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HDFC Life Assured Pension Plan

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HDFC Life Assured Pension Plan Review

HDFC Life Assured Pension Plan is a unit-linked pension insurance plan (ULIP) which offers loyalty additions. 
 

Key Features of HDFC Life Assured Pension Plan

  • Loyalty additions in the form of Pension Multipliers every alternate year, starting in the 11th year
  • Option to start as early as 18 years
  • Lower vesting/maturity age of 45 years
  • Limited Pay & Single Pay – Options available in one product
  • Death benefits to the nominee which will be higher of the fund value of your policy at the time of death or 105% of premiums paid till then

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Benefit Options of HDFC Life Assured Pension Plan

A) Pension Multiplier
Loyalty additions in the form of Pension Multipliers will be added to the fund value, if all due premiums have been paid, every alternate year starting from the end of 11th policy year. These additions will be equivalent to 1% of average fund value for immediately preceding two years

B) Vesting Benefit:
Your policy vests at the end of the policy term, and your Maturity (Vesting) Benefit will be the higher of the following
Fund Value or Assured Vesting Benefit
Assured Vesting Benefit can be calculated as:
[101% +1% * (Policy Term minus Premium Paying Term)] * Total premiums paid

C) Deferment of vesting date
  1. The deferment of vesting date (retirement date) can be intimated any time before annuitisation.
  2. You can postpone the vesting date any number of times subject to the maximum vesting age of 75 years, provided you are below an age of 55 years.
  3. On postponement of vesting date, Assured Vesting Benefit and Death Benefit will continue to apply. The Assured Vesting Benefit will be the same as that calculated on the policy term chosen at the inception of the policy.
  4. The funds will move to Pension Conservative Fund and all applicable charges will continue to be deducted.

D) Death Benefit:
In case of your unfortunate demise before the end of policy term, your nominee will receive the higher of the following:
  1. Fund Value,
  2. 105% of the premium(s) paid.
The policy will terminate thereafter and no more benefits will be payable.

Tax Benefit
Tax Benefit available for premiums paid as per Section 80C and benefit amount received as per Section 10(10D) of Income Tax Act, 1961

HDFC Life Assured Pension Illustration

Eligibility and other Conditions of HDFC Life Assured Pension Plan

  Minimum Maximum
Entry Age 18 years 65 years
Vesting Age 45 years 75 years
 
Premium Payment Term (Years) Policy Term (Years)
Single Pay 10, 15 to 35
8 Pay 10, 15 to 35
10 Pay 10, 15 to 35
15 Pay 10 to 35
 
Premium Payment Mode Minimum Premium (Rs.)
Yearly  24,000
Half-Yearly 12,000
Quarterly 6,000
Monthly 2,000
 
Premium Payment Mode Minimum Premium (Rs.)
Single Pay 50,000
 

Fund Options of HDFC Life Assured Pension Plan

Fund Details Money Market Instruments Govt Securities, Bonds Equity Risk & Return Rating
Pension Equity Plus Fund To generate long term capital appreciation in line or better than Nifty index returns 0% to 20% 0% to 20% 80% to 100% Very High
Pension Income Fund To deliver High potential returns due to investments in instruments with higher duration and credit exposure 0% to 20% 80% to 100% - Moderate
Pension Conservative Fund To invest in high grade fixed Income instruments & Government securities at the short end of the yield curve, to deliver stable returns 0% to 60% 40% to 100% - Low


Surrender

If you surrender before completion of the 5 years from commencement of the policy
Your fund value less discontinued charges will be moved to the 'Discontinued Policy Fund. The fund value corresponding to the 'Discontinued Policy Fund' will be paid out on the completion of the lock-in period.
If you surrender after completion of the 5 years from commencement of the policy
Your fund value will be paid out.
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