HDFC Life New Immediate Annuity Plan
Retirement days are considered to be the longest holidays and the period of relaxation. But this age is also prone to different health-related life risks. Moreover, you still need to fulfill certain responsibilities and dreams. Battling against inflation and maintaining a smooth lifestyle becomes difficult in the post-retirement days, especially when the regular flow of income gets stopped. To erase this problem, HDFC Life Insurance Company has come up with the New Immediate Annuity Plan that helps to plan for your retirement days early to build a financial corpus. It is a single premium, non-participating, non-linked, annuity plan that helps you to generate a regular flow of income to cater to your different needs and to spend the golden days of life without any worries. To know more about this plan, have a look at the below mentions.
|Minimum entry age||POSP Channel: 40 years, Other Channels: 20 years|
|Maximum entry age|
POSP Channel: 70 years
Life Annuity with Return of Purchase Price on the diagnosis of critical illness: 85 years
All other options: 99 years
|Annuity payout frequency||Yearly, half-yearly, quarterly, and monthly|
|Minimum annuity payout|
Yearly: Rs. 10,000, Half-yearly: Rs. 5000, Quarterly: Rs. 3000
Monthly: Rs. 1000
|Maximum annuity payout||No upper limit|
|Annuity options||Single Life Annuity Options, Joint Life (two lives) Annuity Options|
|Free look period||15 days and 30 days|
Know the benefits of HDFC Life New Immediate Annuity Plan
The following table talks about the general benefits and advantages that you can get under this plan. Have a look.
Single Life Annuity Options
|Life Annuity with Return of Purchase Price|
|Life Annuity with Return of Balance Purchase Price|
|Life Annuity with a Guarantee Period|
|Life Annuity with 5% escalation|
|Life Annuity with Return of Purchase Price in Parts|
|Life Annuity with Return of Purchase Price on Diagnosis of Critical Illness|
|Joint Life (two lives) Annuity Options|
|Joint Life Annuity with 100% annuity to the secondary annuitant|
|Joint Life Annuity with 50% annuity to the secondary annuitant|
|Joint Life Annuity with 100% annuity to secondary annuitant and return of purchase price|
|Joint Life Annuity with 50% annuity to secondary annuitant and return of purchase price|
|Tax benefits||Tax benefits are available as per the prevailing tax laws.|
|Assignment||An assignment is not allowed under this plan.|
|Policy loan||Not allowed.|
|Maturity benefits||No maturity benefit is provided.|
Key highlights of HDFC Life New Immediate Annuity Plan
Apart from the above general benefits, this plan has also come up with a few unique features for which it is famous among consumers. The followings are the mentions.
Higher annuity for the large purchase price
The annuity rates depend on the purchase price band. You will receive a higher annuity amount for a large purchase price. The following table shows the bands.
|Band 1||Less than Rs. 250,000|
|Band 2||Rs. 250,000 to Rs. 499,999|
|Band 3||Rs. 500,000 to Rs. 999,999|
|Band 4||Rs. 1,000,000 to Rs. 4,999,999|
|Band 5||Rs. 5,000,000 and above|
The Annuity amount will directly be credited by the company to your bank account through ECS/ NEFT. If your bank does not have any of these facilities, the insurer will make payments by other modes. The annuity payout will be as per the followings:
- For yearly frequency, the annuity payout will be after one year from the purchase.
- For half-yearly frequency, the annuity payout will be after 6 months from the purchase.
- For quarterly frequency, the annuity payout will be after 3 months from the purchase.
- For monthly frequency, the annuity payout will be one month from the date of purchase.
Cancelation in the free look period
If you are not satisfied with the terms and conditions of the policy, you can return the policy anytime within the free look period, which is within 15 days from the date of purchasing the policy. The Free Look period for policies purchased through distance marketing is 30 days. In this case, you need to state the proper reason for the cancellation.
The surrender benefits have been illustrated in the below table.
|Annuity option||Guaranteed surrender value|
|Life Annuity with Return of Purchase Price||10% of the purchase price|
|Life Annuity with Return of Purchase Price on the diagnosis of critical illness|
|Life Annuity with Return of Purchase Price in parts|
If surrendered within 7 years: 10% of the purchase price
If surrendered thereafter: 7% of the purchase price
General exclusions of HDFC Life New Immediate Annuity Plan
A policy cannot be completely understood without knowing its exclusions of it. Therefore, to have a comprehensive idea of the plan and to avoid future complications, here are the mentions of the exclusions of this plan for which it does not provide any coverage.
- Anything that does not satisfy the terms and conditions of the policy will fall under the category of exclusions.
- If there is any breach of law, you cannot avail yourself of any of the benefits of the plan.
- Any non-melanoma skin carcinoma unless there is evidence of metastases to lymph nodes or beyond, and Malignant melanoma that has not caused invasion beyond the epidermis will not be covered.
- Angioplasty and/or any other intra-arterial procedures are excluded.
- For any type of angina pectoris, no benefit will be given.
Premium calculation of HDFC Life New Immediate Annuity Plan
The next important thing that you need to know about this plan is how much premium amount you have to pay to enjoy the benefits. For that, here is an example for your better understanding.
Suppose Mr. Sharma, a 36-years-old businessman, bought HDFC Life New Immediate Plan. Let us find out how much he has to pay to buy the plan as per the given data and what benefits he is going to get with this plan for the chosen options.
|Annuity option||Life Annuity|
|Premium payment term||Single|
|Purchase price illustration|
|Purchase price (Excluding taxes)||Rs. 4,91,159|
|Taxes as applicable||8,841|
|Purchase price (including taxes)||Rs. 5 lakhs|
|Annuity payable||Rs. 33,546|
|First annuity date||31st August|
|Death benefit||Your policy will not offer any Death benefits. Annuity Payments will cease on the death of the annuitant|
Frequently Asked Questions
Primary Annuitant refers to the individual, the events in the life that are of prime importance in affecting the timing or amount of the payout under the contract. Secondary Annuitants for the purpose of joint life contracts will refer to the second life.
The six critical illnesses that are covered under this plan are:
- Cancer of Specified Severity
- Open Chest CABG
- Myocardial Infarction
- Kidney Failure requiring regular Dialysis
- Major Organ Transplant (as a recipient)
- Stroke resulting in permanent symptoms
Annuity installments for frequencies other than annual will be as below:
Annuity installment (per frequency)
98% of Yearly Annuity x 1/2
97% of Yearly Annuity x 1/4
96% of Yearly Annuity x 1/12
Only ‘Life Annuity with Return of Purchase Price can be sold via the POSP channel.
If you want to purchase this product as QROPS (Qualifying Recognized Overseas Pension Scheme), through the transfer of UK tax relieved assets, you have to be 55 years of age or above.
In the case of the Joint Life Annuity options, the second life can be your spouse, children, parents, parents-in-law, or siblings who will receive an annuity after your lifetime.