Presentation on theme: "Executive Pension Plan"— Presentation transcript:
1 Executive Pension Plan Achieving Financial Independence Upon RetirementExecutive Pension Plan
2 EFU Executive Pension Plan Ensuring that your retirement is planned!Worried about the financial problems you might face after retirement?Let EFU Life facilitate you withEFU Executive Pension PlanAn effective means of achieving financial independence upon your retirement.In addition to your retirement benefits, the Pension Plan also gives you the opportunity to avail a range of protection benefits enabling you to tailor the Plan perfectly to your needs.
3 Salient FeaturesContribution to the Pension Plan are invested in accumulation of units to build up a substantial capitalCapital is applied to provide a pension at retirementThe Pension Plan is fully portable and stays with you wherever you go.Your contributions will buy units in any one of the EFU Growth Funds, managed by expertsYou will be able to choose how to take your benefits from a whole range of options.Access your savings when you need them.
4 You can withdraw your full or partial Fund Value A Range of Benefit OptionsYou can withdraw your full or partial Fund ValueAt maturity you can withdraw the fund value as a lump sum amount, or you may select an income to be paid for your lifetime.You can select a joint income which will continue to be paid to your spouseFund Acceleration PremiumEFU Executive Pension Plan gives you the flexibility to top-up your regular contributions by depositing surplus funds.
5 7% Access to your savings Inflation Protection No one can predict the FutureIf needed you can access your savings after 2 years’ premium paymentInflation ProtectionSecurity and Peace of MindThe plan also takes into account theeffect of annual inflationTo retain the purchasing power of the Plan’s benefitsEach year the contribution would increase by7%of the initial contribution
6 Life Cover Option (Additional Term Assurance) Additional BenefitsThe Pension Plan offers a range of additional benefits to help you tailor the Plan to suit your particular need.Waiver of PremiumContribution to your pension plan will be paid in full incase you are unable to continue your occupation due to illness.Life Cover Option (Additional Term Assurance)This optional benefit provides a lump sum amount to those who are dependent on you on your death.Income BenefitThis optional benefit provides a fixed amount, payable quarterly in advance, to ensure that the financial needs of your family are met.
7 Other Important Details AgeMinimum: 18 years Maximum: 60 yearsTermBetween ages 60 and 70 yearsContributionMinimum annual contribution is Rs. 16,000Fund Acceleration Premium:Minimum: Rs. 16,000Maximum: 5 times the currentyear’s annual contribution.
8 If basic plan contribution is over Rs. 20,000 Unit AllocationThe proportion of Basic Plan contribution allocated to investment is as follows:Year% Allocation150%290%3 to 5100%6 to 10103%If basic plan contribution is over Rs. 20,00011 onwards105%Plan ChargesInvestment Management Charge :0.125% of the value of fund per monthBid/Offer Spread :5% of net regular ContributionAdministration Charge :Rs. 240per annum
9 Additional Term Assurance Death BenefitPayable on death is the full bid value plus the sum assured in respect of any additional benefitsAdditional Term AssuranceMaximum sum assured under the additional term assurance is limited to the Basic Plan times term of policy