Features
Guaranteed* Annuity Income for whole of life by paying premiums for a Single or Limited payment term.
One plan catering to both Single and Joint Life
Single plan offering both Immediate Annuity and Deferred Annuity
Flexible payout options to receive your Annuity amount– Monthly, Quarterly, Half-yearly or Yearly
4 Annuity options to choose from:
A. Life Annuity
B. Life annuity with Return of % of Total Premiums Paid
C. Life Annuity with Early Return
D. Increasing AnnuityOption to defer Annuity payouts by choosing the deferment period
*Annuity rate is fixed once the policy has been purchased and shall remain the same for the duration of the policy. Amount of guaranteed income will depend upon Premium(s) paid subject to applicable terms and conditions.
A. Life Annuity
i. Mr. Rahul, aged 60 years, chooses to smartly plan his retirement to receive sufficient lifelong annuity. He invests in Smart Pension Plus plan by paying a single premium of Rs.10,00,000 for a whole life and opts for Option A - Life Annuity and opted to receive his annual annuity starting immediately. Let’s look at the benefits offered to him under this plan. Diagrammatic illustration for the plan benefits under Life Annuity Option is shown below – Annuity shall be paid in arrears as per the chosen frequency and shall start at the end of 1st year and be payable as long as the annuitant is alive. The policy shall terminate on death of the annuitant and all other benefits shall cease.
Survival Benefit – On his survival, Mr. Rahul will start receiving guaranteed Annuity of Rs. 82,300 p.a. from the end of 1st policy year for whole life.
Maturity Benefit – No Maturity Benefit under this option.
Death Benefit – No Death Benefit under this option
ii. Mr. Rahul, aged 60 years and his spouse aged 55 years, opts for Joint Life option and pays Rs. 2,50,000 p.a. for a Premium Payment Term of 5 years and chooses a deferment period of 10 years. Diagrammatic illustration for the plan benefits under Life Annuity Option is shown below.
Annuity shall be paid in arrears as per the chosen frequency and shall start at the end of 11th year. On Death of the primary Annuitant, guaranteed annuity will be paid to the secondary annuitant as long as the annuitant is alive. The policy shall terminate on death of the secondary annuitant and all other benefits shall cease.
Survival Benefit – On his survival, Mr. Rahul will start receiving guaranteed Annuity of Rs. 1,40,125 p.a. from the end of 11th policy year for whole life.
Death Benefit – In case of death of Mr. Rahul, his spouse will continue to receive the Guaranteed Annuity of Rs. 1,40,125 p.a. till death. The policy shall terminate on death of the secondary annuitant and all other benefits shall cease.
Maturity Benefit – No Maturity Benefit under this option
B. Life annuity with Return of % of Total Premiums Paid
i. Mr. Rahul, aged 60 years, chooses to smartly plan his retirement to receive sufficient lifelong annuity. He invests in Life Smart Pension Plus by paying a single premium of Rs.10,00,000 for a whole life and opts for Option B: Life Annuity with Return of 100% of Total Premiums Paid and opted to receive his annual annuity starting immediately. Let’s look at the benefits offered to him under this plan. Diagrammatic illustration for the plan benefits under Life Annuity with Return of % of Total Premiums Paid is shown below
Annuity shall be paid in arrears as per the chosen frequency and shall start at the end of 1st year and be payable as long as the annuitant is alive. The policy shall terminate on death of the annuitant and all other benefits shall cease. If Life Annuity with Return of Premiums option is selected, then death benefit shall be payable to the nominee / legal heirs on death of the annuitant.
Death Benefit - In case of sad demise of Mr. Rahul during the Annuity Payout Term, Death Benefit equal to 100% of Total Premiums Paid, i.e. Rs. 10, 00,000 will be paid as a lump sum to his family and the policy will terminate.
Survival Benefit –On his survival, Mr. Rahul will start receiving guaranteed Annuity of Rs. 64,700 p.a. from the end of 1st policy year for whole life.
Maturity Benefit – No Maturity Benefit under this option
ii. Mr. Rahul, aged 60 years and his spouse aged 55 years, opts for Joint Life option and pays Rs. 2,50,000 p.a. for a Premium Payment Term of 5 years and chooses a deferment period of 10 years. Diagrammatic illustration for the plan benefits under Life Annuity with Return of % of Total Premiums Paid is shown below
Annuity shall be paid in arrears as per the chosen frequency and shall start at the end of 11th year. On Death of the primary Annuitant, guaranteed annuity will be paid to the secondary annuitant as long as the annuitant is alive. On death of the secondary annuitant, 100% of the Total Premiums Paid shall be payable to the nominee / legal heirs and all other benefits shall cease.
