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	ANNUNITY OR PENSION PLANS

	To provide regular income for old age, pension plans are introduced. These plans are known as annuities. An Annuity is a contract providing for regular periodic payments during a specified period. If the period is fixed irrespective of the duration of life, it is called Annuity certain. If it is related to life, it is called Life Annuity. Annuity may be immediate life annuity or certain for a period and thereafter for life or it may be deferred. There are four types of annuities viz

	*Immediate Annuity*
	This annuity is purchased by a single premium called “the purchase price”. The annuity may be paid in Yearly, Half-yearly, Quarterly or monthly instalment. The first instalment will be paid one month after the date of purchase in case of monthly mode, after three months for quarterly mode after six months for half yearly mode, and after one year for yearly mode.

	*Annuity Certain*
	The purchase price is payable in a lump sum and the annuity instalments are payable for a definite term, irrespective of whether the purchase is alive or dead.

	*Guaranteed Life Annuity*
	The installments are guaranteed for a fixed term and will be continued till the death of the annuitant

	*Deferred Annuity*
	In this type, the annuity installments are deferred for a definite period. The purchase price can be paid in installments during the deferment period or in a lump sum. The details of the Unit Link Life Insurance Plan - Market Plus; an Annuity Plan with or without risk cover are: Single premium or Regular premium, Can be started with Rs.5, 000/- per annum This is a unit linked deferred pension plan. You can take the plan with or without risk cover. You can also choose the level of cover within the limits, which will depend on whether the policy is a Single premium or Regular premium contract and on the level of premium you agree to pay. The allocated premiums will be applied to purchase units as per the Fund type chosen. Your Unit Account will be subject to deduction of charges as specified in the Policy Conditions. The value of the units in the Unit Fund may increase or decrease, depending on the investment return of the assets representing the chosen Fund. Payment of Premiums: You may pay premiums regularly at yearly, half-yearly or quarterly intervals over the term of the policy. The minimum annual premium will be Rs.5, 000/- increasing thereafter in multiples of Rs.1, 000/-. Alternatively, a Single premium can be paid subject to a minimum of Rs.10, 000 and thereafter in multiples of Rs.1, 000. Benefits: A) Death Benefit: If the Life cover is opted for, the Sum Assured under the Basic Plan together with the Fund Value of units either as a lump sum or as pension. In case the policy is taken without life cover, then the Fund Value of the units held in the Policyholder’s Unit Account shall be payable either as a lump sum or as a pension. The amount of pension will depend on the then prevailing immediate annuity rates under the annuity option chosen. B) Benefit on Vesting: On surviving to the date of vesting, the Fund Value of the units held in your Unit Account will compulsorily be utilized to provide a pension based on the then prevailing immediate annuity rates under the relevant annuity option. However, you may opt to commute up to one-third of the Benefit to be paid as a lump sum. Further, you may choose to purchase pension from LIC or other life insurance company. Accident Benefit Option: If you have opted for life cover, you may opt for Accident Benefit equal to life cover subject to minimum Rs. 25,000 and maximum Rs. 50 lakh (taken all policies with LIC of India and other insurers). In case of death by Accident, an additional sum equal to Accident benefit will be payable. Investment of Funds: Bond Fund, Secured Fund, Balanced Fund, Growth Fund Every Insurance Company has got its own Pension Plan with unique features and different options. Contact us for any Company’s any insurance or Pension Plan.