Deferred Future Secure Pension Plan

DEFERRED FUTURE SECURE PENSION PLAN – Plan No. 250

Deferred Future Secure Pension Plan is an innovative non-linked, single premium, deferred annuity product where the annuity payments are paid in arrears to the annuitant/survivor upon his/her survival after the completion of the deferment period.  The policyholder has the following annuity options to choose from at the inception of the contract:

  • Option 1: Deferred annuity for Single life with Return of Purchase Price
  • Option 2: Deferred annuity for Joint life with Return of Purchase Price

 

BENEFITS

1.      ANNUITY BENEFITS (Amount Payable on Survival)

Annuity Options Types of Annuity Annuity Benefits
Option 1 Deferred annuity for Single life with Return of Purchase Price During Deferment

Under this option, no annuity payment shall be made during the deferment period. On death of the Annuitant during the deferment period, no annuity benefit shall be payable under the policy and death benefit as defined below, shall be payable to the Nominee.

 

After Deferment

The annuity payments will start in the policy year immediately following the completion of the deferment period. The annuity payments will be made in arrears for as long as the Annuitant is alive. The annuity payments will cease on the death of the Annuitant and the death benefit, as defined below, shall be payable to the Nominee.

Option 2 Deferred annuity for Joint life with Return of Purchase Price During Deferment

Under this option, no annuity payment shall be made during the deferment period. On death of the Annuitant and Spouse during the deferment period, no annuity benefit shall be payable under the policy and death benefit as defined below, shall be payable to the Nominee.

 

After Deferment

The annuity payments will start in the policy year immediately following the completion of the deferment period. The annuity payments will be made in arrears for as long as the Annuitant is alive. On death of the Annuitant, 100% of the annuity amount will be payable to the surviving named spouse as long as the spouse is alive. The annuity payments will cease on the subsequent death of the Spouse and the death benefit, as defined below, shall be payable to the Nominee. If the Spouse predeceases the Annuitant, the annuity payments shall continue till the death of the Annuitant and the death benefit, as defined below, shall be payable to the Nominee.

 

 

2.      BENEFICIARY BENEFITS (Amount Payable on Death)

Annuity Options Types of Annuity Beneficiary Benefits
Option 1 Deferred annuity for Single life with Return of Purchase Price During Deferment

Under this option, on death of the Annuitant during the deferment period, no annuity benefit shall be payable under the policy and death benefit equal to the Purchase Price plus 1% of Purchase Price for each year of deferment till the year of death, shall be payable to the Nominee and the policy shall terminate.

After Deferment

On death of the annuitant after the deferment period, the annuity payments will cease and death benefit, equal to 105% of the Purchase Price for annuities with deferment period of 5 years and less and equal to 110% of the Purchase Price for annuities with deferment period of more than 5 years, shall be payable to the Nominee and the policy shall terminate.

 

Option 2 Deferred annuity for Joint life with Return of Purchase Price During Deferment

Under this option, on death of the Annuitant and Spouse during the deferment period, no annuity benefit shall be payable under the policy and death benefit equal to the Purchase Price plus 1% of Purchase Price for each year of deferment till the year of death of Annuitant or Spouse, whichever is later, shall be payable to the Nominee. On the first death of either Annuitant or Spouse, annuity payments after the deferment period, as described above, shall be payable on survival of either life.

 

After Deferment

On death of the Annuitant after the deferment period, 100% of the annuity amount will be payable to the surviving named spouse as long as the spouse is alive. The annuity payments will cease immediately on the subsequent death of the Spouse. If the Spouse predeceases the Annuitant, the annuity payments shall continue and cease immediately upon the death of the Annuitant.

 

On death of both the Annuitant and Spouse the annuity payments will cease and death benefit, equal to 105% of the Purchase Price for annuities with deferment period of 5 years and less and equal to 110% of the Purchase Price for annuities with deferment period of more than 5 years, shall be payable to the Nominee. On the first death of either Annuitant or Spouse, annuity payments after the deferment period, as described above, shall be payable on survival of either life.

3.      RETURN OF PURCHASE PRICE

Return of Purchase Price is available under both Option 1 & Option 2.

 

4.      SURRENDER BENEFIT

Surrender Benefit shall be available during deferment period as described below. Upon vesting, the surrender benefit shall only be available under extreme circumstances such as critical illness of the annuitant, loss of job before superannuation of the annuitant, for marriage of children etc. The Surrender Value shall be as described below.

The surrender benefit shall be available only after the completion of 2 full policy years. The Guaranteed Surrender Value shall be 90% of Purchase Price. However, the Company may pay Special Surrender Value which may be higher than the Guaranteed Surrender Value.

 

BASIC PRODUCT ELIGIBILITY CONDITIONS

 

Attribute Minimum Limit Maximum Limit
Purchase Price USD 15,000 No Limit but Subject to Underwriting
Entry Age 35 years (Completed) 72 years (Nearest Birthday)
Deferment Period 3 years 10 years
Age at Vesting 40 years (Completed) 75 years (Completed)
Mode of Premium Payment Single Premium
Mode of Annuity Payment Yearly, Half Yearly, Quarterly, and Monthly

 

ADDITIONAL ANNUITY RATE FOR HIGH PURCHASE PRICES:

 

Purchase Price Band (Amount in USD) Increase in Annuity Rate (For all modes)
< 50,000 Nil
50,000 to 99,999 1.75%
100,000 and above 3.00%

 

SERVICING ASPECTS

 

UNDERWRITING REQUIREMENTS

All aspects of underwriting will be as per the underwriting policy of the company.

 

INSURANCE LEVY / TAX

Insurance levy and any other taxes, if any, will be charged as per existing rules in addition to the premium.

For detailed terms and conditions applicable to the base policy and riders, please contact our branch office / chief agent.