time by the number of units in existence for the investment fund in question. We publish the unit price of all investment funds on our website www.birlasunlife.com The Net Asset Value (NAV) is determined based on (the market value of investments held by the fund plus the value of any current assets less the value of any current liabilities and provisions) divided by (the number of units existing at valuation date before creation or redemption of any units).

    Policy Loan

    We do not offer this facility under this plan.

    Exclusions

    We shall pay the Fund Value as on date of death (plus any charges recovered subsequent to date of death) in the event the life insured dies by suicide, whether medically sane or insane, within one year after the issue or revival date, whichever is later.

    Prohibition of Rebates – Section 41 of the Insurance Act, 1938

    No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer. Any person making default in complying with the provisions of this section shall be punishable with a fine which may extend to five hundred rupees.

    Non-Disclosure – Section 45 of the Insurance Act, 1938

    No policy of life insurance effected after the coming into force of this Act shall, after the expiry of two years from the date on which it was effected, be called in question by an insurer on the ground that statement made in the proposal or in any report of a medical officer, or referee, or friend of the life insured, or in any other document leading to the issue of the policy, was inaccurate or false, unless the insurer shows that such statement was on a material matter or suppressed facts which it was material to disclose and that it was fraudulently made by the policyholder and that the policyholder knew at the time of making it that the statement was false or that it suppressed facts which it was material to disclose. Provided that nothing in this section shall prevent the insurer from calling for proof of age at any time if he is entitled to do so, and no policy shall be deemed to be called in question merely because the terms of the policy are adjusted on subsequent proof that the age of the life insured was incorrectly stated in the application.



    UIN No. - 109L078V02