HDFC Life Insurance
HDFC Life Insurance Immediate Annuity Plan Policy

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.

Eligibility Criteria

ParametersDescription
Minimum entry agePOSP 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 frequencyYearly, half-yearly, quarterly, and monthly
Minimum annuity payout

Yearly: Rs. 10,000, Half-yearly: Rs. 5000, Quarterly: Rs. 3000

Monthly: Rs. 1000

Maximum annuity payoutNo upper limit
Annuity optionsSingle Life Annuity Options, Joint Life (two lives) Annuity Options
Free look period15 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

Annuity optionsDescriptions
Life Annuity
  • The annuity will be payable at a uniform rate in arrears for the life of the annuitant.
  • In case of the death of the annuitant, the annuity payments will cease and no further amount will be payable.
Life Annuity with Return of Purchase Price
  • The annuity will be payable at a uniform rate in arrears for the life of the annuitant.
  • If the annuitant dies, the annuity payments will cease and the beneficiary or the nominee will receive the 100% of the purchase price.
Life Annuity with Return of Balance Purchase Price
  • The annuity will be payable at a uniform rate in arrears for the life of the annuitant.
  • On the death of the annuitant, the company will pay the annuitant’s nominee the balance of the purchase price. In case the annuity payments exceed the purchase price, no benefit will be paid on death.
Life Annuity with a Guarantee Period
  • The annuity will be payable in arrears for the life of the annuitant or until the end of the guarantee period, whichever is later.
  • On the death of the annuitant or at the end of the guarantee period, whichever is later, the annuity payments will cease and no further amount will be payable. The annuitant has the option to choose a guarantee period of 5 or 10 or 15 or 20 years.
Life Annuity with 5% escalation
  • The annuity will increase annually by 5% per annum of the annuity amount at inception.
  • The first escalated payment is made one year after the first payment.
  • On death, the annuity payments will cease and no further amount will be payable.
Life Annuity with Return of Purchase Price in Parts
  • At the end of 7 years, 30% of the purchase price is paid to the annuitant for survival.
  • On the death of the annuitant beyond seven years, the insurer will pay the annuitant’s nominee 70% of the purchase price.
  • If the death occurs within 7 years, the beneficiary will receive the full purchase price.
Life Annuity with Return of Purchase Price on Diagnosis of Critical Illness
  • If the annuitant gets diagnosed with any of the 6 pre-specified illnesses before age 85 or on the death of the annuitant, whichever occurs earlier, the annuity payments will cease and 100% of the purchase price of the annuity will be payable.
Joint Life (two lives) Annuity Options
Joint Life Annuity with 100% annuity to the secondary annuitant
  • The annuity will be payable at a uniform rate in arrears so long as at least one of the two annuitants is alive.
  • On the death of the primary annuitant, the secondary annuitant will receive 100% of the original annuity throughout life
  • Upon the death of the last survivor, the annuity payments will cease and no further amount will be payable.
  • If the secondary annuitant predeceases the primary annuitant, the annuity payments shall cease upon the death of the primary annuitant.
Joint Life Annuity with 50% annuity to the secondary annuitant
  • On the death of the primary annuitant, the secondary annuitant is entitled to receive 50% of the original annuity throughout life.
  • The rest of the benefits will remain the same as the previous.
Joint Life Annuity with 100% annuity to secondary annuitant and return of purchase price
  • The annuity will be payable in arrears so long as at least one of the two annuitants is alive.
  • On the death of the primary annuitant, the secondary annuitant will receive 100% of the original annuity throughout life.
  • On the death of the last survivor, 100% of the purchase price is returned to the nominee.
Joint Life Annuity with 50% annuity to secondary annuitant and return of purchase price
  • On the death of the primary annuitant, the secondary annuitant will receive 50% of the original annuity throughout life.
  • On the death of the last survivor, 100% of the purchase price is returned to the nominee.
Other benefits
Tax benefitsTax benefits are available as per the prevailing tax laws.
AssignmentAn assignment is not allowed under this plan.
Policy loanNot allowed.
Maturity benefitsNo 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.

BandPurchase price
Band 1Less than Rs. 250,000
Band 2Rs. 250,000 to Rs. 499,999
Band 3Rs. 500,000 to Rs. 999,999
Band 4Rs. 1,000,000 to Rs. 4,999,999
Band 5Rs. 5,000,000 and above

Annuity payout

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.

Surrender Benefits

The surrender benefits have been illustrated in the below table.

Annuity optionGuaranteed surrender value
Life Annuity with Return of Purchase Price10% 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.

ParametersCredentials
GenderMale
Age36 years
Annuity optionLife Annuity
Purchase frequencyAnnual
Premium payment termSingle
Purchase price illustration
Purchase price (Excluding taxes)Rs. 4,91,159
GST rate1.8%
Taxes as applicable8,841
Purchase price (including taxes)Rs. 5 lakhs
Benefit illustration
Annuity payableRs. 33,546
First annuity date31st August
Death benefitYour policy will not offer any Death benefits. Annuity Payments will cease on the death of the annuitant
Surrender benefitNIL

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:

Frequency 

Annuity installment (per frequency)

Half-yearly

98% of Yearly Annuity x 1/2

Quarterly 

97% of Yearly Annuity x 1/4

Monthly 

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.

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