HDFC Life Insurance
HDFC Life Insurance Pension Guaranteed Policy

HDFC Life Pension Guaranteed Plan

It is pivotal to be financially independent during the retirement period to enjoy and lead a comfortable life. HDFC Life Pension Guaranteed Plan is a wise option if you wish to guarantee a steady income stream after retirement. It is a non-participating, non-linked, and single premium annuity plan that promises guaranteed benefits to take care of your post-retirement life with a steady income.

Eligibility Criteria

Minimum Entry Age
  • Immediate Life Annuity: 30 Years
  • Immediate Life Annuity with Return of Purchase Price: 30 Years
  • Deferred Life Annuity with Return of Purchase Price: 45 Years
Maximum Entry Age85 Years
Premium Payment TermSingle
Minimum Annuity Payout Per Instalment

Annually: Rs. 12000, Half-Yearly: Rs. 6000

Quarterly: Rs. 3000, Monthly: Rs. 1000

Maximum Annuity Payout Per InstalmentNo Limit
Minimum Group Size (For Group Policies)5 (Five)
Deferment PeriodUp To 12 Years

Focal Points Of HDFC Life Pension Guaranteed Plan

The plan includes the following aspects:

Annuity Options
  • Immediate Life Annuity
  • Immediate Life Annuity with Return of Purchase Price
  • Deferred Life Annuity with Return of Purchase Price
Top-Up Options

 

The plan gives you the option to choose a top-up option to improve your annuity payouts. The top-up amount and the applicable annuity rates determine the additional annuity amount that is due. The age at the time of top-up will be used to calculate the annuity rate.

Free Look PeriodThe policyholder has the option of returning the policy within 15 days of receiving it if they are not comfortable with any of the policy terms and conditions under this product. This time frame will be 30 days if the policyholder buys it using distance marketing.
Loan FacilityPolicy loans will be accessible throughout the deferment period under the Deferred Life Annuity option, subject to the terms and circumstances that the firm may from time to time establish. A maximum of 80% of the surrender value will be the loan amount.
Maturity BenefitNot Available

Why Should You Invest In HDFC Life Pension Guaranteed Plan?

You should consider buying HDFC Life Pension Guaranteed Plan because of the following reasons:

  • Discounts

For higher purchase prices, the plan offers discounts in the form of higher annuity rates. Note that all joint-life rates are gender neutral. For all single-life policies, a female individual will be provided premiums that are the same as those of a male individual with a three-year setback.

  • Surrender Benefits

The plan also offers the following surrender benefits to the policyholder:

  • Immediate Life Annuity Option (Single and Joint life option): Surrender is not allowed.
  • Immediate and Deferred Life Annuity with Return of Purchase Price (Single and Joint life option): Surrender Value shall be equal to the Present Value (PV) of expected future benefits discounted at the then prevailing interest + 2%.
  • Tax Benefits

All annuity distributions could be liable to income tax depending on the legislation in effect at the time of the payout. Please get in touch with your tax consultant for more information.

  • Death Benefits

The plan also offers the following death benefits to the policyholder:

Annuity OptionDeath Benefit
Immediate Life Annuity OptionNA

Immediate Life Annuity with

Return of Purchase Price Option

100% of the Purchase Price of the Annuity

Deferred Life Annuity with

Return of Purchase Price Option

Higher of

  • Purchase Price + Guaranteed Additions (GA) – Total Annuity Payouts till
  • date of death
  • 110 % of Purchase Price

Premium Calculation Of HDFC Life Pension Guaranteed Plan

It is important to know an estimate about how much HDFC Life Pension Guaranteed Plan costs. Let’s take a look at premium calculation for different individuals based on several parameters.

NameAgeGenderPurchase PricePayout FrequencyAnnuity Payout
Asha Rani32 YearsFemaleRs. 8 LakhsAnnualRs. 46,697
Shweta Tiwari42 YearsFemaleRs. 10 LakhsHalf-YearlyRs. 30,021
Madan Lal51 YearsMaleRs. 12 LakhsQuarterlyRs. 19,769
Ayush Mehra62 YearsMaleRs. 15 LakhsMonthlyRs. 9,241

Exclusions Under HDFC Life Pension Guaranteed Plan

The following things are excluded under the plan:

  • No alterations are allowed after the annuity has been purchased.
  • The maturity benefit is excluded under the plan.
  • There is a prohibition of rebates according to Section 41 of the Insurance Act, 1938.
  • Individuals below 30 years are not eligible for the plan.

Frequently Asked Questions

The minimum and maximum purchase prices under the plan are as follows:

  • Immediate Life Annuity: Rs. 42,076
  • Immediate Life Annuity with Return of Purchase Price: Rs. 160,261
  • Deferred Life Annuity with Return of Purchase Price: Rs. 76,046

The annuity payout under the plan will be calculated as follows:

  • Annuity Payout = Applicable Annuity Rate X Purchase Price

At this time, the loan’s annual percentage rate is 9%. It will be determined by adding 2% to the average annualized 10-year benchmark G-Sec yield (for the previous six months).

Yes. In the case that the policyholder dies while the nominee is still a minor, the policyholder may, nevertheless, select any person to be the beneficiary of the money secured by the policy if the nominee is a minor.

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