Survival Benefit – On his survival, Mr. Rahul will start receiving guaranteed Annuity of Rs. 1,27,125 p.a. from the end of 11th policy year for whole life.
Death Benefit - In case of sad demise of Mr. Rahul during the Annuity Payout Term, his spouse will continue to receive the same annuity for whole life. On Death of spouse, a death benefit equal to 100% of Total Premiums Paid, i.e. Rs. 12,50,000 will be paid as a lump sum to the nominee/legal heir and the policy will terminate.
Maturity Benefit – No Maturity Benefit under this option
C. Life Annuity with Early Return
i. Mr. Rahul, aged 60 years, chooses to smartly plan his retirement to receive sufficient lifelong annuity. He invests in Smart Pension Plus by paying a premium of Rs.2,50,000 for a premium payment term of 5 years and opts for Option C : Life Annuity with Early Return with sub-option as ‘100% Return of Premiums Paid at Age 75’ and opted to receive his annual annuity for whole life but after a deferment period of 10 years. Let’s look at the benefits offered to him under this plan. Diagrammatic illustration for the plan benefits under Life Annuity with Early Return is shown below
Annuity shall be paid in arrears as per the chosen frequency and shall start at the end of 11th year and be payable as long as the annuitant is alive. The policy shall terminate on death of the annuitant and all other benefits shall cease. If Life Annuity with Early Return option is selected, then death benefit shall be payable to the nominee / legal heirs on death of the annuitant.
Survival Benefit – On his survival, Mr. Rahul will start receiving guaranteed Annuity of Rs. 91,028 p.a. from the end of 11th policy year for whole life. Also, on Survival till the end of 15th policy year, Mr. Rahul will also receive Rs. 12,50,000 as he has opted for 100% Return of Premiums Paid at the age of 75 years.
Death Benefit - In case of sad demise of Mr. Rahul, Death Benefit will be paid as below in lump sum to his nominee/legal heir and the policy will terminate.
a) On death during Deferment Period -the death benefit shall be the higher of
• Total Premiums paid accumulated at 6% p.a. compounded on a daily basis till the date of death
• 105% of Total Premiums paid up to the date of death.
The policy shall terminate on payment of death benefit and all other benefits shall cease
b) On death after Deferment Period - The death benefit shall be the higher of
• Total Premiums paid accumulated at 6% p.a. compounded on a daily basis till end of deferment period less Total Annuity Payouts made till date of death
• Total Premiums paid less survival benefit on milestone age(s) already paid till date of death upon payment of the death benefit, the policy shall terminate and all other benefits shall cease.
Maturity Benefit – No Maturity Benefit under this option
ii. Mr. Rahul, aged 60 years and his spouse aged 55 years, opts for Joint Life option and pays a single premium of Rs. 10,00,000 and chooses Immediate Annuity Option. Diagrammatic illustration for the plan benefits under Life Annuity with Early Return is shown below
Annuity shall be paid in arrears as per the chosen frequency and shall start at the end of 1st year and be payable as long as the annuitant(s) is/are alive. The policy shall terminate on death of the secondary annuitant and all other benefits shall cease. As Life Annuity with Early Return option is selected, the death benefit shall be payable to the nominee / legal heirs on death of the annuitants.
Survival Benefit – On his survival, Mr. Rahul will start receiving guaranteed Annuity of Rs. 45,100 p.a. from the end of 1st policy year for whole life. Also, on Survival till the end of 15th policy year, Mr. Rahul will also receive Rs. 10,00,000 as he has opted for 100% Return of Premiums Paid at the age of 75 years. In case of sad demise of Mr. Rahul before the milestone age, his spouse will be paid the Rs. 10,00,000 as survival benefit on attaining age 75.
Death Benefit - In case of sad demise of Mr. Rahul, his spouse will continue to receive the guaranteed annuity for whole life. In case of sad demise of the spouse, Death Benefit equal to Total Premiums Paid less survival benefit on milestone age(s) already paid till date of death will be paid in lump sum to the nominee / Legal heirs and the policy will terminate.
