Pramerica Life NextGen
Pension Plan
Retire early & live carefree
Guaranteed Additions* up to 5% of the Premium Paid in the 1st Policy year
Zero Premium Allocation charge and Zero Policy Administration charge
*Guaranteed Additions will be applicable for the first policy year premium only
and will be recovered in case the Policy is cancelled under free-look.
A Non-Linked Non-Participating Individual Pure Risk Life Insurance Plan
Live a balanced life and retire early with Pramerica Life NextGen Pension Plan
Pramerica Life NextGen Pension Plan is designed to help you build your retirement fund with market-linked returns. This plan helps you achieve your long-term goals with confidence. Whether you are starting early or catching up on your retirement savings, it empowers you to take control of your financial future and makes your retirement years truly rewarding.
Features of NextGen Pension Plan
Life Cover
Enjoy the benefit of life cover and secure your family’s future against the uncertainties of life.
Guaranteed Additions
Receive guaranteed additions of up to 5% of the premium paid in the 1st policy year.
Return of Mortality Charges
Get Return of Mortality Charges (ROMC) on survival at the end of the Policy Term.
Customised Fund Strategy
Choice of two investment strategies and six fund options to suit your varied investment needs.
Zero Allocation & Admin Charges
Zero Premium Allocation Charge and Zero Policy Administration Charge throughout the policy term.
Market-Linked Growth
Enjoy the flexibility of unlimited switches and premium re-directions between fund options for maximising market movement or minimising the risk at no additional cost.
Learn more about the plan
Eligibility
Parameters
New ULIP Pension Plan
Age## at entry
Min:
18 years
Max:
65 years
Vesting Age#
Min:
40 years
Max:
80 years
Policy Term
Min:
10 years
Max:
55 years
Premium Payment Term
Limited Pay/ Regular Pay - 5 years to 40 years;
Premium (Rs.)
Premium Payment Mode
Min
Annual
Rs. 30,000
Monthly
Rs. 2,500
Premium (Rs.)
Max
No limit, subject to Board Approved Underwriting Policy
Sum Assured (Rs.)
105% of Total Premiums Paid
Premium Payment Mode
Annual & Monthly*
Top- up Premium
Annual & Monthly*
Top- up Premium
Minimum Top-up Premium – Rs. 10,000
Maximum Top-up Premium - No limit, subject to Board Approved Underwriting Policy
Top- up Sum Assured
105% of Top-up Premium
# Age as on last birthday
*Monthly mode of Premium payment is available only through credit card, direct debit and ECS
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Benefits of buying a NextGen Pension Plan
Death benefit
In case of the unfortunate demise of the Life Insured during the Policy Term provided all due premiums are paid, the following benefits shall be payable:
Death Benefit shall be higher of
- Sum Assured (including Top-Up Sum Assured, if any) or
- Fund Value (including Top-Up Fund Value, if any) or
- Rs. 10,000
Utilization of Death Benefit: The Nominee/claimant will have the following options:
- Nominee/claimant will have an option to withdraw the entire proceeds of Death Benefit.
- Nominee/claimant can utilize the entire proceeds of Death Benefit or part of it for purchasing annuity at the then prevailing annuity rate.
- Nominee/claimant can choose the settlement option where proceeds of the Death Benefit will be received in the form of installments subject to the following conditions:-
- The Settlement period cannot be greater than 5 years, from the date of death.
- Switches between funds in Defined Portfolio strategy is allowed during the settlement period.
- The Fund Management Charges shall be levied during the settlement period.
- The Complete withdrawal may be allowed at any time during the settlement period without levying any charge.
Vesting Benefit
Vesting Benefit is the Fund Value (including Top-Up fund value, if any), as on vesting date, on survival of the Life Assured.
Utilization of Vesting Benefit: The policyholder will have the following options:
- Policyholder can commute up to 60% of the Fund Value (including top up fund value) and utilize the remaining amount (net of commutation) to purchase immediate annuity or deferred annuity from Pramerica Life at the then prevailing annuity rate or
- Policyholder can commute up to 60% of the Fund Value (including top up fund value) and utilize the remaining amount (net of commutation) to purchase immediate annuity or deferred annuity from another insurer at the then prevailing annuity rate only to the extent of 50 % of the entire proceeds net of commutation.
In case the proceeds of the policy either on surrender or vesting, net of commutation, is not sufficient to purchase minimum annuity of Rs 1,000/ month such proceeds of the policy shall be paid to the policyholder as a lump sum
Surrender
The policy will acquire surrender value immediately from the first policy year. However, no surrender value will be payable during the “lock in period”, which is a period of five consecutive Policy Years from the date of commencement of the Policy.
If the Policyholder opts for surrender within the first five Policy Years, the Fund Value, after deducting the applicable discontinuance charges, shall be credited to the Discontinued Pension Fund, the risk cover and rider cover, if any, shall cease. The proceeds from the Discontinued Pension Fund shall be paid$$ at the end of the lock-in period as the Surrender Value. Only fund management charges shall be deducted from this fund during this period.
