HDFC Life Guaranteed Pension Plan

HDFC Life Guaranteed Pension Plan

HDFC Life Guaranteed Pension Plan is a Limited Period Deferred Annuity Plan. Thus, it is a Traditional Insurance Plan without Bonus facility.

 

How it works – In this plan, premium needs to be paid for a period of 5, 7 or 10 years for a Policy Tenure of 10 or 20 years. This policy guaranteed a Sum Assured on Vesting based on the age at entry and the policy tenure, which is the absolute amount of benefit which is guaranteed to become payable on vesting.

 

This policy offers:

·         Guaranteed Additions of 3% of Sum Assured on Vesting for each completed year

·         Vesting Addition

Policy Year	Vesting Addition (% of Sum Assured)
10 years	30%
11 years	33%
12 years	36%
13 years	39%
14 years	42%
15 years	45%
16 years	48%
17 years	51%
18 years	54%
19 years	57%
20 years	60%

 

Thus, if the Annuitant is alive on Vesting, he will receive Sum Assured + Guaranteed Additions + Vesting Addition as his Vesting Benefit.

 

On Vesting, the Annuitant has the following options:

·         Withdraw 1/3^rd of the Vesting Benefit as Tax Free under section 10(10)A and utilize the remaining to purchase annuity from HDFC Life

·         Use the entire amount to purchase annuity from HDFC Life

·         Utilize the entire amount to purchase a Single Premium Deferred Pension Plan from HDFC Life

The Annuity Options depends on the Annuity Options available in the Immediate Annuity Plan chosen.

However, if he dies within the Policy Tenure, the nominee will receive Total Premiums paid to date accumulated at a Guaranteed Rate of 6% p.a. compounded annually, subject to a minimum of 105% of total premiums paid. The nominee may choose to receive the entire benefit as a lumpsum or utilize the same, partially or fully to purchase Immediate Annuity.

 

Key Features of HDFC Life Guaranteed Pension Insurance Plan

§  It is a Limited Premium Deferred Annuity plan

§  The Premium Paying Term is 5, 7 or 10 years while the Policy Tenure is 10 or 20 years

§  The Policy Provides Guaranteed Benefit on vesting called Sum Assured

§  This policy offers Guaranteed Additions of 3% of Sum Assured on Vesting for each completed year

§  There is Vesting Addition calculated according to the Policy Tenure as % of Sum Assured

§  Vesting Benefit = Sum Assured + Guaranteed Additions + Vesting Additions

§  However, if he dies within the Policy Tenure, the nominee will receive Total Premiums paid to date accumulated at a Guaranteed Rate of 6% p.a. compounded annually

 

 

Benefits you get from HDFC Life Guaranteed Pension Insurance Policy 

Death Benefit – In case of death of the Annuitant within the Policy Tenure, the nominee will receive the Total Premiums paid to date accumulated at a Guaranteed Rate of 6% p.a. compounded annually as Death Benefit which can be taken by the nominee as a lumpsum or as annuity and the policy terminates.

Vesting Benefit – When the policy matures, the Vesting Benefit = Sum Assured + Guaranteed Additions + Vesting Additions is paid to the policyholder as Maturity Benefit.

Both Guaranteed Additions and Vesting Additions are a percentage of the Sum Assured at Vesting is calculated.

Vesting Addition

Policy Year	Vesting Addition (% of Sum Assured)
10 years	30%
11 years	33%
12 years	36%
13 years	39%
14 years	42%
15 years	45%
16 years	48%
17 years	51%
18 years	54%
19 years	57%
20 years	60%

 

Thus, if the Annuitant is alive on Vesting, he will receive Sum Assured + Guaranteed Additions + Vesting Addition as his Vesting Benefit.

 

On Vesting, the Annuitant has the following options:

·         Withdraw 1/3^rd of the Vesting Benefit as Tax Free under section 10(10)A and utilize the remaining to purchase annuity from HDFC Life

·         Use the entire amount to purchase annuity from HDFC Life

·         Utilize the entire amount to purchase a Single Premium Deferred Pension Plan from HDFC Life

 

The Annuity Options depends on the Annuity Options available in the Immediate Annuity Plan chosen.

Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C and 1/3^rd of the Maturity proceeds are tax free under section 10(10)A subject to fulfilment of terms and conditions

 

Eligibility conditions & other restrictions in HDFC Life Guaranteed Pension Policy                

	Minimum	Maximum
Sum Assured on Vesting (in Rs.)	81145	No Limit
Policy Term (in years)	10	20
Premium Payment Term (in years)	5/7	10
Entry Age of Annuitant (in years)	35	65
Age at Vesting / Maturity (in years)	55	75
Premium (in Rs.)	24,000 p.a.	No Limit
Payment modes	Yearly, Half-Yearly, Quarterly and Monthly

 

Additional Features and Benefits of HDFC Life Guaranteed Pension Plan

Riders – There are No Additional Riders in this plan

 

What happens if?

You stop paying the premium – The policy will lapse if the premium stops. The policy becomes paid up if at least 3 years’ premiums have been paid and continues with Reduced Benefit. The policy can however be revived within 2 years from the due date of the first unpaid premium.

 

You want to surrender the policy – If least 3 years’ premiums have been paid for a Premium Paying Term of 10 years and 2 years’ premiums have been paid for a Premium Paying Term of 5 or 7 years the policy acquires Surrender Value which depends on the Guaranteed Surrender Value Factor as a percentage of the premiums paid.

The Guaranteed Surrender Value is the aggregate of:

·         % of total Premiums paid as per the specified value

·         Surrender Value of the accrued Guaranteed Additions

Policy Year	% of Premium for Guaranteed Surrender Value Calculation for Premium Paying Term 5 or 7	% of Premium for Guaranteed Surrender Value Calculation for Premium Paying Term 10
2	30%	N/A
3	30%	30%
4 to 7	50%	50%
Last 2 years	90%	90%

You want a loan against your policy - There is Loan available under this plan.

 

Other Pension Plans from HDFC Life Insurance 

Deferred Annuity Plans

HDFC Life HDFC Life Pension Super Plus Plan

HDFC Life Single Premium Pension Super Plan

HDFC Life Personal Pension Plus Plan

Immediate Annuity Plans

HDFC Life New Immediate Annuity Plan

 

Some Retirement Plans from Other Life Insurers

ICICI Prudential Easy Retirement Plan

Aviva Next Innings Pension Plan

Future Generali Pension Guarantee