Maturity Benefit – No Maturity Benefit under this option
D. Increasing Annuity Mr. Rahul, aged 60 years, chooses to smartly plan his retirement to receive sufficient lifelong annuity. He invests in Smart Pension Plus by paying a single premium of Rs.10,00,000 for a whole life policy term and opts for Option D : Increasing Annuity with sub option as ‘3% p.a. simple increase every year’ and opted to receive his annual annuity immediately. Let’s look at the benefits offered to him under this plan. Diagrammatic illustration for the plan benefits under Life Annuity with Increasing Annuity is shown below
Annuity shall be paid in arrears as per the chosen frequency and shall start at the end of 1st year with a 3% simple increase every year and be payable as long as the annuitant is alive. The policy shall terminate on death of the secondary annuitant and all other benefits shall cease. If Increasing Annuity option is selected, the death benefit shall be payable to the nominee / legal heirs on death of the annuitants.
Death Benefit - In case of sad demise of Mr. Rahul during the Annuity Payout Term, Death Benefit equal to Rs. 10,00,000 will be paid as a lump sum to his family and the policy will terminate.
Survivals Benefit – On his survival, Mr. Rahul will start receive a guaranteed Annuity of Rs. 49,705 p.a. from the end of 1st policy year. From the end of 2nd Policy Year, he will receive a guaranteed annuity with a 3% simple increase every year for whole life, i.e. Rs. 51,196 at the end of 2nd Policy Year, Rs. 52,687 at the end of 3rd Policy Year, Rs. 54,178 in the 4th Policy Year and so on.
Maturity Benefit – No Maturity Benefit under this option
ii. Mr. Rahul, aged 60 years and his spouse aged 55 years, opts for Joint Life option and pays a single premium of Rs. 10,00,000 and chooses Immediate Annuity Option with ROPP. Diagrammatic illustration for the plan benefits under Increasing Annuity is shown below
Annuity shall be paid in arrears as per the chosen frequency and shall start at the end of 1st year with a 3% simple increase every year and be payable as long as the annuitant(s) is/are alive. The policy shall terminate on death of the secondary annuitant and all other benefits shall cease. If Increasing Annuity option with ROPP is selected, the death benefit shall be payable to the nominee / legal heirs on death of the annuitants.
Death Benefit - In case of sad demise of Mr. Rahul, his spouse will continue to receive the guaranteed annuity. On death of the spouse, Death Benefit equal to ROPP, i.e. Rs. 10,00,000 will be paid as a lump sum to the nominee/legal heir and the policy will terminate.
Survival Benefit – On his survival, Mr. Rahul will start receiving a guaranteed Annuity of Rs. 47,622 p.a. from the end of 1st policy year. From the end of 2nd Policy Year, he will receive a guaranteed annuity with a 3% simple increase every year for whole life, i.e. Rs. 49,050 at the end of 2nd Policy Year, Rs. 50,479 at the end of 3rd Policy Year, Rs. 51,908 in the 4th Policy Year and so on.
Maturity Benefit – No Maturity Benefit under this option.
A. Free look Provisions.
In case the Policyholder is not agreeable to any terms and conditions stated under this product, the insured shall have the option of returning the policy to us stating the reasons thereof, within 15 days from the date of receipt of the policy, as per IRDA (Protection of Policyholders’ Interests) Regulations, 2017. If the insured has purchased the policy through the Distance Marketing mode, this period will be 30 days. On receipt of the letter along with the original policy document, the premium shall be refunded subject only to deduction of a proportionate risk charges, expenses incurred by Us for medical examination (if any) and stamp duty (if any).
• transferred to any other annuity provider as selected by you, in case this annuity product was purchased from the proceeds of a pension plan with Open Market Option (OMO); or
• returned to you, in case this annuity product was not purchased from the proceeds of any pension plan.
For the QROPS Policyholder the proceeds from cancellation in free look period can only be transferred back to the UK /Ireland Registered Scheme from where the money was received.
The Company shall additionally ensure that any obligation of policyholder towards QROPS requirement as per HMRC regulations, which he/she made by way of declarations at the time of transferring of pension corpus are met.
If a policy is purchased out of proceeds of a deferred pension plan of any insurance company, the proceeds from cancellation will be transferred back to that insurance company.
Distance Marketing refers to insurance policies sold through any mode apart from face-to-face interactions such as telephone, internet etc (Please refer to “Guidelines on Distance Marketing of Insurance Product” for exhaustive definition of Distance Marketing).