The income earned on this fund shall be at least the minimum rate as prescribed by the IRDAI from time to time. The current prescribed minimum guaranteed rate of interest applicable is 4% per annum. The excess income earned in the discontinued policy fund over and above the minimum guaranteed interest will also be accounted to the discontinued policy fund.
If the Policyholder opts for surrendering the policy after the completion of the fifth policy year, the Fund Value will be paid$$
$$
1. Policyholder can commute up to 60% of the Fund Value (including top up fund value) and utilize the remaining amount (net of commutation) to purchase immediate annuity or deferred annuity from Pramerica Life at the then prevailing annuity rate or
2. Policyholder can commute up to 60% of the Fund Value (including top up fund value) and utilize the remaining amount (net of commutation) to purchase immediate annuity or deferred annuity from another insurer at the then prevailing annuity rate only to the extent of 50 % of the entire proceeds net of commutation.
Guaranteed Additions
Guaranteed Additions is defined as a percentage of Premium Paid as given in the table below. This is allocated to the fund at the time of Premium Allocation for the first policy year only which results in higher allocation for the Policyholder.
In case of Annual mode, Guaranteed Additions by the way of extra allocation are provided as a percentage of Annual Premium:-
| Premium Payment Term ( years) | Annual mode | ||
|---|---|---|---|
| Premium Band 1 (Rs. 30,000 to Rs. 59,999) | Premium Band 2 (Rs. 60,000 and above) | ||
| 5 - 9 | 0% | 3% | |
| 10 and above | 0% | 5% | |
In case of Monthly mode, Guaranteed Additions by the way of extra allocation are provided as a % of Monthly installment premium paid:-
| Premium Payment Term (years) | Monthly mode | ||
|---|---|---|---|
| Premium Band 1 (Rs. 30,000 to Rs. 59,999) | Premium Band 2 (Rs. 60,000 and above) | ||
| 5 - 9 | 0% | 2% | |
| 10 and above | 0% | 4% | |
Return of Mortality Charges
On Survival of the Life Insured till the end of the Policy Term, an amount equal to the total of all the Mortality Charges deducted during the Policy Term (including mortality charge deducted on Top-up Sum Assured as applicable) will be added to the total Fund Value (Base Fund value plus Top Up Fund value) at the Vesting Date provided the Policy is in force and all due premiums are paid in full as on the Vesting Date.
The Return on Mortality Charges is subject to following:
- The amount payable under the Return of Mortality Charge, including any Extra Mortality charged if any, shall exclude any GST and cess with respect to the Mortality Charge that has been deducted.
- The amount of Return of Mortality Charge due with respect to Top up Premium will also be added to the regular Premium Fund Value
- The amount of Return of Mortality Charge will be added in the Funds in the same proportion as the value of those Funds as on the date of the Return of Mortality Charge. Unit Price as on the date of such addition will be used for the unitization
- No Return of Mortality Charge will be available in a Policy that has been terminated, discontinued or converted to a reduced paid-up policy
Choice of investment strategies
Choose an investment strategy of your choice to make the most of your plan
Under this option, you can choose to invest in any of the funds as available (except Discontinued Pension Fund or Liquid Pension Fund) in proportion to your choice. Within the Defined Portfolio strategy, you also have the option to select the Systematic Transfer Plan (STP) option for which Liquid Pension Fund will be made available to you. You can switch monies amongst these funds using the switch option.
You can choose from Six funds to invest your money in. You can look at the investment objectives of each of our funds to evaluate and match your investment goals to decide the proportion of investment in each of them. If you opt for more than one fund, the minimum investment in any fund should be at least 1% of the Annual Premium. The funds and fund objectives are as follows:
Considering the ever-changing financial needs as per the different life milestones, we offer a life-stage based investment strategy wherein the investments are distributed between Pension Dynamic Equity Fund and Pension Debt Fund with their proportions varying as per the different life stages. At inception the funds will be distributed between two funds, Pension Dynamic Equity Fund & Pension Debt Fund. As and when the next milestone is achieved, the funds will be re-distributed according to the attained age (age bands) as given in the following table:
Why choose Pramerica Life Insurance
99.18% Claim Settlement Ratio
Individual Death Claim Paid Ratio as per audited financials for FY 2024-25
134 Branches PAN India
As reported on Mar 2025
Over 5.2 Million Lives Secured
As on September 2023
Need assistance?
We are happy to help you. Talk to our expert and choose the right plan as per your needs.
Unshakeable life insurance products tailored for your needs
Pramerica Life
Super Investment Plan
- Benefit from Zero premium allocation charge in all years
- Return of Mortality & Waiver of Premium Charges on survival till the end of the Policy Term
Pramerica Life
Cancer + Heart Shield
- Covers different stages of Cancer and Heart conditions
- Monthly Income payable as recuperation benefit to meet your needs.
- No need to pay any premium from the date of first claim for next 3 Policy years
Pramerica Life
Rakshak Smart
- Flexibility to choose from two plan options
- Flexible Premium Payment Modes
- Comprehensive death benefit in Enhanced Life Option
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