Introduction:
It is an Immediate Annuity plan, which can be purchased by paying a lump sum amount. The plan provides for annuity payments of a stated amount throughout the life time of the annuitant. Various options are available for the type and mode of payment of annuities.
Options Available:
The following options are available under the plan
Type of Annuity:
- Annuity payable for life at a uniform rate.
- Annuity payable for 5, 10, 15 or 20 years certain and thereafter as long as the annuitant is alive.
- Annuity for life with return of purchase price on death of the annuitant.
- Annuity payable for life increasing at a simple rate of 3% p.a.
- Annuity for life with a provision of 50% of the annuity payable to spouse during his/her lifetime on death of the annuitant.
- Annuity for life with a provision of 100% of the annuity payable to spouse during his/her lifetime on death of the annuitant.
Mode:
- Annuity may be paid either at monthly, quarterly, half yearly or yearly intervals. You may opt any mode of payment of Annuity.
Salient features:
- Premium is to be paid in a lump sum.
- Minimum purchase price : Rs.50,000/= or such amount which may secure a minimum annuity as under:
Mode Minimum Annuity Monthly Rs. 500 per month Quarterly Rs. 1000 per quarter Half-yearly Rs. 2000 per half year Yearly Rs. 3000 per year - No medical examination is required under the plan.
- No maximum limits for purchase price, annuity etc.
- Minimum age at entry 40 years last birthday and Maximum age at entry 79 years last birthday.
- Age proof necessary.
Amount of annuity payable at yearly intervals which can be purchased for Rs. 1 lakh under different options is as under:
| Age last birthday | Yearly annuity amount under option | |||||
| ( i ) | ( ii ) (15 years certain) | ( iii ) | ( iv ) | ( v ) | ( vi ) | |
| 40 | 7510 | 7440 | 6930 | 5610 | 7310 | 7120 |
| 45 | 7770 | 7660 | 6960 | 5890 | 7500 | 7240 |
| 50 | 8140 | 7950 | 7000 | 6280 | 7760 | 7420 |
| 55 | 8650 | 8330 | 7050 | 6810 | 8130 | 7670 |
| 60 | 9350 | 8790 | 7110 | 7530 | 8640 | 8030 |
| 65 | 10410 | 9330 | 7180 | 8590 | 9400 | 8570 |
| 70 | 12080 | 9830 | 7260 | 10220 | 10560 | 9370 |
| 75 | 14510 | 10220 | 7360 | 12590 | 12240 | 10590 |
Incentives for high purchase price:
If your purchase price is Rs. 1.50 lakh or more, you will receive higher amount of annuity due to available incentives.
Cooling-off period
If you are not satisfied with the “Terms and Conditions” of the policy, you may return the policy to us within 15 days from the date of receipt of the Policy Bond. On receipt of the policy we shall cancel the same and the amount of premium deposited by you shall be refunded to you after deducting the charges for stamp duty.
Paid-up value:
The policy does not acquire any paid-up value.
Surrender Value :
No surrender value will be available under the policy.
Loan :
No loan will be available under the policy.
Section 41 of Insurance Act 1938 :
- No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out 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: provided that acceptance by an insurance agent of commission in connection with a policy of life insurance taken out by himself on his own life shall not be deemed to be acceptance of a rebate of premium within the meaning of this sub-section if at the time of such acceptance the insurance agent satisfies the prescribed conditions establishing that he is a bona fide insurance agent employed by the insurer.
- Any person making default in complying with the provisions of this section shall be punishable with fine which may extend to five hundred rupees.
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