HDFC Life Assured Pension Plan

Apart from the above general benefits of the policy, it has come up with certain unique advantages that have made the policy popular among consumers. The followings are the mentions.

Pension Multiplier:

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

Deferment of Vesting Age:

With this plan, you have the flexibility to postpone the vesting date any number of times, which is subject to the maximum vesting age of 75 years, provided you are below the age of 60 years. In that case, the funds will move to Pension Conservative Fund.

Benefits on Discontinuance and Surrender:

If you discontinue or surrender the policy, you are entitled to receive the following benefits:

• During the lock-in period – If you do not pay the premium even within the grace period, the fund value after deducting the applicable discontinuance charges shall be credited to the discontinued policy fund, and the risk cover and rider cover, if any, will cease.

• After the lock-in period – In that case, the policy shall be converted into a reduced paid-up policy with the paid-up sum assured. The Paid-up sum assured refers to the original sum assured multiplied by the total number of premiums paid to the original number of premiums payable as per the terms and conditions of the policy.

Revival:

This policy gives you the option to revive a discontinued policy in the following ways:

• During the lock-in period – In that case, all due and unpaid premiums which have not been paid have to be paid without charging any interest or fee.

• After the lock-in period – You can revive the policy by restoring the original risk cover in accordance with the terms and conditions of the policy.

If the product is bought as QROPS (Qualifying Recognized Overseas Pension Schemes):

If QROPS policyholders purchase the policy through the transfer of UK tax-relieved assets, they will be eligible to avail of the following benefits:

• Vesting Benefit – In that case, access to benefits from policy proceeds both in the form of commutation and Annuitisation would be restricted till the policyholder attains 55 years of age or vesting age, whichever is later.

• Surrender or Discontinuance Benefit – The same benefit will be provided to the policyholder till he/she attains 55 years of age or the end of the lock-in period whichever is later.

• Cancellation in the Free Look Period – For the QROPS policyholders, the proceeds from cancellation in the free look period will only be transferred back to the Fund House from where the money was received.

• Overseas Transfer Charge – The company will deduct an amount only to the extent of the applicable tax charge from the Policy Fund Value and remit the same to HMRC (Her Majesty Revenue and Customs).