Differed Annuity and Pension plans can be linked .In such cases, life cover is optional. The allocated premium would be used to buy units in the chosen funds, On the maturity date, called the vesting date, the accumulated amount will be number of units in the fund multiplied by the NAV. This amount will be utilized to buy an anniuityor at rates prevalent that date.Insureerallow policyholder to withdraw the policy value and buy annuities from other insurer. Policyholders are allowed to commute, means to take as a lumpsum, one-third of the fund and convert only the two –thirds of the annuities.
If life cover Is opted for, the SA will be subject to the minimum and a maximum. These limits are multiples of the premium agreed upon, That SA will be paid on the death of the annuitants or pensioner during the deferment period, to the nominee or heirs. The cost of the cover would be deducted from the premium before allocation to the fund.
Annuities and Pensions under ULIP