Free-Look under Group Policy
By Master Policy Holder:
(1) In case you, the Master Policyholder, are not satisfied with the terms and conditions specified in the Master Policy Document, you have the option of returning the Master Policy Document to us stating the reasons thereof, within 15 days from the date of receipt of the Master Policy Document, as per IRDAI (Protection of Policyholders’ Interests) Regulations, 2017
(2) In case of the Product is sold through Distance Marketing mode, the period will be 30 days from the date of receipt of the letter along with Master Policy Document
(3) On receipt of the letter along with the Master Policy Document, we shall arrange to refund the premium paid by you, subject to deduction of the proportionate risk premium for period on cover plus the expenses incurred by us on stamp duty (if any)
By Scheme Member:
(1) In case the Member is not satisfied with the terms and conditions specified in the Certificate of Insurance, he/she has the option of returning the Certificate of Insurance to us stating the reasons thereof, within 15 days from the date of receipt of the Certificate of Insurance, as per IRDAI (Protection of Policyholders’ Interests) Regulations, 2017
(2) In case of the Product is sold through Distance Marketing mode, the period will be 30 days from the date of receipt of the letter along with Certificate of Insurance
(3) On receipt of the letter along with the Certificate of Insurance, we shall arrange to refund the premium, subject to deduction of the proportionate risk premium for period on cover plus the expenses incurred by us on stamp duty (if any) For administrative purposes, all Free-Look requests should be registered by you, on behalf of Scheme Member.
B. Mode of Premium Payment You may choose to pay your premiums single pay, annually, half-yearly, quarterly or monthly. The premiums payable for non-annual modes are calculated by multiplying the annualized premiums by the factors set out below:
Frequency | Premium Conversion factor |
Half - yearly | 0.5100 |
Quarterly | 0.2600 |
Monthly | 0.0875 |
C. Annuity Payout Mode
The annuity will be paid in arrears only. However, the frequency of annuity payout can be chosen as annually, half-yearly, quarterly or monthly. For non-annual modes, annuity rates are calculated as the annual annuity rate multiplied by a conversion factor. Annuity installments for other frequencies will be as provided below:
Frequency | Conversion factor | Annuity Installment (per frequency) |
Half-yearly | 98.02% | Conversion Factor x Annual Annuity x 1/2 |
Quarterly | 97.05% | Conversion Factor x Annual Annuity x 1/4 |
Monthly | 96.41% | Conversion Factor x Annual Annuity x 1/12 |
D. Revivals
The policy can be revived within a period of 5 years from the date of first unpaid premium by submitting the proof of continued insurability to the satisfaction of the prevailing Board Approved Underwriting Policy of the company prevailing from time to time and making the payment of all due premiums together with payment of late fee calculated at such rates as may be prevailing at the time of the payment. Also the overdue annuity payments are made once the outstanding premiums (along with revival interest) are received and the policy gets revived.
During revival campaigns, the company may offer reduced interest rates subject to the rules of the special revival campaign. The rebates offered under the revival campaign may vary from year to year. The maximum interest rate rebate may be set up to the prevailing revival interest rate.
E. Grace Period: Grace Period means the time from the due date for the payment of premium, without any penalty or late fee, during which time the policy is considered to be in-force with the risk cover without any interruption, as per the terms and conditions of the policy. The grace period for payment of premium will be fifteen (15) days, where the policyholder pays the premium on a monthly basis; and 30 days in case of other applicable premium payment frequencies.
The Insurer shall be responsible to honor any valid claims brought under this policy in instances wherein the Master Policyholder has collected/ deducted the Premium but has failed to pay the same to the Insurer within the Grace Period due to administrative reasons.
F. Lapsation. Not Applicable for single pay policies.
For limited pay policies, the policy will lapse if it has not acquired a Guaranteed Surrender Value (GSV).
No benefit will be paid on lapse of the policy.
G. Reduced Paid-Up
For Single Pay: Not Applicable for single pay policies.
For Limited Pay: If a due premium is unpaid upon the expiry of the grace period, the policy will become paid-up if it has acquired a Guaranteed Surrender Value (GSV).
The revised annuity rate payable will be as follows:
Paid-up Annuity rate = Annuinty rate X (Total premiums paid/ Total premium payable)
H. Assignment Provisions
Assignment should be in accordance with provisions of Section 38 of the Insurance Act 1938 as amended from time to time.
I. Nomination
Nomination should be in accordance with provisions of Section 39 of the Insurance Act 1938 as amended from time to time.
Smart Pension plus Plan is a Non-Linked, Non-Participating Individual/Group Saving Annuity Plan.
This product information is indicative of the terms, conditions, warranties and exceptions contained in the insurance policy.
For further details, please refer to the policy document and detailed benefit illustration
In the event of conflict (if any) between the terms and conditions contained in this circular and those contained in the policy document, the terms and conditions mentioned in the policy document will prevail.