JS Retirement Plan

JS Retirement Plan is a long-term investment plan that allows you to build your savings for a better tomorrow, with the comfort of an insurance plan that protects you and your loved ones. The plan offer the promise of financial stability when you retire, so that you never have to give up the best things in life. JS Retirement Plan is underwritten by EFU Life Assurance Ltd.

ELIGIBILITY AGE

Anyone between the ages of 18 years and 60 years next birthday

POLICY TERM

10 to 45 years subject to a maximum age of 60 or 70 years at maturity

REGULAR PREMIUM

The Minimum Annual Basic regular Premium is as:

ModeMinimal Modal Premium
AnnualRs. 24,000 per annum
Half-YearlyRs. 12,000 per half yealy
QuarterlyRs. 6,000 per quarter
MonthlyRs. 2,000 per month

FUND ACCELERATION PREMIUM
(Lump Sum Adhoc Contribution)

Fund Acceleration Premium (FAP) can be paid at the commencement date or at any time while the policy is in force. The minimum FAP is Rs. 24,000.

INVESTMENT PROPORTION

(i) Unit Allocation

The allocation of the annual basic plan contribution to buy units in the selected fund is as follows:

YearUnit Allocation %
140%
280%
390%
4 to 10100%
11 and onwards100% + Loyalty Bonus Allocation

(ii) FAP Unit Allocation

100% of FAP payment is allocated to purchase units.

LOYALTY BONUS

These bonus units will be applicable every 5 years starting from the end of 11th policy year. The loyalty bonus unit allocation, in
addition to the basic plan contribution, is as follows:

YearLoyalty Bonus Allocation%
1130%
1645%
2160%
2675%
3190% or so on in later years

UNIT LINKED FUND

The premiums in the plan are linked to the Unit Linked fund which is invested in multiple Fund option ( to be selected at policy issuance)

  1. Managed Growth fund
  2. Guaranteed Growth fund
  3. Aitemad Growth fund

SUM ASSURED

Sum assured is equal to the Annual Basic Premium times the protection multiple. The Protection Multiple is subject to limits dependent upon the age at commencement

Age (years)Protection Multiple
18 to 49 years5 to 35
50 to 60 years10 to (70-Age)

BENEFIT ON DEATH

Benefit payable on death is,
Greater of:
Sum Assured of the Main Plan
OR
Cash Value of the units applicable to the Regular Basic Plan premium.
PLUS
Cash Value of units allocated against FAP (if any)

MATURITY BENEFIT

The maturity value of the plan can be utilized to purchase pension from the Company at rates prevalent at that time. Pension options available to the client are as follows:

  • Life pension payable as long as the policyholder is alive; or
  • Guaranteed for 10 years and life thereafter; or
  • Joint Life pension payable to the customer and on his/her death 50% continues to be paid to the spouse.

Policyholders may also opt for a 25% lump sum benefit and purchase the pension from the remaining 75% of the maturity or surrender value.

EARLY RETIREMENT OPTION

The plan also gives an option to the policyholder to avail early retirement. Under this option, policyholder can decide to surrender the Cash Value of units before the pre-determined plan maturity and purchase the pension from the options given above. The option is available after age 50 years provided the policy has remained in force for at least 5 complete years. This benefit is provided free of any charges.

INDEXATION

Under this option, the premium will increase every year by 5% of the previous year’s contribution with appropriate increase in benefits, without any medical evidence.

CHARGES

Fund Management Charge: 1.5% per annum.
Bid/Offer Spread: 5% of the net contribution.
Administration Charges: Rs. 50 per month deducted annually.

CASH WITHDRAWAL

The Policy can be encashed at anytime after the second year’s regular premium payment.

The Client can make partial cash withdrawals after commencement whilst continuing to make regular premiums and keeping the plan in force. This facility is subject to Rs. 24,000 remaining in the plan after such withdrawals (excluding the cash value of the FAP).

The FAP cash value can be withdrawn in full or partially at any time whilst the policy is in force.

BUILT IN ACCIDENTAL DEATH AND DISABILITY BENEFIT

In case of accidental death of the life assured, this rider provided an additional lump sum benefit. The amount of payout is up to 10 times the basic annual premium with a maximum payout limited to Rs. 5 million.

ADDITIONAL BENEFITS (Optional)

The following riders are available with this product

  • Additional Term Assurance
  • Waiver of Premium
  • Family Income Benfit