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Star Union Dai-ichi Pension Plans

A Guide to Star Union Pension Plans

Have you started planning for your retirement and are considering investing in pension plans? If yes, then you're already on the right path. Planning your retirement early-on is the smartest thing you can do. Inflation is a big reason for retirement planning. A well-chosen pension plan can help you rise above inflation, due to the power of compounding. The earlier you start investing, the more you can save and you will get a better retirement corpus.

Pension plans can give you a steady source of income after you retire. These plans provide you with an investment avenue while also providing an insurance cover.

Star Union Dai-ichi Life Insurance Company Limited is a joint venture between Union Bank of India, Bank of India, and Dai-ichi Life, which is the leading insurance company of Japan. Let's look at some benefits of investing in Star Union Dai-ichi pension plans.

  • Tax benefits is one of the major benefits for investing in these pension plans. You can claim deduction for the premium paid under section 80C. Also, one-third of the maturity amount is exempt from tax.
  • You can save as per your convenience on a monthly, quarterly, half-yearly, or yearly basis.
  • You can choose the product you want to invest in, based on your financial goals and eligibility. All in all, if you want a secure retired life, investing in a pension plan is your best option. The key to investing is to scheme smartly and save wisely.

Types of Retirement Plans offered by Star Union Dai-ichi

The pension plans offered by Star Union Dai-ichi Life Insurance Co. Limited combine a traditional insurance-cum-investment policy which guarantees investment benefits upfront.

SUD Life Immediate Annuity Plus

Under this plan, you get regular cash flow post retirement. There are two options under this plan: Plan A and Plan B. Plan A offers ten options under this scheme.

  • Life Annuity
  • Life Annuity with Return of Purchase Price
  • Increasing Life Annuity with Return of Purchase Price
  • Joint Life Annuity (50%)
  • Joint Life Annuity (100%)
  • Joint Life Annuity (50%) with Return of Purchase Price
  • Joint Life Annuity (100%) with Return of Purchase Price
  • Annuity certain for 10 years
  • Annuity certain for 15 years
  • Annuity certain for 20 years

Plan B on the other hand has two options, Life Annuity with Return of Purchase Price and Joint Life Annuity (100%) with Return of Purchase Price.

If your purchase price is more than Rs. 10 lakhs, then you can get a higher annuity rate.

Let's understand the eligibility criteria for the SUD Life Immediate Annuity Plus scheme.

  • Entry age: The minimum age for applying for Plan A is 45 years for a new customer while there is no minimum age for an existing customer. The minimum age to apply for all customers under Plan B is 60 years. The maximum age for applying is 99 years under both plans.
  • Annual amount: The minimum annual annuity amount under plans is Rs. 1,200 for an existing customer while it's Rs 2,640 for a new customer. There is no maximum limit.
  • Purchase price: The minimum purchase price for both plans for every customer is Rs 1 lakh. There is no maximum limit.

The plan offers ten annuity options under plan A and two annuity options under plan B. Both the plans have a single premium payment mode. The annuity will be paid monthly, quarterly, half-yearly, or yearly as per your policy.

SUD Life Guaranteed Pension Plan

There are two options under this plan, single premium and limited premium payment. Under the single premium option, you can pay for the premium in a lump sum, whereas under the limited premium option, you can pay the premium for a limited number of years during the policy term. As an investment benefit under this scheme, at the end of a tenure, you get a bonus which is the total premium paid multiplied by a vesting benefit factor. This vesting benefit factor depends on your policy term and a premium option chosen.

Here are the eligibility criteria for this plan

  • The age for applying under this scheme is between 35 to 65 years.
  • The minimum vesting age is 55 years, whereas the maximum vesting age is 70 years.

Let's understand how the plan works in a bit more detail. We will use an example to understand this plan. Suppose you buy this policy for a term of 20 years and your premium payment term is 15 years for an annual premium of Rs. 1 lakh. At the end of 20 years, you will get back Rs. 27.30 lakh. This is a net return of 4.57%.

SUD Life Assured Income Plan

This is a traditional plan where you can get guaranteed income. At the time of maturity, the premiums paid by you are returned as a guaranteed maturity benefit which is ten times the annual premium paid for 10 years and 15 times the annual premium paid for 15 years. This is the eligibility criteria for this scheme.

  • The minimum age for applying for this plan is 8 years and the maximum age is 55 years.
  • The minimum policy term is 20 years and the maximum term is 35 years.
  • The minimum annual payout is Rs. 24,000 and the maximum amount is Rs. 50 lakhs.
  • You can pay the premium monthly, quarterly, half-yearly, or yearly.

Here's how the plan works

Under this plan, you get a fixed annual payout for which you can decide the amount and payout period. At the end of the policy term, once all the payouts are completed, you will get a lump sum equal to all the premiums paid by you.

How to Apply for Star Union Dai-ichi Pension Plans?

You can apply for this scheme online. In fact, the company offers certain plans that can only be applied online. Applying for a pension plan online is quite simple. All you need to do is register yourself on the company website and then login using your credentials. The main instruments you will need for registration are your date of birth and your personal details. Once you log in, you can choose your plan and coverage, and then provide the required details. The premium to be paid will be determined based on the information provided by you. You can pay the premium online using your credit/debit card or net banking facilities.

Another way to apply for this policy is through an intermediary. This can be through agents, banks, or brokers who can help you with the application process. You can also apply via Online Broker website. There are a few benefits of applying for a pension plan using an intermediary.

  • The application process becomes easier as there is someone to guide you along the way.
  • You can get your documents verified by an expert before submitting them so that your application process goes smoothly.
  • If there is any problem during any stage of the process, you will have someone to consult with.

You need to have your identity proof, age proof, income proof, address proof, and PAN number to apply for any of the Star Union Life plans.

Conclusion

Pension plans are a great way to save for your retirement and plan for a secure and comfortable future. It doesn't matter if your goal is to build a sustainable corpus for retirement, your children's education, or a long vacation, a good investment can help you achieve every financial goal.

FAQs on Star Union Dai-ichi Pension Plans

Which is best pension plan in Star Union Dai-ichi pension plans?

All three of the plans offered by Star Union Life are beneficial in their own way and you need to decide which among them suits your needs the best. Under the Life Immediate Annuity Plan, the annuity will be paid monthly, quarterly, half-yearly, or yearly as per your policy.

Which is the best pension plan of Star Union Dai-ichi Pension Plans 2018?

The SUD Life Assured Income Plan is considered to be the best pension plan of Star Union Dai-ichi for 2018. This is because it is totally risk-free, offers guaranteed income, as well as tax benefits.

Which is the best Star Union Dai-ichi Pension Plans for long term?

The Star Dai-ichi Life Guaranteed Pension Plan is considered to be the best Star Union Life pension plan for long term mainly because the policy tenure can go up to 20 years.

Why should I buy Star Union Dai-ichi Pension Plans?

Star Union Life will be your partner throughout your investment journey. This means that you will not only get financial protection but can also fulfil all your dreams. They have a variety of pension plans designed for individuals and also for groups. So, whatever your financial goal is, you can achieve it with ease.

How to pay premium? What are the modes of payment available?

Under the SUD Life Immediate Annuity Plus plan, you pay the premium as a lump sum amount. In the SUD Life Guaranteed Pension plan, you have the option to pay premium as a lump sum amount or through the years as your policy progresses. Under the SUD Life Assured Income plan, you can pay the premium on a monthly, quarterly, half-yearly, or yearly basis.

How can I check policy status for Star Union Dai-ichi Pension Plans?

You can check your policy status for Star Union Dai-ichi Pension Plans on the company's website by simply logging into your account and visiting the customer portal.