Your Individual Pension Account (IPA) grows at an interest rate declared every year. It is determined subject to the performance of the fund.
However, the minimum interest rate on your IPA is 5% p.a. for first 5 policy years and 1.5% p.a. for rest of the policy term. The interest once added in IPA is guaranteed to be paid.
This plan offers multiple flexibilities to help you plan your retirement as per your convenience.
a. Top-Up Premium: In addition to the regular premium, you can pay an additional amount during the policy term (subject to product terms and conditions) to ensure your retirement fund grows faster.
b. Premium Payment Options :
- Choosing from Regular, Limited or Single Payment options.
- Choose to pay premium monthly or annually.
- Choose to decrease or increase the premium payment term by keeping the premium amount same.
On completion of vesting term, you receive higher of the two below
- Gross premiums including top-up premiums compounded @ 1% p.a., or
- Individual pension account (IPA) value.
You may take up to 1/3rd of the maturity amount tax free in cash and use the balance to purchase annuity from Exide Life Insurance to ensure a monthly income for your life time.
All premium allocation charges deducted are refunded to your pension account on reaching the retirement age. This is applicable once you have made a total premium payment of ₹4,80,000/- (does not include top-up premiums).
A disciplined saving method (starting with as little as ₹2000 per month) goes a long way in building the desirable retirement corpus.
In case of demise of the policy holder, higher of following is paid to the nominee:
- 105% of gross premiums and Top Up premiums (excluding service tax)
- Gross premium and Top Up premiums compounded @ 1% p.a. (excluding service tax)
- Individual Pension Account (IPA) Value.
Premiums paid are tax free under section 80C as per applicable income tax laws.